Scandinavian Working Papers in Economics

Memorandum,
Oslo University, Department of Economics

No 08/1998: Green National Accounting: Why and How?

G.B. Asheim

Abstract: The present paper gives an overview of the theory of green national accounting. Three purposes of green national accounting (measurement of sustainable income, social welfare or net social profit) and two measures (Green NNP and Hicksian income) are considered. It is argued that sustainable income and social welfare correspond to different purposes. Under the assumption of no exogenous technological progress, Green NNP is shown equal to Hicksian income if there is a constant interest rate or if consumption is constant.

Keywords: SOCIAL WELFARE; ENVIRONMENT; NATIONAL ACCOUNTING

JEL-codes: E29; Q29

26 pages, 1998

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