So, clearly, that’s not the right solution for Snippa, is it?
And this issue is vital: if we’re to have a sustainable future we must have accounting that integrates green issues within it.
Fair enough. So, accounts are at market prices. If market prices reflect the green issues then accounts will reflect green issues. We thus desire to adjust market prices to reflect green issues.
This is Pigou taxation. Sure, we want market prices to reflect full costs anyway, we agree that certain third party costs aren’t currently incorporated into prices. So, adjust to make markets reflect those costs. The solution – as every economist on the planet is screaming – is thus a carbon tax.
Snippa doesn’t support this. Presumably because a known and effective solution doesn’t provide research grants for Snippa.
I will; shortly be publishing a post on ways you can support the demand that the International Financial Reporting Standard change its approach to this issue. We need sustainability reporting, of course. But we must have that integrated within the financial statements of a company. Nothing less will do.
We already have the correct way to do this – Pigou taxation.