Accounting for the Environment in Agriculture

摘要

Detailed information derived from the national income and product accounts provides the basis for economic interpretations of changes in the nation's income and wealth. This paper attempts to more accurately measure agriculture's contribution to national income. Specifically, the effects of soil erosion on agricultural productivity and income, the economic effects of decreased water quality, and the depletion of water stocks are presented as examples of the potential scope of accounting adjustments needed in the agricultural sector. Estimated adjustments to net agricultural income are in the range of $4 billion and have declined as a percentage of net farm income since 1982. The authors' estimates suggest that agriculture's contribution to social welfare far exceeds the environmental damages and deterioration of the stock of natural capital resulting from the production of food.