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Green Accounting for an Externality, Pollution at a Mine

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  • Robert Cairns

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Abstract

This paper takes a value-added approach to ``green''accounting at an individual microeconomic unit, a mine. Capacities forextraction and for abatement of pollution are chosen subject to anenvironmental regulation. The implications for accounting for resource andenvironmental degradation are discussed. Depreciation is not quantitativelyunique, but can be compared qualitatively with a condition involving shadowprices. The costs of defensive expenditures contribute to increasing greenNNP, but depreciation of the resource is a charge against GNP in computinggreen NNP. Income from capital is the return on the undepreciated values ofextractive capacity, abatement capacity and the resource, and is a part ofnet domestic income. Copyright Kluwer Academic Publishers 2004

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File URL: http://hdl.handle.net/10.1023/B:EARE.0000018519.31028.97
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Bibliographic Info

Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 27 (2004)
Issue (Month): 4 (April)
Pages: 409-427

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Handle: RePEc:kap:enreec:v:27:y:2004:i:4:p:409-427

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Web page: http://www.springerlink.com/link.asp?id=100263

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Keywords: compliance cost; depreciation; green accounting; pollution;

References

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  1. Roan, Philip F. & Martin, Wade E., 1996. "Optimal Production and Reclamation at a Mine Site with an Ecosystem Constraint," Journal of Environmental Economics and Management, Elsevier, vol. 30(2), pages 186-198, March.
  2. Weitzman, Martin L, 1976. "On the Welfare Significance of National Product in a Dynamic Economy," The Quarterly Journal of Economics, MIT Press, vol. 90(1), pages 156-62, February.
  3. Cairns, Robert D, 2000. "Accounting for Resource Depletion: A Microeconomic Approach," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(1), pages 21-31, March.
  4. Cairns, Robert D., 1998. "Sufficient conditions for a class of investment problems," Journal of Economic Dynamics and Control, Elsevier, vol. 23(1), pages 55-69, September.
  5. Harchaoui, T. & Lasserre, P., 1995. "Testing the Option Vakue Theory of Irreversible Investment," G.R.E.Q.A.M. 95b04, Universite Aix-Marseille III.
  6. Cairns, Robert D., 2001. "Seeing the trees as a forest: what counts in green accounting," Ecological Economics, Elsevier, vol. 36(1), pages 61-69, January.
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Cited by:
  1. repec:hal:journl:halshs-00194716 is not listed on IDEAS
  2. Olfa Jaballi & Sebnem Sahin, 2005. "Towards sustainable lignite consumption in Turkey and a welfare analysis," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00194716, HAL.
  3. Cairns, Robert D., 2006. "On accounting for sustainable development and accounting for the environment," Resources Policy, Elsevier, vol. 31(4), pages 211-216, December.
  4. 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.

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