EUROPEAN ECONOMIC ACCOUNTS FOR THE ENVIRONMENT - EXPENDITURE ON PROTECTION AND RESTORATION OF THE ENVIRONMENT

Zorka Borisova, Gergana Cheshmedjieva

Abstract: Environmental accounts are a statistical system that combines economic and environmental information into a common framework for measuring the contribution of the environment to the economy and the impact of the economy on the environment. They organize environmental data from many areas using the same concepts and terminology as national accounts. In this sense, they are satellite accounts to national accounts through which various aspects of the economy can be analyzed and evaluated. In general, environmental accounts can be divided into physical (e. g. air emissions and consumption of materials) and monetary (e. g. expenditures and taxes related to environmental protection). One of the most monitored groups of monetary environmental economic accounts is the Environmental protection expenditure accounts. Their statistics quantify the resources allocated to environmental protection by local economic units. This information supports the understanding of society's response to the ‘environmental degradation’ challenge. They include all activities and actions whose main purpose is to prevent, reduce and eliminate pollution, as well as any other deterioration and loss of environmental quality. This includes measures taken to restore the environment after it has deteriorated due to the pressures of human activity. It also assesses the financial commitment of the economy to environmental protection, assesses how environmental costs affect international competitiveness, assesses the application of the ‘polluter pays’ principle and the cost-effectiveness of environmental control mechanisms.

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Date published: 2022-06-22