A
adjusted net national product (NNP*)/net domestic product (NDP*) the value obtained by subtracting both humanmade and natural resource depreciation from gross national product or gross domestic product.

C
critical natural capital elements of natural capital for which no good human-made substitutes exist, such as basic water supplies and breathable air.

cumulative pollutant(s)/pollution pollutants that do not significantly dissipate or degrade over time.

D
defensive expenditures expenditures made to clean up pollution or repair or compensate for environmental damage.

E
ecological value the value of ecosystem resources and services not expressed in markets.

end-of-year stocks the stock of natural resources, such as timber and oil, at the end of a year; used as a supplement to national income accounting.

environmental services ecosystem services such as nutrient cycling, water purification, and soil stabilization; these services benefit humans and support economic production.

G
genuine saving (S*) a measure that estimates the amount of national income being saved, taking into account natural-resource depletion, net foreign borrowing, and net additions to capital stock.

global pollution/pollutant(s) pollutants that can have global impact such as carbon dioxide and chlorofluorocarbons (CFCs).

green accounting approaches to national income accounting that attempt to incorporate the depletion of natural capital and other environmental benefits and costs.

H
Human Development Index (HDI) a national income accounting technique, developed by the United Nations Development Programme, that combines GDP with data on life expectancy, literacy, and school enrollment to obtain an HDI score.

I
Index of Sustainable Economic Welfare (ISEW) a national income accounting measure that subtracts defensive expenditures from output and accounts for natural resource depletion, pollution damages, income inequality, and nonmarketed services.

N
natural capital depreciation a deduction in national accounting for loss of natural capital, such as a reduction in the supply of timber, wildlife habitat, or mineral resources.

net foreign borrowing (NFB) the amount borrowed by a country less the amount lent to other countries; gross investment is adjusted by NFB and depreciation to determine net domestic investment or savings.

net investment the process of adding to productive capital over time, calculated by subtracting depreciation from gross, or total, investment.

net national product (NNP)/net domestic product (NDP) the value obtained by subtracting the depreciation of humanmade capital from gross national product or gross domestic product.

net receipts returns from the sale of a resource, equal to revenues minus production costs.

P
productivity loss estimates an estimate of the reduction in the productive capacity of renewable natural resources, such as soil; used to supplement national income accounting.

R
replacement cost an approach to measuring environmental damages that estimates the costs necessary to restore or replace the resource, such as applying fertilizer to restore soil fertility.

S
satellite accounts accounts that estimate the supply of natural capital in physical rather than monetary terms; used to supplement traditional national income accounting.

strong sustainability the view that natural and humanmade capital are generally not substitutable and, therefore, natural capital levels should be maintained.

substitutability (of natural and manufactured capital) the ability of humanmade capital to compensate for the depletion of some types of natural capital, such as the ability of fertilizer to compensate for the loss of soil fertility.

T
transboundary pollution pollution carried beyond the borders of a specific region or country and affecting those outside the region.

true income an adjusted measure of income obtained by subtracting that portion of total income that would have to be invested at long-term rates to guarantee an indefinitely continued flow of income at the same level.

U
user cost(s) opportunity costs associated with the loss of future potential uses of a resource, resulting from consumption of the resource in the present.

W
weak sustainability the view that natural capital depletion is justified as long as it is compensated for with increases in humanmade capital; assumes that humanmade capital can substitute for most types of natural capital.