ABSTRACT
In this chapter, the authors attempt to reflect environmental concerns in an accounting framework which maintains as far as possible System of National Accounts (SNA) concepts and principles. The immediate objective of the framework is to serve as the basis for the preparation of a SNA Handbook on Integrated Environmental and Economic Accounting to be issued within the United Nations series of national accounting handbooks. The accounting framework is used to develop a SNA Satellite System for Integrated Environmental and Economic Accounting. The environmental adjustments of the net value added comprise the imputed environmental costs connected with domestic production, household consumption activities and the use of man-made assets. A complete analysis of the interrelationships between the economy and the environment calls for an extended system of all institutional accounts, which shows not only the flows of goods and services, but also of income and finance. Final demand consists of final consumption, net capital accumulation and exports.
