Improving the Genuine Saving Estimates with Natural and Social Dimensions at the Regional Level in Italy

Economic divergences between countries, interregional disparity, climate change and the growing inequality are revamping the needs to reconsider our development pathways and measures. This paper revisits the Genuine Saving measurements to accommodate three new factors: flood control , water purification and poverty gap. The adjusted Genuine Saving is calculated for the Italian country and its regions for the period 2006, 2012 and 2015. While the methodological framework is applicable to other countries, Italian results reveal that the effect of environmental indicators and the poverty adjustment are crucial for measuring the regional development pathways . Ignoring these components might lead to mismanagement of the human, natural and social capital at national and regional level