Transcript PPT - ACS - United Nations Economic Commission for Africa

United Nations Economic Commission for Africa
African Centre for
Statistics
The System of National Accounts and System of
Environmental-Economic Accounting for
Sustainable Development Indicators
Xiaoning Gong
Chief, Economic Statistics and National Accounts Section
African Centre for Statistics (ACS)
United Nations Economic Commission for Africa (UNECA)
at
Workshop on Sustainable Development Indicators: Conceptual
Framework, Data Collection, and Analysis
Addis Ababa, Ethiopia, 11-13 December 2012
Presentation Outline
• What do we want to measure?
• Data collection, SDI compilation, and
international statistical standards
• SNA & SEEA as international statistical standards
for economic and environmental statistics
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WHAT DO WE WANT TO MEASURE?
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Sustainable Development =
Development & Sustainability
• Development: current well-being
– Economic resources
– Non-economic aspects of peoples’ life
• Sustainability: whether this can last over time
– Whether stocks of capital that matter for our lives
(natural, physical, human, social) are passed on to
future generations
• “Well-being”: the state of being happy, healthy,
or prosperous [Merriam-Webster Dictionary]
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Welfare Indicators and Macroeconomic
Aggregates (SNA p. 13)
Welfare (well-being) is a wide-ranging concept
with many different facets:
• Captured by one or more of the key aggregates of the SNA.
• Captured by using the basic structure of the SNA and expanding it
in certain directions: unpaid services and the effects of
environmental damage.
• Outside the reach of a system not designed with the
measurement of welfare as a prime consideration.
• It is unrealistic to expect a system of economic accounts to
necessarily and automatically yield a wholly satisfactory measure
of welfare (well-being).
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Well-Being: GDP Is not Enough
• GDP is the most widely-used measure of
economic activity: Measuring production and
Determining the level of employment
• Prices may not exist for some goods and services
(e.g. Gov’t and HH).
• Market prices may deviate from society’s
underlying valuation (e.g. Environmental
damage).
• Quality change
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Well-Being: GDP +
• Net Domestic Product (NDP) = GDP –
Consumption of fixed capital (i.e. depreciation)
– Depletion of natural resources (e.g. mining, timber)
– Degradation in quality of the natural environment
• Net national disposable income
• Government-provided services
• Household consumption and production
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Well-Being: Income, Consumption &
Wealth
• Wealth is an important indicator of the
sustainability of actual consumption.
• To know what is happening to the economy, we
need to ascertain changes in wealth.
• To construct the balance sheet of an economy,
we need to have comprehensive accounts of its
assets and its liabilities.
• Changes in wealth = net investments = gross
investments – (depreciation + depletion).
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Wealth and Balance Sheet (SNA, p. 257)
• Balance Sheet: includes all the financial and nonfinancial resources at the disposal of an institutional
unit or sector.
• Net worth (balancing item): is defined as the value of all
the assets owned by an institutional unit or sector less
the value of all its outstanding liabilities.
• National wealth: For the economy as a whole, the
balance sheet shows the sum of non-financial assets
and net claims on the rest of the world.
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Measure of Well Being: Summary
• Look at income and consumption rather than
production.
• Consider income and consumption jointly with
wealth.
• Emphasize the household perspective.
• Give more prominence to the distribution of
income, consumption and wealth.
• Broaden income measures to non-market
activities.
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Sustainable Development: Concepts
• “Development:” An increase in well-being and
social welfare across the members of a society
between two points in time.
• “Sustainable development:” Increasing or, at
least, non-declined well-being and social welfare
along the path forever or at least over a very
long time.
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Well Being, Total Wealth, and SD
• Well-being = “total wealth” = sum of the values
of a heterogeneous set of assets
• Total wealth = The present value of future
consumption
• “Sustainable development” = non-declining per
capita wealth over time.
• Net or “genuine” saving = adjusted for resource
depletion, stock pollutant damages, and human
capital accumulation = change in total wealth
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Total Wealth: Five Types of Capital
•
•
•
•
•
Financial Capital
Produced Capital
Natural Capital
Human Capital
Social Capital
The “capital approach”
for measuring
sustainable
development
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Total Wealth: Financial Capital
• Financial capital is assets for which counterpart
liabilities exist somewhere on the part of other
institutional units, including currency, bank deposits,
stocks, and bonds, derivatives, accounts receivable,
pension funds, and insurance reserves. The value of
financial capital is recorded in the balance sheet
accounts of the national accounts.
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Total Wealth: Produced Capital
• Produced capital includes fixed assets that are used repeatedly
or continuously in production processes for more than one year.
Fixed assets can be tangible (e.g. machinery, buildings, roads,
harbors, and airports) and intangible (e.g. computer software,
recordings, manuscripts, as well as other original works of artistic
value and specialized knowledge used in production). Inventories
of raw materials, semi-finished and finished goods held for future
sale are also included in produced capital, as are valuables such
as precious stones, antiques, and paintings. The value of
produced capital is recorded in the balance sheet accounts of the
national accounts.
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Total Wealth: Natural Capital
• Natural capital comprises three principal categories: natural
resource stocks, land, and ecosystems that provide various
essential goods and services necessary for the economy, society,
and all living beings. Natural capital includes both non-renewable
natural resources (e.g. land, coal, oil, gas, minerals, sand, gravel,
etc.) and conditionally renewable resources (e.g. forests, fish, and
waterfalls). Ecosystem services cover provisioning (e.g. minerals,
timber, fish, and water), regulating (e.g. absorption of unwanted
wastes from production and consumption and regulation of the
global climate), and cultural services (or called amenity functions
and are relevant to humans only).
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Total Wealth: Human Capital
• Human capital does not have a single definitive and
final definition yet but is generally considered as an
educated and healthy workforce; such as
– “The stock of economically productive human capabilities”
(WB 2006);
– “The knowledge, skills, competencies, and attributes
embodied in individuals that facilitate the creation of
personal, social, and economic well-being” (OECD 2001); and
– The education, on-the-job training, and health as components
of human capital with consequences for earnings and
economic productivity (Becker, 1993).
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Total Wealth: Social Capital
• Social capital: Although there has been a considerable
amount of research and attention devoted to social
capital in recent years, there remains a lack of
agreement around a precise definition of the concept.
However, there is a growing consensus around the idea
that it is the functioning social networks and their
associated norms that generate benefits. “Network,
together with shared norms, values, and
understandings which facilitate cooperation within or
among groups” (OECD 2001).
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Advantages of Capital Approach for
Measuring SD
• Rooted in the well-established development
theory and helps to focus our attention on the
long-term determinants of development.
• Helps to clarify the distinction between current
income and capital consumption.
• By extending the traditional view of capital to
include natural, human, and social capital, the
notion of investment has been extended.
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Measurement
framework
[OECD]
Green
growth
•Economic activities (production, consumption, trade)
•Outputs
•Consumption
•Households
•Governments
•Investments
•Income
Goods& services
•Residuals
•Production
•Recycling,
re-use,
re-manufacturing,
substitution
•Policies,
measures,
opportunities
•Inputs
•4
•Labour
Capital
•Resources
•Multi-factor
productivity
•3
•1
•Amenities, health
& safety aspects
•Service
functions
•Pollutants
waste
•Sink
functions
•Energy & raw materials
•water, land, biomass, air
•2
•Taxes
•Subsidies,
•Regulations
•Investments
•Innovation
•Trade
•Education &
training
•
•Resource
functions
•Natural asset base (capital stocks and environmental quality)
• The socio-economic context and characteristics of growth
•1•
Indicators monitoring environmental and resource productivity
•2•
Indicators monitoring the natural asset base
•3•
Indicators monitoring the environmental quality of life
•4•
Indicators monitoring economic opportunities and policy responses
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Measurement framework: Themes and
Subthemes [OECD]
The environmental and
resource productivity of the
economy
The natural asset base
The environmental dimension
of quality of life
• Carbon and energy productivity
• Resource productivity: materials, nutrients, water
• Multi-factor productivity
• Renewable stocks: water, forest, fish resources
• Non-renewable stocks: mineral resources
• Biodiversity and ecosystems
• Environmental health and risks
• Environmental services and amenities
Economic opportunities and
policy responses
•
•
•
•
•
•
Technology and innovation
Production of environmental goods & services
International financial flows
Prices and transfers
Skills and training
Regulations and management approaches
Socio-economic context and
characteristics of growth
•
•
•
•
Economic growth and structure
Productivity and trade
Labour markets
Socio-demographic patterns
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Rio+20 Outcome Document [UNDSD]
• Measures beyond GDP
– The current proposal on the table:
• As a complement to GDP, to develop science-based
and rigorous methods of measuring sustainable
development, natural wealth and social well-being;
having regard to the UN system of economic and
environmental accounts
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Indicators [UNDSD]
•
To monitor priorities areas, possibly
–
–
–
–
–
–
•
Assessing different dimensions e.g. for energy
–
–
–
•
Food security and sustainable agriculture
Water access; water consumption
Shelter, Energy
Inequality
Sustainable consumption and production
Efficient use of resources
Energy access (social)
Energy efficiency (economic)
Clean energy (environmental)
Harmonized with international standards, SEEA
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DATA COLLECTION, SDI COMPILATION, AND
INTERNATIONAL STATISTICAL STANDARDS
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Data Production & Statistical Standard
Data Production
Data Collection
Data Processing
Data
Compilation
Concepts &
Definitions
Classifications
Methodologies
Statistical Standard
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International Statistical Standard [1]
• Macroeconomic frameworks (e.g.
SNA, System of Price and Volume
Indexes, BPM)
– Agreed concepts, definitions,
classifications
– Inter-related tables or accounts for broad
sets of statistics
– For the whole economy
– System approach to statistics
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International Statistical Standard [2]
• Cross-functional frameworks (e.g. ISIC,
statistical units, sample frames)
– Building blocks in support of the organization
of the tables and accounts of macroeconomic
frameworks
– Conceptual frameworks for classifications,
statistical units and sample frames that
support the collection and reporting of
economic activities of production,
consumption and accumulation
– For the whole economy
•27
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Criteria to Define International Statistical
Standard
• Statistical integration
– Internal coherence of concepts, definitions, classifications
and tables and accounts
– External consistency among macroeconomic frameworks,
cross-functional frameworks and intermediate output
frameworks
• Broad institutional process of consultation
– National and international consultations of stakeholders
• Relevance
– Universal applicability of the compiled and disseminated
data for use of policy planning, analysis and administration
purposes
•28
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SNA & SEEA AS AN INTERNATIONAL
STATISTICAL STANDARD FOR ECONOMIC AND
ENVIRONMENTAL STATISTICS
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What is the SNA?
• Internationally agreed standard set of
recommendations on how to compile measures
of economic activities in accordance with strict
accounting conventions based on economic
principles.
• Main objective is to provide a comprehensive
conceptual and accounting framework that can
be used to create a macroeconomic database
suitable for analysis and evaluating economy.
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The Central Role of National Accounts in
Statistics
• Concepts and classifications of 2008 SNA are
harmonized with others:
– Balance of Payments Manual
– International Comparison Program
– International Manuals for Consumer and Producer
Price Indices
– System of Environmental-Economic Accounting
– ISIC r.4.0
– CPC v.2.0
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Conceptual Framework: SNA & SEEA [1]
• SNA is already the source for measures of
financial and produced capital stocks and
• SEEA is the sources for measures of natural
capital stocks. Much of the SEEA is directly
relevant for measuring the natural capital
indicators proposed by the capital approach,
especially relevant are the natural resource asset
accounts in both monetary and physical terms.
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Conceptual Framework: SNA & SEEA [2]
• SEEA: records stocks of natural resources such as
fish, forest, water, and minerals, as well as land
and ecosystems.
• Many of the data required to compile estimates
of human capital are available from the SNA.
Thus, it seems likely that an SNA-based
measurement framework for human capital
could be conceived.
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System of Environmental-Economic
Accounts (SEEA)
• Provides internationally agreed concepts, definitions,
classifications, accounting rules and standard tables for
natural capital.
• First produced in 1993 and updated in 2003. Adopted as
an international standard by the United Nations
Statistical Commission in 2012.
• Follows an accounting structure similar to that of the
System of National Accounts (SNA). Uses concepts,
definitions and classifications consistent with the SNA.
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SEEA: Ecosystem
• Ecosystem accounts not in the current volume but in
the subsequent volume of SEEA, and attempting to
include best methods and practices but is not
considered an international standard.
• The concept of ecosystem services is well known in the
scientific community, but there is little practical
experience in measuring the concept among official
statisticians.
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Natural Capital: Concepts and Definitions
• Natural capital refers to all naturally occurring assets
that have a direct or indirect impact on human wellbeing. Ex: fossil fuels, metals, minerals, oceans, air, and
ecosystems.
• “Environmental assets are the naturally occurring living
and non-living components of the Earth, together
comprising the bio-physical environment that may
provide benefits to humanity.” (SEEA 2012, paragraph
2.17).
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SEEA: Types of Natural Capital
SEEA asset list
EA.111 Fossil fuels
EA.112 Metallic minerals
EA.113 Non-metallic minerals
EA.2 Land and surface water (hectares)
EA.14 Biological resources
EA.3 Ecosystems
EA.12 Soil resources
EA.13 Water resources
EA.33 Atmospheric systems
EA.M Memorandum item: intangible environmental assets
EA.M1 Mineral exploration
EA.M2 Transferable licences and concessions for the exploitation of natural resources
EA.M3 Tradable permits allowing the emission of residuals
EA.M4 Other intangible non-produced environmental assets
Theme
Energy resources
Non-energy resources
Land and ecosystems
Water
Climate
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SEEA: Types of Natural Capital (Cont’d)
• Natural resources: Asset accounts record, for different types
of natural resources, their opening stocks (at the beginning of
a year), additions and subtractions (due to extractions,
discoveries, re-valuations) and closing stocks (at the end of the
year).
• Ecosystems: “areas containing a dynamic complex of biotic
communities (for example, plants, animals and microorganisms) and their non-living environment interacting as a
functional unit to provide environmental structures, processes
and functions.” (SEEA 2012, 2.21).
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SEEA: Types of Natural Capital (Cont’d)
• Environmental conditions (such as climate, air quality
etc.). The SEEA definition of natural capital explicitly
refers to more “naturally occurring components”, but
– SEEA only covers land, natural resources and ecosystems
– SEEA restricts itself to the measurement of environmental
assets within the economic territory of nation states (SEEA,
5.13)
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SEEA: Types of Natural Capital (Cont’d)
• Environmental conditions (such as climate, air quality
etc.). The SEEA definition of natural capital explicitly
refers to more “naturally occurring components”, but
– SEEA only covers land, natural resources and ecosystems
– SEEA restricts itself to the measurement of environmental
assets within the economic territory of nation states (SEEA,
5.13)
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SEEA: Types of Natural Capital (Cont’d)
• The most commonly used concept of economic territory is the area under the
effective economic control of a single government.
• The economic territory includes the land area, airspace, territorial waters,
including jurisdiction over fishing rights and rights to fuels or minerals. In a
maritime territory, the economic territory includes islands that belong to the
territory. The economic territory also includes territorial enclaves in the rest of
the world. These are clearly demarcated land areas (such as embassies,
consulates, military bases, scientific stations, information or immigration
offices, aid agencies, central bank representative offices with diplomatic
immunity, etc.) located in other territories and used by governments that own
or rent them for diplomatic, military, scientific, or other purposes with the
formal agreement of governments of the territories where the land areas are
physically located (SNA p.62) .
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Ecosystem Services: Classifications
• The Common International Classification of Ecosystem Services (CICES):
– Provisioning services (considered “goods” in other classifications)
– Regulating services (processes that are essential to maintaining ecosystem
function)
– Habitat services (those that maintain biodiversity)
– Cultural services (those that humans find essential to their well-being,
such as aesthetic and
– religious experience
• Type of benefits to humans:
– Use benefits
– non-use benefits
• The Total Economic Value framework (TEV): a “well- structured way to
consider all of the values that an ecosystem provides”.
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Ecosystem: Provisioning Services
• Provisioning Services
1 Food (e.g. fish, game, fruit)
2 Water (e.g. for drinking, irrigation, cooling)
3 Raw Materials (e.g. fiber, timber, fuel wood, fodder, fertilizer)
4 Genetic resources (e.g. for crop-improvement and medicinal
purposes)
5 Medicinal resources (e.g. biochemical products, models & testorganisms)
6 Ornamental resources (e.g. artisan work, decorative plants, pet
animals, fashion)
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Ecosystem: Regulating Services
• Regulating Services
7 Air quality regulation (e.g. capturing (fine) dust, chemicals, etc.)
8 Climate regulation (incl. Carbon sequestration, influence of vegetation on
rainfall, etc.)
9 Moderation of extreme events (e.g. storm protection and flood prevention)
10 Regulation of water flows (e.g. natural drainage, irrigation and drought
prevention)
11 Waste treatment (esp. water purification)
12 Erosion prevention
13 Maintenance of soil fertility (incl. soil formation)
14 Pollination
15 Biological control (e.g. seed dispersal, pest and disease control)
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Ecosystem: Habitat & Cultural Services
• Habitat Services
16 Maintenance of life cycles of migratory species (incl. nursery
service)
17 Maintenance of genetic diversity (esp. gene pool protection)
• Cultural Services
18 Aesthetic information
19 Opportunities for recreation & tourism
20 Inspiration for culture, art and design
21 Spiritual experience
22 Information for cognitive development
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Ecosystems: Type of Benefits to Human
Total
economic
value
Non-use
value
Use values
Direct
Indirect
Option
Bequest
Existence
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Ecosystems: Use Values
• Direct-use values
– Value of natural resources extracted
– Industrial processes
– Use of land for agriculture, recreation and tourism
• Indirect-use values: those associated with the secondary use of the functions
provided by natural resources or the environment (i.e. those benefits not
derived from direct consumption):
– Carbon sequestration
– Provision of oxygen, air
– Purification, and ultra-violet radiation absorption.
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Ecosystems: Use Values (Cont’d)
• Option values: those associated with assuring the future
availability of resources for one's own possible future use
– Maintaining natural resources as future sources of genetic
material for drugs or hybrid agricultural crops
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Ecosystems: Non-use Values
• Existence values: from knowledge of continued existence:
– Natural habitat
– Sympathy for a certain species
– Donations to environmental funds that preserve remote environments
that most donors are likely never to visit
– Aesthetics
– Ecosystem
• Bequest values: the values associated with assuring that natural resources are
passed on to future generations:
– Species
– Habitats
– Way of life
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Ecosystem Services:
Methods of Monetizing (1 of 2)
•
•
•
•
•
Market Price Method: Estimates economic values for ecosystem products or services
that are bought and sold in commercial markets.
Productivity Method: Estimates economic values for ecosystem products or services
that contribute to the production of commercially marketed goods.
Hedonic Pricing Method: Estimates economic values for ecosystem or environmental
services that directly affect market prices of some other good. Most commonly applied
to variations in housing prices that reflect the value of local environmental attributes.
Travel Cost Method: Estimates economic values associated with ecosystems or sites
that are used for recreation. Assumes that the value of a site is reflected in how much
people are willing to pay to travel to visit the site.
Damage Cost Avoided, Replacement Cost, and Substitute Cost Methods: Estimate
economic values based on costs of avoided damages resulting from lost ecosystem
services, costs of replacing ecosystem services, or costs of providing substitute services.
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Ecosystem Services:
Methods of Monetizing (2 of 2)
• Contingent Valuation Method: Estimates economic values for virtually any
ecosystem or environmental service. The most widely used method for
estimating non-use, or “passive use” values. Asks people to directly state their
willingness to pay for specific environmental services, based on a hypothetical
scenario.
• Contingent Choice Method: Estimates economic values for virtually any
ecosystem or environmental service. Based on asking people to make tradeoffs among sets of ecosystem or environmental services or characteristics.
Does not directly ask for willingness to pay—this is inferred from trade-offs
that include cost as an attribute.
• Benefit Transfer Method: Estimates economic values by transferring existing
benefit estimates from studies already completed for another location or
issue.
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SNA & SEEA: Summary
• SNA and SEEA provide a coherent and rigorous
measurement framework for at least in four out
of five capital categories as in the list.
• SNA and SEEA provide standard concepts,
definitions, classifications, accounting rules, and
calculation methodologies.
• For indicators to work well, they should be part
of an overall information system resting upon
basic statistical data such as SNA and SEEA.
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SUMMARY AND CONCLUSIONS
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What Do We Want to Measure?
• “We manage what we measure.”
• Sustainable development = development +
sustainability
• Development: current well-being
– Income, consumption, and wealth
– Household perspective and non-market activities
– Distribution
• Sustainability: whether this can last over time
– Total wealth
– Capital approach
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Data Collection, SDI Compilation, and
International Statistical Standards
• Data production: Data collection, data
processing, and data compilation
• Tools: Concepts, Definitions, Classifications, and
Methodologies
• International statistical standards:
– Statistical integration
– Broad institutional process of consultation
– Relevance
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SNA & SEEA as International Statistical Standards
for Economic and Environmental Statistics
• SNA and SEEA
– Internationally agreed standard set of
recommendations
– Comprehensive conceptual and accounting
frameworks
– Harmonized with other statistical systems
• SNA is the source for measures of financial and
produced capital stocks
• SEEA is the source for measures of natural
capital stocks
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United Nations Economic Commission for Africa
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