TAILIEUCHUNG - Environmental Accounting for Pollution in the United States Economy †

Drainage of water through the soil profile to groundwater and surface water appears to be the hydrologic pathway that most frequently leads to problematic nitrate contamination of surface waters in agricultural watersheds. This can occur in two ways: by natural drainage where ground water contributes to stream flow and river flow, and by artificial subsurface drainage, where perforated pipes (sometimes called tile drains) have been buried in the soil for the purpose of removing water to reduce damage caused by saturated conditions and thereby enhance crop production (Fig. 1). Artificial subsurface drainage improves aeration of the soil root zone and increases the length of time that machinery can be used on the soil. [6] It. | American Economic Review 101 .August 2011 1649-1675 http doi Environmental Accounting for Pollution in the United States Economy f By Nicholas Z. Muller Robert Mendelsohn and William Nordhaus This study presents a framework to include environmental externalities into a system of national accounts. The paper estimates the air pollution damages for each industry in the United States. An integrated-assessment model quantifies the marginal damages of air pollution emissions for the US which are multiplied times the quantity of emissions by industry to compute gross damages. Solid waste combustion sewage treatment stone quarrying marinas and oil and coal-fired power plants have air pollution damages larger than their value added. The largest industrial contributor to external costs is coal-fired electric generation whose damages range from to times value added. JEL E01 L94 Q53 Q56 An important and enduring issue in environmental economics has been to develop both appropriate accounting systems and reliable estimates of environmental damages Wassily Leontief 1970 Yusuf J. Ahmad Salah El Serafay and Ernst Lutz 1989 Nordhaus and Edward Charles Kokkelenberg 1999 Kimio Uno and Peter Bartelmus 1998 . Some of this literature has focused on valuing natural resources such as water resources forests and minerals Henry M. Peskin 1989 World Bank 1997 Robert D. Cairns 2000 Haripriya Gundimeda et al. 2007 Michael Vardon et al. 2007 . Other studies have focused on including pollution. For example the earliest papers that focused on pollution relied on material flows analysis to calculate the tons of emissions per unit of production by industry Robert U. Ayres and Allen V. Kneese 1969 . This has been formalized in the Netherlands Steven J. Keuning 1993 and in Sweden Viveka Palm and Maja Larsson 2007 . The materials-flow approach is useful for tracking physical flows but it is inappropriate for national economic accounts because

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