The NAMEA as validation instrument for environmental macroeconomics

Abstract

This paper shows how environmental issues can be incorporated into macroeconomic accounting and analysis by the construction and use of a National Accounting Matrix including Environmental Accounts (NAMEA). The paper firstly elaborates on a number of conceptual issues on the harmonisation of environmental statistics and the national accounts. Specific attention is given to the consistent allocation of pollution to production and consumption activities and the importance of aggregated environmental indicators. Further, various applications are presented which vary from simple comparisons of macroeconomic performance indicators for economy and environment to more comprehensive modelling exercises. The paper does not only review recent experiences in the Netherlands but also those from other countries.