This project builds on both theoretical and applied work on environmental accounting in the EU. A framework for integrated environmental and economic accounting is developed that addresses the criticisms of existing frameworks. The availability of data on the environmental impacts most important to the EU is improved. A methodology with which to estimate the environmental standards compatible with sustainable development is developed and applied. Monetary values are assigned both to the welfare effects of environmental damage and to the costs of attaining sustainability standards. These values integrated framework, and to undertake policy analysis to identify the environmental standards appropriate under a joint policy criterion of efficiency and sustainability.