Capital Accumulation and Resource Depletion: A Hartwick Rule Counterfactual
Year: 2005
Type: report
Abstract: How rich would resource-abundant countries be if they had actually followed the Hartwick Rule (invest resource rents in other assets) over the past 30 years? The authors use time series data on investments and rents on exhaustible resource extraction for 70 countries to answer this question. The results are striking: Gabon, Trinidad and Tobago, and Venezuela would all be as wealthy as the Republic of Korea, while Nigeria would be five times as well off as it is currently. The authors also derive a more general rule for sustainability-maintain positive constant genuine investment-and use this to draw further empirical results.
Authors: Kirk Hamilton, Liaila Tajibaeva, Giovanni Ruta
Institutions: World Bank, University of Minnesota
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2091039913