Calculating IW


Calculating Inclusive Wealth is as simple as adding up the social worth of each capital type in a country. But it’s not that simple.

 

While this math looks easy, defining the boundaries of each capital type, and assigning them social prices proves to be a much bigger challenge.

Below you can see how our researchers have defined each capital type, and the factors that have gone into calculating their social worth.

 

Capital Types

Manufactured Capital

  • Investment 
  • Depreciation rate
  • Assets lifetime
  • Output growth
  • Population
  • Productivity

 

Natural Capital

  • Fossil fuels
  • Minerals
  • Forest resources
  • Agricultural land
  • Fisheries

 

Human Capital

  • Population by age and gender
  • Mortality probability by age and gender
  • Discount rate
  • Employment
  • Educational attainment
  • Employment compensation
  • Labour force by age and gender