On accounting for sustainable development and accounting for the environment

Economic sustainability or intergenerational equity entails maintaining social well-being by decisions about investments in different types of assets. Under certain conditions, consumption can be sustained by depleting resources, or various kinds of natural capital, while building up other kinds of capital. Theoretically, the choices involve the use of a set of accounting prices. The question becomes one of finding and implementing accounting prices that express the roles of the various capital goods in achieving the objective of the economy.Hartwick's rule holds that an economy can be sustained if the value of the total, net investment in the economy, evaluated at those accounting prices, is zero. The rule applies to a special, abstract economic model which expresses a social objective different from the discounted-utilitarian objective on which national accounting is based. Different objectives give rise to different accounting prices. Because the prices may not be right, the zero net-investment rule using available national-accounting prices cannot generate a condition for sustaining an economy.Still, environmental accounting is a tool which, used prudently, can make an important contribution to social decision-making. This paper expands upon these ideas by discussing the incorporation of natural resource and intangible environmental costs and benefits into green accounting at the firm as well as the economy level. Common techniques of mine valuation and standard corporate accounting are the bases for this extension to the valuation of and accounting for decisions concerning the environment.     

ECOLOGICAL CONSEQUENCE ASSESSMENT: EFFECTS OF BIOENGINEERED ORGANISMS1

ABSTRACT: The introduction of genetically altered microorganisms into natural ecosystems presents fundamentally new problems in risk assessment and ecological effect evaluation. Novel microorganisms, produced by any of several new methods, have the ability to survive and reproduce in the environment. Since most of these organisms are bacteria, they have the potential to interfere with natural processes, displace natural populations, infect new hosts, move between ecosystems, and cause far-reaching ecological disturbanes. This paper reviews currently available methods in ecological research that might be used in evaluating the ecological effects of releasing genetically altered microorganisms. Both structural and functional evaluations are critically reviewed. Microcosm, mesocosm, and field tests should provide valuable predictions concerning the potential ecological impact of genetically altered organisms. Ecosystem assessments will also be useful in post-release studies such as those currently used to evaluate toxic impacts. The present problem does not require the development of new testing methods but rather the creation of adequate predictive models (both conceptual and systems-based) to predict the potential for adverse effect of genetically altered organisms.