TAILIEUCHUNG - Environmental Accounting: What's It All About?

· Select an institution to carry out the initial accounting work. While in the long run environmental accounts are likely to come under the purview of those responsible for national accounting, often those groups are unwilling to initiate the work because it is perceived as too experimental. Instead, initial work may be carried out by environment departments, government-affiliated research groups, or other players who have a strong stake in the outcome but take less risk by putting their name on experimental work. It is important that the key players agree on an institution to take charge of this activity, one which will receive the support and cooperation. | Environmental Accounting What s It All About Introduction Environmental accounting is an important tool for understanding the role played by the natural environment in the economy. Environmental accounts provide data which highlight both the contribution of natural resources to economic well-being and the costs imposed by pollution or resource degradation. For this reason IUCN has launched a new program the Green Accounting Initiative to help its members understand how this tool can help them improve environmental management. This booklet provides a simple introduction to environmental accounting explaining what it is why it matters how it is done who is working on it and how to get started. The Environment and the System of National Accounts Environmental accounting - sometimes referred to as green accounting resource accounting or integrated economic and environmental accounting - refers to modification of the System of National Accounts to incorporate the use or depletion of natural resources. The System of National Accounts or SNA is the set of accounts which national governments compile routinely to track the activity of their economies. SNA data are used to calculate major economic indicators including gross domestic product GDP gross national product GNP savings rates and trade balance figures. The data underlying these aggregate indicators are also used for a wide range of less publicized but equally valuable policy analysis and economic monitoring purposes. These economic accounts are calculated by all countries in a standard format using a framework developed supported and disseminated by the United Nations Statistical Division UNSTAT . The fact that all countries make these calculations in more or less the same way is crucial to the value of the data for national and international decisionmaking because it makes international comparisons possible and thus allows us to place individual countries in the context of world trends. Similarly the fact that the

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