Edinburgh Napier University

  Traditional environmental accounting framework is based on a neo-classical economic theory that treats environmental assets and liabilities as if their contribution to economic acitivity were similar to that of conventional, marketed assets and liabilities. The ‘environment’ is viewed as a producer of outputs consumed by other productive economic sectors. It is proposed in this article that the environment is not only a producer of outputs, but also an output itself. The environment requires not only its protection, but importantly its continual improvement. Under this framework environmental accounting as a discipline is split into two categories: corporate environmental accounting and social environmental accounting. Two information streams exist under this framework: products-oriented information and environment-oriented information.