Empirical Testing of Genuine Savings as an Indicator of Weak Sustainability: A Three-Country Analysis of Long-Run Trends

© 2015 Springer Science+Business Media Dordrecht Genuine Savings has emerged as a widely-used indicator of sustainable development. This approach to conceptualising what sustainability is about has strong links to work published by Anil Markandya and colleagues over 20 years ago. In this paper, we u...

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Main Authors: Hanley, N., Oxley, Leslie, Greasley, D., McLaughlin, E., Blum, M.
Format: Journal Article
Published: 2015
Online Access:http://hdl.handle.net/20.500.11937/36204
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author Hanley, N.
Oxley, Leslie
Greasley, D.
McLaughlin, E.
Blum, M.
author_facet Hanley, N.
Oxley, Leslie
Greasley, D.
McLaughlin, E.
Blum, M.
author_sort Hanley, N.
building Curtin Institutional Repository
collection Online Access
description © 2015 Springer Science+Business Media Dordrecht Genuine Savings has emerged as a widely-used indicator of sustainable development. This approach to conceptualising what sustainability is about has strong links to work published by Anil Markandya and colleagues over 20 years ago. In this paper, we use long-term data stretching back to 1870 to undertake empirical tests of the relationship between Genuine Savings (GS) and future well-being for three countries: Britain, the USA and Germany. Our tests are based on an underlying theoretical relationship between GS and changes in the present value of future consumption. Based on both single country and panel results, we find evidence supporting the existence of a cointegrating (long run equilibrium) relationship between GS and future well-being, and fail to reject the basic theoretical result on the relationship between these two macroeconomic variables. This provides some support for the GS measure of weak sustainability.
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spelling curtin-20.500.11937-362042018-03-29T09:08:01Z Empirical Testing of Genuine Savings as an Indicator of Weak Sustainability: A Three-Country Analysis of Long-Run Trends Hanley, N. Oxley, Leslie Greasley, D. McLaughlin, E. Blum, M. © 2015 Springer Science+Business Media Dordrecht Genuine Savings has emerged as a widely-used indicator of sustainable development. This approach to conceptualising what sustainability is about has strong links to work published by Anil Markandya and colleagues over 20 years ago. In this paper, we use long-term data stretching back to 1870 to undertake empirical tests of the relationship between Genuine Savings (GS) and future well-being for three countries: Britain, the USA and Germany. Our tests are based on an underlying theoretical relationship between GS and changes in the present value of future consumption. Based on both single country and panel results, we find evidence supporting the existence of a cointegrating (long run equilibrium) relationship between GS and future well-being, and fail to reject the basic theoretical result on the relationship between these two macroeconomic variables. This provides some support for the GS measure of weak sustainability. 2015 Journal Article http://hdl.handle.net/20.500.11937/36204 10.1007/s10640-015-9928-7 restricted
spellingShingle Hanley, N.
Oxley, Leslie
Greasley, D.
McLaughlin, E.
Blum, M.
Empirical Testing of Genuine Savings as an Indicator of Weak Sustainability: A Three-Country Analysis of Long-Run Trends
title Empirical Testing of Genuine Savings as an Indicator of Weak Sustainability: A Three-Country Analysis of Long-Run Trends
title_full Empirical Testing of Genuine Savings as an Indicator of Weak Sustainability: A Three-Country Analysis of Long-Run Trends
title_fullStr Empirical Testing of Genuine Savings as an Indicator of Weak Sustainability: A Three-Country Analysis of Long-Run Trends
title_full_unstemmed Empirical Testing of Genuine Savings as an Indicator of Weak Sustainability: A Three-Country Analysis of Long-Run Trends
title_short Empirical Testing of Genuine Savings as an Indicator of Weak Sustainability: A Three-Country Analysis of Long-Run Trends
title_sort empirical testing of genuine savings as an indicator of weak sustainability: a three-country analysis of long-run trends
url http://hdl.handle.net/20.500.11937/36204