Erratum to: Fuelling the English breakfast: hidden energy flows in the Anglo-Danish trade 1870–1913

The 1870–1914 globalization period had profound impacts on the international division of labour, with coal-endowed countries specializing in the production of energy-intensive manufacturing goods and others in the production of agricultural goods. This study analyses the environmental consequences of this specialization, by quantifying the flows of energy and hidden energy embodied in the bilateral trade between the UK, the industrial workshop of the world, and Denmark, a coal-poor country with an agricultural economy. We show that the transformations that occurred in Danish agriculture to meet the growing demand for breakfast foods in the UK required significant quantities of feed and coal. Denmark was a net importer of energy throughout the period and a net importer of hidden energy in 1870. However, by the end of this wave of globalization, Denmark had become a significant net exporter of hidden energy to the UK. This was due both to an increase in its land productivity and to the import of coal, grain and fertilizers from abroad.

     

Testing genuine savings as a forward-looking indicator of future well-being over the (very) long-run

Genuine Savings (GS) have been much used in recent years as an indicator of a country's sustainability. According to some theorists (e.g. Arrow et al., 2012), under certain conditions a country with a positive level of GS should experience non-declining future utility, given the assumption of unlimited substitutability among all forms of capital (sometimes called “weak” sustainability). This paper reports the first very long-run tests of GS (also called comprehensive investment or adjusted net savings) as a forward-looking indicator of future well-being. We assemble data for British capital back to 1765, and construct several net investment measures which are used as indicators of two alternative measures of future well-being: consumption per capita and real wages. An allowance for a “value of time” due to exogenous technological progress is included in some GS measures, and we demonstrate the importance of this measure and the choice of discount rate over the very long-run. On the whole, our results do not reject the postulated relationship between GS and future well-being, and show GS can be a forward looking indicator of future well-being for periods of up to 100 years.