Transcript LG/12/2

Harmonization of all SEEA Physical Flow Accounts
into an organic and SNA-coherent system
in the light of the OECD Guidance Manual
on Material Flow Accounts
Issue paper presented at the 12th meeting of the London Group
Rome, 17 – 19 December 2007
Karl Schoer, Ole Gravgård and Aldo Femia
in cooperation with OECD and EUROSTAT
Overview
1. Introduction
2. Terminology
2.1. Physical versus material flow accounts
2.2. Socioeconomic versus economic system
3. Conceptual issues
3.1. Residency versus territory concept
3.2. Cultivated crops and trees
3.3. Waste
1. Introduction
Request of the UNCEEA for harmonizing with the SEEA:
- the terminology of the OECD manual on material flow accounts
- Economy–wide material flow accounts
2. Terminology
2.1 Physical flow accounts versus material flow
accounts
SEEA 2003:
The term physical flow accounts is used for the description of material flows
which follow the SNA concept.
Economy wide material flow accounts is considered as a sub-system of
physical flow accounts (input of material to and output of material from the
domestic economy)
OECD manual:
The term MFA is used for material flow analysis. The term material flow accounts
(MFAcc) is used in a very broad sense. It includes the SEEA material flow
accounts as well as a number of non-SEEA MFAcc (e.g. specific substance
flow accounts, life cycle accounts). Economy wide material flow accounts
(EW-MFAcc) widely corresponds to the SEEA economy wide material
flow accounts
Terminology for SEEA Physical Flow Accounts
Physical Flow Accounts
(non-monetary flow accounts)
Material Flow Accounts
(SEEA-MFAcc)
PSUT / PIOT
EW-MFAcc
Physical Service Flow Accounts
(PSFAcc)
Recommendations:
physical versus material flow accounts
It is proposed to:
- avoid generally any terminological differences between the OECD manual
and the SEEA completely.
-
use the term “physical flow accounts” in the new SEEA as a generic term for
both material flow accounts and physical service flow accounts.
-
adopt the acronym SEEA-MFAcc in the new SEEA for material flow accounts,
which then will include PSUT, PIOT and EW-MFAcc.
-
adopt the acronym EW-MFAcc as proposed by the OECD manual also for
the respective sub-module of the SEEA-MFAcc.
-
adopt the acronym PSFAcc for physical service flow accounts.
2.2 Socio-economic system versus economic
system
SEEA:
The economic system covers all economic activities related to
production and consumption of products
OECD manual:
Uses the term socio-economic system in order to indicate that the economic
transaction of buying a consumer good does not cover the whole range
of human activities that are related to the use of a consumer good and
which are reported in physical terms.
It should be recognized that the material flow accounting system, by
comprising all material flows, has to take a broader view (e.g. consumer
durables) than that of products circulation. However it seems not to be
necessary to introduce the new term socioeconomic system
Recommendations:
Socio-economic versus economic system
- In relation to SEEA-MFAcc it is proposed that the SEEA use only the term
economic and not the term socio-economic system.
-
It is suggested to disaggregate the material flow accounts in the SEEA
by explicitly showing the stocks of consumer durables, as in the OECD
guide.
3.Conceptual issues
3.1 Residence versus territory concept
The residence concept is applied in the SNA, SEEA and
for PSUT/PIOT of the OECD manual
The territory concept is applied for EW-MFA in the
OECD manual as well as in the EUROSTAT MFA-guide for beginners
Major quantitative differences refer to energy use and air emissions
for transport.
Demarcation of production and consumption
activities by the territory and the residence concept
Activities on the national territory (territory concept)
Activities of non-resident units on the national territory
Activities of resident units on the national territory
Activities of resident units outside the national territory
Activities of resident units (residence concept)
Recommendations:
Territory versus residence principle
- It is proposed that the EW-MFAcc are fully demarcated according to
the residence principle
- In order to provide a link to the national and international reporting
systems (energy balances, green house gas emissions UNFCCC),
which follow the territory concept, bridge tables from the residence
to the territory concept should be provided for energy and air
emissions.
Production of cultivated crops and trees
present situation
Inputs from
Environment
Eco-system inputs (air,
soil minerals, nonproduced water)
Outputs to
Economy
Economy
Environment
SEEA
Produced inputs (e.g
Harvested crops and trees Output of residuals (airenergy, pestizides,
(products)
emissions, waste and
fertilizers, produced water)
produced inputs that are
not incorporated to crops
and trees (dissipative use))
Change in inventories of
non-harvested crops and
trees (products)
EW-MFAcc
Harvested crops and
trees (semi-natural
resources)
Output of residuals (airemissions, waste and
produced inputs that are
not incorporated to crops
and trees (dissipative use))
Produced inputs
incorporated into crops
and trees
Production of cultivated crops and trees
harmonized approach
Inputs from
Environment
Harvested crops and
trees (semi-natural
resources)
Change in inventories of
non-harvested crops and
trees (semi-natural
resources)
Outputs to
Economy
Economy
Environment
SEEA
Produced inputs (e.g
Harvested crops and trees Output of residuals (airenergy, pestizides,
(products)
emissions, waste and
fertilizers, produced water)
produced inputs that are
not incorporated to crops
and trees (dissipative use))
Change in inventories of
non-harvested crops and
trees (products)
Produced inputs
incorporated into crops
and trees
EW-MFAcc
Harvested crops and
trees (semi-natural
resources)
Output of residuals (airemissions, waste and
produced inputs that are
not incorporated to crops
and trees (dissipative use))
Change in inventories of
non-harvested crops
excluding trees (seminatural resources)
Produced inputs
incorporated into crops
and trees
Recommendations: cultivated crops and trees
- It is recommended to measure the environmental inputs to the economy
for semi-natural production processes (cultivation of crops and trees)
in the SEEA generally by the modified harvest approach (harvested biomass
plus change in inventories). As this new convention represents a major
and principal change for the SEEA-MFAcc it is suggested to take the
decision of adopting it at a preliminary basis and to review the
consequences for the PSUT and the PIOT again at a later stage of the
revision process.
- For the EW-MFA it is recommended in deviation from the general principle
not to include the change in inventories of cultivated trees, but to add that
figure as a complementary item for assuring consistency with the general
SEEA /SNA concept.
3.3 Waste
Treatment of waste disposed on controlled landfills
SEEA 2003:
Disposal of waste on controlled landfills is considered as remaining
within the economic system. It is booked as an addition to capital
stock in the PSUT/PIOT. For the EW-MFA as an alternative
approach it is was also allowed to book it as a disposal of a
residuals to the environment
OECD manual:
Disposal of waste on controlled landfills is considered as remaining
within the economic system for PSUT/PIOT as well as for EW-MFA.
It is assigned to the special entry controlled landfills.
Recommendations: waste
-
The disposal of waste to controlled landfills should as standard be
treated as a flow within the economic system and not as a flow to the
environment. It is suggested to introduce in the SEEA the “waste in
landfills” kind of stock as separate from other forms of accumulation
and explicitly show the flows to this stock, as in the OECD guide.
- In addition it is suggested to add the principal waste flows (waste
generation, treatment and recycling) as memorandum item to the
EW-MFAcc