ABSTRACT
This chapter considers Bureau of Economic Analysis's (BEA) experiences in the development of the Integrated Economic and Environmental Satellite Accounts (IEESAs), and suggests some lessons that may be useful for countries considering similar plans. Work by Nordhaus and Tobin, among others, on adjusting traditional economic accounts for changes in leisure time, disamenities of urbanization, exhaustion of natural resources, population growth and other aspects of welfare produced indicators of economic well-being. In accord with the criterion, the IEESAs have two main structural features. First, natural and environmental resources are treated like productive assets and only the economically productive aspects of the resources are considered. Second, the accounts provide substantial detail on expenditures and assets that are relevant to understanding and analysing the interaction. The system of environmental and economic accounting, as described in the United Nations handbook, is a flexible, expandable satellite system.
