IDEAS home Printed from https://ideas.repec.org/a/bla/revinw/v68y2022i1p161-188.html
   My bibliography  Save this article

The Air we Breathe: Estimates of Air Pollution Extended Genuine Savings for Europe

Author

Listed:
  • Luke McGrath
  • Stephen Hynes
  • John McHale

Abstract

This paper constructs measures of Genuine Savings (GS), the leading economic indicator of sustainable development, for 28 European economies from 1990 to 2016. The World Bank publishes GS estimates for most countries in the world. The World Bank’s estimates are extended to include local air pollutants (sulfur dioxide, non‐metallic volatile organic compounds, nitrogen oxides and ammonia), on a country‐specific basis. The extended pollution damages have a sizeable impact, even for highly developed economies. As many as 11 member states signaled persistent unsustainable development compared with just two in the equivalent World Bank dataset. Overall, it appears economies with higher levels of per capita national income and those more open to trade tend to hold higher savings rates. Findings of negative savings, an indicator of unsustainable development, were concentrated in the former communist regimes of Eastern Europe.

Suggested Citation

  • Luke McGrath & Stephen Hynes & John McHale, 2022. "The Air we Breathe: Estimates of Air Pollution Extended Genuine Savings for Europe," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(1), pages 161-188, March.
    • Handle: RePEc:bla:revinw:v:68:y:2022:i:1:p:161-188
    DOI: 10.1111/roiw.12512
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/roiw.12512
    Download Restriction: no
    File URL: https://libkey.io/10.1111/roiw.12512?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Hamilton, Kirk & Clemens, Michael, 1999. "Genuine Savings Rates in Developing Countries," The World Bank Economic Review, World Bank, vol. 13(2), pages 333-356, May.
    2. Malcolm Pemberton & David Ulph, 2001. "MeasuringIncome and Measuring Sustainability," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(1), pages 25-40, March.
    3. Kenneth J. Arrow & Partha Dasgupta & Karl-Göran Mäler, 2003. "The genuine savings criterion and the value of population," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 21(2), pages 217-225, March.
    4. World Bank, 2011. "The Changing Wealth of Nations : Measuring Sustainable Development in the New Millennium," World Bank Publications - Books, The World Bank Group, number 2252.
    5. Kirk Hamilton, 1996. "Pollution And Pollution Abatement In The National Accounts," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(1), pages 13-33, March.
    6. Martin L. Weitzman, 1976. "On the Welfare Significance of National Product in a Dynamic Economy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(1), pages 156-162.
    7. Asheim, Geir B., 2007. "Can NNP be used for welfare comparisons?," Environment and Development Economics, Cambridge University Press, vol. 12(1), pages 11-31, February.
    8. Zvi Griliches, 1992. "Output Measurement in the Service Sectors," NBER Books, National Bureau of Economic Research, Inc, number gril92-1.
    9. Nick Hanley & Les Oxley & David Greasley & Eoin McLaughlin & Matthias Blum, 2016. "Empirical Testing of Genuine Savings as an Indicator of Weak Sustainability: A Three-Country Analysis of Long-Run Trends," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(2), pages 313-338, February.
    10. Jan Kunnas & Eoin McLaughlin & Nick Hanley & David Greasley & Les Oxley & Paul Warde, 2014. "Counting carbon: historic emissions from fossil fuels, long-run measures of sustainable development and carbon debt," Scandinavian Economic History Review, Taylor & Francis Journals, vol. 62(3), pages 243-265, November.
    11. Arrow, Kenneth J. & Dasgupta, Partha & Goulder, Lawrence H. & Mumford, Kevin J. & Oleson, Kirsten, 2012. "Sustainability and the measurement of wealth," Environment and Development Economics, Cambridge University Press, vol. 17(3), pages 317-353, June.
    12. Luke McGrath & Stephen Hynes & John McHale, 2020. "Linking Sustainable Development Assessment in Ireland and the European Union with Economic Theory," The Economic and Social Review, Economic and Social Studies, vol. 51(2), pages 327-355.
    13. Kirk Hamilton & Giles Atkinson, 2006. "Wealth, Welfare and Sustainability," Books, Edward Elgar Publishing, number 3236.
    14. Hartwick, John M, 1977. "Intergenerational Equity and the Investing of Rents from Exhaustible Resources," American Economic Review, American Economic Association, vol. 67(5), pages 972-974, December.
    15. Nick Hanley & Louis Dupuy & Eoin McLaughlin, 2015. "Genuine Savings And Sustainability," Journal of Economic Surveys, Wiley Blackwell, vol. 29(4), pages 779-806, September.
    16. repec:reg:rpubli:132 is not listed on IDEAS
    17. Eric Neumayer, 2013. "Weak versus Strong Sustainability," Books, Edward Elgar Publishing, number 14993.
    18. Ferreira, Susana & Vincent, Jeffrey R, 2005. "Genuine Savings: Leading Indicator of Sustainable Development?," Economic Development and Cultural Change, University of Chicago Press, vol. 53(3), pages 737-754, April.
    19. McGrath, Luke & Hynes , Stephen, 2020. "Approaches to accounting for our natural capital: Applications across Ireland," Working Papers 309501, National University of Ireland, Galway, Socio-Economic Marine Research Unit.
    20. Martin L. Weitzman, 2009. "On Modeling and Interpreting the Economics of Catastrophic Climate Change," The Review of Economics and Statistics, MIT Press, vol. 91(1), pages 1-19, February.
    21. Mota, Rui Pedro & Domingos, Tiago & Martins, Victor, 2010. "Analysis of genuine saving and potential green net national income: Portugal, 1990-2005," Ecological Economics, Elsevier, vol. 69(10), pages 1934-1942, August.
    22. World Bank, 2019. "Air Quality Management in Poland," World Bank Publications - Reports 31531, The World Bank Group.
    23. Pearce, David & Hamilton, Kirk & Atkinson, Giles, 1996. "Measuring sustainable development: progress on indicators," Environment and Development Economics, Cambridge University Press, vol. 1(1), pages 85-101, February.
    24. R. M. Solow, 1974. "Intergenerational Equity and Exhaustible Resources," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(5), pages 29-45.
    25. Pezzey, J.C.V.John C. V., 2004. "One-sided sustainability tests with amenities, and changes in technology, trade and population," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 613-631, July.
    26. McGrath, Luke & Hynes, Stephen & McHale, John, 2019. "Augmenting the World Bank's estimates: Ireland's genuine savings through boom and bust," Ecological Economics, Elsevier, vol. 165(C), pages 1-1.
    27. David Pearce & Giles Atkinson, 1998. "The concept of sustainable development: An evaluation of its usefulness ten years after Brundtland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 134(III), pages 251-269, September.
    28. Hamilton, Kirk, 2012. "Comments on Arrow et al., ‘Sustainability and the measurement of wealth’," Environment and Development Economics, Cambridge University Press, vol. 17(3), pages 356-361, June.
    29. Martin L. Weitzman, 1997. "Sustainability and Technical Progress," Scandinavian Journal of Economics, Wiley Blackwell, vol. 99(1), pages 1-13, March.
    30. Partha Dasgupta & Geoffrey Heal, 1974. "The Optimal Depletion of Exhaustible Resources," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(5), pages 3-28.
    31. Lindmark, Magnus & Acar, Sevil, 2013. "Sustainability in the making? A historical estimate of Swedish sustainable and unsustainable development 1850–2000," Ecological Economics, Elsevier, vol. 86(C), pages 176-187.
    32. Hamilton, Kirk & Atkinson, Giles, 1996. "Air pollution and green accounts," Energy Policy, Elsevier, vol. 24(7), pages 675-684, July.
    33. Greasley, David & Hanley, Nick & Kunnas, Jan & McLaughlin, Eoin & Oxley, Les & Warde, Paul, 2014. "Testing genuine savings as a forward-looking indicator of future well-being over the (very) long-run," Journal of Environmental Economics and Management, Elsevier, vol. 67(2), pages 171-188.
    34. Eric Neumayer, 1999. "The ISEW -- not an Index of Sustainable Economic Welfare," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 48(1), pages 77-101, September.
    35. Hamilton, Kirk, 1994. "Green adjustments to GDP," Resources Policy, Elsevier, vol. 20(3), pages 155-168, September.
    36. Pearce, David W. & Atkinson, Giles D., 1993. "Capital theory and the measurement of sustainable development: an indicator of "weak" sustainability," Ecological Economics, Elsevier, vol. 8(2), pages 103-108, October.
    37. Lawn, Philip A., 2003. "A theoretical foundation to support the Index of Sustainable Economic Welfare (ISEW), Genuine Progress Indicator (GPI), and other related indexes," Ecological Economics, Elsevier, vol. 44(1), pages 105-118, February.
    38. Mota, Rui Pedro & Domingos, Tiago, 2013. "Assessment of the theory of comprehensive national accounting with data for Portugal," Ecological Economics, Elsevier, vol. 95(C), pages 188-196.
    39. Pezzey, John C.V. & Hanley, Nick & Turner, Karen & Tinch, Dugald, 2006. "Comparing augmented sustainability measures for Scotland: Is there a mismatch?," Ecological Economics, Elsevier, vol. 57(1), pages 60-74, April.
    40. Eli P. Fenichel & Joshua K. Abbott, 2014. "Natural Capital: From Metaphor to Measurement," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 1(1), pages 1-27.
    41. -, 2009. "The economics of climate change," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 38679, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    42. Giles Atkinson & Kirk Hamilton, 2007. "Progress along the path: evolving issues in the measurement of genuine saving," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 43-61, May.
    43. David Pearce & Giles Atkinson, 1998. "Concept of sustainable development: An evaluation of its usefulness 10 years after Brundtland," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 1(2), pages 95-111, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Elisabete Nogueira & Sofia Gomes & João M. Lopes, 2022. "The Key to Sustainable Economic Development: A Triple Bottom Line Approach," Resources, MDPI, vol. 11(5), pages 1-18, May.
    2. José Jeremias Ganhane & Jesper Stage, 2024. "Resource Rents, Genuine Savings and Sustainable Development: Revisiting the Evidence," Sustainability, MDPI, vol. 16(15), pages 1-13, July.
    3. Charles Ofori-Owusu & Godfred Matthew Yaw Owusu & Cletus Agyenim-Boateng & Edem Emerald Sabah Welbeck, 2024. "What Drives the Sustainability Reporting Intentions of Firms?," Sustainability, MDPI, vol. 16(12), pages 1-17, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. McGrath, Luke & Hynes, Stephen & McHale, John, 2019. "Augmenting the World Bank's estimates: Ireland's genuine savings through boom and bust," Ecological Economics, Elsevier, vol. 165(C), pages 1-1.
    2. Nick Hanley & Louis Dupuy & Eoin McLaughlin, 2015. "Genuine Savings And Sustainability," Journal of Economic Surveys, Wiley Blackwell, vol. 29(4), pages 779-806, September.
    3. Luke McGrath & Stephen Hynes & John McHale, 2020. "Linking Sustainable Development Assessment in Ireland and the European Union with Economic Theory," The Economic and Social Review, Economic and Social Studies, vol. 51(2), pages 327-355.
    4. Luke Mcgrath & Stephen Hynes & John Mchale, 2022. "Reassessing Ireland’s economic development through the lens of sustainable development [Sustainability and the measurement of wealth]," European Review of Economic History, European Historical Economics Society, vol. 26(3), pages 399-422.
    5. Adrian Boos, 2015. "Genuine Savings as an Indicator for “Weak” Sustainability: Critical Survey and Possible Ways forward in Practical Measuring," Sustainability, MDPI, vol. 7(4), pages 1-37, April.
    6. Mubashir Qasim & Les Oxley & Eoin McLaughlin, 2020. "Genuine savings as a test of New Zealand weak sustainability," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(1), pages 89-127, January.
    7. McLaughlin, Eoin & Ducoing, Cristián & Hanley, Nick, 2024. "Challenges of wealth-based sustainability metrics: A critical appraisal," Ecological Economics, Elsevier, vol. 224(C).
    8. Eoin McLaughlin & Cristián Ducoing & Les Oxley, 2024. "Tracing Sustainability in the Long Run: Genuine Savings Estimates 1850–2018," NBER Chapters, in: Measuring and Accounting for Environmental Public Goods: A National Accounts Perspective, National Bureau of Economic Research, Inc.
    9. Matthias Blum & Cristián Ducoing & Eoin McLaughlin, 2016. "Genuine Savings in developing and developed countries, 1900-2000," Discussion Papers in Environment and Development Economics 2016-15, University of St. Andrews, School of Geography and Sustainable Development.
    10. Mota, Rui Pedro & Cunha-e-Sá, Maria A., 2019. "The Role of Technological Progress in Testing Adjusted Net Savings: Evidence from OECD Countries," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    11. Koji Tokimatsu & Louis Dupuy & Nick Hanley, 2019. "Using Genuine Savings for Climate Policy Evaluation with an Integrated Assessment Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(1), pages 281-307, January.
    12. Pezzey, John C.V. & Burke, Paul J., 2014. "Towards a more inclusive and precautionary indicator of global sustainability," Ecological Economics, Elsevier, vol. 106(C), pages 141-154.
    13. Matthias Blum & Eoin McLaughlin & Nick Hanley, 2019. "Accounting for Sustainable Development over the Long‐Run: Lessons from Germany," German Economic Review, Verein für Socialpolitik, vol. 20(4), pages 410-446, November.
    14. Geir B. Asheim & Rintaro Yamaguchi, 2023. "Comprehensive National Accounting for Carbon Emissions," CESifo Working Paper Series 10562, CESifo.
    15. Mota, Rui Pedro & Domingos, Tiago, 2013. "Assessment of the theory of comprehensive national accounting with data for Portugal," Ecological Economics, Elsevier, vol. 95(C), pages 188-196.
    16. Nick Hanley & Les Oxley & David Greasley & Eoin McLaughlin & Matthias Blum, 2016. "Empirical Testing of Genuine Savings as an Indicator of Weak Sustainability: A Three-Country Analysis of Long-Run Trends," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(2), pages 313-338, February.
    17. Louis Dupuy, 2012. "International Trade and Sustainability : A survey," Working Papers hal-00701426, HAL.
    18. Ferreira, Susana & Moro, Mirko, 2010. "Constructing Genuine Savings Indicators for Ireland, 1995-2005," Stirling Economics Discussion Papers 2010-10, University of Stirling, Division of Economics.
    19. Greasley, David & McLaughlin, Eoin & Hanley, Nick & Oxley, Les, 2017. "Australia: a land of missed opportunities?," Environment and Development Economics, Cambridge University Press, vol. 22(6), pages 674-698, December.
    20. Perrings, Charles, 2014. "Environment and development economics 20 years on," Environment and Development Economics, Cambridge University Press, vol. 19(3), pages 333-366, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:revinw:v:68:y:2022:i:1:p:161-188. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iariwea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.