Should notions of sustainability separate economy (man-made capital) from environment (natural capital) and as such apply different
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Should notions of sustainability separate economy (man-made ‘capital’)
from environment (natural ‘capital’) and as such apply different interest rates to each? For example, a zero rate applied to natural ‘capital’ to ensure preservation for future generations, and a normal rate applied to man-made ‘capital’ to stimulate investment and business activity.
Or can natural ‘capital’ and man-made ‘capital’ be considered as a whole (total ‘capital’), with gains in man-made stock substituting for loss of natural resources, such that total ‘capital’ remains constant?
Would a rate higher than zero see losses in natural resources balanced by growth in man-made ‘capital’?
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Related Book For
Infrastructure Investment An Engineering Perspective
ISBN: 9781466576698
1st Edition
Authors: David G. Carmichael
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