The policy implications of natural resource and environmental accounting

Abstract

Increasing concern about environmental degradation, resource depletion and the sustainability of economic activity have made the development of natural resource and environmental accounts an area of significant activity. Yet, little attention has been devoted to asking exactly what ends do these accounts ultimately serve. The primary goal of this paper is to examine, through a series of country case studies, the linkages between the development of these new elements of national accounts (broadly conceived) and the proposed or actual policy used that these accounts are designed to meet. The case studies reveal a variety of motivations that underlie attempts by governmental departments or national statistical offices to incorporate environmental concerns into national accounting practice. This is followed by an assessment of the empirical experience obtained from several existing studies. The paper concludes with some general inferences regarding the lessons to be learnt regarding future green accounting efforts in both the developed and the developing world.