Green Accounting: A Sustainable Growth Path

Green accounting is an approach that is gaining impetus across the world which necessitates widening the scope of accounts to include the contribution of non marketed natural assets and losses. The use of environment as a factor of production in the course of production should be accounted for to reflect the authentic growth in the total output. Sustainable economic growth entails a balance between growth policies and environmental protection.

The paper attempts to provide a succinct outline of the concept, goals and challenges in implementing environmental accounting. It also emphasizes on the problem confronted by the developing countries in maintaining a tradeoff between promoting economic growth and shielding environment.