Which one of the following is a measure of Sustainable income level that can be secured without decreasing the stock of natural assets?

Q. Which one of the following is a measure of Sustainable income level that can be secured without decreasing the stock of natural assets?

1. Natural capital stock
2. Environmental value
3. Green accounting
4. Social discount rate

Answer: Green Accounting

Natural capital can be defined as the world's stocks of natural assets which include geology, soil, air, water and all living things. It is from this natural capital that humans derive a wide range of services, often called ecosystem services, which make human life possible.

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 policymakers need a revised model that incorporates green accounting.

Green accounting is a measure of sustainable income level that can be secured without decreasing the stock of natural assets. This requires adjustment of the System of National Accounts (SNA) in terms of stock of natural assets. In SNA, allowance is made for capital consumption or man-made capital while calculating Net Domestic Product (NDP). Net Domestic Product (NDP) =GDP-depreciation.

Social discount rate (SDR) is the discount rate used in computing the value of funds spent on social projects. Determining this rate is not always easy and can be the subject of discrepancies in the true net benefit to certain projects, plans and policies.