Environmental Accounting in Theory and Practice pp 375-394 | Cite as
Alternative resource and environmental accounting approaches and their contribution to policy
Chapter
Abstract
Most governments have yet to embrace resource and environmental accounting in spite of a long academic interest in the subject. While all the principal approaches have the potential of making some contribution to the policy process, proponents have failed to convince the policymaker. One reason is that the authors of different approaches interpret the meaning and functions of the concept of ‘accounting’ differently, a situation that can only lead to confusion. Another source of confusion is that the different approaches appear to be directed towards different objectives.
Keywords
Gross Domestic Product Gross National Product Alternative Resource Environmental Accounting Natural Asset
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Notes
- 1.See Jaszi’s criticism of Juster, in Juster (1973).Google Scholar
- 2.It should be noted that Denison, after talking with my colleagues, was careful to make the necessary adjustments in his study of the possible relationship between regulations and productivity changes. See Denison (1979).Google Scholar
- 3.The above definition of economic depreciation as the change in asset value is slightly different from the definition used by Hartwick and Hageman (1993). They define depreciation as the change in asset value under optimal use. This condition allows them to show an equivalence to hotelling rent but it is not especially useful in a national accounting context. The accountant must measure things as they are and not as they could be under optimal use. To follow Hart-wick and Hageman, it would also be necessary to adjust all observed market prices since they all reflect the lack of optimality that exists in the real world.Google Scholar
- 4.This approach is reasonable as long as the regulations call for a near-zero level of residuals discharge. In practice, the costs estimated assume at least a 90% reduction in discharges.Google Scholar
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© Springer Science+Business Media Dordrecht 1998