EU-27 greenhouse gas emissions are decreasing. This overall trend is projected to continue until 2020 but further emission reductions will be needed to meet the target of a 20% reduction by 2020 compared to 1990

We consider the question of how to integrate carbon emissions in comprehensive national accounts for the purpose of indicating whether countries’ development is sustainable. We derive an expression for national saving which includes not only the national effect of current global emissions, but...