Accounting for Environmental Activity: Measuring Public Environmental Expenditures and the Environmental Goods and Services Sector in the Us

52 Pages Posted: 21 Aug 2023 Last revised: 1 Nov 2024

See all articles by Dennis Fixler

Dennis Fixler

US Bureau of Economic Analysis

Julie Hass

Bureau of Economic Analysis

Tina Highfill

Government of the United States of America - Bureau of Economic Analysis (BEA); Virginia Commonwealth University (VCU) - Department of Health Administration

Kelly Wentland

George Mason University - Department of Accounting

Scott Wentland

Bureau of Economic Analysis (BEA)

Date Written: August 2023

Abstract

How much of the economy is focused on protecting, rehabilitating, or managing the environment? To answer this question, we develop a proof-of-concept environmental activity account to quantify the environmental goods and services sector (EGSS) in the United States. Methodologically, we employ a satellite account approach similar to the method used by the US Bureau of Economic Analysis (BEA) to quantify other sectors of the economy (e.g., Outdoor Recreation Account, Marine Economy Account) while following the accounting principles and methods outlined in the SEEA Central Framework (SEEA-CF). This approach draws on detailed internal supply-use data, drawn primarily from Census’s Industry and Product data along with other supplemental sources. Overall, we estimate gross output of the EGSS was $725 billion in 2019, or about 1.9% of the total gross output of the US economy. Government expenditures (across all levels) comprise a substantial portion of the EGSS in the US, as the public sector accounted for about 27% of total EGSS output ($197 billion) in 2019. Although these estimates are still preliminary and are not official statistics, the goals of this research are to provide new insights into classification and measurement challenges in producing environmental activity accounts more generally, while also documenting data gaps and accounting issues in the US context more specifically.

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Suggested Citation

Fixler, Dennis and Hass, Julie and Highfill, Tina and Wentland, Kelly and Wentland, Scott, Accounting for Environmental Activity: Measuring Public Environmental Expenditures and the Environmental Goods and Services Sector in the Us (August 2023). NBER Working Paper No. w31574, Available at SSRN: https://ssrn.com/abstract=4546441

Dennis Fixler (Contact Author)

US Bureau of Economic Analysis ( email )

4600 Silver Hill Road
Washington, DC 20233
United States

Julie Hass

Bureau of Economic Analysis ( email )

Washington
United States

Tina Highfill

Government of the United States of America - Bureau of Economic Analysis (BEA) ( email )

1441 L Street NW
Washington, DC 20910
United States

Virginia Commonwealth University (VCU) - Department of Health Administration ( email )

P.O. Box 980203
Grant House 1008 East Clay Street
Richmond, VA 23284
United States

Kelly Wentland

George Mason University - Department of Accounting ( email )

Fairfax, VA
United States

Scott Wentland

Bureau of Economic Analysis (BEA) ( email )

1441 L Street NW
Washington, DC 20910
United States

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