A.C. Kulshreshtha UN Statistical Institute for Asia and the Pacific(SIAP) 联合国亚太统计研究所

1. SYSTEM OF ENVIRONMENTAL AND ECONOMIC ACCOUNTING –UN RECOMMENDATIONS AND ENDEAVOURS IN ASIAN COUNTRIES环境经济核算体系－联合国的建议及亚洲国家的实践 A.C. Kulshreshtha UN Statistical Institute for Asia and the Pacific(SIAP) 联合国亚太统计研究所

2. Premises for development of SEEA 建立SEEA的前提条件 • Sustainable development and the SEEA • Three pillar approach to sustainable development Economic, Social, and Environmental needs • Natural capital and sustainable development Three kind of functions that Natural capital (natural resource stocks, land and ecosystems) provides are: • Resource functions:mineral deposits, deep forest timber, deep sea fish • Sink functions: absorb waste products in air,water, sea, landfill sites • Service functions: habitat for living beings..air, water, survival and amenity functions

3. Premises for development of SEEA建立SEEA的前提条件 • Weak sustainability: seeks to maintain from year to year the per capita income generated from total capital stock • Strong sustainability: requires that all forms of capital be maintained intact independent of one another • 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

4. Objectives and structure of the SEEASEEA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 therein in the Supply Use and Asset Accounts of the SNA

5. Objectives and structure of the SEEA(contd.)SEEA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,

6. Objectives and structure of the SEEA(contd.)SEEA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

7. SEEA: Flow and Stock Accounts withEnvironmental AssetsSEEA：环境资产的流量和存量核算

8. 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 heart of environmental accounting • Economic 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.

9. 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 Assetsare 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.

10. SNA SEEA Produced Assets Fixed assets Cultivated assets Inventories Work-in-progress on cultivated assets 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 Air Classification of natural assets in the SNA and the SEEA在SNA和SEEA中自然资产的分类

11. 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

12. 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 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

13. WHAT SEEA GIVES SEEA的内容 (a) 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 byproduction and consumption activities. • (b) Linkage of physical accounts with monetary environmental accounts and balance sheets Natural Resource Accounts provide physical counterpart of the SEEA's monetary stock and flow accounts

14. WHAT SEEA GIVES(Contd.) SEEA的内容 • (c) Accounting for the maintenance of tangible wealth: the SEEA extends the concept ofcapital to cover not only human-made capital but also non-produced natural capital. • (d) Elaboration and measurement of environmentally adjusted aggregate: Environmentally adjusted Net Value Added, Domestic Product, and Capital Accumulation

15. 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

16. Green National Accounting System: Environmentally Adjusted Accounting Indicators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.

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

18. Environmentally Adjusted Accounting Indicators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

19. Environmentally Adjusted Accounting Indicators

20. 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

21. Framework for integrated environmental and economic accounting

22. SEEA implementation: Step by step approachSEEA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 accounts 4.1 Land and soil accounts 4.2 Subsoil asset accounts 4.3 Forest accounts (economic functions) 4.4 Fishery resources and other biota accounts 4.5 Water accounts

23. SEEA implementation: Step by step approach SEEA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

24. SEEA, 2003 • The SEEA is a satellite system of SNA that comprises of four categories of 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

25. SEEA, 2003 (contd.) Four types of Physical flow accountsare distinguished in the SEEA: • Flow accounts for Products Supply and Use of goods and services produced within economy and ROW • Flow accounts for Natural resources Supply and Use of natural resources: fuel wood, mineral,biological resources • Flow accounts for Ecosystem inputs Supply and Use of water and natural nutrients, oxygen, carbon-dioxide • Flow accounts for Residuals Supply and Use of solid, liquid and gaseous wastes

26. Flow accounts for Products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

27. Flow accounts for Natural resources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

28. Flow accounts for Ecosystem inputs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

29. 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

30. 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

31. 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

32. 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

33. The SNA Supply and Use TableSNA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

34. 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

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

36. Endeavours to compile SEEA in Asian Region亚洲地区建立SEEA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

37. Endeavours to compile SEEA in Asian Region亚洲地区建立SEEA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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