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SYSTEM OF ENVIRONMENTAL AND SYSTEM OF ENVIRONMENTAL AND ECONOMIC ACCOUNTING –ECONOMIC ACCOUNTING –

UN RECOMMENDATIONS AND UN RECOMMENDATIONS AND ENDEAVOURS IN ASIAN COUNTRIESENDEAVOURS IN ASIAN COUNTRIES环境经济核算体系－联合国的建议及亚洲环境经济核算体系－联合国的建议及亚洲

国家的实践国家的实践

A.C. Kulshreshtha

UN Statistical Institute for Asia and the Pacific(SIAP)

联合国亚太统计研究所

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Premises for development of SEEA Premises for development of SEEA 建立建立 SEEASEEA 的前提条件的前提条件• Sustainable development and the SEEASustainable development and the SEEA• Three pillar approach to sustainable Three pillar approach to sustainable

developmentdevelopmentEconomic, Social, and Environmental needsEconomic, Social, and Environmental needs

• Natural capital and sustainable development Natural capital and sustainable development

Three kind of Three kind of functionsfunctions that Natural capital (natural resource that Natural capital (natural resource stocks, land and ecosystems) provides are:stocks, land and ecosystems) provides are:

• Resource functionsResource functions:: mineral deposits, deep forest timber, deep sea fishmineral deposits, deep forest timber, deep sea fish

• Sink functionsSink functions: : absorb waste products in air,water, sea, landfill sitesabsorb waste products in air,water, sea, landfill sites

• Service functionsService functions: : habitat for living beings..air, water, survival and amenity habitat for living beings..air, water, survival and amenity functionsfunctions

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Premises for development of SEEAPremises for development of SEEA建立建立 SEEASEEA 的前提条件的前提条件• Weak sustainability: Weak sustainability: seeks to maintain from year to

year the per capita income generated from total capital stock

• Strong sustainability: Strong sustainability: requires that all forms of capital be maintained intact independent of one another

• Caution for Strong sustainability:Caution for Strong sustainability:• Renewable resources should not be used in excess of their natural

regeneration• Non- renewable resources should be used prudently, with care for its

availability to future generations• Sink functions should not be used beyond their assimilative capacities,• Activities which cause deterioration in service functions should be avoided or

at least minimised

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Objectives and structure of the SEEAObjectives and structure of the SEEASEEASEEA 的目标和结构的目标和结构• Conventional system of national accounts

(SNA) addresses role of environment in economic performance in part only

• System of Integrated Environmental and Economic Accounting (SEEA) supplements the SNA by Identifying expenditures related to environmental issues, and Incorporating Environmental Assets & changes thereinin the Supply Use and Asset Accounts of the SNA

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Objectives and structure of the SEEA(contd.) SEEASEEA 的目标和结构的目标和结构

• In the SNA , overlap of flows and Stocks comprises of ‘capital formation’ and ‘consumption of fixed capital’

• SEEA incorporates Environmental concerns by (i)Segregating environment related flows & stocks, and (ii)Including environmental assets and changes therein,

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Objectives and structure of the SEEA(contd.) SEEASEEA 的目标和结构的目标和结构

• Further SEEA also takes care of environmental concerns by

Introducing impacts (environmental cost) on natural (economic and environmental) assets, caused by

production

consumption activities of industries, households, and

government

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SEEA: Flow and Stock Accounts withSEEA: Flow and Stock Accounts with Environmental AssetsEnvironmental AssetsSEEASEEA ：环境资产的流量和存量核算：环境资产的流量和存量核算

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Economic and Environmental assets: definition /classification

经济和环境资产：定义 / 分类• Distinction between ‘Economic’ and

‘Environmental’ natural assets is the heartheart of environmental accounting

• Economic assetsEconomic assets supply the economy with natural resources or raw materials for use in production and consumption processes. As per 1993 SNA, the economic assets include all those natural assets (a) over which ownership rights are enforced by institutional units, individually or collectively, and (b) from which economic benefits may be derived.

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Economic and Environmental assets: definition /classification(Contd.)

经济和环境资产：定义 / 分类• Natural assets can be produced (agricultural

crops), or non- produced (land, mineral deposits, fish in lakes or the ocean).

• Environmental AssetsEnvironmental Assets are all those non-produced, non-economic natural assets that function as providers not of natural resource inputs into production but of environmental services of waste absorption, ecological functions such as habitat and flood and climate control, or other non-economic amenities such as health and aesthetic values.

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Classification of natural assets in the SNA and the SEEA

在 SNA 和 SEEA 中自然资产的分类Produced Assets

Fixed assets

Cultivated assets

Inventories

Non-produced Assets

Tangible Non-produced Assets Tangible Non-produced Assets

Land including associated surface water Land including ecosystems

Sub-soil assets Sub-soil assets

Non-cultivated biological resources wild biota

Water resources Water

SNA SEEA

Work-in-progress on cultivated assets

  Air

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Classification of natural assets in SNA and SEEA (contd.)

在 SNA 和 SEEA 中自然资产的分类• Asset boundaries of both SEEA and SNA in respect of

cultivated assets and sub-soil assets are same. • Air is included only in SEEA and not in SNA.• SNA land includes associated water surfaces such as

lakes and rivers and in some instances also ground water. SEEA excludes these categories from land but includes them under Water. SEEA land includes ecosystems.

• SNA water resource is restricted to aquifers.• Classification of natural assets for environmental

accounting is required in order to fully cover depletion, degradation and other accumulation

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Economic and Environmental assets: definition /classification(Contd.)

经济和环境资产：定义 / 分类A major point of deviation between SNA and SEEAA major point of deviation between SNA and SEEA..

• Changes in the availability of economic, non-produced (natural) assets, resulting from depletion or degradation, are accounted

in the SNA as ‘Other Changes in Volume of Assets account’.

in the SEEA, as ‘cost’ into the Production and Income-generation accounts

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WHAT SEEA GIVES SEEAWHAT SEEA GIVES SEEA 的内容的内容 (a) Assessment of environmental costs: Assessment of environmental costs:

(i) The use (depletion) of natural resources in production and final consumption;

(ii) The impacts on environmental quality (emissions) resulting from pollution by production and consumption activities.

• (b) Linkage of physical accounts with Linkage of physical accounts with monetary environmental accounts and monetary environmental accounts and balance sheets balance sheets

Natural Resource Accounts provide physical counterpart of the SEEA's monetary stock and flow accounts

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WHAT SEEA GIVES(Contd.) SEEAWHAT SEEA GIVES(Contd.) SEEA 的内容的内容

• (c) Accounting for the maintenance of (c) Accounting for the maintenance of tangible wealth: the SEEA extends the tangible wealth: the SEEA extends the concept ofconcept of capital to cover not only capital to cover not only human-made capital but also non-human-made capital but also non-produced natural capital. produced natural capital.

• (d) Elaboration and measurement of (d) Elaboration and measurement of environmentally adjusted aggregate: environmentally adjusted aggregate: Environmentally adjusted Net Value Environmentally adjusted Net Value Added, Domestic Product, and Capital Added, Domestic Product, and Capital AccumulationAccumulation

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Valuation of Natural Resources and Environmental Impacts自然资源和环境影响的评估

• Only economic natural assets are valued in monetary terms in SNA.

• In SEEA the depletion of economic natural assets (Other changes in Volume) is taken as cost in the Production Account. As such costs are not accounted in budgets ,they are taken as Social costs.

• SEEA attempts to put monetary value on such Social costs using three alternative approaches:(a)Market Valuation (Net present value/Net price/User cost)

(b)Maintenance Valuation,(c)Contingent Valuation

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Green National Accounting System:Green National Accounting System: Environmentally Adjusted Accounting IndicatorsEnvironmentally Adjusted Accounting Indicators

绿色国民经济核算体系：环境调整指标绿色国民经济核算体系：环境调整指标• Using appropriate valuation approach for

estimating natural resource depletion and environmental degradation,

• Environmentally adjusted economic aggregates are obtained

• by subtracting • the cost of Use of natural assets (depletion and

degradation) • from conventional (SNA) macro economic

aggregate.

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Environmentally Adjusted Accounting IndicatorsEnvironmentally Adjusted Accounting Indicators绿色国民经济核算体系：环境调整指标绿色国民经济核算体系：环境调整指标 (contd.)(contd.)

• Thus Environmentally adjusted Net Value Added for industry i, is

EVAi = Oi – ICi – CFCi – ECi = NVAi – ECi

Where, Oi , ICi , CFCi ,and ECi denote output, intermediate consumption, consumption of fixed capital, and environmental costs of industry I.

NVAi is unadjusted net value added

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Environmentally Adjusted Accounting IndicatorsEnvironmentally Adjusted Accounting Indicators绿色国民经济核算体系：环境调整指标绿色国民经济核算体系：环境调整指标

Environmentally adjusted Net Domestic Product would be,

EDP = i EVAi - ECh = NDP – ECh

=C+ CF – CFC – ECh + X – M

where, ECh is environmental cost generated by households, C, CF, X, and M denote consumption, capital formation, export and import

Environmentally adjusted Net Capital Formation is

ECF = (CF – CFC) – ECc

where, ECc is Natural capital consumption

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Environmentally Adjusted Accounting IndicatorsEnvironmentally Adjusted Accounting Indicators

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FRAMEWORK FOR INTEGRATED ENVIRONMENTAL AND ECONOMIC ACCOUNTING

综合环境和经济核算的框架

• An overall framework for integrated environmental and economic accounting whose components can be implemented in selective or phased approaches, depending on data availability and priority concerns of a particular country is shown in the next chart. Modifications of conventional economic accounts can be seen in the chart.

We need to have • (a) the separate identification of environmental expenditures in

the supply, use and asset accounts of the SNA • (b) The accounting of natural resource stocks and use in

physical and monetary terms• (c) The measurement and valuation of emissions, that is to

say, of so-called environmental externalities

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Framework for integrated environmental and economic accounting

‘Environmental’ assets

Opening stocks of produced assets

Opening stocks (physical assets only)

ISICOutput Imports

CEPA O utput of environmental protection products

Imports of environme-ntal protection products

Intermediate consumption Exports Final consumption Gross capital formation

CEPA IntermediateConsumption of environmental protection products

Exports of environmental

protection products

Final Consumption of environmental

protection products

Gross capital formation for environmental

protection

Gross value added

Consumption of fixed capital

Consumption of fixed capital

Consumption of fixed capital used for

environmental protection

Consumption of fixed capital used for

environmental protection

Net value added

Compensation of employees

Operating surplus

Taxes on production less subsidies

Of which:

Environmental taxes and subsidies

Depletion of non-produced assets

Depletion of non-produced assets

Degradation (emission) of non-produced assets

Degradation (emission) of non-produced assets

Environmentally adjusted net value added

Other volume changes for produced assets

Changes in volume

Revaluation

Closing stocks for produced assets

Closing stocks (physical assets only)

Non-produced assets

ISIC‘Economic’ assets

ISICOpening stocks of non-

produced economic assetsSupply and Use Tables

Asset balances by type of assetsProduced assets

(including natural assets )

Of which:

Gross capital formation (for land only)

Of which:

Gross capital formation for environmental protection (for

land only)

Consumption of fixed capital(for land only)

Consumption of fixed capital used for environmental protection(for land only)

Closing stocks for non-produced assets

Depletion non-produced assets (except for land)

Degradation of non-produced economic assets (for land)

Other volume changes for non-produced assets

Revaluation

Income accounts Net disposable income

Environmentally adjusted Net disposable income

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SEEA implementation: Step by step approachSEEA implementation: Step by step approachSEEASEEA 的实施：步进式方法的实施：步进式方法

• Step 1: Compilation of the supply and use accounts• Step 2: Identification /compilation of environmental

protection expenditures• Step 3: Compilation of produced natural asset

accounts• Step 4 :Compilation of physical natural resource

accounts4.1 Land and soil accounts4.2 Subsoil asset accounts4.3 Forest accounts (economic functions)4.4 Fishery resources and other biota accounts4.5 Water accounts

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SEEA implementation: Step by step approachSEEA implementation: Step by step approach SEEA SEEA 的实施：步进式方法的实施：步进式方法

• Step 5: Valuation of natural resources: compiling the monetary accounts

• Step 6: Compilation of physical environmental assets accounts (optional)

• Step 7:Compilation of emissions by economic sector

• Step 8: Maintenance costing of emissions• Step 9: Aggregation and tabulation• Step10: Comparison of conventional and

environmentally adjusted indicators

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SEEA, 2003

• The SEEA is a satellite system of SNA that The SEEA is a satellite system of SNA that comprises of four categories of accounts:comprises of four categories of accounts:

• Category 1: Category 1: Physical and Hybrid flow accountsPhysical and Hybrid flow accounts• Category 2: Category 2: Economic accounts and Economic accounts and

environmental transactionsenvironmental transactions• Category 3: Category 3: Asset accounts in physical and Asset accounts in physical and

monetary termsmonetary terms• Category 4:Category 4: Extending SNA aggregates to Extending SNA aggregates to

account for depletion, account for depletion, defensive defensive expenditure and expenditure and degradationdegradation

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SEEA, 2003 (contd.)

Four types of Physical flow accountsPhysical flow accounts are distinguished in the SEEA:

• Flow accounts for ProductsFlow accounts for ProductsSupply and Use of goods and services produced within economy and ROW

• Flow accounts for Natural resourcesFlow accounts for Natural resources Supply and Use of natural resources: fuel wood, mineral,biological resources

• Flow accounts for Ecosystem inputsFlow accounts for Ecosystem inputsSupply and Use of water and natural nutrients, oxygen, carbon-dioxide

• Flow accounts for ResidualsFlow accounts for Residuals Supply and Use of solid, liquid and gaseous wastes

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Flow accounts for ProductsFlow accounts for Products产品流量帐户产品流量帐户

• Total supply = Domestic production + imports

• Total use = Intermediate consumption + household final consumption + government final consumption

+ fixed capital formation + change in inventories

+ exports

Supply and use table for products

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Flow accounts for Natural resourcesFlow accounts for Natural resources自然资源流量帐户自然资源流量帐户

Supply of natural resources: fuel wood, mineral, biological resources, etc. is from the Environment

Use of natural resources: fuel wood, mineral,biological resources, etc is made by the industries, households and ROW

Supply and use table for natural resources

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Flow accounts for Ecosystem inputsFlow accounts for Ecosystem inputs生态系统投入的流量帐户生态系统投入的流量帐户

Supply of ecosystem inputs of water and other natural nutrients like oxygen, carbon-dioxide are made by the Environment, of course.

Use of water and other natural nutrients like oxygen, carbon-dioxide are made by the industries, households, plants, and animals for growth

Supply and use table for ecosystem inputs

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Flow accounts for Residuals废弃物的流量帐户

• Supply of solid, liquid and gaseous wastes are made by the industries , households, and ROW, disposal of capital items could be shown under Capital use head

• Use of solid, liquid and gaseous wastes are made by the industries (use of wastes for recycling without payment to disposer) , and Capital (landfill sites)

Supply and use table for residuals

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Summary physical flow accounts实物量帐户的小结

The four flow accounts for Products, Natural resources, Ecosystem inputs, and residuals can be assembled into a single table to show summary physical flow account. To show balancing amount of supply and use for each category of User/Producer, an item Net accumulation is placed.

Summary physical flow accounts

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Physical supply and Use Tables实物供给和消耗表

SEEA,2003 recommends matrix form of presentation for various accounts. So double entry system, like the one used in SNA in accounts and the Social Accounting matrix in monetary terms. A simple Supply and use table for products in physical terms is shown below

A simple Supply and use table for products in physical terms

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A simple Supply and use table for all physical flows一个简单的全实物量的供给与消耗表

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The SNA Supply and Use TableThe SNA Supply and Use TableSNASNA 的供给和消耗表的供给和消耗表

The SNA supply and Use Table is in monetary terms.

For products we can present it by incorporating the margins on the production (output that is at basic value) and include the factor inputs (value added) under the column for industries showing intermediate consumption

A simple Supply and use table in monetary terms

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A Hybrid Supply and Use Table混和的供给与消耗表

• The Supply and Use Table in monetary terms (SNA) for products, if superimposed on the Supply and Use Table for all physical flows (products,natural resources, ecosystem inputs and residuals) results in the Hybrid Supply and Use Table.

• A Hybrid Supply and Use Table, in matrix way of presentation, is an important part of the SEEA

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A simple Hybrid Supply and Use Table A simple Hybrid Supply and Use Table 一个简单的混合供给和消耗表 一个简单的混合供给和消耗表 Monetary data (in italics) in billions of currency units; physical data (non-italic) in M.Tonnes

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Endeavours to compile SEEA in Asian RegionEndeavours to compile SEEA in Asian Region亚洲地区建立亚洲地区建立 SEEASEEA 的努力的努力

• Environmental accounting still a newly emerging area of importance

• Only few countries in the region have advanced in Natural Resource Accounts

• Adjustment to national accounts only on trial/experimental basis

• Japan- Economic Planning Agency-Study on SEEA- Trial estimates of E P Expenditure Account,1990

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Endeavours to compile SEEA in Asian RegionEndeavours to compile SEEA in Asian Region亚洲地区建立亚洲地区建立 SEEASEEA 的努力的努力

• Philippines– NSCB - framework on Philippines System of Integrated Environmental and Economic Accounting (PSEEA)

• Environmental and Natural Resources Accounting Project , EP Expenditure survey, 1998, Trial estimates of NRA

• West Asian countries- Still in the process of firming up NRA

• Australian Bureau of Statistics (ABS) experience could be guiding force

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Thanks!