Other issues for volume 2 of the revised SEEA Peter Comisari London Group meeting, Wiesbaden 30 Nov – 4 Dec 2009

Other issues for volume Other issues for volume 2 of the revised SEEA2 of the revised SEEA

Peter ComisariPeter Comisari

London Group meeting, Wiesbaden London Group meeting, Wiesbaden 30 Nov – 4 Dec 200930 Nov – 4 Dec 2009

Session overviewSession overview

This session complements earlier This session complements earlier session(s)session(s)

Rationale for volume 2 and criteria for Rationale for volume 2 and criteria for inclusion of issuesinclusion of issues

Structure of volume 2Structure of volume 2 ‘‘Other issues’ for inclusion in volume 2Other issues’ for inclusion in volume 2

Volume 2 of the revised SEEAVolume 2 of the revised SEEA

Earlier session addresses ecosystem Earlier session addresses ecosystem accounting and certain valuation issuesaccounting and certain valuation issues

This session aims to pick up remaining This session aims to pick up remaining possible issues for inclusion in volume 2possible issues for inclusion in volume 2

Criteria for inclusion in volume 2Criteria for inclusion in volume 2

Volume 2 should:Volume 2 should:“cover best practices in the implementation of “cover best practices in the implementation of those accounts that are highly policy relevant those accounts that are highly policy relevant but for which there is not yet an agreement on but for which there is not yet an agreement on the methodology.” (UNCEEA/2/7)the methodology.” (UNCEEA/2/7)

Policy relevancePolicy relevance Lack of agreed methodologyLack of agreed methodology

Dependent on discussions re volume 1 Dependent on discussions re volume 1 standard outputs…standard outputs…

Why have a volume 2?Why have a volume 2?

Largely follows from volume 1 and 3…Largely follows from volume 1 and 3… Volume 1 designated to be a statistical Volume 1 designated to be a statistical

standard and volume 3 to showcase standard and volume 3 to showcase applications of the standardapplications of the standard

Volume 2 captures and quarantines those Volume 2 captures and quarantines those issues not yet sufficiently developed to be issues not yet sufficiently developed to be part of volume 1part of volume 1

Assists in the uptake and acceptance of Assists in the uptake and acceptance of volume 1volume 1

Structure of volume 2Structure of volume 2

Ideal structure not obvious – partly because Ideal structure not obvious – partly because issues included are really only linked by issues included are really only linked by being contentious to measurebeing contentious to measure

Volume 2 will be dominated by issues Volume 2 will be dominated by issues related to ecosystem accountingrelated to ecosystem accounting

Broad structure?Broad structure?Non-standard accounts related to Non-standard accounts related to ecosystem accountingecosystem accountingOther non-standard accountsOther non-standard accounts

Suggested inclusions for volume 2Suggested inclusions for volume 2

1.1. Environmentally damaging subsidiesEnvironmentally damaging subsidies

2.2. CatastrophesCatastrophes

3.3. Volume measures of relevant assets and Volume measures of relevant assets and flowsflows

4.4. Environmentally beneficial activities and Environmentally beneficial activities and minimisation of natural hazardsminimisation of natural hazards

5.5. Valuation of water stocksValuation of water stocks

Suggested inclusions for volume 2, Suggested inclusions for volume 2, continued…continued…

6.6. Water quality accountsWater quality accounts

7.7. Stocks and flows of soil carbonStocks and flows of soil carbon

8.8. Recording of soil (and its valuation)Recording of soil (and its valuation)

9.9. Bio-economic modelling (particular Bio-economic modelling (particular relevance for sustainability of fish stocks)relevance for sustainability of fish stocks)

10.10. DegradationDegradation

Brief description of issuesBrief description of issues

Environmentally-damaging subsidiesEnvironmentally-damaging subsidies

difficulty in determining criteria for difficulty in determining criteria for ‘environmentally damaging’ since all subsidies ‘environmentally damaging’ since all subsidies encourage economic production and this encourage economic production and this typically leads to damagetypically leads to damage

Possibly record these subsidies according to Possibly record these subsidies according to type of subsidy and by industry receiving the type of subsidy and by industry receiving the subsidysubsidy

Brief description of issues, Brief description of issues, continued…continued…

CatastrophesCatastrophes SEEA-2003 gives only a little attention to SEEA-2003 gives only a little attention to

catastrophescatastrophes Certain catastrophes increasingly seen as Certain catastrophes increasingly seen as

consequence of past economic activityconsequence of past economic activity SEEA asset account have change category SEEA asset account have change category

‘catastrophic losses’‘catastrophic losses’ Can this be formally linked to previous Can this be formally linked to previous

economic activity?economic activity?


Volume measuresVolume measures Time series in current prices typically Time series in current prices typically

embodies ‘pure’ inflation and volume changeembodies ‘pure’ inflation and volume change Aggregates in time series can be expressed Aggregates in time series can be expressed

in volume termsin volume terms Volume measures should remove ‘pure’ Volume measures should remove ‘pure’

inflation and reflect quality changesinflation and reflect quality changes would appear to relate to measures of would appear to relate to measures of

degradation (which is essentially about quality degradation (which is essentially about quality change)change)


Environmentally beneficial activities & Environmentally beneficial activities & minimisation of natural hazards minimisation of natural hazards Relates to such things as research, Relates to such things as research,

surveillance, structures to combat natural surveillance, structures to combat natural hazards (e.g. forest fire roads, river levees)hazards (e.g. forest fire roads, river levees)

A complete coverage of environmentally A complete coverage of environmentally beneficial activities needs to include these beneficial activities needs to include these activitiesactivities


Valuation of water stocks Valuation of water stocks Certain water stocks are now SNA (and Certain water stocks are now SNA (and

SEEA) assets and therefore should appear in SEEA) assets and therefore should appear in balance sheet and asset account with balance sheet and asset account with monetary valuemonetary value

A range of valuation issues need to be A range of valuation issues need to be overcome and little empirical work has been overcome and little empirical work has been done in this areadone in this area


Water quality accounts Water quality accounts Water quality important to use / potential use Water quality important to use / potential use

of waterof water Fundamental questions about how to present Fundamental questions about how to present

water quality in accounts and how to show water quality in accounts and how to show quality changes over time and between quality changes over time and between different locationsdifferent locations


Stocks and flows of soil carbon Stocks and flows of soil carbon Soil is an important carbon storage mediumSoil is an important carbon storage medium Science is fairly clear on: defining soil carbon; Science is fairly clear on: defining soil carbon;

fractions of soil carbon; and factors fractions of soil carbon; and factors influencing soil carbon influencing soil carbon

But uncertainty about effects of different But uncertainty about effects of different factors on total soil carbon potentialfactors on total soil carbon potential

And major logistical issues in accurate And major logistical issues in accurate measurement of soil carbonmeasurement of soil carbon


Recording soil and its valuation Recording soil and its valuation SNA – soil is a component of ‘land’ asset but SNA – soil is a component of ‘land’ asset but

not separately identifiablenot separately identifiable SEEA – soil is a separate asset from landSEEA – soil is a separate asset from land SEEA physical measures of soil e.g. flows SEEA physical measures of soil e.g. flows

related to erosion, etc. Stock measures? related to erosion, etc. Stock measures? Monetary measures?Monetary measures?


Bio-economic modelling (e.g. for fish Bio-economic modelling (e.g. for fish stocks) stocks) What is a ‘sustainable’ harvest of fish?What is a ‘sustainable’ harvest of fish? Not necessarily where net natural growth Not necessarily where net natural growth

exceeds the harvest…exceeds the harvest… Require ecological understanding of the Require ecological understanding of the

natural resource in questionnatural resource in question


DegradationDegradation Volume 2 should discuss concepts, accounts Volume 2 should discuss concepts, accounts

and methodologies related to degradationand methodologies related to degradation Should it also discuss policy applications of Should it also discuss policy applications of

these accounts? (since volume 3 of the these accounts? (since volume 3 of the revised SEEA will deal only with policy revised SEEA will deal only with policy applications of the standard SEEA accounts applications of the standard SEEA accounts in volume 1)in volume 1)

Documents

Other issues for volume 2 of the revised SEEA Peter Comisari London Group meeting, Wiesbaden 30 Nov – 4 Dec 2009