Green National Income and Green National Product

We observe that the value of the gross natural increment in natural capital is the appropriate entry in the income side of the national accounts, when “greened.” This entry is zero for the special case of nonrenewable resources. Greening is motivated by the desire to account for the value of changes in the size of the stock of natural capital in net national product. We also report on the problem of the use of distorted prices in national accounting.