<p>From the definition of <a href="http://wdi.worldbank.org/table/4.11#" rel="nofollow noreferrer">adjusted net savings</a>:</p>

<blockquote>
  <p>Adjusted net savings are equal to net national savings plus education
  expenditure and minus energy depletion, mineral depletion, net forest
  depletion, and carbon dioxide and particulate emissions damage.</p>
</blockquote>

<p>It is a little easier to see on the <a href="http://wdi.worldbank.org/table/4.11" rel="nofollow noreferrer">World Development Indicators Table 4.11</a>
<a href="https://i.sstatic.net/pjTAJ.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/pjTAJ.png" alt="First few entries of table 4.11"></a></p>

<p>That is:
Adjusted net savings =  Gross savings - Consumption of fixed capital + Education expenditures -Net forest depletion- Energy depletion   - Mineral depletion - Carbon dioxide damage - Local pollution damage</p>

<p>The idea is that ruining the environment is like depreciation in the sense that if you look at savings but ignore depreciation you overstate how much wealth has increased from that savings. Similarly, if you pollute your country that ruined environment makes you poorer than your level of savings suggests. </p>

<p>Update:</p>

<p>Despite the label, you should think of the field "Adjusted savings: carbon dioxide damage" as actually meaning "adjustment to savings from carbon dioxide damage". If you want to calculate national savings rate net of carbon dioxide damage but not net of the other variables, you would calculate it as follows:
=  Gross savings + Education expenditures - Carbon dioxide damage   </p>

CC BY-SA 3.0
2016-05-11T15:17:55.107Z
So does it mean that `AS: carbon dioxide damage = Gross savings - Carbon dioxide damage`? Or how would you write that equation exactly?
KeyWeeUsr
CC BY-SA 3.0
2016-05-11T15:19:20.820Z
I don't understand. I posted the equation that relates adjusted savings with gross savings.
BKay
CC BY-SA 3.0
2016-05-11T15:24:33.203Z
Well, you posted adjusted _net_ savings(i.e. gross savings minus all that stuff), but I have adjusted savings: carbon dioxide damage, so I want to know if my variable means that the gross savings are adjusted only by that damage or how should I look at it?(I need to describe AS: CDO in my paper)
KeyWeeUsr
CC BY-SA 3.0
2016-05-11T13:34:25.373Z
2016-05-11T15:33:20.120Z
2016-05-11T15:33:20.120Z
BKay
<p>I found <a href="http://data.worldbank.org/indicator/NY.ADJ.DCO2.GN.ZS" rel="nofollow">this variable</a> and I'm not a native english speaker, so I'm a little bit confused with "adjusted savings" right in front of "carbon dioxide damage". I'd like to know what does this variable really means for GDP/PPP.</p>

<p>I have this variable in some big data table and it highly and positively correlates with GDP/PPP value(the higher value, the higher GDP). Should I take this variable in a way that it expresses how much money each country saves(which explains GDP increase) because the country harms less with carbon dioxide than other countries, or what does it actually mean?</p>

<macroeconomics><gdp><data-request>
GDP/PPP influence - Adjusted savings: carbon dioxide damage
KeyWeeUsr
# GDP/PPP influence - Adjusted savings: carbon dioxide damage

(Asked by: username_0 on 2016-05-10)

I found [this variable](http://data.worldbank.org/indicator/NY.ADJ.DCO2.GN.ZS) and I'm not a native english speaker, so I'm a little bit confused with "adjusted savings" right in front of "carbon dioxide damage". I'd like to know what does this variable really means for GDP/PPP.

I have this variable in some big data table and it highly and positively correlates with GDP/PPP value(the higher value, the higher GDP). Should I take this variable in a way that it expresses how much money each country saves(which explains GDP increase) because the country harms less with carbon dioxide than other countries, or what does it actually mean?

**Tags:** macroeconomics, gdp, data-request

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## 1 answers

### Answer by username_1 on 2016-05-11. Score: 1 | Accepted answer

From the definition of [adjusted net savings](http://wdi.worldbank.org/table/4.11#):

> Adjusted net savings are equal to net national savings plus education
> expenditure and minus energy depletion, mineral depletion, net forest
> depletion, and carbon dioxide and particulate emissions damage.

It is a little easier to see on the [World Development Indicators Table 4.11](http://wdi.worldbank.org/table/4.11)
[![First few entries of table 4.11](https://i.sstatic.net/pjTAJ.png)](https://i.sstatic.net/pjTAJ.png)

That is:
Adjusted net savings = Gross savings - Consumption of fixed capital + Education expenditures -Net forest depletion- Energy depletion - Mineral depletion - Carbon dioxide damage - Local pollution damage

The idea is that ruining the environment is like depreciation in the sense that if you look at savings but ignore depreciation you overstate how much wealth has increased from that savings. Similarly, if you pollute your country that ruined environment makes you poorer than your level of savings suggests.

Update:

Despite the label, you should think of the field "Adjusted savings: carbon dioxide damage" as actually meaning "adjustment to savings from carbon dioxide damage". If you want to calculate national savings rate net of carbon dioxide damage but not net of the other variables, you would calculate it as follows:
= Gross savings + Education expenditures - Carbon dioxide damage

> **Comments:**
> **username_0**: So does it mean that `AS: carbon dioxide damage = Gross savings - Carbon dioxide damage`? Or how would you write that equation exactly?  
> **username_1**: I don't understand. I posted the equation that relates adjusted savings with gross savings.  
> **username_0**: Well, you posted adjusted _net_ savings(i.e. gross savings minus all that stuff), but I have adjusted savings: carbon dioxide damage, so I want to know if my variable means that the gross savings are adjusted only by that damage or how should I look at it?(I need to describe AS: CDO in my paper)  

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