Natural-resource accounting in the land-use sector: Theory and practice

Abstract
Traditional measures of aggregate income do not accurately reflect welfare in an economy. In particular aggregate income fails to account for changes in marketed and non-marketed natural capital and its impact on economic welfare. If natural capital is theoretically equivalent to reproducible capital, then depreciation of the resource base should be deducted from net product as presently estimated. Revision of land use sector accounts for Great Britain is undertaken for carbon fixing potential of land use and the impact of other pollutants and the non-marketed aspects of land use.

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