THE INTERSTATE (ASSAM AND GUJARAT) DIFFERENCES IN THE ENVIRONMENTALLY ADJUSTED GSDP
- Associate Professor, Head, Department of Economics, N.E.S. Ratnam College, Mumbai - 400078.
- Cite This Article as
Environmental issues play a major role in the economic development of a country. It is an indispensable component for bringing about sustainable development. Environmental accounting refers to the compilation of data relating to the environment and natural resources into an accounting framework. The objective of the study is to address the issues of environmental accounting for oil and gas resources in India and particularly for the states of Assam and Gujarat. The present study is both analytical and empirical in its framework. It is based on select states of India, namely, Assam and Gujarat. According to literature on environmental accounting, the current national income measures did not provide adequate indicators of sustainable development of natural resources, as they exclude depletion and degradation of exhaustible resources. As the conventional national accounts neglects depletion and degradation of natural resources, it is necessary to devise an analytical framework to assess the present situation in relation to the need for developing a practical approach which will establish a clear understanding of the relationship about Gross State Domestic Product (GSDP). The empirical analysis is based on the market valuation methods like Net Price Method and User Cost Method. These two methods are used to measure the economic value of natural capital depletion in the petroleum sector. In this study the state level accounts are adjusted by compiling physical and monetary accounts for oil and gas resources and these accounts are then incorporated in GSDP. The analysis presented in the study highlights the interstate (Assam and Gujarat) differences in the Environmentally Adjusted GSDP. The sensitivity of the estimated value to the choice of the methodology used (Net Price and User Cost) is also highlighted. The adoption of basic elements of green accounting will portray sustainability of resources in these states.
- Foy E (1991), ‘Accounting for Non-renewable Natural Resources in Louisiana’s Gross State Product’, Ecological Economics 3, 25-41.
- El Serafy S and E Lutz, (1989), ‘Environmental and Resource Accounting: An overview’, in: Y Ahmad, S. El Serafy and E. Lutz, (eds.) Environmental Accounting for Sustainable Development World Bank, Washington, DC.
- Government of India (1988-2008), Annual Reports of Ministry of Petroleum and Natural Gas.
- National Accounts Statistics , Central Statistical Organization (2006), National Account Statistics: CSO, Govt of India, New Delhi:
- Repetto R. (1989), ‘Balance-Sheet Erosion: How to Account for the Loss of Natural Resources,International Environmental Affairs, Vol.1, 103-137
- Vincent J., T Panayotou, and J., Hartwick, J., (1997), ‘Resource Depletion and Sustainability in Small Open Economies,’ Journal of Environmental Economics and Management 33, 274-86.
- Hotelling H. (1931), ‘The Economics of Exhaustible Resources’ Journal of Political Economy39, 135-179.
- European Commission (2000), ‘Accounts for Subsoil Assets- Results of Pilot Studies in European Countries’. European Communities. Luxembourg.
- Cairns (2008)9, ‘Value and Income’, Ecological Economics66, 417-424.
- Cairns (2009)10, ‘Green Accounting for Black Gold,” The Energy Journal 30(4), 113-139
- Atkinson and Gundimeda (2006)11, ‘Accounting for India\'s Forest Wealth’ Ecological Economics. Vol. 59, 462 – 476.
- Haripriya G. S., P. Sukhdev, R. K. Sinha and S. Sanyal (2007), ‘Natural Resource Accounting for Indian States: Illustrating the Case of Forest Resources’, Ecological Economics 61, 635-649.
- Government of India, (2004). ‘Draft National Environmental Policy’, Ministry of Environment and Forests, New Delhi.
[Mary Vimochana. (2017); THE INTERSTATE (ASSAM AND GUJARAT) DIFFERENCES IN THE ENVIRONMENTALLY ADJUSTED GSDP Int. J. of Adv. Res. 5 (1). 425-431] (ISSN 2320-5407). www.journalijar.com
Article DOI: 10.21474/IJAR01/2763 DOI URL: http://dx.doi.org/10.21474/IJAR01/2763
Share this article
This work is licensed under a Creative Commons Attribution 4.0 International License.