Environment plays an important role in maintaining ecological balance and also at the same time helps in the sustainable development of the country. Therefore there is an urgent need to take into account the contribution of environment while calculating the National Domestic Product (NDP) of the country. Traditional methods ignore this valuable contribution, so a new and more refined method should be developed to take into account the environmental services, the cost-benefit analysis while formulating the policy instruments. Green accounting or environmental accounting is an improvement over the SNA. Though the method is not completely flawless, it still helps in including the contribution of the environment.

Keywords: SNA, Green Accounting, Pollution Abetment Measures, SEEA, CSR, Biodiversity.