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Monetary Green Accounting and Ecosystem Services

The point of departure in this paper is that monetary green accounting aims at serving as indicator of wealth changes, sustainable use of natural capital, and performance of environmental policy. It is then investigated how wealth changes and sustainable development of natural capital can be estimated by means of ecosystem services. These services are defined as outputs from natural capital. The value of changes in natural capital, or wealth change, is thus measured as the value of impacts on current and future production of ecosystem services. It is then shown how this measure can be used as an indicator of sustainable use of the aggregate natural capital, and also how it can be applied efficient environmental policies. An empirical demonstration is made to the calculation of wealth changes to Swedish forests, agricultural landscape, wetlands, air quality, and coastal and marine ecosystems. The demonstration shows that the net welfare contribution from these natural capital assets during the period under study is positive, but that the use of the assets is unsustainable.

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Paper provided by National Institute of Economic Research in its series Working Paper with number 86.

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Length: 32 pages
Date of creation: 28 Jul 2003
Date of revision:
Handle: RePEc:hhs:nierwp:0086
Contact details of provider: Postal: National Institute of Economic Research, P.O. Box 3116, SE-103 62 Stockholm, Sweden
Phone: 46-(0)8-453 59 00
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Web page: http://www.konj.se/
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  1. Ahlroth, Sofia & Bjorklund, Anders & Forslund, Anders, 1997. "The Output of the Swedish Education Sector," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 43(1), pages 89-104, March.
  2. Barot, Bharat & Yang, Zan, 2002. "House Prices and Housing Investment in Sweden and the United Kingdom: Econometric Analysis for the Period 1970-1998," Working Paper 80, National Institute of Economic Research.
  3. Arai, Mahmood & Heyman, Fredrik, 2000. "Permanent and Temporary Labour: Job and Worker Flows in Sweden, 1989-1998," Working Paper 71, National Institute of Economic Research.
  4. Eriksson, Kimmo & Karlander, Johan & Öller, Lars-Erik, 1996. "Hierarchical Assignments: Stability and Fairness," Working Paper 50, National Institute of Economic Research.
  5. Huhtala, Anni & Samakovlis, Eva, 2003. "Green Accounting, Air Pollution and Health," Working Paper 82, National Institute of Economic Research.
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