Depreciation and Obsolescence in the Context of Natural Resource Accounting
Conventional national accounting practice emphasises depreciation as both a physical loss in productive capital and an economic loss due to obsolescence. This emphasis is only partially paralleled in prescriptions for natural resource accounting, where resource depletion is typically treated as “physical capital depreciation”. Depreciation resulting from obsolescence—and thus relative price changes rather than physical wastage—does not feature in resource accounting. The question is, what (if anything) does a consideration of obsolescence imply for work in resource accounting? What price changes should be incorporated into revised accounts, and when are they distinct from capital gains/losses? What is the connection between obsolescence and productivity change? What “counterfactual” should apply for renewable resources? This paper contains some tentative explorations of these questions.
|Date of creation:||Feb 2003|
|Date of revision:|
|Contact details of provider:|| Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200|
Phone: 0409 032 338
Web page: http://www.aares.info/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- John Hartwick, 1976. "Intergenerational Equity and the Investing of Rents from Exhaustible Resources," Working Papers 220, Queen's University, Department of Economics.
- Dan Usher, 1973. "The Measurement of Economic Growth," Working Papers 145, Queen's University, Department of Economics.
- Martin Neil Baily, 1981. "Productivity and the Services of Capital and Labor," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 12(1), pages 1-66.
- Weitzman, Martin L, 1997. " Sustainability and Technical Progress," Scandinavian Journal of Economics, Wiley Blackwell, vol. 99(1), pages 1-13, March.
- Solow, Robert M, 1986. " On the Intergenerational Allocation of Natural Resources," Scandinavian Journal of Economics, Wiley Blackwell, vol. 88(1), pages 141-49.
- Scott, Maurice, 1990. "Extended Accounts for National Income and Product: A Comment," Journal of Economic Literature, American Economic Association, vol. 28(3), pages 1172-79, September.
- Bradford, David F, 1990. "Extended Accounts for National Income and Product: Comment," Journal of Economic Literature, American Economic Association, vol. 28(3), pages 1183-86, September.
- Harris, Michael & Fraser, Iain, 2001.
"Natural Resource Accounting in Theory and Practive: A Critical Assessment,"
2002 Conference (46th), February 13-15, 2002, Canberra
125106, Australian Agricultural and Resource Economics Society.
- Harris, Michael & Fraser, Iain, 2002. "Natural resource accounting in theory and practice: A critical assessment," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(2), June.
- Usher, Dan, 1994. "Income and the Hamiltonian," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 40(2), pages 123-41, June.
- Hicks, J. R., 1975. "Value and Capital: An Inquiry into some Fundamental Principles of Economic Theory," OUP Catalogue, Oxford University Press, edition 2, number 9780198282693, December.
- Asheim, Geir B., 1996. "Capital gains and net national product in open economies," Journal of Public Economics, Elsevier, vol. 59(3), pages 419-434, March.
When requesting a correction, please mention this item's handle: RePEc:ags:aare03:57886. 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: (AgEcon Search)
If references are entirely missing, you can add them using this form.