What is Green Accounting System?

i)                    Green Accounting system basically focuses on deficiencies in conventional accounts with respect to the environment.

ii)                  It makes efforts to see that environmental costs are properly reflected in the prices paid for goods & services.

iii)                As a result companies & consumers would adjust market behaviour in a way that would reduce damage to environment & decrease pollution and waste products.

iv)                Price signal will also influence human behaviour to avoid exploitation or excessive use of natural resources.

v)                  Such measures will facilitate the approach of “Pollution Pay Principles” & thus avoid policy decisions which are non sustainable for the country.