Green Accounting in Europe

Green Accounting in Europe

A Comparative Study, Volume 2

The Fondazione Eni Enrico Mattei series on Economics, the Environment and Sustainable Development

Edited by Anil Markandya and Marialuisa Tamborra

Using spatially desegregated data on measures of pollution to derive economic damage estimates, the main purpose of the book is to gauge the environmental damage sustained as a result of economic activities and to offer an insight into how the information generated can be used in conjunction with conventional economic accounts. The first few chapters review recent developments in both green accounting and pathway analysis. The book goes on to evaluate the progress made in estimating dose response functions and valuing environmental damages. The authors discuss the methodology used for the estimation of damages caused by ambient air pollution and the cost of defensive expenditures. They also present the results of the analysis and draw important policy conclusions for environmental accounting, particularly in the EU.

Chapter 15: Environmental Expenditures

Marialuisa Tamborra and Marcella Pavan

Subjects: economics and finance, environmental economics, environment, environmental economics


Marialuisa Tamborra and Marcella Pavan 15.1 INTRODUCING ENVIRONMENTAL EXPENDITURES1 As mentioned in Chapter 7, the definition of defensive expenditures was introduced by Leipert (1989) as ‘an indicator of the total monetary burden which society bears annually for the regulation of environmental degradation and damages induced by the economic use of the environment in the past and present periods, including future oriented expenditures’. Broad categories of defensive expenditures are recognised as: ● ● ● environmental protection activities, environmental restoration/treatment of damages, damage avoidance from environmental deterioration. This definition is broadly consistent with the SERIEE definition adopted by EUROSTAT in 1994, and incorporated recently into the SEEA revision. In this chapter monetary data are reported in Euro. Original figures in national currency were transformed into ECU using average exchange rates for 1994 or 1995, since calculations were made before 31 December 1998, when fixed exchange rates were not yet available. However, as an approximation, values are reported in Euro, as this approximation does not affect the substance of the chapter. In the following data are reported that were available at the time of the research project: in the meantime data availability has improved significantly, thanks to the joint efforts of Eurostat and the OECD. At the end of the chapter (see Table 15.25) more recent data are displayed in order to show the advancement in this field and to provide a better picture of environmental expenditure in the EU-15 and not only in the case study countries. 429 430...

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