The European Union faces several interlinked challenges: how to protect the environment and favour sustainability; how to reduce unemployment and foster competitiveness in a context of growing globalization; how to reduce regional disparities among and within me mb er countries. The recent policy debate has clarified that the above objectives are not a trade off if jointly tackled. In particular, win-win policy options are available to the European Union by an appropriate integration of regulation, macro policy, social policy, fiscal policy and environmental policy. Evidence shows that optimising on each single policy will not meet the needs of the European Union. On the contrary, an integrated approach will make it possible to reach the various objectives, as stated in the Treaty on European Union, in the 5th Environmental Action Programme, in the White Paper on Growth, Competitiveness and Employment. This integrated approach would im plement a genuine sustainable development policy."

In recent years, analysts, researchers and environmental policy makers have been faced with a serious shortage of empirical data on environmental phenomena. In fact, the information gathered by various organisations has not yet been systematically classified into a consistent system of accounts. This book presents the results of a joint research effort by the Fondazione Eni Enrico Mattei and Italy's Central Statistical Office (ISTAT) to design a system of accounts for natural and environmental resources. The resulting environmental accounts can be integrated with the existing system of national accounts, in order to estimate the so-called green GDP' or net national product' (NNP).

In recent years, analysts, researchers and environmental policy makers have been faced with a serious shortage of empirical data on environmental phenomena. In fact, the information gathered by various organisations has not yet been systematically classified into a consistent system of accounts. This book presents the results of a joint research effort by the Fondazione Eni Enrico Mattei and Italy's Central Statistical Office (ISTAT) to design a system of accounts for natural and environmental resources. The resulting environmental accounts can be integrated with the existing system of national accounts, in order to estimate the so-called green GDP' or net national product' (NNP).

CARLO CARRARO* AND DOMENICO SINISCALCO** * University ofUdine, Greta and Fondazione Mattei; ** University of Turin and Fondazione Mattei 1. THE GLOBAL WARMING DEBATE The 1980s have seen an unprecedented growth in awareness ofthe problem of (man-induced) climate change. Scientific studies to assess the extent to which emissions resulting from human activities are increasing the atmos- pheric concentration ofgreenhouse gases (GHGs: carbon dioxide, methane, man-made chloro-fluorocarbons, nitrous oxide), thus contributing to raise the global mean temperature, have been carried out since the beginning of the decade. In 1990, a comprehensive report assessing the nature and the effects of global wanning was presented by the Inter-Governmental Panel on Climate Change (IPCC), jointly established by the World Meteorological Organisa- tion and the United Nations Environmental Programme. According to the Report, emissions resulting from human activities are substantially increas- ing the atmospheric concentration of GHGs. This is true, in particular, for carbon dioxide emissions, which result mainly from the burning of fossil fuels. The IPCC estimates that, in the last thirty years, the increase in the at- mospheric concentration of C02 has been substantially higher than in the last two centuries and the actual level is the highest among those registered in 160,000 years. The increasing atmospheric concentration of GHGs will enhance the greenhouse effect, resulting on average in an additional wann- ing of the earth's surface. The main greenhouse gas, water vapour, will in- crease in response to global wanning, and will further enhance it.

The European Union faces several interlinked challenges: how to protect the environment and favour sustainability; how to reduce unemployment and foster competitiveness in a context of growing globalization; how to reduce regional disparities among and within me mb er countries. The recent policy debate has clarified that the above objectives are not a trade off if jointly tackled. In particular, win-win policy options are available to the European Union by an appropriate integration of regulation, macro policy, social policy, fiscal policy and environmental policy. Evidence shows that optimising on each single policy will not meet the needs of the European Union. On the contrary, an integrated approach will make it possible to reach the various objectives, as stated in the Treaty on European Union, in the 5th Environmental Action Programme, in the White Paper on Growth, Competitiveness and Employment. This integrated approach would im plement a genuine sustainable development policy."