Introduction to the International Family of Classification by dEGCSJ

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									Integrated Environmental and
    Economic Accounting
     for Water Resource
            Alessandra Alfieri
     United Nations Statistics Division

                                          1
     Outline
• SEEA
   • The framework
   • Advantages of the accounting approach
• (SEEAW)
• UNCEEA and other international
  mechanisms


                                             2
     SEEA
SEEA-2003 is being jointly published by UN,
 the European Commission, IMF, OECD and
 the World Bank
SEEA-2003 represents a major step forward in
 the harmonization of concepts and methods in
 environmental-economic accounting
SEEA to become a statistical standard by 2010 as
 recommended by the UN Statistical
 Commission
                                               3
         SEEA

• Satellite system of the System of National Accounts
  (1993 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
       Satellite accounts
• Information systems that, while maintaining consistent
  with the SNA, are more flexible and expand the
  analytical capacity of national accounts
• Systems which describe in depth aspects that are
  hidden in the accounts
• Enlarge the boundaries of the SNA
• Include complementary elements (e.g. physical
  information, etc.)

                                                       5
        Why an accounting approach?
• Encourages the adoption of standards
• Introduces accounting concepts to environmental
  statistics
• Improves both economic and environmental statistics
  by encouraging consistency
• Implicitly defines ownership and hence responsibility
  for environmental impacts
• Encourages the development of comprehensive data
  sets
• Facilitates international comparisons
                                                      6
     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
                                               7
        Environmental-Economic Accounting
        vs 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                              8
        Environmental-Economic Accounting
        vs Environment 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 economic
  statistics
                                            9
         The SEEAW
The SEEAW is a satellite system to the System of
  National Accounts 
  • Links economic accounts with hydrological
     information
  • Uses standard definitions, concepts, classifications
     common to economic accounts
  • Is expected to become a statistical standard
  • Allows for the derivation of coherent and consistent
     indicators

                                                           10
                           Global Hydrological Cycle
                                        Water in atmosphere




            Water on land                                                  Water in oceans
        surface and subsurface                                                and seas


                                         Liquid/solid flows
                                         Vapor flows
UNESCO (1989) Comparative Hydrology: an ecological approach to land and water resources
        Flows between the economy and the environment

                                                                                           Atmosphere




                                                             Precipitation




                                                                                                    transpiration
                                                                                                       Evapo-
                                                                                                                    Territory of Reference




 upstream
                                                    Physical Water Resource System
basins and
  aquifers      Inflows                                                                                                                        Out
   outside                                               The system of inland surface (rivers, lakes,                                             flo      ws
the territory                                            reservoirs, etc.) and groundwater                                                                       downstream
of reference                                             resources and the natural flows between                                                                  basins and
                                                         them.                                                                                                     aquifers
                                                                                                                                                                    outside
                                                                                                                                                                 the territory
                                                                                                                                     Ou                          of reference
                                                                                                                                        tfl   ow
                                                                                                                                                   s


                                                                             Abstraction




                                                                                                                    Returns
                                   In situ use of
                                   precipitation
                                                                                                                                   Evapo-                          Sea
                                                                                                                                transpiration
     Sea

                   Ab                                                                                                                              n   s
                      s   tra                                                                                                                  tur
                              c   tio
                                      n                                                                                                  Re
                                                                                            Economy

                                                                                                                                                                      RoW
                                                      The system, which abstract water for production                                                  Exports
     RoW           Imports                                                                                                                                          Economy
                                                      and consumption purposes and puts in place the
   Economy                                            infrastructures to store, treat and distribute water.
Flows within the inland water system and the economy
                                                                                Atmosphere




                                      Precipitation




                                                                                                                              transpiration
                                                                                                                                 Evapo-
                                                      Inland Water Resource System


                                          Surface water
                               (reservoirs, lakes, rivers,                                                       Soil water
 upstream                       snow, ice and glaciers)                                                                                                            downstream
basins and                                                                       Natural transfers                                                                  basins and
  aquifers           Inflows                                                     (e.g. infiltration,                                                                 aquifers
                                                                                                                                              Outflows
   outside                                                                        seepage, etc.)                                                                      outside
the territory                                                                                                                                                      the territory
of reference                                                                                                                                                       of reference


                                                                                   Groundwater




     Sea
                                                                  Abstraction


                      Collection of                                                                                                                                  Sea




                                                                                                  Returns
                      precipitation                                                                                          Evapo-
                                                                                                                          transpiration


                Abstraction




                                                                                                                                                         Returns
                                                                                                                 Sewerage




                                                                                                                                                                        Returns
                                                                 Households



                                                                                                  Other Industries
                                                                                                 (incl. Agriculture)
 Rest of
the World
                                                  Water collection,                                                                                        Rest of
Economy
                Imports                        treatment and supply                                                            Exports                    the World
                                                                                                                                                          Economy



                                                                                 Economy

                                                                                                                                                                                   13
 The SEEAW and the 1993 SNA

• SEEAW is a satellite system of the 1993 SNA. It
  expands the 1993 SNA by:
   • Expanding the asset boundary to include all
     water assets and their quality and produced
     assets related to water
   • Juxtaposing physical info to monetary accounts
   • Separately identifying
   • Identifying EP

                                                  14
       Water accounts comprise:
• Flow accounts
   • Physical supply and use tables
   • Emission accounts
   • Hybrid and economic accounts (EPE accounts)
• Asset accounts
   • Produced assets (infrastructure related to water
     storage, exploitation, distribution and treatment)
   • Quantity accounts
   • Quality accounts
• Valuation
                                                          15
Framework of water resources accounts
                 Industries                     Households and Government                                               Assets                                           Rest of the World
                                                                                                 by ISIC
                                                                                  Economic assets. In particular assets
                                                                                     related to water, opening stock:
                                                                                                                                         Water resources
                                                                                      infrastructures for the storage,
                                                                                                                                         opening stocks
                                                                                 explotation, distribution and treatment of
                                                                                                    water

              Output of products
                                                                                                                                                                                                SNA Supply Table
   (inlcluding those related to distribution,                                                                                                                                 Imports
       treatment and disposal of water)                                                                                                                                                          (monetary units)


          Supply of distributed water
                                                                                                                                                                              Imports
     to other industries and Households
                                                                                                                                                                                                   Supply Table
                                                                                                                                                                                                  (physical units)
            Supply of return flows                   Supply of return flows
                                                                                                                                           Return flows
             to the environment                       to the environment



             Supply of pollutants                     Supply of pollutants                                                                                                                      Emission accounts
             to the environment                       to the environment                                                                                                                     (monetary, physical units)


          Intermediate consumption                                                                                                                                                                SNA Use Table
                                                      Final consumption                Gross fixed capital formation                                                          Exports
    (including those related to water use)                                                                                                                                                       (monetary units)

       Current expenditures for water                Expenditures for water                Capital expenditures                                                                               Expenditure accounts
        protection and management                 protection and management       for water protection and management                                                                           (monetary units)


           Use of distributed water
                                                    Use of distributed water                                                                                                  Exports
            (within the economy)
                                                                                                                                                                                                    Use Table
                                                                                                                                                                                                  (physical units)
      Abstraction of Water Resources            Abstraction of Water Resources
                                                                                                                              Water abstraction, depletion/degradation
          (from the environment)                     (from the environment)



                                                                                                                                                                                                Emission accounts
           Treatment of pollutants                  Treatment of pollutants
                                                                                                                                                                                             (monetary, physical units)


                                                                                       Consumption of fixed capital



                                                                                                                              Other changes in volume (precipitation,
                                                                                  Other changes in volume and holding
                                                                                                                               evapotranspiration, inflows, outflows,
                                                                                   gains (losses) on economic assets
                                                                                                                                               etc.)                                              SNA accounts



                                                                                     Economic assets, closing stock               Water resources, closing stocks
                                                                                                                                                                                                  Physical/monetary
                                                                                                                                                                                                  acccounts
     Physical Flow Accounts
Describe the physical flow of water within the
economy and between the environment and the
economy
  • Who is using water and how much they use
  • Abstraction of water by sector and by
    resource
  • Returns of water by sector and destination
  • Water efficiency –recycled water
  • Import/export of water
                                                 17
Flow accounts
                                Returns of water to the environment




            Of which: ISIC 37
                Sewarage


                                 Industries
                                   (ISIC)
                                                                      Households
                                       Of which: ISIC 36
                                       Water collection,
                                     treatment and supply

 Imports                                                                           Exports


           Rain                     Abstraction of water as raw material
     Indicators
•   Water abstraction by sector and by sources
•   Water discharge by sector
•   Water abstraction/GDP by sector
•   Water abstraction/number of employee
•   Water abstraction per capita
•   Water consumption by sector
•   Cost recovery – Is the government recovering the
    costs of collection, purification, distribution and
    treatment of water through the fees charged?
                                                          19
 Index of water use in Botswana
 1993 = 1.00
1.30


1.25
                           Pula of GDP per m3 water
1.20


1.15


1.10

                                                  Volume of water
1.05


1.00


0.95


0.90                                     Per capita water use
       1993/94   1994/95      1995/96   1996/97     1997/98   1998/99
      Env-Eco Profiles: water use, VA,
      employment by industry
50%
45%                                       Water use
40%                                       National income
35%
30%
                                          Employment
25%
20%
15%
10%
 5%
 0%
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                                                     Value-Added per m3 water use
pula per meter of water in constant 1993/94 prices




                                                     1600.0
                                                     1400.0         1993 Pula VA/m3
                                                     1200.0
                                                     1000.0         1998 constant price pula
                                                      800.0         VA/m3
                                                      600.0
                                                      400.0
                                                      200.0
                                                        0.0
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                                                                                                                    Go
                                                                                          r&
                                                                             an
      RANDS of VALUED-ADDED per M3 of
        WATER, 1996 (7 rands = US$1 in 2000)
                    NAMIBIA    SOUTH BOTSWANA
                               AFRICA
Agriculture             8         2       10
Mining                 72        59      437
Manufacturing         252       130      564
Services,Trade,       722       403      989
Govt.
Households             na        na       na
GDP per m3 of          60        27      147
water input
   Emission accounts
• Record the emissions by industries and
  households into the water directly or into
  the wastewater treatment plants
• Linked with the expenditure accounts will
  allow to assess the effectiveness of
  investment to reduce pollution


                                               24
Asset Accounts
       p nn t c s
      Oe i gSo k

         hn e u o
       Ca g sd et
        u a ci i i s
       h mna t vt e
      a sr ci n eun)
     ( bt a t o , r t r s

         hn e u o
       Ca g sd et
         aua a s s
        n t r l c ue
      i f o s uf o s
              ,
     ( nl w o t l w   ,
      r cpt t o , v p -
     pe i i ai n e a o
         r npr t o .
        t a s i ai n)
        l i g t cs
         o
       C sn So k
                            25
   Water resources
• EA.13 Water Resources
   • EA.131 Surface Water
      • EA.1311 Reservoirs
      • EA.1312 Lakes
      • EA.1313 Rivers
      • EA.1314 Glaciers, Snow and Ice
   • EA.132 Groundwater
   • EA.133 Soil Water
                                         26
Main flows within the physical water resource system
                                                               Atmosphere




                                         Precipitation




                                                                              transpiration
                                                                                 Evapo-
                                                                                              Territory of Reference


                                         Physical Water Resource System
                                                                                               Surface runoff



                                                                                                               Lakes and
    upstream                            Rivers                                                                 Reservoirs
                                                                              Natural
   basins and                                                                                                                            downstream
                                                                             transfers
     aquifers                                                                                                                             basins and
                    Inflows
      outside                                                                                                               Outflows       aquifers
   the territory                                                                                                                            outside
   of reference                                                                                                                          the territory
                                                                                                                                         of reference


                                                         infiltration       Groundwater               infiltration
                                                                                                                             Ou
                                                                                                                                tflo
                                    n                                                                                               ws
                                sio
                             tru
                        lt in
                   Sa

                                                                                                                                            Sea
        Sea




                                                                                                 Abstraction
                                                                 Returns




                                                                           Economy
  Indicators
• Total renewable resources per capita
• Total water available per capita
• Abstraction/Total renewable resources
  >1 not sustainable
  >0.4 water stress
• Depletion of ground and surface water


                                          28
   Quality Accounts
• They are very important as the quality of
  water limits its use
• Define quality classes according to their
  relevance in the region/country (i.e.
  salinity level, BOD, etc.)
• Result of modeling exercises – more
  removed from the conventional
  accounting approach

                                              29
     Water Accounts: some data issues
• Supply and use tables
   • Estimation of water use and returns in agriculture and industry
   • Water re-use
• Hybrid accounts
   • Information on water fees and taxes for access of water
   • Financing of water
• Asset accounts
   • Measuring stock levels for groundwater
   • Defining stocks for rivers
   • Potential double counting between surface and groundwater
       • it is often useful to have a matrix of natural transfers
• Quality accounts
   • Definition of quality classes
   • Aggregation over time and space
   • Link between emissions and quality is non-linear                30
      General Issues - 1
It is widely recognized the importance of the
water basin as a basic unit for water
management
  • hydrological data are collected at river
     basin level
  • economic data are usually for
     administrative regions
How to reconcile the data?
                                                31
     General Issues - 2
The hydrological year may not coincide with
   the accounting period.

How to reconcile the temporal dimension
between hydrological and the economic data?




                                              32
   General Issues - 3
How to include spatial and temporal
components of water cycle ?
  • seasonal vs annual accounts
  • how to incorporate long water cycle into
    yearly accounts?
  • How to reflect in the accounts the
    spatial variability of water
    scarcity/availability?                 33
    General Issues - 4
Terminology is not always consistent among
  economists, environmental statisticians,
  hydrologists and policy makers
=> Need to use a clear, agreed terminology
One of the SEEAW main contribution is the
 standardization of terms and definitions

                                             34

								
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