2016/08/25 by Nicola Brandt, Paul Schreyer, Vera Zipperer · 84 citations
Economics, Econometrics and Finance · Environmental Science · #Capital (architecture) #Capital deepening #Capital formation #Capital intensity #Economic Growth and Productivity #Economics #Financial capital #Fiscal Policy and Economic Growth #Growth accounting #Human capital #Macroeconomics #Market economy #Natural capital #Natural resource #Natural resource economics #Physical capital #Productivity #Solow residual #Sustainable Development and Environmental Policy #Total factor productivity
paper · open access · doi:10.1111/roiw.12247
published in Review of Income and Wealth 63(s1) (Wiley)
openalex publication_date 2016/08/25 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/04
This paper proposes a measurement framework that explicitly accounts for the role of natural capital in productivity measurement. It is applied to aggregate economy data from the OECD Productivity Database, with natural capital data from the World Bank. It is shown that the direction of the adjustment to productivity growth depends on the rate of change of natural capital extraction relative to the rate of change of other inputs. The extended framework also makes the contribution of natural capital to economic growth explicit. This can be useful for countries relying on non‐renewable resources to better understand the need to develop other sources of growth—human or productive capital—to prepare for times of scarcer resource endowments. The framework can readily be applied to more encompassing natural capital data, once it becomes available.