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2 edition of Notes on economic depreciation of natural resource stocks and national accounting found in the catalog.

Notes on economic depreciation of natural resource stocks and national accounting

John M. Hartwick

Notes on economic depreciation of natural resource stocks and national accounting

by John M. Hartwick

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Published by Institute for Economic Research, Queen"s University in Kingston, Ont .
Written in English


Edition Notes

StatementJohn M. Hartwick
SeriesDiscussion paper -- # 818, Discussion paper (Queen"s University (Kingston, Ont.). Institute for Economic Research) -- no. 818.
ContributionsQueen"s University (Kingston, Ont.). Institute for Economic Research
The Physical Object
Pagination41 p. :
Number of Pages41
ID Numbers
Open LibraryOL26563231M

National Income Accounting There are two key points to remember about these measures. 1. GDP represents a flow (an amount per year) concept and not a stock (an amount at a particular moment in time). The National Balance Sheet is a stock concept. 2. It refers to only final output. Why? Consider the idea of double counting. Is the. Depreciation is the process of allocating the depreciable cost of a long‐lived asset, except for land which is never depreciated, to expense over the asset's estimated service iable cost includes all costs necessary to acquire an asset and make it ready for use minus the asset's expected salvage value, which is the asset's worth at the end of its service life, usually the amount.

Measuring Capital – OECD Manual SECOND EDITION ISbN 30 12 1 P-:HSTCQE=UWZ[X^: Measuring Capital – OECD Manual SECOND EDITION Capital – in particular of the physical sort – plays several roles in economic life: it constitutes wealth and it provides services in production Size: 2MB. The measure of natural capital depreciation is the annual value of net natural resource depletionas a % of adjusted net national income (constant US$). The World Development Indicators definethe value of net natural resource depletion as the sum of net forest, fossil fuel and mineral depletion.

Economic indicators change dramatically when the depletion and degradation of natural resources and ecosystems are accounted for. Here, I show by how much, through a worked example of mangroves in.   With depreciation, amortization, and depletion, all three methods are non-cash expenses with no cash spent in the years they are expensed. Also, it's important to note .


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Notes on economic depreciation of natural resource stocks and national accounting by John M. Hartwick Download PDF EPUB FB2

In Hartwick [] I presented a methodology and formulas for incorporating changes in values of natural resource stocks in an economy’s national accounts. The aim was to account for the depletion of stocks from extraction (e.g., oil), from “overuse” (e.g., fishing) and from degradation (e.g., pollution).Cited by: NNP and the economic depreciation of exhaustible resources Consider optimal growth in an economy in which f ó U(C) e-°` dt is being maximized subject to K = F(K, L, R) - C - f (R, S) -g(D, S) and S = - R + D, where C is aggregate consumption, U(-) is the aggregate utility function, p is the social discount rate, K is the stock of produced capital, L is the current labor force (L(t) = Lo a"`, where n is the rate of growth Cited by: Routine substitutions reveal that the using up of natural resource stocks is representable as easy-to-interpret economic depreciation magnitudes.

We obtain true NNP inclusive of natural resource stock diminution. Implications for actual national accounting practices are also by: Queen’s Economics Department Working Paper No.

Natural Resources, National Accounting and Economic Depreciation John M. Hartwick Department of Economics Queen’s University 94 University Avenue Kingston, Ontario, Canada K7L 3N6 Downloadable.

The current value Hamiltonian in an aggregate optimal growth problem with heterogeneous capital stocks including exhaustible, renewable and environmental stocks is the NNP function. Routine substitutions reveal that the using up of natural resource stocks is representable as an easy-to-interpret economic depreciation magnitudes.

- Notes: Chapter 2 - National Income Accounting, Cl Economics Class 12 Notes | EduRev is made by best teachers of Class This document is highly rated by Class 12 students and has been viewed times/5(3). PowerPoint slide on Depreciation Accounting compiled by Sukhbinder Singh. A/c () By Balance c/d Working Notes: (I) Depreciation provided on the two machines till April l, For (for half year) Foron 25, ie.

27, less Foron 23, (2) Depreciation on the discarded machines: Book value on. Department of Economic and Social Affairs Statistics Division Studies in Methods Series F Handbook of National Accounting Links between No.

76 Business Accounting and National Accounting ~ ({-~ ~ ~ d§ ~ United Nations New York, ST/ESA/STAT/SER.F/76 Accounting for natural resources: A. involves using the accumulated depreciation account. involves estimating the quantity of the natural resource to be recovered.

involves an exception to the matching concept. involves a sum-of-the-year's-digits depletion calculation. On Ma Blarney Corporation issued for c shares of no-par common stock at $ The journal entry to record this transaction would include a A) debit to Cash for $10, B) credit to Cash for $, C) credit to Common Stock for $, D) credit to Common Stock for $, resource planners to price natural resources in order to maximise the discounted inter temporal utility.

In a limited sense, he was able to link the value of a natural resource with the discount rate, which is an important parameter in national income accounting. More recently El Serafy () has provided rules for charging rent for exploitingFile Size: KB.

Hartwick, J. Notes on economic depreciation of natural resource stocks and national accounting. Discussion paper # Department of Economics, Queen's University, Kingston, Ontario, 41 pp. Google ScholarCited by: Typically, we record natural resources at their cost of acquisition plus exploration and development costs; on the balance sheet, we report them at total cost less accumulated depletion.

(Accumulated depletion is similar to the accumulated depreciation used for. The current value Hamiltonian in an aggregate optimal growth problem with heterogeneous capital stocks including exhaustible, renewable and environmental stocks is the NNP function.

Routine substitutions reveal that the using up of natural resource stocks is representable as an easy-to-interpret economic depreciation magnitudes.

Net domestic product accounting rules for the depreciation of the total stock of reproducible, human, and natural capital of an economy can be extended to incorporate the direct benefits provided. accounting in Nigeria. The development of national resource accounting has focused on placing monetary value on known physical quantities of the resource in order to obtain a wealth value for natural capital (Oladoye ).

The natural resources stock account is Author: T Okafor. Depreciation and Obsolescence in the Context of Natural Resource Accounting. This means that the concept of depreciation used in national accounting is a broade r measure than. Depreciation, depletion, and amortization (DD&A) are accounting techniques that enable companies to gradually expense resources of economic value.

The use Author: Daniel Liberto. The aim of national income accounting is to provide an information framework suitable for analyzing the performance of the economic system. The current system of national accounts reflects the economic concerns that were dominant when the system was developed, particularly the theories of John Maynard Keynes and his contemporaries.

- Chapter Notes - National Income and Related Aggregates, Cl Economics | EduRev Notes is made by best teachers of Commerce. This document is highly rated by Commerce students and has been viewed times/5(). In "Natural Resources, National Accounting and Economic Depreciation", John Hartwick presents an accounting methodology to find NNP inclusive of the depletion of natural resource stock by representing the use of natural resources as "economic depreciation magnitudes".that the former is concerned with the exhaution of economic resources, but the latter relates to the usage of an asset.

In spite of this, the result is erosion in the volume of natural resources and expiry of the service potential. Therefore, depletion and depreciation are given similar accounting treatment.

AmortisationFile Size: KB. Hartwick, J. M. (), ‘Notes on economic depreciation of natural resource stocks and national accounting’, in Franz, A.

and Stahmer, C., eds., Approaches to Environmental Accounting, Heidelberg: by: