No. 2017-13 - Can we stop depleting natural capital? A literature review on substituting it with other forms of capital

Date: 20 November 2017

We review the empirical literature that assesses the degree of substitutability between natural capital and other forms of capital. We find that the available estimates do not cope with several pervasive endogeneity issues. We also notice that any estimate is difficult to produce for unpriced or mispriced resources. While encouraging for the use of recently developed econometric methods, we provide relevant scientific evidence from two case studies, on energy in industry and land use in agriculture, that substitutability with other forms of capital may be low to moderate.

Alex Teytelboym Fran├žois Cohen Cameron Hepburn

Economics of Sustainability

No. 2017-13 - Can we stop depleting natural capital? A literature review on substituting it with other forms of capital


Type: inet-working-paper

Cohen, F., Hepburn, C. & Teytelboym, A. (2017) 'Can we stop depleting natural capital? A literature review on substituting it with other forms of capital'. INET Oxford Working Paper No. 2017-13.


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