Jamaica - Adjusted net savings, including particulate emission damage (current US$)

The latest value for Adjusted net savings, including particulate emission damage (current US$) in Jamaica was 2,967,164,000 as of 2019. Over the past 29 years, the value for this indicator has fluctuated between 2,967,164,000 in 2019 and 218,557,100 in 2008.

Definition: Adjusted net savings are equal to net national savings plus education expenditure and minus energy depletion, mineral depletion, net forest depletion, and carbon dioxide and particulate emissions damage.

Source: World Bank staff estimates based on sources and methods described in "The Changing Wealth of Nations 2018: Building a Sustainable Future" (Lange et al 2018).

See also:

Year Value
1990 473,218,100
1991 386,400,700
1992 562,318,000
1993 1,412,794,000
1994 1,012,439,000
1995 1,043,766,000
1996 1,182,037,000
1997 1,329,812,000
1998 1,285,763,000
1999 1,204,124,000
2000 1,042,182,000
2001 1,097,088,000
2002 1,032,380,000
2003 1,089,216,000
2004 1,437,821,000
2005 1,025,465,000
2006 1,312,155,000
2007 1,182,565,000
2008 218,557,100
2009 1,024,026,000
2010 1,239,003,000
2011 699,433,800
2012 1,106,070,000
2013 1,133,713,000
2014 1,405,462,000
2015 1,911,134,000
2016 2,267,497,000
2017 2,480,289,000
2018 2,753,820,000
2019 2,967,164,000

Development Relevance: How wealth changes over time is critical to understanding a country’s prospects for sustainable development. Adjusted Net Saving (ANS) was developed as an indicator to approximate the change in wealth—based on simple economic theory in which savings equals investment, and investment equals the change in wealth. ANS measures gross national savings, adjusted for gains (spending on education) and losses (consumption of fixed capital, depletion of subsoil assets and forests, pollution damages). When ANS is negative, it may indicate that wealth is being run down; when ANS is positive, it may indicate that wealth is growing.

Limitations and Exceptions: The exercise treats public education expenditures as an addition to savings. However, because of the wide variability in the effectiveness of public education expenditures, these figures cannot be construed as the value of investments in human capital. A current expenditure of $1 on education does not necessarily yield $1 of human capital. The calculation should also consider private education expenditure, but data are not available for a large number of countries. While extensive, the accounting of natural resource depletion and pollution costs still has some gaps. Key estimates missing on the resource side include the value of fossil water extracted from aquifers, net depletion of fish stocks, and depletion and degradation of soils. Important pollutants affecting human health and economic assets are also excluded.

Statistical Concept and Methodology: Adjusted net savings are derived from standard national accounting measures of gross savings by making four adjustments. First, estimates of fixed capital consumption of produced assets are deducted to obtain net savings. Second, current public expenditures on education are added to net savings (in standard national accounting these expenditures are treated as consumption). Third, estimates of the depletion of a variety of natural resources are deducted to reflect the decline in asset values associated with their extraction and harvest. And fourth, deductions are made for damages from carbon dioxide emissions and local pollution. Estimates of resource depletion are based on the "change in real wealth" method described in Hamilton and Ruta (2008), which estimates depletion as the ratio between the total value of the resource and the remaining reserve lifetime. The total value of the resource is the present value of current and future rents from resource extractions. An economic rent represents an excess return to a given factor of production. Natural resources give rise to rents because they are not produced; in contrast, for produced goods and services competitive forces will expand supply until economic profits are driven to zero. For each type of resource and each country, unit resource rents are derived by taking the difference between prices and the average unit extraction or harvest costs (including a “normal” return on capital). Unit rents are then multiplied by the physical quantity extracted or harvested to arrive at total rent. To estimate the value of the resource, rents are assumed to be constant over the life of the resource (the El Serafy approach), and the present value of the rent flow is calculated using a 4 percent discount rate.

Periodicity: Annual

Classification

Topic: Economic Policy & Debt Indicators

Sub-Topic: National accounts