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

  • includes how performance over time is paid for and costs of maintenance and repair.
  • the ability to concerve energy in operation or reuse water and wastes over the existence of the appliance or project.