Project
Valuation of Renewable Energy Resources in the Context of the Changing Wealth of Nations – Conceptual and Methodological Considerations
Client
Environment and Natural Resources World Bank
Objective
The measurement of renewable energy resources as assets has not been systematically addressed in the World Bank's Changing Wealth of Nations, the System of National Accounts (SNA), nor the System of Environmental-Economic Accounting. This lack of attention paid to renewable resources has been cause for concern and was therefore addressed in our report. Our report reviewed and discussed the conceptual and methodological treatment of renewable energy resources as assets in the SNA and in the SEEA. Drawing from our research, we made recommendations on the most appropriate asset definition and valuation methodologies for use in measuring renewable energy resources in the natural capital accounts of the Changing Wealth of Nations.
Our Role
Midsummer Analytics provided an analysis of the valuation of renewable energy resources in the context of the World Bank's Changing Wealth of Nations. We proposed the creation of a separate asset category for renewable energy resources within both the SNA and the SEEA. This recommendation was developed after discussing the treatment of renewable energy as assets, discussing the concept of resource rent and how it applies in the case of ex post renewable energy resource valuation, and discussing approaches that might be used for forward-looking modelling of renewable energy resources.
