Monetary forestry accounting including environmental goods and services

Abstract

There is substantial current interest in expanding accounting systems, such that they include services appropriated from the ecological systems. Much of this activity has focused upon forest resources; there are currently more than 100 «green» forest accounting studies, covering many different countries. This paper provides a view of some theoretical and empirical issues on «green» forest accounting. It discusses some issues in calculating «true» income from forests, as well as the measurement problems that arise when valuing non-priced services. It also reviews recent efforts at EUROSTAT and includes a detailed illustration of a comprehensive official Swedish application on «green» forest accounting. The paper concludes by arguing that future work on green forest accounting should be directed towards tying together theory and practice to a even larger extent than what is currently the case.