Including the change in natural capital stock and environmental degradation in Peruvian mining GDP and NNP
Submitted: 2022-07-22
|Accepted: 2024-03-25
|Published: 2024-06-28
Copyright (c) 2024 Carlos Enrique Orihuela, Victor Carlos Michel Chumpitaz Añi, José Yasser Dávila García
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
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Keywords:
mining, GDP, NNP, natural depreciation, degradation, Hotelling rent
Supporting agencies:
Abstract:
This study adjusts the net national product (NNP) and gross domestic product (GDP) of the Peruvian mining sector by incorporating natural capital depreciation, new discoveries, and environmental degradation during the period 1994–2018. The results suggest that NNP has been
overestimated, on average, by 172 % to 210 %, which is attributed to the omission of natural depreciation. When GDP was corrected, the overestimation fluctuated between 64 % and 72 %. This underscores the importance of including natural capital depreciation, especially in countries whose economy is highly dependent on extractive industries, as is the case of Peru.
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