Accounting for the distributional impacts of policy in the green accounts

Richard D. Horan, James Hrubovcak, James S. Shortle, Erwin H. Bulte

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

Green income accounting models are designed to appropriately value changes in a country's natural resource (natural capital) base. However, green NNP is useful as a guide for domestic and international policy only to the extent that it accurately reflects the economic goals and policy options of policy makers. For example, international policy designed to slow natural capital depletion in a developing country is more effective if policy makers recognize the developing country's perceived income effects of the policy. Traditional green accounting models do not satisfy this criterion because they are based on the assumption that policy makers are either not concerned with the distributional consequences of policies, and/or are not limited in the instruments available to them. We present an alternative green NNP measure that reflects distributional goals and policy implementation. Using this measure, the depletion (accumulation) of natural capital stocks in excess of economically efficient rates may increase income.

Original languageEnglish (US)
Pages (from-to)95-108
Number of pages14
JournalEnvironment and Development Economics
Volume5
Issue number1-2
DOIs
StatePublished - Jan 1 2000

Fingerprint

natural capital
developing country
value change
income effect
income
policy implementation
natural resources
developing world
policy
Politicians
Natural capital
Distributional impacts
economics
natural resource
Depletion
Developing countries
Income
Green NNP
International policy
Income effect

All Science Journal Classification (ASJC) codes

  • Development
  • Environmental Science(all)
  • Economics and Econometrics

Cite this

Horan, Richard D. ; Hrubovcak, James ; Shortle, James S. ; Bulte, Erwin H. / Accounting for the distributional impacts of policy in the green accounts. In: Environment and Development Economics. 2000 ; Vol. 5, No. 1-2. pp. 95-108.
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Accounting for the distributional impacts of policy in the green accounts. / Horan, Richard D.; Hrubovcak, James; Shortle, James S.; Bulte, Erwin H.

In: Environment and Development Economics, Vol. 5, No. 1-2, 01.01.2000, p. 95-108.

Research output: Contribution to journalArticle

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