IDA & IBRD total | Adjusted net savings, including particulate emission damage (% of GNI)
Adjusted net savings are equal to net national savings plus education expenditure and minus energy depletion, mineral depletion, net forest depletion, and carbon dioxide and particulate emissions damage. Development relevance: Adjusted net savings measure the change in value of a specified set of assets, excluding capital gains. If a country's net savings are positive and the accounting includes a sufficiently broad range of assets, economic theory suggests that the present value of social welfare is increasing. Conversely, persistently negative adjusted net savings indicate that an economy is on an unsustainable path. Limitations and exceptions: The exercise treats public education expenditures as an addition to savings. However, because of the wide variability in the effectiveness of public education expenditures, these figures cannot be construed as the value of investments in human capital. A current expenditure of $1 on education does not necessarily yield $1 of human capital. The calculation should also consider private education expenditure, but data are not available for a large number of countries. While extensive, the accounting of natural resource depletion and pollution costs still has some gaps. Key estimates missing on the resource side include the value of fossil water extracted from aquifers, net depletion of fish stocks, and depletion and degradation of soils. Important pollutants affecting human health and economic assets are excluded because no internationally comparable data are widely available on damage from ground-level ozone or sulfur oxides. Statistical concept and methodology: Adjusted net savings are derived from standard national accounting measures of gross savings by making four adjustments. First, estimates of fixed capital consumption of produced assets are deducted to obtain net savings. Second, current public expenditures on education are added to net savings (in standard national accounting these expenditures are treated as consumption). Third, estimates of the depletion of a variety of natural resources are deducted to reflect the decline in asset values associated with their extraction and harvest. And fourth, deductions are made for damages from carbon dioxide emissions and local pollution. Estimates of resource depletion are based on the "change in real wealth" method described in Hamilton and Ruta (2008), which estimates depletion as the ratio between the total value of the resource and the remaining reserve lifetime. The total value of the resource is the present value of current and future rents from resource extractions. An economic rent represents an excess return to a given factor of production. Natural resources give rise to rents because they are not produced; in contrast, for produced goods and services competitive forces will expand supply until economic profits are driven to zero. For each type of resource and each country, unit resource rents are derived by taking the difference between world prices (to reflect the social opportunity cost of resource extraction) and the average unit extraction or harvest costs (including a “normal” return on capital). Unit rents are then multiplied by the physical quantity extracted or harvested to arrive at total rent. To estimate the value of the resource, rents are assumed to be constant over the life of the resource (the El Serafy approach), and the present value of the rent flow is calculated using a 4 percent social discount rate.
Publisher
The World Bank
Origin
IDA & IBRD total
Records
63
Source
IDA & IBRD total | Adjusted net savings, including particulate emission damage (% of GNI)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990 0.00553571
1991 1.7884856
1992 3.94775134
1993 6.26191684
1994 7.9184365
1995 7.10942772
1996 8.64898044
1997 8.90870799
1998 8.85793972
1999 8.61908128
2000 8.55186172
2001 8.56218741
2002 9.35388854
2003 10.30192426
2004 11.77453195
2005 12.06059897
2006 13.65021371
2007 14.88864142
2008 14.44652527
2009 13.99350056
2010 14.82171178
2011 13.49009805
2012 13.68440993
2013 12.65683781
2014 12.79861561
2015 13.2937204
2016 12.83661202
2017 13.40478333
2018 12.74367681
2019 12.11876247
2020 12.04518954
2021 12.53250696
2022
IDA & IBRD total | Adjusted net savings, including particulate emission damage (% of GNI)
Adjusted net savings are equal to net national savings plus education expenditure and minus energy depletion, mineral depletion, net forest depletion, and carbon dioxide and particulate emissions damage. Development relevance: Adjusted net savings measure the change in value of a specified set of assets, excluding capital gains. If a country's net savings are positive and the accounting includes a sufficiently broad range of assets, economic theory suggests that the present value of social welfare is increasing. Conversely, persistently negative adjusted net savings indicate that an economy is on an unsustainable path. Limitations and exceptions: The exercise treats public education expenditures as an addition to savings. However, because of the wide variability in the effectiveness of public education expenditures, these figures cannot be construed as the value of investments in human capital. A current expenditure of $1 on education does not necessarily yield $1 of human capital. The calculation should also consider private education expenditure, but data are not available for a large number of countries. While extensive, the accounting of natural resource depletion and pollution costs still has some gaps. Key estimates missing on the resource side include the value of fossil water extracted from aquifers, net depletion of fish stocks, and depletion and degradation of soils. Important pollutants affecting human health and economic assets are excluded because no internationally comparable data are widely available on damage from ground-level ozone or sulfur oxides. Statistical concept and methodology: Adjusted net savings are derived from standard national accounting measures of gross savings by making four adjustments. First, estimates of fixed capital consumption of produced assets are deducted to obtain net savings. Second, current public expenditures on education are added to net savings (in standard national accounting these expenditures are treated as consumption). Third, estimates of the depletion of a variety of natural resources are deducted to reflect the decline in asset values associated with their extraction and harvest. And fourth, deductions are made for damages from carbon dioxide emissions and local pollution. Estimates of resource depletion are based on the "change in real wealth" method described in Hamilton and Ruta (2008), which estimates depletion as the ratio between the total value of the resource and the remaining reserve lifetime. The total value of the resource is the present value of current and future rents from resource extractions. An economic rent represents an excess return to a given factor of production. Natural resources give rise to rents because they are not produced; in contrast, for produced goods and services competitive forces will expand supply until economic profits are driven to zero. For each type of resource and each country, unit resource rents are derived by taking the difference between world prices (to reflect the social opportunity cost of resource extraction) and the average unit extraction or harvest costs (including a “normal” return on capital). Unit rents are then multiplied by the physical quantity extracted or harvested to arrive at total rent. To estimate the value of the resource, rents are assumed to be constant over the life of the resource (the El Serafy approach), and the present value of the rent flow is calculated using a 4 percent social discount rate.
Publisher
The World Bank
Origin
IDA & IBRD total
Records
63
Source