The Economic Rationale for Green Accounting

Serafy, Salah El

doi:10.4337/9781845428952.00009

Cited by 2 publications

(6 citation statements)

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“…For example, the approach should be adapted for different types of GHG emissions paths rather than the simple exponential rate of growth depicted here. Although the constant unit rental value of carbon is tractable and consistent with conventional economic depreciation assumptions for a finite depletable stock (El Serafy, 1989; Hartwick and Hageman, 1993; Hamilton and Ruta, 2009; Wei, 2015; Hamilton, 2016), allowing this value to vary over time might also provide additional insights into emission scenario analysis. Similarly, estimating the user costs associated with an emission path over several years or even decades may be relevant for some scenarios where the unit rental value or path of emissions varies significantly over time.…”

Section: Resultsmentioning

confidence: 80%

“…This approach also allows the carbon budget to be considered, along with all other capital assets, as part of the overall welfare-generating wealth of the economy. Following standard assumptions in estimating the economic depreciation of a finite non-renewable asset (El Serafy, 1989; Hartwick and Hageman, 1993; Hamilton and Ruta, 2009; Wei, 2015; Hamilton, 2016), we derive the accounting price that measures the marginal impact on social welfare from depleting the carbon budget. Multiplying this accounting price by current GHG emissions yields the user cost, or the loss in social welfare, from depleting the 2 ° C carbon budget by this level of emissions.…”

Section: Resultsmentioning

confidence: 99%

“…We develop our user cost model of the global carbon budget using conventional economic depreciation accounting methods. First proposed by El Serafy (1989), such an approach has been employed to define and account for the ‘user cost’, or economic depreciation, of a finite natural resource stock, namely the loss in value of the exhaustible resource from its use in production (Hartwick and Hageman, 1993; Hamilton and Ruta, 2009; Wei, 2015; Hamilton, 2016). Under the standard modeling assumptions of this approach, resource use is not determined optimally by maximizing social welfare; instead, it is assumed that the resource is fully depleted in finite time, that unit total rents from extraction and use in production are constant, and that the quantities extracted are also constant over this time horizon.…”

Section: A User Cost Model Of the Carbon Budgetmentioning

confidence: 99%

“…By modeling the 2 ° C carbon budget in this way, it is possible to estimate the user cost associated with depleting this budget under various emission scenarios. For a non-renewable asset, the user cost indicates the welfare cost of ‘using up’ the resource today based on a given depletion level (El Serafy, 1989; Hartwick and Hageman, 1993; Hamilton and Ruta, 2009; Wei, 2015; Hamilton, 2016). To derive this user cost, we develop a model with two assets, capital stock K ( t ) and a carbon budget B ( t ), where the latter is depleted by a time path for GHG emissions G ( t ), capital allocation is determined by world interest rates, and the unit rental value of emissions is their contributions to global GDP.…”

Section: Introductionmentioning

confidence: 99%

“…See Wei (2015) for further discussion. In earlier literature (for example, see El Serafy, 1989; Hartwick and Hageman, 1993), this accounting price was often referred to as the unit or marginal user cost.…”

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confidence: 99%

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Depletion of the global carbon budget: a user cost approach

Barbier

2017

Envir. Dev. Econ.

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The Fifth IPCC Assessment Report estimates the world's ‘carbon budget’, which is the cumulative amount of anthropogenic CO2 emissions limiting global warming below 2°C. We model this carbon budget as a resource asset depleted by annual GHG emissions, and estimate the user cost associated with depletion. For constant emissions, social welfare increases US$3.3 trillion (6 per cent of global GDP) over the business as usual scenario of growing emissions, and the carbon budget's lifetime increases from 18 to 21 years. For declining emissions, the gain is US$10.4 trillion (19 per cent of global GDP), and the budget's lifetime is 30 years. Extending indefinitely the lifetime of the carbon budget would require emissions to fall exponentially by 4.8 per cent or more. Although the Paris Agreement abatement pledges will generate social gains of US$2–2.5 trillion (4–5 per cent of world GDP), they are insufficient to prevent depletion of the 2°C global carbon budget by 2030.

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Section: Resultsmentioning

confidence: 80%

Section: Resultsmentioning

confidence: 99%

Section: A User Cost Model Of the Carbon Budgetmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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confidence: 99%

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Depletion of the global carbon budget: a user cost approach

Barbier

2017

Envir. Dev. Econ.

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Bibliometrics Analysis of Green Accounting Research

Dwianika,

Purwanto,

Suyoto

et al. 2024

IJEEP

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This research delves into Green Accounting, which integrates environmental considerations into traditional accounting practices. Green Accounting has garnered significant attention in the context of heightened global ecological awareness and sustainability efforts. The study examines the trends in Green Accounting publications, investigating various aspects such as subject areas, types of publications, and international dissemination. The objectives encompass analyzing publication trends from 1992 to mid-2023 and identifying influencing factors, exploring the implications of different publication types, revealing the significance of dominant subject areas, recognizing key international channels for dissemination, making global comparisons, acknowledging prominent authors' contributions, examining affiliations and roles of authors, and uncovering prevalent themes in Green Accounting publications. The methodology involves employing bibliometric analysis utilizing Scopus and VOSviewer tools to discern patterns and advancements in Green Accounting. The findings demonstrate fluctuations driven by environmental concerns, policy shifts, funding availability, and industry involvement. Dominant article types highlight interdisciplinary green economic engagement focusing on economic and ecological aspects. The research identifies global contributions to Green Accounting from developed and developing nations, driven by notable authors such as Cairns, Bartelmus, and Markandya, and spanning diverse affiliations like Universite McGill and the University of Bath, showcasing international interdisciplinary collaboration. Themes encompass environmental accounting, economics, corporate social responsibility, sustainable development, finance, and align with the Sustainable Development Goals. The study's novelty lies in its comprehensive analysis of Green Accounting's landscape, shedding light on its development, global involvement, and influences, thus providing valuable insights for stakeholders, policymakers, and researchers to advance sustainable practices. The implications underscore the need for ongoing research to address ecological challenges through Green Accounting, utilizing the understanding of trends, subject areas, and global engagement to formulate greener strategies, fostering collaboration among authors and affiliations, and enhancing overall awareness for facilitating sustainable development progress.

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The Economic Rationale for Green Accounting

Cited by 2 publications

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Depletion of the global carbon budget: a user cost approach

Depletion of the global carbon budget: a user cost approach

Bibliometrics Analysis of Green Accounting Research

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