SEEA/Environmental accountings’ user needs with regards to energy statistics

1. SEEA/Environmental accountings’ user needs with regards to energy statistics Julie L. Hass, Ph.D. Kristine E. Kolshus Division for Environmental Statistics Statistics Norway London Group Meeting 17-19 December 2007 Rome, Italy

2. Goals: • Identify how energy is incorporated in the different SEEA-2003 systems • Material flows • PIOT • MFA • MFA-energy • Hybrid/NAMEA-energy • Asset accounts • What are these? Are they well enough defined in SEEA-2003? • Where does SEEA-2003 need improvement as seen from an energy perspective? – so that things that should be the same are the same • Identify SEEA’s user needs by reviewing where and how SEEA includes energy so these can be communicated to appropriate other working groups.

3. SEEA-2003 contains four categories of environmental-economic accounts: • Category 1: Physical and hybrid flow accounts • Category 2: Economic accounts and environmental transactions • Category 3: Asset accounts in physical and monetary terms • Category 4: Extending SNA aggregates to account for depletion, defensive expenditure and degradation

4. Energy flow data in SEEA physical flow accountsPhysical SUTs (SEEA-2003 Chapter 3) • In physical supply and use tables (SUT) energy appears as a product, P3 Energy, and as assets, N1 Oil, N2 Gas and possibly also in N3 Other. • Category P3 “energy” not very clear since category P6 Wood, paper etc. and some other categories could also be considered as energy relevant. Boundary between P (products) and N (assets) categories are not clear. • Conclusion: • The classification systems used in developing physical SUTs needs to be more clearly identified in the SEEA (products and assets). • If based on the standard industrial and product classification systems then it is important that the energy statistics classification categories correspond as closely as possible to the standard product classification systems (HS/CPA/SITC).

5. Energy flow data in SEEA physical flow accounts Economy-wide material flow accounts (SEEA-2003 Chapter 3.D.5) • Most simpleEconomy-wide DMC = domestic extraction + imports – exportsmaterial flows Source: Pilot studies on economy-wide material flow accounts and the eco-industry for Norway. Final Report to Eurostat. Statistics Norway, 2007

6. MFA Categories for energy • 4. Fossil energy carriers • 4.1 Brown coal • 4.2 Hard coal • 4.3 Crude petroleum • 4.4 Natural gas • 4.5 Peat • 4.6 Other, including bituminous or oil shale and tar sands • Units: tonnes (mass) • Problems encountered with this classification from the perspective of the world’s third largest exporter of petroleum products (i.e. Norway)…

7. “Production” statistics for Norwegian continental shelf from the Norwegian Petroleum Directorate

8. “Production” statistics for Norwegian continental shelf from the Norwegian Petroleum Directorate • Units: • MFA tonnes – mass • NPD sm3 o.e. – energy • MFA categories “petroleum” and “natural gas” need to be defined with regards to actual energy commodities that are extracted which include crude oil, natural gas, natural gas liquids, condensate and water. Also need coordination to product categories in trade statistics. In addition… • Conversion factors used in the foreign trade statistics to report units in tonnes need to be investigated. These conversion factors can have large influences on the data.

9. Specific MFA-Energy Flow Accounts Source: Schandl, H., C.M. Grünbühel, H. Haberl, H. Weisz (July 2002)

10. Physical Input-Output Tables (PIOTs)(SEEA-2003 Chapter 3.D.6) • The same assumptions, techniques and classifications used for converting monetary supply and use tables into input-output tables have been applied to physical supply and use tables to produce physical input-output tables, called PIOTs. • Conclusion: Need to have best possible 1-to-1 correspondence between physical energy product/commodity classification and monetary product/commodity classifications for energy used in various economic statistics (national accounts, trade statistics, customs data, etc.).

11. Energy flow data in hybrid flow accounts (NAMEA) (SEEA-2003 Chapter 4) • Eurostat’s NAMEA-air reporting tables include 2 categories for energy: • total energy use and • energy uses that cause emissions to air • Not enough detail for analysis purposes regarding energy • Eurostat NAMEA Task force 2003 NAMEA-energy tables proposal:

12. 2003 Task Force proposal for NAMEA-energy

13. National Accounting Matrix including Enviromental Accounts for energy • NAMEA tables have energy commodities in the column headings and industries and households in the rows • Energy commodities (columns) – need to have correspondence with the energy statistics energy commodities • Need to have the energy commodities (columns) also correspond with the energy commodities in the national accounts so that the production, export, import and intermediate consumption of these products can be identified in the national accounts (CPA) • Correspond to the SUT national accounts and balance • Supply of energy products/commodities must be equal to the use/consumption of these energy products/commodities – in physical and monetary units. If not, needs to be balanced!

14. SEEA economic accounts National accounts • It is desirable that there is full consistency between the information found in the physical energy data and the monetary use data in the national accounts. • Price statistics serve as a link between national accounts and energy statistics. • Standard industry and product classifications – also link between national accounts and energy statistics. Other SEEA accounts • Taxes, environmental protection expenditure – covered in coordination with national accounts. Can need more specific products in NA if different tax rates on different fuels.

15. Energy reserves/stocks SEEA-2003 Chapters 7 and 8 • The boundary definition between reserves in the ground/tangible non-produced assets (in the national accounts) and when products go into the production system and is considered part of the energy flows. Renewables can also be a challenge in defining the boundary since these are often to multiple use (wood, water, etc.) • This boundary needs to be defined in cooperation with the energy statistics experts in the Oslo Group and also clarified with the UNECE Ad Hoc Group of Experts on Harmonization of Fossil Energy and Mineral Resources Terminology.

16. Get own house (SEEA-2003) in order before we can go forward! • Energy in SEEA-2003 is not consistently presented/included. • Cannot “standardise” SEEA systems that include energy until these things are cleared up. • Need to get own house in order before we can go forward in revising the SEEA and in explaining SEEA’s user needs to others!

17. SEEA user needs identified – given that coordination with SNA is the goal • System boundaries – economic definition with the residence principle as the guide for what should be included/excluded • Supply = UseSystem needs to balance and if it does not then guidelines for making the system balance need to be developed • Institutional units – use standard industry classification systems (ISIC/NACE) and energy supply and use need to be appropriately assigned • Energy commodities – need to be coordinated with the standard product classification systems HS, CPA, SITC so that the physical and economic supply and use of energy makes sense and is appropriate with respect to taxes etc.