Green accounting

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Green accounting is a type of accounting that attempts to factor environmental costs into the financial results of operations. It has been argued that gross domestic product ignores the environment and therefore decisionmakers need a revised model that incorporates green accounting.^[1] It is a controversial practice however, since depletion is already factored into accounting for the extraction industries and the accounting for externalities may be arbitrary. Julian Lincoln Simon argued that use of natural resources results in greater wealth, as evidenced by the falling prices over time of virtually all nonrenewable resources.