MONITORING SUSTAINABLE DEVELOPMENT: AN OVERVIEW OF CONCEPTS TO LINK NATURAL RESOURCE AND ECONOMIC ACCOUNTING SYSTEMS

Abstract

This paper examines the existing work that is being done to clarify economic linkages between development and environment. These linkages are expected to result in better integration of environmental and natural resource concerns and economic analysis and decision-making. Current calculation of Provincial Gross Domestic Product (GDP) ignores the value of water as an input to this major indicator of provincial economic performance. The inclusion of renewable resources, such as water, as a capital stock in GDP accounting presents challenges to conventional measurements of economic growth. The consumption of resources in conventionally considered income. This paper will summarize methods designed to help produce better measurements of resources as natural capital that needs to be maintained. These methods could guide and encourage sustainable use of water resources.