The research aims at developing the central concepts and methodologies for the calculation of environmentally adjusted national income figures in European countries.
The methodology development covers three main areas :
i) Defensive expenditures - the main product of the research is a manual, directed at a National Statistical Office type audience, which provides advice on the application of defensive expenditure concepts in National Environmental Accounting. The manual focuses upon the elaboration and clarification of a concept of environmentally defensive expenditures which fits into the overall measure of an environmentally adjusted national income. The research also includes a test of the concepts developed with the use of adapted Environmental expenditure figures for the Netherlands, Germany, France, Italy, Portugal and possibly the United Kingdom.
ii) Avoidance cost - the research aims at the development of practical guidelines for the incorporation of the avoidance cost approach in the calculations of environmentally adjusted national income figures. Again, a practical manual for the development of avoidance cost curves is produced.
iii) A Micro-Macro Aspects - the research aims to find out how to use micro information systems in the field of eco-auditing and ecologically conscious management for the calculation of environmentally adjusted national product measures.
The defensive and avoidance cost measures adopted in the project are viewed as complementary and considered likely to yield consistent results. A willingness to pay approach has not been adopted, as this is seen as difficult to manipulate where large scale environmental changes are being evaluated.
Funding SchemeCSC - Cost-sharing contracts