Social accounting for pollution

Journal Article · Sun Nov 01 04:00:00 EST 1981 · Land Econ.; (United States)

DOI:https://doi.org/10.2307/3145667· OSTI ID:5685498

Tybout, R A

Contemporary social accounting for pollution can be viewed as an application of yesterday's concepts to today's problems. Granted that social accounts cannot be revised casually or frequently if they are to preserve continuity and stability of measurement, neither can they be left to self-reinforcing precedent if they are to be useful in new contexts. The general conclusion to which this investigation leads is that current Bureau of Economic Analysis (BEA) practice is the least satisfactory of the six accounting conventions investigated. BEA compiles statistical information on pollution abatement and control (PAC) but has not made PAC an end product in the business sector, though so doing would eliminate the grossest of the misrepresentations current in national income and product accounts (NIPA) and derived indices. The true end product is net pollution. The remedy is to enter the cost of net pollution in the national accounts. This conclusion emerges in a straightforward way from economic theory but has hardly been discussed in the professional literature. The principal purpose of the analysis herein is to explore its implications in an operational context. No serious accounting problems are found in implementing it. Two alternative methods of introducing net pollution are investigated. Pollution-adjusted accounting is suitable for an economy in which pollution control is by discommodity charges. Second-best accounting is suitable for an economy in which control is by administrative mandate (standards). 24 references, 6 tables.

• Research Organization: Ohio State Univ., Columbus
• OSTI ID: 5685498
• Journal Information: Land Econ.; (United States), Journal Name: Land Econ.; (United States) Vol. 57:4; ISSN LAECA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290300* -- Energy Planning & Policy-- Environment
Health
& Safety
530100 -- Environmental-Social Aspects of Energy Technologies-- Social & Economic Studies-- (-1989)
ACCOUNTING
ECONOMIC ANALYSIS
ECONOMIC IMPACT
ECONOMICS
POLLUTION
SOCIAL IMPACT