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Accounting Changes and Error Corrections

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Life cycle analysis, examining all stages in using a re-source, is central to the full cost accounting neededto guide public policy and private investment. Aprevious study examined the life cycle stages of oil,but without systematic quantification.24This pa-per is intended to advance understanding of themeasurable, quantifiable, and qualitative costs ofcoal.In order to rigorously examine these differentdamage endpoints, we examined the many stagesin the life cycle of coal, using a framework of en-vironmental externalities, or “hidden costs.” Exter-nalities occur when the activity of one agent affectsthe well-being of another agent outside of any typeof market mechanism—these are often not takeninto account in...
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Accounting Changes and Error Corrections

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