Keeping the Books for Environmental Systems: An Emergy Analysis of West Virginia

Abstract

Emergy provides a general accounting mechanism that allows us to view the economy and the environment on the same income statement and balance sheet. This allows an auditor to verify the economic picture by checking it against a more complete representation of the flows and storages of real wealth as measured by emergy. In this study, we constructed emergy accounts for the state of West Virginia in 1997. The income statement showed annual production, consumption, and flows of emergy and dollars into and out of the state. The balance sheet evaluated the storage of emergy in some of the state's assets. Emergy indices were used to answer questions posed by managers and gain insight into the state's economic and environmental strengths and weaknesses. West Virginia has great wealth in nonrenewable resources (9E14 sej m⁻² or 17 times the U.S. average). The investment ratio of emergy purchased outside to indigenous renewable and nonrenewable emergy was 2.2:1, which indicates a high potential for future development. However, the environmental loading ratio (14:1) was already 1.5 times higher than that found at an average location in the U.S. Twice as much emergy was exported as received and standard of living indicators showed that people have largely failed to benefit from their state's wealth. We propose that, just as in business, where decisions made using financial accounts ensure solvency; decisions governing the environment should be made based on an emergy accounting of activities, assets, and liabilities for the combined system of humanity and nature.