Explain the concept of green accounting.

Economics Ecosystem Services Questions



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Explain the concept of green accounting.

Green accounting is a concept that involves incorporating the value of ecosystem services into traditional economic accounting systems. It aims to measure and account for the economic benefits provided by natural resources and ecosystems, such as clean air, water, and biodiversity. By quantifying and valuing these ecosystem services, green accounting helps to highlight the importance of environmental sustainability and the potential economic impacts of environmental degradation. It provides a more comprehensive understanding of the true costs and benefits of economic activities, allowing for better decision-making and policy formulation that takes into account the long-term sustainability of natural resources and ecosystems.