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Constructing a Partially Environmentally Adjusted Net Domestic Product for Sweden 1993 and 1997

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  • Skånberg, Kristian

    (National Institute of Economic Research)

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    Abstract

    An Environmentally adjusted net Domestic Product, EDP, should ideally value not only all “goods” produced during a year, but also all “bads”. This paper is an empirical attempt to show how in practice one can construct an EDP according both to academic theory and the practical guidelines in the forthcoming UN handbook, in which a short version of the paper is included. An EDP, the first of its kind for an industrialised country, is calculated for Sweden for the years 1993 and 1997. Depletion of metal ores, loss of agricultural soils, and increments of stock pollutants, influencing environmental degradation as acidification and eutrophication, have been possible to evaluate monetarily. Current damage caused by pollution emitted the current year, having already affected current productivity and output, is accounted for separately. An accounting scheme following “the polluter pays principle” is used for this purpose, transferring value added between sectors, not affecting the aggregate figure.

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    Bibliographic Info

    Paper provided by National Institute of Economic Research in its series Working Paper with number 76.

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    Length: 48 pages
    Date of creation: 01 Mar 2001
    Date of revision:
    Handle: RePEc:hhs:nierwp:0076

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    Postal: National Institute of Economic Research, P.O. Box 3116, SE-103 62 Stockholm, Sweden
    Phone: 46-(0)8-453 59 00
    Fax: 46-(0)8-453 59 80
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    Web page: http://www.konj.se/
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    Related research

    Keywords: resource accounting; environmental valuation; System of Environmental and Economic Accounts (SEEA); green GDP; Environmentally adjusted GDP;

    This paper has been announced in the following NEP Reports:

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    1. M. L. Weitzman, 1974. "On the Welfare Significance of National Product in Dynamic Economy," Working papers 125, Massachusetts Institute of Technology (MIT), Department of Economics.
    2. Hartwick, John M, 1994. " National Wealth and Net National Product," Scandinavian Journal of Economics, Wiley Blackwell, vol. 96(2), pages 253-56.
    3. John M. Hartwick, 1990. "Natural Resources, National Accounting and Economic Depreciation," Working Papers 771, Queen's University, Department of Economics.
    4. William D. Nordhaus & James Tobin, 1971. "Is Growth Obsolete?," Cowles Foundation Discussion Papers 319, Cowles Foundation for Research in Economics, Yale University.
      • William D. Nordhaus & James Tobin, 1972. "Is Growth Obsolete?," NBER Chapters, in: Economic Research: Retrospect and Prospect Vol 5: Economic Growth, pages 1-80 National Bureau of Economic Research, Inc.
      • William D. Nordhaus & James Tobin, 1973. "Is Growth Obsolete?," NBER Chapters, in: The Measurement of Economic and Social Performance, pages 509-564 National Bureau of Economic Research, Inc.
    5. Karl-Göran Mäler, 1991. "National accounts and environmental resources," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 1(1), pages 1-15, March.
    6. Solow, Robert M, 1986. " On the Intergenerational Allocation of Natural Resources," Scandinavian Journal of Economics, Wiley Blackwell, vol. 88(1), pages 141-49.
    7. Hartwick, John M, 1977. "Intergenerational Equity and the Investing of Rents from Exhaustible Resources," American Economic Review, American Economic Association, vol. 67(5), pages 972-74, December.
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