1

1

Challenges in establishing Challenges in establishing Sustainable Development Sustainable Development IndicatorsIndicators

Julie L. Hass, Ph.D.

Division for Environment Statistics, Statistics Norway

Joint UNECE/OECD/Eurostat Working Group on Statistics for Sustainable Development

Second meeting, Oslo, 15-16 November 2006

2

Indicators – used to measure some phenomenon

• What do we want to measure?

• How do we measure it?

• Need to know what before we know how!

• What is sustainable development?

Need to answer this question before we can determine how to measure it!

• Two main ways this has been answered:

Models and policy statements

3

Policy-based approach

• Where do we find definitions of SD?

Answer:

• In policy and strategy statements made by politicians

Examples:

• Eurostat

• UK

• Sweden

4

Model-based approaches• Where do we find definitions of SD?

Answer:

• Definition of "Sustainable Development" from a model

• Model determines what should be measured

• Indicators chosen based on the definition of the model

Examples:

• 4 pillar (UNCSD)– social, environmental,economic and institutional

• Belgium (Transgovern)

• Switzerland

• Capital

5

Evaluation of Policy Approach

Advantages

• High level of correspondence between the indicators and policy

• Indicators can be created for multinational or geographic regions for which there is a policy document (political cooperation)

• No major discussions regarding definitions, although some questions can arise due to interpretation of political documents

• May be easier to change the definition and the corresponding indicators when our understanding about sustainability evolves

Disadvantages

• Political statements may not provide a comprehensive or theoretically robust definition

• Political statements and policies can and most likely will change over time. Problems can arise when trying to track long-term trends since establishing the data required for the indicators can be costly and take time to establish

• Risk that SD could substantially disappear from political agenda

• Short term since political timeframe is rarely beyond the next election

6

Evaluation of Capital (Model) Approach

Advantages

• Capital has an inherent long term perspective

• Interlinkages between types of capital are an inherent part of the calculation of the national wealth indicator (at least in the World Bank and the Norwegian approaches calculation of wealth is included)

• National wealth measures allow for international comparability

Disadvantages

• If a strong sustainability perspective is adopted, the issue of critical levels of capital and non-substitution needs to be dealt with.

• There is a risk that the indicator set will be less politically relevant and will not be used in connection with implementing policies regarding sustainable development

• Sum of national wealth over all nations does not necessarily result in a sustainable world or globe

• Calculation methodology of national wealth is not standardized and is controversial

7

Variations on the "Capital Approach"

World Bank• National Wealth

• indicator of sustainability, whereas sets of indicators are merely providing information regarding conditions for sustainability

Canada• NO National

Wealth indicator

• Condition of critical eco-systems

Norwegian• National Wealth

• + strong sustainability perspective (include indicators for critical resources; natural, human and ecological)

8

Definition of sustainable development

• What are the differences between the policy and capital approaches? Irreconcilable differences?

• 4 irreconcilable, inherently embedded dimensions in the concept of sustainable development (from D.Hessen)

– biocentric vs. anthropocentric – local/national vs. global (scale) – hedonism vs. asceticism ("wants" vs. human needs)– now vs. future (time dimension)

9

biocentric vs. anthropocentric

10

local/national vs. global (scale)

11

hedonism vs. asceticism("wants" vs. human needs)

12

now vs. future(time dimension)

13

Sustainable development statistics

• Working group for SD statistics and NOT only SD indicators

• What statistical systems do SD indicators require?– Consistent– Coordinated (facilitate modelling)– Established time series (long)– Improved methodologies– Improved national wealth calculation methodologies– Expand the boundaries of the SNA

SEEA Social aspects (OECD)

– + + +

14

National Accounts

EnvironmentalEconomicAccounts

Socio-economicAccounts

1 Productivity of energy and raw materials2 Emissions of greenhouse gases3 The proportion of renewable energy sources in overall energy consumption4 Increase in land use for housing and transport5 Development of stocks of specified animal species6 Balance of public sector financing7 Private- and public-sector expenditure on research and development 8 Capital-outlay ratio9 Educational outcomes for 25-year-olds and number of new students10 Gross domestic product11 Transport intensity and share of the railways in providing transport12 Proportion of ecological agriculture and general statement on nitrogen surplus13 Air pollution14 Satisfaction with health15 Number of burglaries16 Labour force participation rate17 Full time children care facilities18 Relationship between male and female gross annual earnings19 Number of foreign school-leavers who have not completed secondary school20 Expenditure on development collaboration21 EU imports from developing countries

15

14

16

7 20 21

6 8 10

1 11 2 4

13

3

5

12

Integration of the German sustainability indicators into the accounting data set

17

18

19

9