Environmental Economic Accounting: Bridging Modern Statistical Frameworks, Ancient Indian Statecraft, and Contemporary Governance

Abstract

This paper presents a rigorous theoretical and philosophical appraisal of environmental-economic accounting frameworks, explicitly bridging contemporary macroeconomic metrics with classical Indian ecological ethics. We dissect the systemic limitations of traditional macroeconomic indicators, mapping the evolution of the United Nations System of National Accounts (SNA) toward the contemporary System of Environmental-Economic Accounting (SEEA) Ecosystem Accounting standard. Moving beyond purely mechanical critiques, we demonstrate how modern market failures and ecological decoupling stem from a worldview that separates human industry from the biophysical matrix.

To resolve this, we explore how integrating traditional Indian knowledge systems (IKS) specifically Kautilya’s institutional resource auditing and the holistic Pancha Mahabhuta paradigm provides a philosophical foundation for modern strong sustainability. We conceptually evaluate intertemporal optimization, capital accumulation dynamics, and Green Net National Product (GNNP) through descriptive welfare paradigms, eliminating the abstractions of rigid mathematical modelling. Finally, these frameworks are contextualized using global empirical assessments of water tariff volatilities alongside a critical macro-evaluation of India’s Environmental Impact Assessment (EIA) regulatory evolution, highlighting the institutional disconnect between national data reporting and localized environmental governance