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In: Accounting

What is some examples of approaches to sustainability? And how can these be measures

What is some examples of approaches to sustainability? And how can these be measures

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Expert Solution

Approaches to Sustainability

1) Appraisal of the Environment.

Assessment of environmental conditions is prerequisite for initiation of any sustainable development project. The symbiotic relationship between local ecology, social structure and economic conditions of the area concerned should be taken into account.

Bio-physical condi­tion of any area is intricately related with the economic order of the region which, in turn, influence societal development. A thorough Bio-physical investigation helps assessment proc­ess. The assessment report recommends action plan. Only through ‘action plan’ is implemen­tation of the project possible.

2) Estimation of the Environmental Impact.

Environment and its positive use is a key factor for sustainable development. Negative impact on environment through unplanned development may mar sustainability as a whole. The development which creates complete social and environmental harmony is only classed as sustainable. To achieve this goal, identification of the major positive aspects and its opti­mum utilization and monitoring is necessary.

Different ecological inputs along with climate, soil, vegetation and drainage resources should be properly assessed and monitored and how development process affects these natural systems should be critically examined. So, estima­tion of environmental impact is the study of interrelationship with natural systems and devel­opment process.

3) Natural Resource Accounting.

Figuring profits from logging rarely takes full account of the losses in future revenue incurred through degradation of the forest. Similar incomplete accounting occurs in the exploitation of other resources, especially in the case of resources that are not capitalized in enterprise or national accounts: air, water and soil. In all countries, rich or poor, economic development must take full account in its measurement of growth of the improve­ment or deterioration in the stock of natural resources.

Natural resource loss directly affects national productivity, resource creation and national income. Ecology and economy is intri­cately related. Any loss in ecology must hamper economic prosperity. Therefore, natural re­source accounting is mandatory for sustainability of development.

The traditional accounting system is, however, not very effective in this regard. Sustain­able development require more precise and delicate accounting system.

4) Government Policies and Economic Outlook.

The widening gap between poor and rich countries, inequality among individuals, mas­sive trade, capital flow and lack of uniformity in government policies hamper sustainability in development. The dearth of integrated, coherent development policies, lack of price incen­tives, awareness and absence of information campaign may hamper sustainable develop­ment, seen in most of the underdeveloped nations.

Unsustainable use of natural resources should be stopped by imposing taxes or reducing or abolishing subsidies. So, government policy can play a decisive role in the process of sustainable development.


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