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Correcting NDP for SO2 and NOx Emissions: Implementation of a Theoretical Model in Practice

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  • Sofia Ahlroth

Abstract

The theoretical and the practical studies in the field of environmental accounting are often two separate lines of work. In this study, we develop an optimal control theory model for adjusting NDP for the effects of SO2 and NOx emissions, and subsequently insert empirically estimated values. The model includes correction entries for the effects on welfare, real capital, health and the quality and quantity of renewable natural resources. In the empirical valuation study, production losses were estimated with dose‐response functions. Recreational and other welfare values were estimated by the contingent valuation (CV) method. Effects on capital depreciation are also included. For comparison, abatement costs and environmental protection expenditures for reducing sulfur and nitrogen emissions were estimated. The theoretical model was then utilized to calculate the adjustment to NDP in a consistent manner. The estimated damage value of sulfur is close to the Swedish sulfur tax.

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  • Sofia Ahlroth, 2003. "Correcting NDP for SO2 and NOx Emissions: Implementation of a Theoretical Model in Practice," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(3), pages 425-440, September.
    • Handle: RePEc:bla:revinw:v:49:y:2003:i:3:p:425-440
    DOI: 10.1111/1475-4991.00097
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    Cited by:

    1. Thomas Aronsson, 2010. "Welfare Measurement, Involuntary Unemployment, And Heterogeneity," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(3), pages 559-571, September.
    2. Samakovlis, Eva, 2008. "How are Green National Accounts Produced in Practice?," Working Papers 105, National Institute of Economic Research.

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