NEEDSWS3AWP5GreenAccounting.docVIP

SIXTH FRAMEWORK PROGRAMME Project no: 502687 NEEDS New Energy Externalities Developments for Sustainability INTEGRATED PROJECT Priority 6.1: Sustainable Energy Systems and, more specifically, Sub-priority .5: Socio-economic tools and concepts for energy strategy. Deliverable n° 5.1 - RS 3a “Green Accounting and Externalities. Review of Methodologies Application in selected countries” Due date of deliverable.: August 2008 Actual submission date: March 2009 Start date of project: 1 September 2004 Duration: 48 months Organisation name for this deliverable: University of Bath (Bath), UK and Charles University Environment Center (CUEC), Prague , Czech Republic Authors: Alistair Hunt (UBath) andd Milan ??asny (CUEC) Project co-funded by the European Commission within the Sixth Framework Programme (2004-2008) Dissemination Level PU Public x PP Restricted to other programme participants (including the Commission Services) RE Restricted to a group specified by the consortium (including the Commission Services) CO Confidential, only for members of the consortium (including the Commission Services) Contents Part I. Conceptual background to the development of Green National Accounting 3 I.1 System of National Accounts 3 I.2 The shortcomings of the current SNA 4 I.3 Why welfare may not be proportional to GNP 5 I.4 Depletion of capital stocks 10 I.5 Corrections due to sustainability 12 I.6 National Accounts Adjustments 12 Part II. Applications of Green Accounting 16 II.1 The UN System for Economic and Environmental Accounting 16 II.1.1 Physical Flow accounts 17 II.1.2 Economic data: Combining asset and flow accounts 18 II.1.3 Economic data: Asset accounts 20 II.1.4 Valuing degradation 27 II.1.5 Environmental adjustments to the flow accounts 28 II.2 The GARP and GREENSTAMP projects 31 II.3 Genuine Saving 33 II.4 Alternative indicators of welfare 36 II.4.1 Introduction and Background: ISEW and MEW 36 II.4.2 Calculating the ISEW 38 II.5 Greensense 40 II.6