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The Meaning of the "Green National Income Account"

        The Green National Income Account is also called the Green GNP, and is based on the System for Integrated Economic and Environmental Accounting, SEEA for short, which is the work of the United Nations. The Green Account's main function is to show the systemic interaction between the economy and the environment during economic development. It includes the following types of information：

        (1) Natural resource inventories and utilization.
        (2) Amounts of pollutants emitted into the environment.
        (3) Environment quality and the impact of these emissions.
        (4) Benefits of natural resources for the environment and human life.
        (5) Developmental trends in environmental expenditures and taxes, which are direct investments by the government and industryinto maintaining a viable environmental system.
         From this information we can understand the extent of environmental resource use in economic development, as well as how development impacts the environment positively and negatively. We can not only analyze the effectiveness of natural resource use—and from this analysis determine whether or not use is sustainable and then assist with effective resource management. We can also think on a broader scale in assessing of industrial development, facilitating balance between environment preservation and economic development.

 

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