ACCOUNTING FOR THE IMPACT OF AGRICULTURE AND FORESTRY ON ENVIRONMENTAL-QUALITY

A framework for modifying sectoral accounts for environmental externalities is assembled as a basis for estimating the National Income Accounts for U.K. agriculture and forestry. Valuation of positive and negative environmental impacts draws on revealed and expressed preference evaluations. The approach taken seeks to modify the national accounts for agriculture and forestry by first assessing the physical significance of the relevant externalities (in terms of land use designations and physical pollutants) and then valuing them using existing studies.