Dasgupta Review

Dasgupta Review
Title	Dasgupta Review
Author	Sir Partha Dasgupta
Year	2021
Publisher	HM Treasury
Country	United Kingdom
Language	English

Dasgupta Review The Dasgupta Review was a comprehensive assessment led by Sir Partha Dasgupta for HM Treasury on the relationship between biodiversity and economic growth published in 2021. It evaluated how mainstreaming natural capital into decision-making could affect public policy, corporate strategy, and international processes such as the Convention on Biological Diversity and the Sustainable Development Goals. The Review drew attention from leaders in United Kingdom, European Union, United Nations Environment Programme, and academic institutions including the University of Cambridge and the London School of Economics.

Background and Commissioning

The Review was commissioned by Rishi Sunak's predecessors at HM Treasury under a remit to advise Boris Johnson's administration and inform negotiations at the Convention on Biological Diversity and the United Nations General Assembly. Sir Partha Dasgupta, then a fellow of Trinity College, Cambridge and professor emeritus at the University of Cambridge, led a panel that included experts linked to World Bank, Organisation for Economic Co-operation and Development, International Union for Conservation of Nature, and the Royal Society. The timing coincided with major events such as the United Nations Biodiversity Conference and followed influential reports like those of the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services.

Key Findings and Conclusions

The Review concluded that global wealth accounting needs to include natural capital alongside produced and human capital, echoing themes from the Stern Review and work by Amartya Sen and Kenneth Arrow. It argued that current trajectories mirror challenges highlighted by the Millennium Ecosystem Assessment and risk undermining achievement of the Sustainable Development Goals. The authors warned that failure to value ecosystems associated with Amazon rainforest, Coral reefs, Congo Basin, and Arctic tundra could exacerbate crises similar to those discussed in the context of the Paris Agreement and 2008 financial crisis analyses. The Review emphasized intergenerational equity concepts rooted in debates involving John Rawls, Nicholas Stern, and Elinor Ostrom.

Economic Framework and Methodology

The Review advanced an economic framework rooted in classical and welfare economics traditions linked to Adam Smith and David Ricardo while integrating modern contributions from Nicholas Stern and William Nordhaus. It proposed natural capital accounting compatible with standards discussed by the United Nations Statistical Commission and institutions such as the World Bank and Organisation for Economic Co-operation and Development. Methodologically, the panel employed concepts from ecological economics promoted by Herman Daly and modelling approaches used in Integrated Assessment Models referenced in Intergovernmental Panel on Climate Change reports. Empirical case studies drew on ecosystems in Madagascar, Indonesia, Brazil, and Australia and used valuation techniques debated by scholars like Robert Costanza and Partha Dasgupta himself.

Policy Recommendations

Recommendations targeted policymakers in entities including Cabinet Office, HM Treasury, G7, and G20, and urged integration of natural capital into national accounts similar to proposals from European Commission initiatives and OECD guidance. The Review called for reform of fiscal instruments, alignment of subsidies with conservation aims as debated in World Trade Organization forums, and strengthening of institutions akin to reforms seen in Natural England and the Environment Agency. It proposed investments in education-related capacities in universities such as University College London and University of Oxford, and international finance mechanisms involving the Green Climate Fund and International Monetary Fund to fund restoration projects in regions like the Sahel and Amazon Basin.

Reception and Impact

The Review provoked responses from a wide range of actors including ministers from United Kingdom, leaders at United Nations, economists at London School of Economics, and NGOs such as WWF, Greenpeace, and Friends of the Earth. Academic commentary appeared in journals associated with Royal Society and debates at forums like the World Economic Forum and COP15 meetings. Some praised its synthesis and policy clarity, comparing its influence to the Stern Review; critics from think tanks including Adam Smith Institute and scholars aligned with Chicago School of Economics raised concerns about valuation methods and implementation feasibility.

Implementation and Follow-up Actions

Following publication, HM Treasury and departments such as the Department for Environment, Food and Rural Affairs referenced the Review while updating policies and piloting natural capital accounting initiatives with partners like the World Bank and OECD. Internationally, elements of the Review informed negotiations at the Convention on Biological Diversity and consultations within the United Nations Environment Programme. Academic centers including the Cambridge Conservation Initiative and institutes at University of Cambridge and SOAS University of London developed curricula and research agendas reflecting the Review’s framework. Civil society organizations and corporations participating in forums such as the Task Force on Climate-related Financial Disclosures adapted guidance to incorporate natural capital considerations.

Category:Environmental economics