Ecological Accounting
Four types of accounting for ecological impacts: • True cost, • Net energy cost, • Assimilative cost, • Life Cycle accounting.
True cost accounting
include what the real or actual costs are in terms of externalities, such as: calculate common health and environmental damages, eliminate subsidies, factor in inflation.
Then factor in the opportunity costs (what do you give up for this investment) of the action.
Net energy accounting
take into consideration by calculating the costs or expenses involved in:
finding extracting transporting using the energy source.
Assimilative capacity accounting
include the ability of the resource site to absorb the impact without damage or functional collapse. calculate the cost of restoring damaged, degraded, or destroyed water, air or land resources.
Life cycle accounting