Introduction to the System of Environmental-Economic Accounting for Water Part II Training Course on Water Accounting Amman, Jordan 10-13 March 2008 Michael Vardon United Nations Statistics Division.
Download ReportTranscript Introduction to the System of Environmental-Economic Accounting for Water Part II Training Course on Water Accounting Amman, Jordan 10-13 March 2008 Michael Vardon United Nations Statistics Division.
Introduction to the System of Environmental-Economic Accounting for Water Part II Training Course on Water Accounting Amman, Jordan 10-13 March 2008 Michael Vardon United Nations Statistics Division 1 Outline • The economy • Statistical units, enterprises and establishments • Classification of units to industry • The environment • SEEAW • Development • Structure standard tables • Indicators • Countries implementing SEEAW • Lessons from implementation • Work by UNSD 2 Water accounting • Brings together economic and environmental infromation Economic information Integrated Environmental and Economic information Environmental information Environmental and Economic Accounts 3 Need to understand the building blocks of environment and economic statistics • These are large fields and require knowledge and experience to fully master • It is possible to understand the basics relatively quickly 4 Statistical Units A statistical unit is an entity about which information is sought and for which statistics are ultimately compiled. It is the unit at the basis of statistical aggregates to which tabulated data refer. These units can be divided into two categories: (a) observation units – identifiable legal/organizational or physical entities which are able, actually or potentially, to report data about their activities; (b) analytical units – entities created by statisticians (also referred to as statistical constructs), often by splitting or combining observation units in order to compile more detailed and more homogeneous statistics than it is possible by using data on observation units. Analytical units are not able to report data themselves about their activities, but there exist indirect methods of statistical estimation. 5 http://unstats.un.org/unsd/isdts/docs/StatisticalUnits.pdf Establishment Establishment Establishment Establishment n Establishment n+1 Establishment n+2 Establishment Establishment Establishment Establishment Establishment Establishment Establishment 1 Establishment 2 Establishment 3 Households Government Enterprise n+2 Enterprise n+1 Enterprise n Enterprise 6 Enterprise 5 Enterprise 4 Enterprise 3 Enterprise 2 Enterprise 1 Units of the economy Economy 6 Enterprises Definition • An institutional unit in its capacity as a producer of goods and services is known as an enterprise. An enterprise is an economic transactor with autonomy in respect of financial and investment decision-making, as well as authority and responsibility for allocating resources for the production of goods and services. It may be engaged in one or more economic activities at one or more locations. An enterprise may be a sole legal unit. http://unstats.un.org/unsd/isdts/docs/StatisticalUnits.pdf 7 Establishments Definition • The establishment is defined as an enterprise or part of an enterprise that is situated in a single location and in which only a single productive activity is carried out or in which the principal productive activity accounts for most of the value added. • In other words, an establishment can be defined, ideally, as an economic unit that engages, under a single ownership or control - that is, under a single legal entity – in one, or predominantly one, kind of economic activity at a single physical location - for example, a mine, factory or workshop. http://unstats.un.org/unsd/isdts/docs/StatisticalUnits.pdf 8 Industrial Classification – what is an industry? • An industry is a grouping of establishments engaged in the same or similar kinds of activities • The classification used in national accounts and water accounts is the International Standard Industrial Classification (ISIC) 9 ISIC – International Standard Industrial Classification • Enterprises and establishments are classified using ISIC Revision 4 according to the goods and services they produce http://unstats.un.org/unsd/cr/registry/default.asp • Sometimes all establishments of an enterprise are classified to the same ISIC code • Sometimes establishments of the one enterprise are classified to different ISIC classes. 10 Enterprise Enterprise Industry n Establishment Establishment Establishment Enterprise n+2 Industry 2 Enterprise n+1 Enterprise n Enterprise 6 Enterprise 5 Enterprise 4 Enterprise 2 Enterprise 2 Enterprise 1 Industry 1 Establishment n Establishment n+1 Establishment n+2 Establishment 4 Establishment 5 Establishment 6 Establishment 1 Establishment 2 Establishment 3 Units and industry classification International Standard Industrial Classification Economy Government Households 11 National Accounts • National Accounts aggregate the information on the economy, obtained from the units of the economy, into a standard format from which well known indicators are derived • Gross Domestic Product is the best known of the indicators from the national accounts • Use of international standard System of National Accounts (SNA), classifications (e.g. ISIC) and table formats allows for meaningful comparisons over time and between countries 12 The environment • The environment has 4 components • Land • Atmosphere (Air) • Water • Life (biodiversity) • Energy, and solar energy are also important in environment statistics • The components of the environment interact with each other and with the economy 13 The Hydrological Cycle 14 Surface water upstream basins and aquifers outside the territory of reference Soil water (reservoirs, lakes, rivers, snow, ice and glaciers) Natural transfers (e.g. infiltration, seepage, etc.) Inflows downstream basins and aquifers outside the territory of reference Outflows Groundwater Sea Collection of precipitation Sea Returns Evapotranspiration Abstraction Returns • Integrates information on the economy and environment Inland Water Resource System Abstraction SEEAW Evapotranspiration Precipitation Atmosphere Returns Sewerage Households http://unstats.un.org/unsd/envaccounting/SEEAWDraftManual.pdf Other Industries (incl. Agriculture) Rest of the World Economy Imports Water collection, treatment and supply Exports Economy Rest of the World Economy 15 Development of SEEA Water • Sub-group on Water Accounting established at the 2003 meeting of the London Group (Rome) • Sep 2004 SEEA Water discussed at London Group Meeting (Copenhagen) • May 2005 1st draft SEEA Water discussed in by sub-group (New York) • May 2006 2nd Draft discussed at the User-Producer Conference (Voorburg) • Jun 2006 2nd Draft discussed by London Group and UNCEEA • Jul-Dec 2006 SEEA Water finalised by electronic discussion • More than 20 experts participated in the Sub-group • UNSD coordinated the group and prepared the various manuscripts 16 SEEA Water – an interim international statistical standard • Part 1 of SEEA Water was adopted by the United Nations Statistical Commission in March 2007 as an interim statistical standard • Part 2 contains the elements of SEEA Water for which there is less country experience and there is still some debate • SEEA Water has been recognized as useful by the users of information 17 SEEW - Structure 9 Chapters, 2 parts: • Part 1 • Ch 1. Introduction • Ch. 2 Water Accounting Framework • Ch. 3 Physical Supply and Use Tables • Ch. 4 Emission Accounts • Ch. 5 Hybrid and Economic Accounts • Ch. 6 Asset Account • Part II • Ch. 7 Quality Account • Ch. 8 Valuation • Ch. 9 Policy use 18 SEEW – Focus of workshop 9 Chapters, 2 parts: • Part 1 • Ch 1. Introduction • Ch. 2 Water Accounting Framework • Ch. 3 Physical Supply and Use Tables • Ch. 4 Emission Accounts • Ch. 5 Hybrid and Economic Accounts • Ch. 6 Asset Account • Part II • Ch. 7 Quality Account • Ch. 8 Valuation • Ch. 9 Policy use 19 12 Standard Tables Our focus will be on the first 8 tables and the 12th table 1. 2. 3. 4. 5. 6. 7. 8. 9. Physical supply Physical use Gross and net emissions Emissions by ISIC 37 Hybrid (Monetary and Physical) supply Hybrid use Hybrid supply and use Hybrid water supply and sewerage for own use Government accounts for water related collective consumption services (Monetary) 10. National expenditure for waste management (Monetary) 11. Financial accounts for waste water management (Monetary) 12. Asset account (Physical) 12 Supplementary tables 20 Example Standard Table VI: Hybrid use table Intermediate consumption of industries (by ISIC categories) Actual final consumption 35 1 233, 4143 Tot al Physical and monetary units Households of which: Hydro 36 37 38, 39, 4599 Total industry Final cons umpt ion expe nditu res Socia l transf ers in kind from Gover nmen t and NPIS Hs Total Govern ment Capital formation Exp orts Total intermediate consumption and use (monetary units) of which: Natural water (CPC 1800) Sewerage services (CPC 941) Total value added (monetary units) Total use of water (physical units) U1 - Total Abstraction of which: a.1- Abstraction for own use U2 - Use of water received from other economic units 21 Tot al use s at pur cha ser’ s pric e Supplementary tables and further disaggregation of data items • The 12 SEEAW standard tables are the minimum data that countries are encouraged to compile • Supplementary tables are presented • Data items and industries can be further disaggregated 22 Example of disaggregated data • The industry 12 SEEAW standard tables are the minimum data that countries are encouraged to compile • Supplementary tables are presented • Data items and industries can be further disaggregated 23 Indicators and policy uses of SEEAW Source of pressure on water resources: • Macro trends in total water use, emissions, water use by natural source and purpose, etc. ‘Decoupling’ economic growth and water use, pollution • Industry-level trends: indicators used for environmental-economic profiles • Technology and driving forces: water intensity/productivity and total (domestic) water requirements to meet final demand • International transport of water and pollution 24 Audiences for information Public Politicians Indicators Accounting SNA, SEEA, SEEAW Researchers Policy Makers Strategic planners Micro data Indicators are part of communicating information 25 Indicators: economic growth and water pollution Netherlands: water pollution and economic growth, 1999-2001 120 115 110 nutrients 105 metals 100 wastewater 95 GDP 90 85 80 1996 1997 1998 1999 2000 2001 26 Indicators: economic growth and water use Botswana: water use and economic Growth, 1993-1998 1.3 0 Volum e of w ater 1.2 5 Per capita w ater use 1.2 0 GDP per m 3 w ater 1.15 1.10 1.0 5 1.0 0 0 .9 5 0 .9 0 19 9 3 / 9 4 19 9 4 / 9 5 19 9 5 / 9 6 19 9 6 / 9 7 19 9 7 / 9 8 19 9 8 / 9 9 27 Environmental Economic Profiles Sweden 1995 Pulp, paper and paper products 0 20 40 60 80 100 Chem icals and chem ical products 0 20 40 60 80 100 P ro ductio n value Value added Ho urs wo rked Use o f energy Use o f self-supplied water Use o f distributed water Use o f water fo r co o ling Use o f water in the industrial pro cess Other uses o f water Direct discharge o f wastewater Discharge to M WWTP EPE internal expenditures EPE payments to M WWTP EPI fo r wastewater 28 International transport of pollution Share of pollution in rivers in the Netherlands originating abroad 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Arsenic Copper Zinc 29 Projecting future water demands Australia 2050 30 Key lessons from countries implementing SEEA Water 1. Build on existing statistical/scientific knowledge and information 2. Cooperation essential • Within statistical offices • Between statistical offices, water departments, economic/planning departments and agricultural departments • With the water supply industry • With the scientific and research communities • Between users and producers of information 3. A phased approach is needed • Start with issues of most importance. In general for water scarce countries it has been water supply and use. In industrialized countries it has been water pollution. 4. Pilot or experimental accounts are very useful • Users will appreciate the benefits more easily with concrete examples, even if they are small scale. 31 22 countries have water accounts (As report in the Global Assessment of Environmental Statistics and Accounts 2006) Australia Mexico Bhutan Mongolia Nauru Bulgaria Netherlands Canada New Zealand China Papua New Guinea Colombia Philippines Denmark South Africa Spain Dominican Republic Sweden Germany Tanzania India Countries accounts are at different stages of Israel development 32 11 countries want to develop water accounts (As report in the Global Assessment of Environmental Statistics and Accounts 2006) • • • • • • Bahamas Bolivia Burkina Faso Cuba Georgia Guatemala • • • • • Jordan Kiribati Mauritius Tunisia Turkey 33 UNSD – current work on water accounts and water statistics • Developing International Recommendations for Water Statistics • Developing training materials • Conducting training courses • Assisting countries with implementation via: • Country missions • Telephone and email • Work with other partners e.g. UN regional commissions and other UN agencies, Medstat, OECD, Eurostat, World Bank, Asian Development Bank. 34 60 countries have requested assistance or advice from UNSD on the implementation of SEEAW Algeria Antigua and Barbuda Armenia, Republic of Bahamas Bahrain Bolivia Botswana Brazil Bulgaria Burkina Faso Chile China Colombia Cuba Dominican Republic Egypt Georgia Guatemala India Indonesia Iraq Israel Jamaica Jordan Kiribati Korea, Republic of Kuwait Lebanon Mauritius Mexico Mongolia Morocco Mozambique Namibia Nauru Nepal Netherlands New Zealand Oman Palestine Panama Papua New Guinea Peru Philippines Qatar Saudi Arabia South Africa Spain Sri Lanka Suriname Syria Tanzania Trinidad and Tobago Tunisia Turkey Ukraine United Arab Emirates Vietnam Yemen Zimbabwe 35 International Recommendations for Water Statistics (IRWS) • UNSD is developing IRWS • The IRWS will define and support the compilation of basic statistical data to support the SEEAW and the water indicators used by international agencies (e.g. the FAO, World Bank and UN MDGs) • It will provide information on the concepts, sources and methods needed for basic water statistics • It will also provide practical guidance on the compilation of water accounts and indicators • A draft of the IRWS should be available for discussion in mid-2008. • An expert group meeting is planned to discuss the draft 36 Contact details Michael Vardon Adviser on Environmental-Economic Accounting United Nations Statistics Division New York 10017 USA Room DC2 1532 Phone: +1 917 367 5391 Fax: +1 917 363 1374 Email: [email protected] 37