Green National Accounting in Theory and Practice

From GDP to Green GDP

Peter Birch Sørensen

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Hardback

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English

Routledge
13 June 2025

Macroeconomics; Environmental economics; Environmentalist thought & ideology

Series: Routledge Explorations in Environmental Economics

This book explains the theoretical and empirical foundations for constructing a measure of a country’s Green GDP and how this measure relates to the conventional GDP.

Opening with an overview of the academic literature on green national accounting, the first chapter sets up an analytical model of the interaction between a small open economy and the environment to derive a theoretically founded measure of the economy’s Green Net National Income (“Green GDP”). The book then illustrates how the theory can be applied in practice to produce a time series for the evolution of Denmark’s Green GDP and its various components (with an emphasis on the environment) over the last thirty years. As far as possible, the data used in the calculations were constructed in accordance with international statistical guidelines. Therefore, the careful explanation of the methodology which is outlined in the book can be applied to other countries using comparable data.

This book will be of significant interest to scholars in the field of environmental economics and statisticians and practitioners working on green national accounting.

Edited by: Peter Birch Sørensen
Imprint: Routledge
Country of Publication: United Kingdom
Dimensions: Height: 234mm, Width: 156mm,
Weight: 520g
ISBN: 9781032010410
ISBN 10: 103201041X
Series: Routledge Explorations in Environmental Economics
Pages: 176
Publication Date: 13 June 2025
Audience: College/higher education , Primary
Format: Hardback
Publisher's Status: Active

1. A theoretical framework for estimating the Green Net National Income in a distorted open economy. 2. The value of exhaustible and renewable natural resources. 3. The health-related costs of air pollution. 4. The costs of water pollution. 5. The recreational benefits from nature. 6. Valuing biodiversity. 7. The domestic costs of global warming. 8. The evolution of Denmark’s Green Net National Income: Methodological issues and empirical findings. Index

Peter Birch Sørensen is Professor of Economics at the University of Copenhagen, a member of the Royal Danish Society of Sciences and Letters, and an international research Fellow in the CESifo research network. He is also a former Director of the Economic Policy Research Unit at the University of Copenhagen. His research has covered topics in Environmental and Climate Economics, Public Economics and Macroeconomics.

Reviews for Green National Accounting in Theory and Practice: From GDP to Green GDP

“This is a very timely and much needed book when we face both a nature and a climate crisis. The book revitalizes the concept of green national accounting and provides the most comprehensive and long-term coverage of environmental damage costs in national accounting to date. Showing a 10 % lower Green Net National Income (NNI) in Denmark than their conventional NNI, the book illustrates the magnitude the environmental damage costs. This should serve as a wake-up call to people and politicians, and also provides a unique tool for decisionmakers in all of Europe to stay on the sustainable development path.” - Ståle Navrud, Professor of Environmental and Resource Economics, Norwegian University of Life Sciences. “The authors are to be congratulated for re-vitalising the concept of green net national income as an important signal of changes in people’s well-being at the level of the national economy. Readers will find a very extensive coverage of all major environmental adjustments to the conventional national accounts for a small, open economy over a 30-year period. This is most useful material, which can serve as a model for other nations.” - Nick Hanley, Professor of Environmental and One Health Economics, University of Glasgow.