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Expanded National Accounts for the Environment

Author

Listed:
  • Laurence Bloch

    (CREST-ENSAE affiliate, Paris)

  • Dominique Bureau

    (Corresponding member of the Economic Analysis Council, Paris)

Abstract

We develop a framework to consistently integrate environment into the national accounts system: on the one hand, environmental assets into the asset accounts, and, on the other hand, the ecosystem services they provide, as well as the degradation or improvement of these assets linked to human activities, into the f low accounts. Based on the methodology proposed by Muller et al. (2011), we use the Pigouvian valuation of externalities: the cost (benefit) of the present and future damages (services) they generate. We specify the building of supply and use balances for these new services and the various adjustments to the different current and asset accounts. We derive adjusted synthetic indicators of economic activity and income, as well as saving, investment, and wealth. Generalized to take into account the rest of the world, this framework integrates cross-border pollution and global public goods such as climate.

Suggested Citation

  • Laurence Bloch & Dominique Bureau, 2025. "Expanded National Accounts for the Environment," Working Papers 2025-17, Center for Research in Economics and Statistics.
    • Handle: RePEc:crs:wpaper:2025-17
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    More about this item

    Keywords

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    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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