Restructuring Double-Entry Accounting for Climate Change Remediation by Monetary Authorities

F. Hayden

Journal of Economic Issues, 2014, vol. 48, issue 2, 533-540

Abstract: The Federal Reserve System and the U.S. Treasury are two powerful planning agencies with regard to monetary policy and the economy. Yet, their monetary policies do not consider climate-change remediation. Their policy emphasis is mainly focused on investment and production, while climate change from investment and production is creating devastating ecological and social disruption. The double-entry accounting system utilized by banks and production corporations is not designed to record the consequences of their finance, investment, and production activities on climate change. Restructuring Federal Reserve and Treasury policy regarding climate change is not possible without change in the accounting system to provide relevant indicators because banks, corporations, and monetary authorities are captives of a double-entry accounting system that does not consider ecological challenges. In order to record and integrate ecological impacts, a conversion to single-entry accounting is not necessary. Accounts for ecological impacts can be added to traditional double-entry accounts in order to demonstrate the environmental impact of particular corporate activities. Then, monetary authorities could require banks to consider such ecological accounts when making loans and, in turn, consider that database in their relationships with the banks.

Date: 2014
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.2753/JEI0021-3624480229 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:jeciss:v:48:y:2014:i:2:p:533-540

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MJEI20

DOI: 10.2753/JEI0021-3624480229

Access Statistics for this article

More articles in Journal of Economic Issues from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().