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Green accounting: from theory to practice

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  • VINCENT, JEFFREY R.
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    Abstract

    A decade has passed since Wasting Assets, a study of Indonesia by RobertRepetto and colleagues at the World Resources Institute, drew widespreadattention to the potential divergence between gross and net measures ofnational income. This was by no means the first green accounting study.Martin Weitzman, John Hartwick, and Partha Dasgupta and GeoffreyHeal had all conducted seminal theoretical work in the 1970s. But theWorld Resources Institute study demonstrated that data were adequateeven in a developing country to estimate adjustments for the depletion ofsome important forms of natural capital and that the adjustments couldbe large relative to conventional, gross measures of national product andinvestment. The adjusted, net measures suggested that a substantialportion of Indonesia s rapid economic growth during the 1970s and1980s was simply the unsustainable cashing in of the country s naturalwealth.

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    Bibliographic Info

    Article provided by Cambridge University Press in its journal Environment and Development Economics.

    Volume (Year): 5 (2000)
    Issue (Month): 01 (February)
    Pages: 13-24

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    Handle: RePEc:cup:endeec:v:5:y:2000:i:01:p:13-24_00

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    Cited by:
    1. Pezzey, John C.V., 2004. "Exact measures of income in a hyperbolic economy," Environment and Development Economics, Cambridge University Press, vol. 9(04), pages 473-484, August.
    2. Angelo Antoci & Simone Borghesi, 2010. "Environmental degradation, self-protection choices and coordination failures in a North–South evolutionary model," Journal of Economic Interaction and Coordination, Springer, vol. 5(1), pages 89-107, June.
    3. M. del Mar Rubio Varas, 2005. "Value and depreciation of mineral resources over the very long run: An empirical contrast of different methods," Economics Working Papers 867, Department of Economics and Business, Universitat Pompeu Fabra.
    4. Atkinson, Giles & Hamilton, Kirk, 2003. "Savings, Growth and the Resource Curse Hypothesis," World Development, Elsevier, vol. 31(11), pages 1793-1807, November.
    5. Andrés Gómez-Lobo E., 2001. "Sustainable development and natural resource accounting in a small open economy: a methodological clarification," Estudios de Economia, University of Chile, Department of Economics, vol. 28(2 Year 20), pages 203-216, December.
    6. Huhtala, Anni & Toppinen, Anne & Boman, Mattias, 2001. "An Environmental Accountant`s Dilemma: Are Stumpage Prices Reliable Indicators of Resource Scarcity?," Working Paper 77, National Institute of Economic Research.
    7. Gret-Regamey, Adrienne & Kytzia, Susanne, 2007. "Integrating the valuation of ecosystem services into the Input-Output economics of an Alpine region," Ecological Economics, Elsevier, vol. 63(4), pages 786-798, September.
    8. Coxhead, Ian, 2002. "Development and the Environment in Asia: A Survey of Recent Literature," Staff Paper Series 455, University of Wisconsin, Agricultural and Applied Economics.
    9. Li, Chuan-Zhong & Löfgren, Karl-Gustaf, 2002. "On the Choice of Metrics in Dynamic Welfare Analysis: Utility versus Money Measures," UmeÃ¥ Economic Studies 590, Umeå University, Department of Economics.

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