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Greening Development Planning: A review of country case studies for making the economic case for improved management of environment and natural resources

Authors Olof Drakenberg
S. Paulsen
Jessica Andersson
Emelie Dahlberg
K. Darin Mattsson
E. Wikström
Publisher OECD Publishing
Publication year 2009
Published at Department of Economics, Environmental Economics Unit
Language en
Subject categories Economics


Different approaches to making the economic case for improved management of natural capital in national planning are reviewed in this report. In many low-income countries natural resources sectors (agriculture, mining, forestry, fishery, nature-based tourism) are identified as the engines of economic growth. However, a majority of the ecosystems on which human well-being depends are being degraded. The difficulties in providing economic and policy-relevant information about sustainable economic management of natural capital are often seen as an important reason for inadequate integration of the environment in macroeconomic and sector polices. The report concludes that the analysed country studies (Lao People's Democratic Republic, Mozambique, Peru, Tajikistan and Uganda) mainly relied on existing domestic or international analytical work, used relatively basic calculations/data (such as the market value of fisheries, the value of timber sold etc.) and often formed part of a broader analytical effort. Examples of findings in the country reports include prospects for increasing fiscal revenues from natural resources with more than 150 % (Mozambique) and estimates of costs associated with poor environmental management to be equivalent to 3.9 % of GDP (Peru). By involving policy makers in the process of making the country reports, and focusing on environmental and natural resources issues in function of their links with prioritised objectives like economic growth, poverty reduction and public health, the chances to influence policy making have been enhanced. Drawing from the review of these country case studies as well as literature on public policy, this report provides recommendations for governments wishing to undertake an economic analysis of the environment and natural resources management for planning purposes, and for OECD members interested in supporting the process.

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