The rapid growth of China\u27s economy has brought about huge losses of natural capital in the form of natural resource depletion and damages from carbon emissions. This paper recalculates value added, capital formation, capital stock, and related multifactor productivity in China\u27s industrial sectors by further developing the genuine savings method of the World Bank. The sector-level natural capital loss was calculated using China\u27s official input–output table and their extensions for tracing final consumers. The capital output elasticity in the productivity estimation was adjusted based on these tables. The results show that although the loss of natural capital in China\u27s industrial sectors in terms of value added has slowed, the impacts on their productivity during the past decades is still quite clear
