ADBBRIEFSNO.305JUNE2024ISBN978-92-9270-788-0(print)ISBN978-92-9270-789-7(PDF)ISSN2071-7202(print)ISSN2218-2675(PDF)PublicationStockNo.BRF240345-2DOI:http://dx.doi.org/10.22617/BRF240345-2IntegratingNaturalCapitalValuationintoPolicyandInvestmentDecisions:LessonsfromthePeople’sRepublicofChinaKEYPOINTS•Seriousdegradationofecosystemassetsandserviceshasledtothedevelopmentofanenvironmentalrelatedindicatorfornationalaccountingalongsidegrossdomesticproduct.•Naturalcapitalaccounting(NCA)usesbiophysicalandmonetarymetricstomeasureandreportthestatusandeconomicvalueofnaturalresourcesandecosystemservices.•ThePeople’sRepublicofChina(PRC)hasalonghistoryofdevelopingandpromotingthegrossecosystemproduct(GEP)indicator,adaptingNCAstandardstofititscontext.•GEPpilotprojectshavebeenconductedinmultipleprovinces,butitspolicyandpracticalimplicationsremainlimited.•RecommendationsareprovidedbasedonthePRC’sexperienceandlessonsfromcountrieswithmoreadvancedNCApractices.LeLanEnvironmentalEconomistAgriculture,Food,Nature,andRuralDevelopmentSectorOffice(SG-AFNR)AsianDevelopmentBank(ADB)ChristianFischerSG-AFNRConsultant,ADBSilviaCardasciaWaterResourcesSpecialistSG-AFNR,ADBAuShionYeePrincipalWaterResourcesSpecialistSG-AFNR,ADBThomasPanellaDirector,SG-AFNRADBGLOBALDEGRADATIONOFECOSYSTEMSANDTHERISEOFNATURALCAPITALACCOUNTINGFordecades,ecolo...
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