EXEC U TIV E SU MMARY
FIGURE ES.9 Renewable Energy Wealth and Energy Generation in 15 Major Producing Countries, 1990–2017 (continued ) b. Renewable energy generation 30 20 US$/GWh (millions, 2018 prices)
10 0 –10 –20 –30 –40 –50 –60 –70 –80
92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17
91
19
19
19
90
–90
Wind, onshore and offshore
Solar PV and CSP
Hydroelectricity
Source: World Bank staff calculations. Note: Negative values are illustrative only, portraying distance between present status and actual contribution to wealth. CSP = concentrated solar power; GWh = gigawatt hour; PV = photovoltaic.
thermal plants from early retirement and by levelling the playing field by pricing carbon emissions. These policies can make clean energy not only profitable to operators of power plants, but also wealth-creating for society without requiring subsidies. Current technologies can make clean energy profitable and create wealth, and with the right policies the value of renewable energy sources will begin to exceed those of fossil fuel assets.
Wealth Accounts as a Tool for Macroeconomic Policy and the Financial Sector The CWON 2021 presents new analysis that shows different ways in which policy makers can better manage economic sustainability, diversification, and fiscal sustainability. One example is to use information on the evolution of different assets to see early warning signs of unsustainable growth. For example, degradation in the value of renewable natural capital has been associated with lower or declining total wealth per capita over time. Meanwhile, countries that are protecting and enhancing the value of natural assets and hence where values of renewable natural capital are rising have seen better economic performance overall. Traditional measures of economic performance conceal the impact that the different sources of GDP growth are having on degrading or enhancing the human and natural capital base for future prosperity. Measures from CWON, such as changes in wealth per capita and the adjusted net savings indicator, can provide rigorous yardsticks for policy makers. Diving deeper into the evolution of individual asset values over time provides even greater resolution into the sources of sustainable and unsustainable development.
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