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The System of Environmental Economic Accounting

VI. The System of Environmental Economic Accounting. The measurement framework for the environment and its interactions with the economy. Outline. What is the System of Environmental-Economic Accounting (SEEA)? How is it linked to Qatar’s policy questions and environment statistics?

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The System of Environmental Economic Accounting

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  1. VI The System of Environmental Economic Accounting The measurement framework for the environment and its interactions with the economy.

  2. Outline • What is the System of Environmental-Economic Accounting (SEEA)? • How is it linked to Qatar’s policy questions and environment statistics? • Examples • The SEEA Standard • Example Water Accounts • Conclusions and Recommendations

  3. What is the System of Environmental-Economic Accounting (SEEA)? • Satellite system of the System of National Accounts (2008 SNA) • Brings together economic and environmental information in a common framework to measure the contribution of the environment to the economy and the impact of the economy on the environment • Provides policymakers with indicators and descriptive statistics to monitor these interactions • Provides an information system for strategic planning and policy analysis to identify more sustainable paths of development

  4. Strengths of the accounting approach • Organised body of information facilitates integrated economic-environmental analysis (complements sustainable development indicators, modelling) • Comprehensive and consistent, routinely produced • Provides a system into which monetary valuations of environmental costs can be incorporated

  5. Environmental-Economic Accounting and Environment Statistics Environment statistics: Environmental accounts:

  6. Environmental-Economic Accounting and Environment Statistics • Environment statistics: • Often developed to answer one particular question or problem • Difficult to figure out if all information is included • Not always easy to see the whole picture, or how it relates to other things • Typically not integrated with economic statistics • Environmental accounts: • Help to make sense of the larger picture • Help to identify pieces that are missing • Can make connections to other statistics, especially to economic statistics

  7. Key concepts of SEEA

  8. Terminology Terminology is not always consistent among economists, environmental statisticians, scientists and policy makers => Need to use a clear, agreed terminology One of the SEEA main contribution is the standardisation of terms and definitions

  9. Data users Is there an issue? Yes Advice Analysis Research Information Audiences for information…Indicators and Accounts Headline indicators Decision makers & wider public Indicators on specific subjects or industries Indicators Managers and analysts SEEA Standard tables Supplementary tables Researchers Data items

  10. Information is vital…and it needs to be integrated The economy impacts on the environment and the environment impacts on the economy To understand these linkages we need to integrate environmental and economic information This is the explicit purpose of the SEEA framework

  11. Using a standard is very important… • Organising information within the SEEA framework ensures • Consistency (with existing standards eg SNA) • Completeness (no gaps, or at least known gaps) • Comparability (across time and space) • Accountability (industry, governments, households)

  12. Indicators Analytical & monitoring frameworks (DPSIR, MDG, thematic or issue based Accounting Systems (SEEA) Environment Statistics of Qatar (Qatari Framework QFES) QNDS 2011 - 2016 State of Environment Reports (UNEP-ROWA, Arab League) Green Growth Ecological Footprint MDG Goals Etc. UNSD Environment Questionnaire . . SNA . Environmental data from different sources (statistical and non-statistical)

  13. Example Water Use in Botswana Index (1993 = 1.00) GDP per m3 water Volume of water Per capita water use

  14. Example Water Use in Botswana Environmental-Economic Profile

  15. Example Qatar: DRAFT (!) pilot water accounts

  16. Example: Measuring green growth in the Netherlands (2011) Objective: • Assess the state of green growth in the Netherlands • Benchmark for a more thorough and comprehensive assessment of green growth in the future Point of departure: OECD indicators • Data availability • Robustness of indicators • Relevance for the Netherlands • List of 20 relevant indicators • Project was completed in only 2 months

  17. Example: Measuring green growth in the Netherlands (2011) SEEA as a data source

  18. Example: Measuring green growth in the Netherlands (2011) Development of GDP and key figures Index 1990=100

  19. Example: Measuring green growth in the Netherlands (2011) Results: Scores of the green growth indicators

  20. Example: Measuring green growth in the Netherlands (2011)

  21. The SEEA Standard

  22. The SEEA central framework incorporates the following types of accounts. Flow accounts: supply and use tables for products, natural resources, ecosystem inputs and residuals or wastes from economic activities. physical (e.g. GL of water) and/or monetary values Asset accounts for environmental assets: natural resources, land and ecosystems. physical and/or monetary values Activity / purpose accounts that explicitly identify environmental transactions already existing in the SNA. e.g. Environmental Protection Expenditure (EPE) accounts

  23. SEEA Accounting Topics • Physical Flow Accounts: • Energy • Water • Materials: Air emissions, emissionstowater, solid waste, economywide material flows • Asset Accounts: • Mineral andenergyresources • Land • Soilresources • Timberresources • Aquaticresources • Other biologicalresources

  24. SEEA Accounting Topics • Environmental Activity Accounts: • Environmental ProtectionExpenditures • Environmental Goodsand Services Sector • Accounts forresourcemanagementexpenditures • Accountingforothertransactionsrelatedtotheenvironment • Waterresources + • Combinedphysicalandmonetarypresentations

  25. Typicalpolicyquestions • Whataretheinvestments in watersupplyandsanitationservices? Howarethecostsbeingrecovered? • Are waterresourcesbeingusedsustainably? Who benefits in theallocationofscarcewaterresources? • Whatinvestmentsaremadetoreducepollutantemissions? • Whatisthe mix ofenergyproductsused? Who aretheusersoftheseproducts? • Whatistheexpected (andactual) impactofvariouspolicies on theenvironmentand on householdandbusinessexpenditure? • ….

  26. ExampleWater Accounts 1. PhysicalSupply Table

  27. ExampleWater Accounts 2. PhysicalUse Table

  28. ExampleWater Accounts 3. Physical Asset Table

  29. ExampleWater Accounts 4. Combinedpresentationforwaterdata

  30. ExampleWater Accounts 5. Analysis andIndicators

  31. Example Asset Accounts formineralandenergyresources Physical Monetary

  32. Conclusions and Recommendations • SEEA is a standard for integration of environmental and economic information • Integrating environmental and economic information is vital for informed, sophisticated decision-making • SEEA is an internationally recognised standard explicitly designed for this purpose • SEEA enables a wide range of issues to be studied, including sustainability, well-being and green growth • For Qatar almost all modules are relevant for questions related to Green Growth and Sustainability; timber accounts are probably not relevant • In relation to QNDS 2011-2016 the following type of accounts seems to have priority for implementation: Water, emissions to water, air emissions, energy, waste, environmental protection expenditures

  33. Thank you for your attention! michael.nagy@qsa.gov.qa

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