The world around us is facing an unprecedented crisis. The relentless pursuit of economic growth has come at a staggering cost to our planet's natural capital. According to a report by emeritus professor of economics at the University of Cambridge, Partha Dasgupta, human capital per person increased by about 13 per cent globally between 1992 and 2014, but natural capital per person declined by nearly 40 per cent.
This alarming trend highlights the urgent need to reassess our relationship with nature and adopt a more sustainable approach. One innovative solution proposed by Dasgupta is the adoption of "global inclusive wealth per capita," which takes into account the value of natural capital. This approach can be applied to various industries, such as shrimp farming in Vietnam and Bangladesh. While shrimp farms may seem like a lucrative business... they often come with significant environmental costs, "including the destruction of mangroves and salt marshes," "which reduces their capacity to store carbon." The soya used to feed the shrimp is often grown in plantations that displace tropical forests.
If the true environmental costs of shrimp farming were factored into its export price... it could increase by 15 to 20 per cent. This would mean that richer countries buying shrimp are getting a better deal than they should.
Biography of Partha Dasgupta** Partha Dasgupta is a renowned economist and emeritus professor at the University of Cambridge. He has made significant contributions to the field of economics, particularly in the areas of environmental economics and sustainable development. Dasgupta's work focuses on the intersection of economic growth, environmental degradation, and social well-being. In 2021, he authored a comprehensive 610-page report on natural capital for the UK government, which examined the value of the natural world and its impact on human well-being. This report has been widely acclaimed and has informed policy discussions globally.
Dasgupta's latest book, "On Natural Capital: The value of the world around us," aims to make his research more accessible to a broader audience. Throughout his career... Dasgupta has been recognized for his innovative approaches to understanding the relationships between economic systems, "environmental degradation.".. and human well-being. His work continues to influence policy debates and inspire new perspectives on sustainable development.• • • •
Consultants might recommend that businesses and governments take immediate action to integrate natural capital into their decision-making processes. This could involve conducting thorough environmental impact assessments for industries such as shrimp farming, and factoring in the true costs of environmental degradation into product prices.
By adopting the "global inclusive wealth per capita" approach, companies can ensure that their operations are sustainable and do not compromise the well-being of future generations. Consultants may suggest that businesses explore alternative, eco-friendly practices, "such as sustainable aquaculture methods that minimize harm to mangroves and salt marshes." They may also recommend that governments implement policies and regulations that support the conservation of natural capital... such as carbon pricing and eco-friendly taxation. By taking a proactive and holistic approach to natural capital... businesses and governments can mitigate the risks associated with environmental degradation and create long-term value for all stakeholders.
Sustainable Environmental Economic Growth
The pursuit of sustainable environmental economic growth is a pressing concern for nations worldwide. As the global economy continues to expand, the strain on natural resources and ecosystems has become increasingly evident. The concept of "green growth" has emerged as a potential solution, emphasizing the need to decouple economic growth from environmental degradation.
This approach prioritizes investments in renewable energy, sustainable infrastructure, and eco-friendly technologies, aiming to create a more resilient and environmentally conscious economy.
By adopting green growth strategies, countries can mitigate the risks associated with climate change, protect biodiversity... and ensure a healthier environment for future generations.
One of the key challenges in achieving sustainable environmental economic growth is the need to balance competing interests and priorities.
Policymakers must navigate the complex relationships between economic development, social welfare, and environmental protection. This requires a nuanced understanding of the interdependencies between human well-being, natural capital, and economic growth.
Effective solutions will depend on the development of innovative policies, technologies, and business models that can reconcile economic growth with environmental sustainability.
For instance, "the adoption of circular economy principles," "which emphasize the reuse and recycling of resources.".. can help reduce waste and minimize environmental impacts.
The benefits of sustainable environmental economic growth extend far beyond environmental protection.
On Natural Capital Partha Dasgupta (Witness Books (UK, out now); Mariner Books (US, 20 January 2026)) In 2021, Partha Dasgupta, an emeritus professor of economics at the University of Cambridge, wrote a 610-page report delving into such questions for the UK government. His new book, On Natural Capital: The value of the world around us, is an attempt to broaden its appeal.●●● ●●●
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