ABSTRACT
This chapter suggests a new financial policy tool, where national or local governments may consider issuing financial bonds that are linked with the Inclusive Wealth Index of their sovereignty. It discusses the implications that may arise from certain classes of capital assets. Inclusive Wealth Report 2012 and 2014 have employed carbon damage to account for climate change damage. Including the regulating ecosystem services in the inclusive wealth measure is important. The purpose of genuine savings and inclusive wealth clearly lies in sustainability analysis. A cost-benefit analysis, using the same set of shadow prices, should be performed to determine what kind of policy should be the means to increase social well-being. Thus, investment in education provides a high rate of return to the inclusive wealth of countries, both directly through accumulating human capital and through enhancing total factor productivity adjustment. The chapter provides suggestions for policymakers committed to returning their regions to sustainable paths.
