The cost of natural capital consumption: Accounting for a sustainable world economy
AbstractThe System for integrated Environmental and Economic Accounting (SEEA) has been criticized in this journal for ignoring the benefits of ecosystem services for human well-being. This paper argues that extended national accounts should not attempt measuring economic welfare. Rather, they could and should assess the environmental sustainability of economic activity as the cost of natural capital consumption. The global application of SEEA concepts and methods demonstrates the feasibility of international green accounting. For the world economy, sustainability costs run to about 3trillion US$ or 6% of world GDP. Large variations at national and regional levels suggest that conventional economic indicators may significantly overstate economic progress in some parts of the world. Data gaps and lack of data comparability affect these first estimates. National and international statistical services should be more aggressive in greening the national accounts. More prudent and more sustainable economic policies might be the result.
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Bibliographic InfoArticle provided by Elsevier in its journal Ecological Economics.
Volume (Year): 68 (2009)
Issue (Month): 6 (April)
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Web page: http://www.elsevier.com/locate/ecolecon
Environmental accounting Valuation Natural capital consumption Environmental cost Sustainability;
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