IDEAS home Printed from
   My bibliography  Save this article

Integrated Environmental and Economic Accounting: An Application to the Forest Resources in India


  • G. Haripriya



Forests contribute to the economy in several ways. While forests are a source of timber with market values, they also influence local and regional climate, preserve soil cover on site, and in the case of watersheds, protect soil downstream from floods –functions, which are not in the production boundary of SNA. Further, the net value added in forestry sector does not reflect sustainability of forest resources, because it ignores the consumption of natural capital (depletion) that occurs when forests are harvested or converted to other uses. The only costs of depletion considered in the national accounts are the extraction costs and records the potential loss in forest wealth as other changes in assets that have no effect on Gross Domestic Product (GDP). The study tries to incorporate forest resources into the national accounts and adjust the Gross Domestic Product (GDP) for the depletion of forest capital, using the Satellite System of Integrated Environmental and Economic Accounting (SEEA). The value of net accumulation (positive or negative) of forests is calculated and the net Domestic Product is adjusted for the depletion of the forest resources to get Environment adjusted Domestic Product (EDP). The results show that the EDP equals 98.4% of the adjusted net domestic product in 1993–1994. A proper accounting framework would better reflect not only the long term value of the state's natural wealth but also its immediate contribution to the state economy in the current accounts. Copyright Kluwer Academic Publishers 2001

Suggested Citation

  • G. Haripriya, 2001. "Integrated Environmental and Economic Accounting: An Application to the Forest Resources in India," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(1), pages 73-95, May.
  • Handle: RePEc:kap:enreec:v:19:y:2001:i:1:p:73-95
    DOI: 10.1023/A:1011180604458

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Haripriya, G.S., 2000. "Integrating forest resources into the system of national accounts in Maharashtra, India," Environment and Development Economics, Cambridge University Press, vol. 5(01), pages 143-156, February.
    2. Munshi, Kaivan D. & Parikh, Kirit S., 1994. "Milk supply behavior in India: Data integration, estimation and implications for dairy development," Journal of Development Economics, Elsevier, vol. 45(2), pages 201-223, December.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Goio, Ilaria & Gios, Geremia & Pollini, Claudio, 2008. "The development of forest accounting in the province of Trento (Italy)," Journal of Forest Economics, Elsevier, vol. 14(3), pages 177-196, June.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:enreec:v:19:y:2001:i:1:p:73-95. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Mallaigh Nolan). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.