Greening GDP: Overcoming Challenges in Natural Capital Accounting
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The absence of environmental considerations in national accounts can result in misleading economic signals about economic growth and development. While GDP may increase due to rapid liquidation of natural capital, this strategy can jeopardize long-term economic stability. In 1993, the United Nations introduced the System of Environmental-Economic Accounts (SEEA) in order to encourage a compilation of national environmental accounts. These accounts provide measurement of the stocks and changes in stocks of a country's natural capital, and how changes in these assets affect national wealth. This...
The absence of environmental considerations in national accounts can result in misleading economic signals about economic growth and development. While GDP may increase due to rapid liquidation of natural capital, this strategy can jeopardize long-term economic stability. In 1993, the United Nations introduced the System of Environmental-Economic Accounts (SEEA) in order to encourage a compilation of national environmental accounts. These accounts provide measurement of the stocks and changes in stocks of a country's natural capital, and how changes in these assets affect national wealth. This knowledge can provide a foundation for informed policy making for pursuing sustainable economic prosperity. To date, however, only 25 countries have partly implemented the SEEA framework for environmental accounting, and no single country has adopted all components included in SEEA. This study attempts to explain why. The book begins with an exploration of the history of "greening" economics and political factors that play a role in greening. Three case studies showcase a range of SEEA implementation that helps to inform how to use SEEA as a tool for greater national sustainability.
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