Keywords: adjusted GDP, AICCAN, geGDP, ecological economics, environment, monetisation frontier, statistics, sustainability, sustainable development, valuation, national sustainability indicators, macroeconomic indicators, greened economy, gross domestic product, pollution flows, trade, environmental assets
The AICCAN, the geGDP, and the Monetisation Frontier: a typology of 'environmentally adjusted' national sustainability indicators
This paper discusses the policy uses, and limits, of three key concepts for defining 'environmentally adjusted' macro-economic indicators for a national economy. The first is change in the system boundary, an enlargement of the scope of national economic accounting to include natural assets; this yields an 'Aggregate Indicator of the Change, during the Current year, in the economic Assets of the Nation' (AICCAN). The second is adjustment of the economy itself, to a new pattern of production processes, levels of production and consumption activity; this yields a 'greened economy GDP' (geGDP). The third, from consideration of the 'openness' of an economy, is adjustment of an AICCAN or geGDP to account for direct and indirect 'inter-country environmental load displacement' associated with trans-boundary pollution flows and trade.