{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Good numbers gone bad

Large envi r onme n tal costs t ha t s h o ul d be r

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: large enVi r onme n tal costs t ha t s h o ul d be . r ef le c t e d by green accounting. In th e cas e of ca r bon diox- i de and o th er green hou se ga s e s- now traded in Eu r op~ w ecan , for instance , pu t a d ol l a r va l ue on the emission s . S u c h me cha n i sms c a n h e lp us e v alua t e environmen t al damage an d q u a n t if y i t s . impact on the eco n om y . Bad accounting f r a me w or k s a r e l ike ly to l ead to bad decis i ons. A go v er n men t foc use d on G DP might be e nco u raged t o give away m ining or o il concessions ; a focus on g r ee n NNP m i ght make it r ealize t h a t t h e co u ntry r i sks b e ing w orse off . B ut n e w ideas al w a y s mee t resis- tance . Just as t hose w ho be nefit e d from b a d corp o ra te ac c ou nt- ing practices- like i gnor i ng t he cost of s t oc k op tio n s- wanted to continue them , th e s ame i s ha ppen i ng h er e . A greene I ; m o r e ba l- an c ed accounti n g f rame w or k is an old idea w hose ti me h a s co m e , especially if we are go i ng to make glob a l i z ati o n wor k . I I ' J OS E PH STIGUlZ i s ' th e fo r m e r c h a i r m an of th e C ou n cil of E c onomil:Advis e r s, a NobelPrize-- winn i ng economist . and th e au t h o r o f Ma k in g G l o ba l i z a tio n W o r k . GDP MUST BE ADJUSTED TO ACCOUNT FOR THE DEPLETION OF RESOURCES....
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online