dr michael vardon, abs, aceas 2014 "synthesis in environmental accounting"

Environmental-Economic Accounting: A Transdisciplinary Synthesis

Dr. Michael VardonDirectorCentre of Environment StatisticsAustralian Bureau of [email protected]

Science Making SenseAustralian Centre for Ecological

Analysis and SynthesisShine Dome, Canberra

7-9 May 2014

mailto:[email protected]

Environmental–economic accounting is a synthesis of disciplines

• The accounting model is formed from established concepts in– Physical sciences (including ecology)– Economics– Accounting– Statistics

• The use of national (economic) accounting in public policy is entrenched – can we do the same for environmental accounting?

The three key concepts of environment accounting

1. Stocks and flows (or assets and services)

2. Physical (e.g. tonnes, litres, parts per million) and monetary ($) measures

3. Benefits (when and where?) and beneficiaries (who?)

Classifications!Volume (e.g. m3, ha)

Value (e.g. peso, $)

Stocks E.g. National parks

E.g. land

Flows E.g. Water extracted for agriculture

E.g. GDP

What is an accounting approach?

• Accounting is about telling stories that are comprehensive, integrated, coherent and repeatable

• Stories are founded on defined relationships between stocks and flows

• The measurements and relationships are presented in physical and monetary terms

• Derivation of aggregates is an outcome of defined relationships and the use of common measurement units

Inland Water Resources

Water SupplySewerage

HouseholdsElectricityMining Manufacturing*Agriculture

Other industries

? ?

?934448412334?

?

? ?

722

715 336 44841 320 172

3391433267

3626

944228

?

?

?

515

Australia – physical water supply and use, 2008-09 (GL)

1594

79

9336

103 9277 87

?

2

The Sea

1163

Key

WastewaterWaterReuse water

33

* Note shown is the supply of distributed water and reuse water by mining and manufacturing, 25 GL in total.

Inland Water Resources

Water SupplyISIC 36

SewerageISIC 37

HouseholdsElectricityISIC 35

Mining*ISIC 5-9

Manufacturing*ISIC 10-33

AgricultureISIC 1 Other ISIC

2,3,38,39, 45-99

6 1406

??????

3

21 208

?

? ? ? ? ?

490153406

?

122977

7

?

?

?

Australia – monetary water supply and use, 2008-09 (million AUD$)

3074

?

?

? ??? ?

3316

?

The Sea

?

Key

WastewaterWaterReuse water

* Note shown is the supply of distributed water and reuse water by mining and manufacturing, 25 GL in total. No monetary available for these.

Integrated indicators

Majority of environmental pressure indicators increased: waste (147%), energy (22%), GHG (25%)

Water consumption fell significantly (-31%) Economic production (GVA) rose 66% The population increased 23%

Why do accounting?• Links the environment to the core of economic

information and hence can make environmental and economic trade-off more apparent

• Takes the array of information currently available from a range of sources and synthesizes it to a regular set of accounts – see where information is weak or missing

• Regular information

Accounting for the times

• 1929 The Great Depression

• 1936 Keynes Theory of employment, interest and money

• 1939 World War II• 1953 System of National

accounts(-> 1968, 1993, 2008)

• 1993 System of Environmental-Economic Accounting (-> 2003, 2012)

http://phys.org/news202476529.html



The System of Environmental-Economic Accounts (SEEA)

• Part of the international statistical system• Evolved from the System of National Accounts• Several parts of the SEEA

– SEEA Central Framework (2012)– SEEA Experimental Ecosystem Accounting (2013)– SEEA Applications and Extensions (2014)– SEEA-Water (2007)– SEEA-Energy (in development)– SEEA-Agriculture (in development)

http://unstats.un.org/unsd/envaccounting/seea.asp



Audiences and information

Information

Information users

Data items

SEEA

Accounts and tables

Indicators

Decision makers & wider public

Managers and analysts

Researchers

Headline indicators

Indicators on specific subjects or industries

It is being done

ABS Energy AccountPhysical and monetary SUT

ABS Australian Environmental - Economic

Accounts (Annual)

National Accounts Data

Natural resources on National Balance Sheet

(Annual)

ABS Experimental Land Accounts

ABS Water Account, Australia

Physical and monetary SUT

ABS Experimental Waste Account

National Carbon Account(Dept. of Environment)

ABS Input-output analysis of energy and greenhouse gas

emissions

Researching ecosystem accounts

Biodiversity, Carbon, Ecosystem condition

ABS, SEWPAC, BOM, DCCEE, DAFFMurray-Darling Basin Authority,

Victorian governmentSouth East Queensland CMA

Wentworth group and universities

Research for expanding the accounts produced and

methodology

Environmental Taxes and subsidies, environmental protection expenditure,

as well as valuation methods

National Water AccountPhysical asset account

(Bureau of Meteorology)

http://www.abs.gov.au/ausstats/[email protected]/mf/4628.0.55.002

DEPI Experimental Ecosystem Accounts

(Victorian government)

DEPI Victoria Water Account(Victorian government)

http://www.abs.gov.au/ausstats/[email protected]/mf/4610.0

http://www.abs.gov.au/ausstats/[email protected]/mf/4609.0.55.001http://www.abs.gov.au/ausstats/[email protected]/mf/4609.0.55.002http://www.abs.gov.au/ausstats/[email protected]/mf/4609.0.55.003











Measuringecosystems and the economy

• Measuring ecosystems is complex because of the many biophysical interactions within individual ecosystems, the many interactions between ecosystems, because ecosystems operate at multiple scales (local, national, global), and because ecosystems exhibit a high degree of natural variation over differing time scales.

•Measuring the economy is complex because of the many interactions within individual economic units, the many interactions between economic units, because economic units operate at multiple scales (local, national, global), and because economic units exhibit a high degree of variation in their behavior and structure over differing time scales.

Remote censing (e.g. satellites)Land coverRainfallTemperatureGeography (mountains, plains, coasts, etc.)Scientific studies/researchE.g. Species distribution and abundanceAdministrative sources Land title officesBusiness registers, Tax dataDevelopment applicationsEnvironmental Impact assessmentsAnnual reports from businessStatistical surveys/census

Population censusAgricultural surveys, etc.

Data sources for environmental accounting

Lessons learnt• Cooperation is essential – between agencies and

between professions (e.g. ecologists, economists, accountants, statisticians, etc.)

• Spatial data and spatial manipulation of data are needed

• Experimental or pilot studies are useful for developing methods, building capability and demonstrating how accounts can be used

• Need to focus on repeatability (i.e. the regular production of accounts)

• There will be criticism – the work necessarily requires trade-offs between accuracy and frequency (especially if annual production is the aim) as well as fitting imperfect data to the accounting tables

• Need to explain the application of accounts to public policy to potential users

AcknowledgementsA large number of people and agencies are contributing to the development of environmental and ecosystem accounting in Australia • Commonwealth agencies

– Department of Environment, Bureau of Meteorology, Great Barrier Reef Marine Park Authority, Department of Agriculture, CSIRO, National Water Commission

• State Governments– Victorian, Queensland

• Universities– Australian National University, University of Queensland,

Monash University and University of Melbourne

• Wentworth Group of Concerned Scientists