Whither Environmental Accounting. The Challenge of Ecological and Green Accounting

Abstract

This paper aims to analyse critically the implications of Environmental Economics, Natural Resource Economics, Green Economics, and Ecological Economics on Environmental, Ecological, and Green Accounting Theory. By deconstructing the dominant analytical notions of Environmental, Ecological, and Green Accounting Theory in its assumptions, hypotheses, epistemological approach, theoretical framework, and real-world prescriptions, this study provides an understanding of the consequences of their use in society and organizations. Environmental and Ecological Accounting provide policy implications and accounting standards and practices closer to pro-market and new public management strategies. In contrast, Green Accounting proposes a life centered and institutionalist approach, calling for concerns of intergenerational value and equity. Indeed, social costs and social prices provide a gateway to internalize environmental damages caused by the economic system. Furthermore, both groups suggest overlapping and opposing methodologies to understand the character and importance of nature in our economic system and society. A critical discussion of the possibilities and promises of these approaches allows this research to conclude that ecological and green accounting are better suited for the defense of life and nature in the face of our current daunting environmental challenges.