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A South African national economic and environmental policyframework

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  • Simon Forster

Abstract

Most contemporary economic theories upon which conventional national accounting is based regard man-made assets as productive capital to be depreciated against the value of production. Such production, without replenishment or renewal of the asset or capital stock, is not sustainable. Natural resource assets, however, are not valued in the same way. There is no accounting mechanism to reflect the decrease in potential future pro duction as the resource diminishes or deteriorates. In 1993, the United Nations adopted its guidelines for a 'System of Integrated Environmental and Economic Accounting' (SEEA), which allows for the adjustment of the System of National Accounts (SNA) for natural asset stripping and degradation, providing a format for national accounting which assesses the viability and sustainability of economic growth. The concept of an SEEA for South Africa was pursued in 1994 as a pilot study. The framework to be devel oped was termed the South African National Economic Environmental Planning (SANEEP) model. The framework can be used to predict the environmental impact, in terms of natural resource use and degradation, of economic growth, both nationally and at the sectoral level. In addition, it can be used to test the sectoral economic impact, and thus the desirability of certain types of environmental economic instruments such as pol lution taxes, or the imposition of royalties on mineral extraction. Hence, the SANEEP framework has the potential to become a broad-based, integrated environmental and economic planning tool. This article describes the SANEEP model, its information requirements and applications.

Suggested Citation

  • Simon Forster, 1998. "A South African national economic and environmental policyframework," Development Southern Africa, Taylor & Francis Journals, vol. 15(2), pages 267-285.
    • Handle: RePEc:taf:deveza:v:15:y:1998:i:2:p:267-285
    DOI: 10.1080/03768359808440010
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    References listed on IDEAS

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    1. Hartman, Raymond & Wheeler, David & Singh, Manjula, 1994. "The cost of air pollution abatement," Policy Research Working Paper Series 1398, The World Bank.
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