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Green Accounting for an Externality, Pollution at a Mine

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  • Robert Cairns

Abstract

This paper takes a value-added approach to ``green''accounting at an individual microeconomic unit, a mine. Capacities forextraction and for abatement of pollution are chosen subject to anenvironmental regulation. The implications for accounting for resource andenvironmental degradation are discussed. Depreciation is not quantitativelyunique, but can be compared qualitatively with a condition involving shadowprices. The costs of defensive expenditures contribute to increasing greenNNP, but depreciation of the resource is a charge against GNP in computinggreen NNP. Income from capital is the return on the undepreciated values ofextractive capacity, abatement capacity and the resource, and is a part ofnet domestic income. Copyright Kluwer Academic Publishers 2004

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  • Robert Cairns, 2004. "Green Accounting for an Externality, Pollution at a Mine," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 27(4), pages 409-427, April.
    • Handle: RePEc:kap:enreec:v:27:y:2004:i:4:p:409-427
    DOI: 10.1023/B:EARE.0000018519.31028.97
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    References listed on IDEAS

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    1. Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
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    3. Cairns, Robert D., 1998. "Sufficient conditions for a class of investment problems," Journal of Economic Dynamics and Control, Elsevier, vol. 23(1), pages 55-69, September.
    4. Cairns, Robert D., 2001. "Seeing the trees as a forest: what counts in green accounting," Ecological Economics, Elsevier, vol. 36(1), pages 61-69, January.
    5. Robert D. Cairns, 2000. "Accounting For Resource Depletion: A Microeconomic Approach," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(1), pages 21-31, March.
    6. Martin L. Weitzman, 1976. "On the Welfare Significance of National Product in a Dynamic Economy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(1), pages 156-162.
    7. Roan, Philip F. & Martin, Wade E., 1996. "Optimal Production and Reclamation at a Mine Site with an Ecosystem Constraint," Journal of Environmental Economics and Management, Elsevier, vol. 30(2), pages 186-198, March.
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    Cited by:

    1. Cairns, Robert D., 2006. "On accounting for sustainable development and accounting for the environment," Resources Policy, Elsevier, vol. 31(4), pages 211-216, December.
    2. Ouoba, Youmanli, 2017. "Economic sustainability of the gold mining industry in Burkina Faso," Resources Policy, Elsevier, vol. 51(C), pages 194-203.
    3. Olfa Jaballi & Sebnem Sahin, 2005. "Towards sustainable lignite consumption in Turkey and a welfare analysis," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00194716, HAL.
    4. Yang, Peifang & Davis, Graham A., 2018. "Non-renewable resource extraction under financial incentives to reduce and reverse stock pollution," Journal of Environmental Economics and Management, Elsevier, vol. 92(C), pages 282-299.
    5. Lappi, Pauli, 2020. "A model of optimal extraction and site reclamation," Resource and Energy Economics, Elsevier, vol. 59(C).
    6. Cairns, Robert D., 2018. "Stranded oil of Erewhon," Energy Policy, Elsevier, vol. 121(C), pages 248-251.
    7. Billette de Villemeur, Etienne & Leroux, Justin, 2016. "A liability approach to climate policy: A thought experiment," MPRA Paper 75497, University Library of Munich, Germany.
    8. Angelo Antoci & Simone Borghesi, 2010. "Environmental degradation, self-protection choices and coordination failures in a North–South evolutionary model," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 5(1), pages 89-107, June.
    9. Justin Leroux, 2015. "Track-and-Trade: A liability approach to climate policy," CIRANO Working Papers 2015s-18, CIRANO.

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