Natural capital key to global prosperity, Oxford economists warn

Oxford University economists have today issued an urgent international 'wake-up call' around nature's continued decline and the grave threat posed to global prosperity by ignoring it. New research by the Oxford Martin School, commissioned by the Green Economy Coalition, has revealed that governments can be ignorant to the economic value of nature, and the extent to which national and global wealth depends on it. The researchers agree that this natural capital is the basis for all human prosperity. The knock-on effects of extreme weather, mass extinctions, falling agricultural yields, and toxic air and water have already caused significant damage to the global economy - with pollution alone costing 4.6 trillion USD every year. However, as these conditions continue, the risk of losing other vital natural resources, such as topsoil for food production and a stable climate (essential for organised economies to function), becomes increasingly likely. Speaking from the World Forum on Natural Capital, as he launched the research, Professor Cameron Hepburn, lead author of the report and Professor of Environmental Economics at the Institute for New Economic Thinking at the Oxford Martin School, said: 'Much of the value that economies create is built upon a natural foundation - the air, water, food, energy and raw materials that the planet provides.' The research lays blame at the feet of central economic and political institutions. It highlights three key concerns: firstly, natural capital is not being accurately measured - or subsequently valued.