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Green accounting
Green accounting is a type of accounting that attempts to factor environmental costs into the financial results of operations. It has been argued that gross domestic product ignores the environment and therefore policymakers need a revised model that incorporates green accounting.〔Sjak Smulders (2008). "green national accounting," ''The New Palgrave Dictionary of Economics,'' 2nd Edition\. (Abstract. )〕 The major purpose of green accounting is to help businesses understand and manage the potential quid pro quo between traditional economics goals and environmental goals. It also increases the important information available for analyzing policy issues, especially when those vital pieces of information are often overlooked.
== Etymology ==
The term was first brought into common usage by economist and professor Peter Wood in the 1980s.〔Schaltegger, S. & Burritt, R.: Contemporary Environmental Accounting: Issues, Concept and Practice. Sheffield: Greenleaf, 2000 ISBN 1-874719-65-9〕
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