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Sustainable Development Indicators and Environmental-Economic Accounting

This paper explores the integration of sustainable development indicators into environmental-economic accounting. It discusses the accounting approach, indicator formulation, and balancing conflicting goals. The paper highlights the relevance of this approach for policy makers and stakeholders.

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Sustainable Development Indicators and Environmental-Economic Accounting

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  1. Sustainable Development Indicators and Environmental-Economic AccountingKarl SchoerFederal Statistical Office GermanyE-mail: karl.schoer@destatis.dePaper presented at the Meeting of the UNCEEANew York 23-24 June 2006

  2. Measuring the „sustainability gap“ Sustainability gap Accounting approach Simple indicator approach Adjusted macro-economic aggregates Integrated indicator approach

  3. Two separate worlds Indicators Accounts Integrated analysis, formulation of measures, balancing conflicting goals Communication/visualization,performance control Political relevance Theoretical foundation, system description, integration Accountants statisticians scientists (modelers) Policy makers stakeholders, statisticians

  4. The policy cycle Problem description Analysis Measures Performance control

  5. Integration of the German sustainability indicators into the accounting data set 1 Productivity of energy and raw materials 2 Emissions of greenhouse gases 3 The proportion of renewable energy sources in overall energy consumption 4 Increase in land use for housing and transport 5 Development of stocks of specified animal species 6 Balance of public sector financing 7 Private- and public-sector expenditure on research and development 8 Capital-outlay ratio 9 Educational outcomes for 25-year-olds and number of new students 10 Gross domestic product 11 Transport intensity and share of the railways in providing transport 12 Proportion of ecological agriculture and general statement on nitrogen surplus 13 Air pollution 14 Satisfaction with health 15 Number of burglaries 16 Labour force participation rate 17 Full time children care facilities 18 Relationship between male and female gross annual earnings 19 Number of foreign school-leavers who have not completed secondary school 20 Expenditure on development collaboration 21 EU imports from developing countries 7 20 21 National Accounts 6 8 10 1 11 2 4 3 13 5 9 16 12 14 Environmental Economic Accounts 15 17 18 Socio-economic Accounts 19

  6. Environmental pressure factors and economic factors in Germany Change 1995 to 2003 in percent Energy 0,5 -7,8 Primary material Green house gases - 7,7 - 28,3 Air pollution 8,7 Settlement and traffic area Goods transport performance 19,9 Gross Domestic Product 11,7 - 3,5 Employment Capital formation - 6,9 - 30,0 - 25,0 - 20,0 - 15,0 - 10,0 - 5,0 - 5,0 10,0 15,0 20,0 Federal Statistical Office of Germany 2005

  7. Decomposition of the change of sustainable development indicatorsProductionChange 1995 to 2001 by effects Scale effect = 100 Energy TJ Primary material 1 000 t Greenhouse gases 1 000 t CO2 equivalents CO2 1 000 t Ch4 t Intensity Structure N2O t Scale SO2 t NOx t NMVOC t NH3 t Settlement and traffic area km² Goods transport performance mill. tkm Employment annual average in 1 000

  8. Decomposition of change of mobility-related CO2-emission of private households by influencing factors 1991 to 2000 Million tons

  9. CO2- emissions related to the imports, the production and the consumption of private households (supply) and the use of products million tons 1995 2002 Imports Exports Imports Exports 257,3 285,7 319,1 374,9 Production,consumption of private households Domesticuse Production,consumption of private households Domesticuse 946,5 802,8 974,8 858,6 supply use use supply

  10. The way forward:Strategy for an integrated sustainable development analysis and policy SD- indicator set Deriving indicators from the accounting data-set Adjusting the accountsto the requirements of SD IntegratedSD-policy Accounting system (SNA; EEA, SEA) EmbeddedSD-indicators IntegratedSD-analysis Tools for economic and environmentaleconomicanalysis Developing toolsfor SD-analysis

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