Download Encyclopedia of Energy Volume III (Encyclopedia of Energy by Robert U Ayres, Robert Costanza, Jose Goldemberg, Marija D PDF

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By Robert U Ayres, Robert Costanza, Jose Goldemberg, Marija D Ilic, Eberhard Jochem, Robert Kaufmann, Amory B Lovins, Mohan Munasinghe, R K Pachauri, Claudia Sheinbaum Pardo, Per Peterson, Lee Schipper, Margaret Slade, Vaclav Smil, Ernst Worrell, Cutler J. C

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The objective was to incorporate environmental concerns into a comprehensive, integrated national accounts system. The basic methods of market valuation, maintenance costing, and contingent (damage) valuations are briefly described in the appendix. Their objective is to overcome major flaws of the conventional (monetary) accounts, in particular the following: * * * Neglect of new scarcities of natural resources, which are a threat to sustained productivity of the economy Exclusion of environmental degradation as an externality of economic activity Accounting for environmental protection expenditures as national income and product when such outlays could be considered as a maintenance cost of society.

Genuine Progress Indicator (GPI) for the United States, later applied and modified in other countries. The GPI subtracts defensive expenditures (of environmental protection, defense, and other welfare maintaining—rather than increasing—expenses) and adds or subtracts positive and negative environmental and other social costs and benefits. World Bank’s National Wealth aggregate of produced assets, natural capital, and human resources. All these indices suffer from a more or less arbitrary selection of partially correlated indicators, a questionable mix of weighting and valuation techniques, or inconsistency with standard accounting concepts and conventions.

33 34 Goods and Services: Energy Costs Energy cost is an example of an indirect effect. Once we realize that a good or service ‘‘embodies’’ an input that is not evident, we are free to calculate the energy cost of an orange, the orange cost of energy, the water cost of hamburger, or how much pollution is released when a Sierra Club book (or this encyclopedia) is published. However, then we are vexed with how far to go in the calculation. For example, how much energy is required to allow a car to travel 1 mile?

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