This article applies the concept of environmentally adjusted accounting to measures of savings and investment. Adjusting savings measures to reflect environmental depletion fits well with many of the traditional concerns of development economics, including the savings-investment gap and the importance of investment finance for development. Developing ‘greener’ national accounts holds the additional promise of treating environmental problems within a framework that the key economic ministries in any government will understand. This framework may help to bridge the gap between environmental ministries and economic ministries. In addition, broader development concerns can be included in adjusted savings and investment measures by taking account of investment in human capital.
