Show Less

Macroeconomics and the Environment

Essays on Green Accounting

Salah El Serafy

Though scientists and environmentalists have long expressed concern over the rapid deterioration of the global environment, economists have largely failed to recognize the issue’s relevance to their field. Salah El Serafy argues for an increased focus on the economic aspects of environmental degradation, calling for a fundamental shift in how economists measure and discuss national income.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 14: Growth rate after adjustment

Essays on Green Accounting

Salah El Serafy


It is often presumed that greening the accounts of an economy will reveal that its growth had been overstated. This short chapter seeks to show that contrary to popular opinion, the rate of growth of an economy consequent upon greening its national accounts need not at all be lower than the growth rate that had been inferred from the unadjusted estimates. The re-estimated growth rate can be higher, lower, or the same as that reckoned before greening. This argument pertains specifically to average annual growth estimated over a period of years as was done under the WRI’s study of Indonesia (see Chapter 19 below). This argument, however, does not necessarily apply to any one-year’s growth to be derived from two successive national income estimates. If greening the accounts results in downsizing GDP (or as in the WRI study adjusting NDP) for period t+1 as compared with period t, then other things being equal, the growth rate will be found clearly to have fallen. This will be true unless national income for period t had itself been reduced – a fact that will obscure the change.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.