Friday, July 09, 2010

EconomicsUSA: Accounting: Inner reform of accounting premises sparked by green construction trend

I'm blown away be two recent economic ideas that str+k me as qu+t refreshing and at first glance seem to have large explanatory powers.  The first is analysis of the current dire global economic-financial crisis by Dr Bob Goudzwaard speaking at the Paideia Centre for Public Theology.Redeemer University College  I thawt the remainder of the program on the audio was trivial (but earnest!) in comparison to reformational economist Goudzwaard's threading the trails of interactive  economic trends.  I better go listen to that programme again, before I characterize it further.  Thanks to the Centre which made it available in an online audio recording.  


The second is audio and vidio/visio, a specialist economist Graham Parsons analyzes "green building" as a significant trend in the construction industry USA.  He goes on to hypothesize a triple bottom-line of irreducibles in a principle-based accounting.   "Triple bottom line accounting."



July 8, 2010

Sustainable construction
VIDEO: Green building critical in triple bottom line accounting
Building design and construction standards will undergo significant changes as “triple bottom line” accounting becomes more commonplace in the industry, a Saskatchewan-based economist says.
In addition to just financial performance, the triple bottom line takes into account social and environmental impacts – or, people, planet and profit.
“These form the three pillars for the sustainability of the economy,” economist Graham Parsons told a seminar at the Construction Specifications Canada conference in Saskatoon recently.
Life cycle analysis is central to triple bottom line accounting,” he noted.
“Increasingly the public looks towards environmental accounts to start to understand and have the information. And with that information they move billions of dollars in the consumer marketplace and in turn lever the corporate marketplace, which also has to comply with an increasing amount of legislation.”
The growing prevalence of triple bottom line accounting will lead to “new engineering practices, new standards, new forms of specifications, new measuring and monitoring, and new forms of integrated accounting,” Parsons said, adding that he thinks these standards are best designed and promoted by “those most directly engaged” in the industry.
Parsons went on to discuss the role of LEED building certification.
“For LEED to be able to apply its practices, which probably cost a little bit more at the start, it needs a receptive market,” he said. “Carbon prices will help with that, but in addition it’s going to take a cultural change on the part of people buying buildings and building buildings.”
Life cycle analysis will likely hasten the acceptance of sustainable construction by underscoring the real cost of buildings over time, Parsons said.
“You can build a cheap box right now, but its emission costs down the road 10 years, at $60-a-tonne carbon, can make that building seem really expensive.”
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