Title: The AICCAN, the geGDP, and the Monetisation Frontier: a typology of 'environmentally adjusted' national sustainability indicators

Authors: Martin O'Connor, Anton Steurer

Addresses: C3ED, Centre d'Economie et d'Ethique pour l'Environnement et le Developpement, Universite de Versailles St-Quentin-en-Yvelines, UMR No.063 IRD & UVSQ, 47 boulevard Vauban, 78047 Guyancourt cedex, France. ' Eurostat, Commission of the European Communities, Luxembourg

Abstract: This paper discusses the policy uses, and limits, of three key concepts for defining |environmentally adjusted| macro-economic indicators for a national economy. The first is change in the system boundary, an enlargement of the scope of national economic accounting to include natural assets; this yields an |Aggregate Indicator of the Change, during the Current year, in the economic Assets of the Nation| (AICCAN). The second is adjustment of the economy itself, to a new pattern of production processes, levels of production and consumption activity; this yields a |greened economy GDP| (geGDP). The third, from consideration of the |openness| of an economy, is adjustment of an AICCAN or geGDP to account for direct and indirect |inter-country environmental load displacement| associated with trans-boundary pollution flows and trade.

Keywords: adjusted GDP; AICCAN; geGDP; ecological economics; environment; monetisation frontier; statistics; sustainability; sustainable development; valuation; national sustainability indicators; macroeconomic indicators; greened economy; gross domestic product; pollution flows; trade; environmental assets.

DOI: 10.1504/IJSD.2006.010938

International Journal of Sustainable Development, 2006 Vol.9 No.1, pp.61 - 99

Published online: 18 Sep 2006 *

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