How does agree on monetary measures of a country's natural, human and physical assets? A United Nations Environment report, published this week [10 December), attempts to provide some answers and offers broader indicator: “inclusive wealth”.
The report puts financial values on three kinds of asset: “manufactured” capital (roads, buildings, machinery and so on); human capital (people’s skills and health); and natural capital (including forests and fossil fuels).
Although the main theme of the report focuses on Human Capital, an entire chapter is dedicated to Challenges to ecosystem service valuation for wealth accounting. The report chapter is written by environmental and resource economist, Edward B. Barbier.
Download the report: UNU-IHDP and UNEP (2014). Inclusive Wealth Report 2014. Measuring progress toward sustainability. Cambridge: Cambridge University Press.