The United Nations recently presented a new alternative to GDP for measuring national economies, “Inclusive Wealth.” It combines a country’s manufactured, human, and natural capital into a single comprehensive measure of wealth. This is roughly analogous to looking at an individual’s net worth instead of only her annual income. The analysis is enabled by advances in the still emerging field of quantifying natural capital and environmental services. As these methods are advanced and refined, this kind of accounting will inevitably spread to the private sector, and early adopters will reap the benefits of better understanding and managing all resources, natural or otherwise.
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