Environmental Health Indicators

							SEEA 2003: Issues for
Discussion (World Bank)

     Kirk Hamilton
     khamilton@worldbank.org

     Giovanni Ruta
     gruta@worldbank.org


                               1
        Issues
   Chapter 9: Valuation techniques for measuring degradation
        Distinction between monetary accounts and models
        Deciding on which assets to value (keeping in mind the full
         integration objective)
        Treatment of transboundary pollution
        Use of valuation techniques
   Chapter 10: Adjustments to the flow accounts
        Need for full integration of asset and flow accounts
        Depletion  Establish criteria for selecting one set of options
        Defensive expenditures  Agreement on “gross-gross” method
        Development of environmental debt issues




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        Distinction between monetary
        accounts and models
   Value of asset damages (degradation) is
    naturally treated in monetary accounts
   Models constitute application of existing
    accounts to analyze policy options
   Examples
        Maintenance costing
        Green economy modelling
   Suggestion: present models as applications
    in Chapter 11

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        Deciding which assets to value

   Degradation = Damage to Assets
   Aiming at integration of asset and flow
    accounts it is important to measure damage
    to assets
        Valuing clean air as an asset is not possible
        Valuing health impacts of air pollution is
         practical, but do we need a corresponding
         human capital value in the asset accounts


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    Ch 9: Other issues

   Transboundary pollution
       Fuller treatment needed
   Valuation techniques
       Need for new material on valuing
        morbidity and mortality




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        Depletion
   Establish criteria for selecting one set of
    options. Options that need clarification
        A1-A3 Apportioning resource rents bw Income
         and Depletion
        B1-B3 Treatment of mineral exploration
        C1-C3 Additions and deductions to asset accts
        D1-D3 Ownership of resources
        E1-E4 Treatment of depletion in owner’s
         balance sheet
   Choices made to be reflected in Chapter 8
   Some material could be moved to Chapter 8
                                                         6
     Defensive expenditures

   Do we agree on “gross-gross”
    method?
   Are there other alternatives?




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    Producing a fully integrated
    accounting system

   Income, production and saving
    aggregates should have corresponding
    changes in asset accounts
       Treatment of human capital
       Treatment of ecosystem services as
        externalities thus as satellite accounts (to
        avoid double counting)


                                                       8
     Environmental debt

   Is it useful concept?
   How should negative prices be treated
    in the system?




                                            9
     Fundamental question

   Valuation is key for policy applications,
    particularly in low income countries
   Are there any participants who believe
    that the revision of the SEEA should
    not aim for integrated accounts for
    income, saving and wealth in value
    terms?

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