16 - pollution Natural Resource Capital Oil: depreciation...

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02:21 NEED FIRST LECTURE National Accounting = score keeping, not useful     Doesn’t account for damages of pollution or depletion of natural capital/  resources Doesn’t account for non-market/ household services National Green Accounting     : judge if GNP is sustainable Input: wages, interest, profits, depletion, taxes, abatement Regulating pollution becomes part of national account as an inputs Output: price x quantity  Would takes abatement into account bc prices change Right now, pollution is just an increase in health issues Satellite accounts: Tonnage x MC, tonnage x MD Tonnage = Physical units of pollution Multiplying tonnage by MC or MD to explain true costs But MC doesn’t account for benefits of abatement Quantifiable amount of GNP, useful for comparing countries w/ v. diff levels of 
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Unformatted text preview: pollution Natural Resource Capital Oil: depreciation not initially measured in GNP Counting extraction as pure income inflates GNP Drawdown on wealth/ resource capital is unsustainable/ temp Including resource changes in US GNP doesnt impact economy much (but might cause regional shifts) Same for aquifers, soil, coal, forests Non-market resources National accounts dont account for these resources Recreation: value of open lands not changing much in US, but important for countries where land use is changing rapidly Ecosystem surface: endangered species, habitats, flood protection Macro tools dont work as well as micro/ incremental decisions Traditionally zero value on environment 02:21 02:21...
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16 - pollution Natural Resource Capital Oil: depreciation...

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