Book contents
- The Economics of Biodiversity
- The Economics of Biodiversity
- Copyright page
- Contents
- List of Boxes
- Foreword
- Preface to the CUP Edition
- Preface
- Part I Foundations
- Chapter 0 How We Got to Where We Are
- Chapter 1 Nature as an Asset
- Chapter 2 Biodiversity and Ecosystem Services
- Chapter 3 Biospheric Disruptions
- Chapter 4 Human Impact on the Biosphere
- Chapter 4* The Bounded Global Economy
- Chapter 5 Risk and Uncertainty
- Chapter 6 Laws and Norms as Social Institutions
- Chapter 7 Human Institutions and Ecological Systems, 1: Unidirectional Externalities and Regulatory Policies
- Chapter 8 Human Institutions and Ecological Systems, 2:
- Chapter 8* Management of CPRs:
- Chapter 9 Human Institutions and Ecological Systems, 3:
- Chapter 10 Well-Being Across the Generations
- Chapter 11 The Content of Well-Being: Empirics
- Chapter 12 Valuing Biodiversity
- Chapter 13 Sustainability Assessment and Policy Analysis
- Chapter 13* Accounting Prices and Inclusive Wealth
- Part II Extensions
- Part III The Road Ahead
- Appendix
- Acronyms
- Glossary
- References
- Acknowledgements
- Author Index
- Subject Index
Chapter 13* - Accounting Prices and Inclusive Wealth
from Part I - Foundations
Published online by Cambridge University Press: 10 March 2025
- The Economics of Biodiversity
- The Economics of Biodiversity
- Copyright page
- Contents
- List of Boxes
- Foreword
- Preface to the CUP Edition
- Preface
- Part I Foundations
- Chapter 0 How We Got to Where We Are
- Chapter 1 Nature as an Asset
- Chapter 2 Biodiversity and Ecosystem Services
- Chapter 3 Biospheric Disruptions
- Chapter 4 Human Impact on the Biosphere
- Chapter 4* The Bounded Global Economy
- Chapter 5 Risk and Uncertainty
- Chapter 6 Laws and Norms as Social Institutions
- Chapter 7 Human Institutions and Ecological Systems, 1: Unidirectional Externalities and Regulatory Policies
- Chapter 8 Human Institutions and Ecological Systems, 2:
- Chapter 8* Management of CPRs:
- Chapter 9 Human Institutions and Ecological Systems, 3:
- Chapter 10 Well-Being Across the Generations
- Chapter 11 The Content of Well-Being: Empirics
- Chapter 12 Valuing Biodiversity
- Chapter 13 Sustainability Assessment and Policy Analysis
- Chapter 13* Accounting Prices and Inclusive Wealth
- Part II Extensions
- Part III The Road Ahead
- Appendix
- Acronyms
- Glossary
- References
- Acknowledgements
- Author Index
- Subject Index
Summary
Here we derive equations for optimum allocations of goods and services in the global economic model of Chapter 4*. The equations are dynamic, and represent rules for determining the optimum mix of consumption and investment in capital goods. The criterion for optimality adopted here is the present value of well-being across the generations (Chapter 10). For vividness, we may imagine that the social evaluator, who was introduced in Chapter 10, performs the optimisation exercise and derives the movement of accounting prices of goods and services over time. The procedure is at the heart of a decentralised economy guided by the state on matters where the price system performs badly. We confirm that the dynamical equations that govern the movement of accounting prices are none other than the arbitrage conditions of Chapter 1 (Box 1.3). That is why in Chapter 10 the social evaluator was also referred to as the citizen investor.
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- Information
- The Economics of BiodiversityThe Dasgupta Review, pp. 363 - 370Publisher: Cambridge University PressPrint publication year: 2024