Environmental Responsibility and Exposure of Finance : Combining Environmentally-Extended Input-Output and Balance Sheet Approaches

Finance both contributes to environmental degradation and is vulnerable to environmental degradation. This article sets the methodological groundwork for assessing both concerns in an integrated macro-accounting framework. It is presented how the combination of Environmentally extended Input-Output analysis and balance sheet methods and data can be used to evaluate the contribution of finance to environmental degradation (responsibility) and the vulnerability of finance to environmental risks (exposure). In doing so, the article contributes to the development of a disaggregated ecological macroeconomics integrating monetary and biophysical flows and stocks