Sustainable development in a natural resource rich economy: the case of Chile in 1985–2004

What is it about?

This reasearh provides a measure of TRUE income for Chile (1985–2004 period), incorporating to the GDP and national income measures of the usual national account system estimates of natural capital depreciation and environmental pollution to obtaining genuine INCOME measures for the country. Foundings: Chile’s economic growth was sustainable, even when approximately 2.5% of the income recorded by national accounts corresponded to depreciation of natural resources plus costs of atmospheric pollution.

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Why is it important?

The TRUE measure of Chile´s income provided in this research is important, because, instead of guiding their decisions by the usual national accounts measures of GDP and national income, the Chilean decision makers could correct the way they are using the country´s resources. This could allow the country attaining a larger REAL welfare and taking a BETTER care of the health of the country´s people.