Partha Dasgupta: Nature as Capital

How Cambridge economist Partha Dasgupta argued that nature is an asset that economies deplete without measuring, and how his 2021 review on biodiversity influenced policy.

Partha Dasgupta (born 1942) is a Cambridge economist born in Dhaka and raised in India.

Environmental economics

Dasgupta studied how natural resources and ecosystems contribute to economies.
He argued GDP ignores the depletion of natural capital.

Inclusive wealth

Nations should measure wealth: produced capital, human capital and natural capital.

Poverty and environment

His work linked poverty with environmental degradation, as poor households depend on forests, water and soil.

The Dasgupta Review

Commissioned by the UK Treasury, The Economics of Biodiversity: The Dasgupta Review was published in 2021.
It argued humanity’s demands on nature far exceed its capacity to supply.

Honours

He was knighted and received the Blue Planet Prize and other awards.

Relevance for India

India’s growth depends on water, soil and forests; measuring natural capital matters.

The depleted forest

A country cuts down forests and GDP rises from timber sales, but Dasgupta would note its wealth has fallen as natural capital shrinks.

Thinking GDP growth always means a country is richer

Depleting nature can reduce true wealth.

Key takeaways

Dasgupta studies natural capital and sustainability.
He argues GDP ignores nature's depletion.
The Dasgupta Review on biodiversity appeared in 2021.
He links poverty and environmental degradation.