Green Accounting for an Externality, Pollution at a Mine

Robert Cairns

Environmental & Resource Economics, 2004, vol. 27, issue 4, 409-427

Abstract: This paper takes a value-added approach to ``green''accounting at an individual microeconomic unit, a mine. Capacities forextraction and for abatement of pollution are chosen subject to anenvironmental regulation. The implications for accounting for resource andenvironmental degradation are discussed. Depreciation is not quantitativelyunique, but can be compared qualitatively with a condition involving shadowprices. The costs of defensive expenditures contribute to increasing greenNNP, but depreciation of the resource is a charge against GNP in computinggreen NNP. Income from capital is the return on the undepreciated values ofextractive capacity, abatement capacity and the resource, and is a part ofnet domestic income. Copyright Kluwer Academic Publishers 2004

Keywords: compliance cost; depreciation; green accounting; pollution (search for similar items in EconPapers)
Date: 2004
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DOI: 10.1023/B:EARE.0000018519.31028.97

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