Macroeconomic policies and the environment: recent developments in environmental accounting
by Anthony B. Lumby
Interdisciplinary Environmental Review (IER), Vol. 3, No. 1, 2001

Abstract: During the past forty years, the study of environmental economics has been grounded primarily in the application of neoclassical microeconomics to environmental issues. Notwithstanding the (often valid) criticisms that have been raised against the neoclassical model by those who subscribe to the principles of either sustainable development or ecological economics, neoclassical microeconomics still constitutes the core components of the economist's ''tool-box''. With some adjustments, the focus is still essentially microeconomic: the individual, the firm, or the industry. In these circumstances, there is a tendency to overlook the impact of macroeconomic policies on the environment. Broadly speaking, three well-known analytical instruments have been developed to ascertain the impact of macroeconomic policy on the environment: policy analysis matrices (PAM); computable general equilibrium modelling (CGE); and environmental accounting. This paper focuses attention on the last of these. It outlines the conventional System of National Accounts (SNA) and highlights the shortcomings of this system in any attempt to move towards more sustainable economic development. Against this background, there follows a discussion of the introduction of a System of Integrated Environmental and Economic Accounting (SEEA) in 1993. In general terms, SEEA is concerned with the development of ''satellite'' accounts that shed light on movements in resource stocks and the impact of pollution. Particular attention is paid to outlining four different types of ''satellite'' accounts: Adjusted National Accounts; Natural Resource Accounts; Resource and Pollutant Flow Accounts; and Environmental Expenditure Accounts. In order to demonstrate the practical applicability of SEEA, this paper concludes with a brief review of the recent experience with environmental accounting in Namibia.

Online publication date: Mon, 13-May-2013

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the Interdisciplinary Environmental Review (IER):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com