The paper provides the rationale for ecosystem accounting and suggests ways to operationalise it. Through the example of selected states - Gujarat, Jammu and Kashmir, Kerala, Rajasthan and West Bengal - it demonstrates application of the concept. The physical extent of change has been estimated for the period of 1991-2001. The loss of the inland wetland for this period comes to around 0.46 million ha during this 10-year-period. By applying the benefit transfer method, the monetary value of the annual physical loss in the inland wetland for the combined five states has been estimated to be $1,022 million at 1999-2000 prices. The paper estimates the per capita loss for the states. The maximum loss on per capita basis is for J&K ($221 and 11% of the state domestic product) while that for the combined states is $11.57. The paper attempts to suggest that ecosystem accounting is a required step towards developing the indicator for sustainable development, also referred to as the "green economy".
