Methods of accounting Natural capital accounting

1 methods of accounting

1.1 large , eclectic dashboards
1.2 composite indices
1.3 adjusted gdps
1.4 indices focusing on overconsumption
1.5 monetary or physical indicators

methods of accounting

there several methods of accounting aim address issue of sustainability. these are: large , eclectic dashboards; composite indices; indices focusing on overconsumption; adjusted economic indicators.

large , eclectic dashboards

these dashboards bring number of indicators directly , indirectly related durability of socio-economic progress. 1 example of eurostat sustainable development indicators, list of on 100 indicators used monitor eu sustainable development strategy. criticism associated these dashboards large number of indicators risks muddling clear message sustainability resonates policy makers or citizens. in response, there has been greater tendency select headline indicators “track central elements of green growth , [are] representative of broader set of green growth issues.”

composite indices

composite indices normalize , aggregate various data single number. example, human development index, osberg , sharpe’s index of economic well-being, changing wealth of nations, or environmental sustainability index, ranks countries based on assessment of 76 variables covering 5 domains. instructive examine separate dimensions of these indices. however, may present skewed view of countries’ contributions environmental problems , make problematic, normative assumptions values of variables.

adjusted gdps

adjusted gross domestic product, or green gdp, systematically corrects conventional gdp taking account aspects of country’s production of goods , services (e.g. environmental degradation , natural resource depletion) not otherwise included in indicator, relevant sustainability.

indices focusing on overconsumption

indicators fall in category conceive of sustainability respect consumption levels , investment in natural resources. examples include adjusted net savings (ans) , ecological footprint accounts. ans calculated change in total wealth on given time period, while ecological footprint assessments determine how of regenerative capacity of biosphere required maintain consumption habits of defined population. explicit emphasis on sustainability makes these indices useful; computing them country fails capture global nature of sustainability.

monetary or physical indicators

all sustainability indicators can grouped broadly 2 types. specifically, calculated in monetary terms, using 1 or more valuation techniques, or in physical terms. more monetary indicators expressed flows, , physical indicators stocks.