The Philippine Experience in Green Accounting and Valuation of Environmental Services: Lessons and Prospects for Public Policy

Ma. Eugenia C. Bennagen Resources, Environment & Economics Center for Studies (REECS)

Green (or environmental) accounting refers to the extension of the conventional national accounts to incorporate environmental concerns. Environmental valuation is valuing the services of the natural environment using economic valuation methods which may be conducted for purposes other than green accounting.

 There has been a marked slowdown in recent years in the sustainable development initiatives of government, in general, and in environmental accounting, in particular. One is tempted to fault the meagre budgetary resources allocated to this activity, or even the lack of political commitment of the present national leadership.

Green accounting a proposition for EA/ER conceptual implementation methodology Heba Y. M. Abdel-Rahim Sadat Academy for Managerial Sciences, Assiut, Egypt. University of Florida, Yousef M. Abdel-Rahim King Saud University, Saudi Arabia Assiut University, Egypt

The environmental accounting and reporting (EA/ER) is a proposed discipline that deals with the consideration, and ultimately the inclusion into the customarily accounting procedures, general and specific issues related to environmental and social impacts, regulations and restrictions. Safe, environmentally sound, and economically viable energy production and supply policies should be essential part of any accounting and management issues.

In regards to accounting profession, there are paramount 4 reasons for the lack of EA/ER adaptation:

1. the profession has failed to maximize its potential for leadership 2. the sufficient expertise to participate in environmental partnerships remains undeveloped 3. the attestation to environmental reports is still not regarded solely as an accountants function 4. the official standards with respect to most EA/ER issues and/or verification engagements continue to be lacking

Although greater attention is slowly paid to environmental issues in accounting education in many high-ranked universities, yet the general impression about the implementation and application of the EA/ER in real life is lagged far behind. This lag stems from two main causes: