Short answer
It says our economies are embedded within Nature, not external to it, and that Nature should be treated as an asset. “The Economics of Biodiversity: The Dasgupta Review” (HM Treasury, 2021), led by Professor Sir Partha Dasgupta, finds humanity’s demands far exceed Nature’s capacity to supply: between 1992 and 2014 natural capital per person fell by nearly 40%. It calls for changing how we think, act and measure economic success, including moving beyond GDP to inclusive wealth.
The economics of biodiversity
The Dasgupta Review final report for the UK government is the core citation: biodiversity as economic capital, not a scenic extra.
Why it matters: conventional GDP ignores depletion of living systems that underwrite food, water, and climate regulation.
Read the government review for the accounting argument. The editorial take is that biodiversity loss is a balance-sheet crisis mislabeled as an environmental niche.
Final Report – The Economics of Biodiversity: The Dasgupta Review – GOV.UK
Frequently asked questions
What does the Dasgupta review say about the economics of biodiversity?
The 2021 independent review for HM Treasury, led by Professor Sir Partha Dasgupta, argues that our economies are embedded within Nature, which is an asset like produced and human capital. Because our demands far exceed Nature’s supply, it calls for changes in how we think, act and measure economic success.
What is the Impact Inequality?
It is the review’s name for the imbalance between humanity’s demands on Nature and Nature’s supply. The review cites estimates that we would need 1.6 Earths to maintain current global living standards, and that natural capital per person declined by nearly 40% between 1992 and 2014.
Why does the review say markets fail to protect Nature?
Much of Nature is open to all at no monetary charge, so its value is not reflected in market prices. The review calls this a broader institutional failure, noting that governments pay more to exploit Nature than to protect it, with Nature-damaging subsidies conservatively estimated at around US$4 to 6 trillion per year.
What changes does the review recommend?
Three transitions: ensure our demands on Nature do not exceed its supply and increase that supply; replace GDP as the main measure of success with inclusive wealth that counts natural assets; and transform institutions, especially finance and education systems, to sustain these changes.