ABSTRACT
The conventional system of national accounts (SNA) focuses on marketed activities and transactions. Hence, the measures derived from the SNA are not good indicators for measuring human well-being and sustainability of the economies. Though there was consensus on the need to have a better system of accounting, consensus on how to do it differed. This chapter reviews the arguments associated with the need for expanding forest accounts to better reflect their contribution in the national accounts. Two major approaches are reviewed: one based on income as return on wealth and the other based on the concept of income changes as an indicator of welfare change. A practical approach for expanding forest accounts is illustrated through a case study.
