Some comments on depletion and degradation costs in income measurement

This paper discusses the controversy regarding adjustments needed to be introduced in National Accounts to determine sustainable income measures. The issue is presented separately for depletion and degradation costs in order to take into account inter- and intratemporal considerations. It is argued that the approaches proposed in recent literature to measure natural resources depreciation can be considered as special cases of a distinct sustainability hypothesis. Apart from these theoretical issues, sustainable income measurement also entails very difficult empirical questions.