Let’s say a new irrigation scheme is proposed and all the land it’ll take up needs to be cleared — trees felled, soil upturned, and habitats destroyed. Water will also have to be allocated. Would the economic gain of the scheme outweigh the damage to the environment?
This is the kind of question so-called “land accounts” grapple with. Land accounts are a type of “environmental account”, which measures our interactions with the environment by recording them as transactions. They help us understand the environmental and economic outcomes of land use decisions.
Environmental accounting, for which Australia has a national strategy, seeks to integrate environmental and economic data to ensure sustainable decision making. Last month, the Australian Bureau of Statistics released the country’s first national land account under the strategy, describing it as “experimental”.