Noritoshi AriyoshiFaculty of Environmental Studies
Nagasaki University
The Development of Japanese NAMEA
International Workshopfor Interactive Analysis on Economy and Environment
Cabinet Office, Government of Japan, 4 March 2006
The Purpose of Accounting isnot Compilation itself
but Application to Policy
2
CONTENTS
1. Overview of Research Activities on Environmental Accounting in Cabinet Office of Japan
2. Japanese SEEA : Outline and the controversial points
3. Japanese NAMEA : Outline, Features, and Indicators
4. Issues for the Future
3
(fiscal year) First Stage (92-94) Second Stage (95-97) Third Stage (98-00) Fourth Stage (01-03) Fifth Stage (04- )Themes Basic Research Trial Estimation Extension Development Application
Subjects Study of handbook of SEEA93Trial estimation
of Japanese SEEAExtension of Japanese SEEA
Developmentof policy-oriented accounting
Application of Japanese NAMEAto policy analysis and
development of Regional NAMEA
1) Adoption of SEEA ver.IV.21) Improvement of precision ofenvironmental data
1) Compilation of waste account
2) Study of estimation methodsfor environmental cost
2) Establishment of estimationmethods for actual and imputedenvironmental costs
2) Re-estimation according tocompilation of EPEA and wasteaccount
3) Design of Japanese accountingframework based on SEEA93
3) Retroactive estimation andrealisation for 1970, 75, 80, 85,90, and 95
3) Traial estimation of imputedenvironmental cost caused byimport
4) First trial estimation for 1985and 1990
4) Compilation of physical table ofimputed environmental costs
4) Re-estimation based ontransition to SNA93
1) Study of EPEA by Eurostat 1) Study of EPEA by SEEA20031) Compilation of other tables ofEPEA
2) First trial estimation of EPEA2) Compilation of Supply and UseTable for EnvironmentalProtection Services
2) Integration of EPEA toJapanese NAMEA
1) Study of original NAMEA bythe Netherlands
1) Integration of EPEA toJapanese NAMEA
2) Design of Japanese NAMEAframework
2) Application of JapaneseNAMEA to policy analysis
3) First trial estimation for 1990,1995 and 20004) Proposal of environmentalefficiency improvement index
1) Preliminary study of ResionalNAMEA2) Pailot study of regional NAMEAfor Hyogo Prefecture
Regional NAMEA
Table 1 Overview of Research Activities on J apanese System for Environmental and Economic Accounting
JapaneseSEEA
Japanese NAMEA(Hybrid Accounting System integrating Environmental Pressures and Economic Activities: HASEPEA)
Japanese EPEA( Environmental Protection Expenditure Account)
4
92 ~ 00: Trial Estimation on Japanese SEEA based on version .2 of UN’s SEEA93*, Ⅳ(maintenance cost approach)
*SEEA is an acronym for System for Integrate Environmental and Economic Accounting.
*See United Nations (1993) for SEEA93
*See United Nations (2003) for SEEA2003
1. Overview of Research Activities on Environmental Accounting in Cabinet Office of Japan (see Table 1)
5
98 ~ 03 : Trial Estimation of Japanese EPEA* based on SERIEE-1994 Version (98-00),and Supply and Use Table for Environmental Protection Services based on Chapter 5 of UN’s SEEA2003* (00 ~ 03)
*EPEA is an acronym for Environmental Protection Expenditure Account
*See Eurostat (1994) and Chapter 5 of United Nations (2003), for EPEA
1. Overview of Research Activities on Environmental Accounting in Cabinet Office of Japan (see Table 1)
(continued)
6
01 ~ 03 : Design and Trial Estimation on Japanese NAMEA based on original NAMEA* by the Netherlands.
*NAMEA is an acronym for National Accounting Matrix including Environmental Accounts.
*See de Haan M. and S.J. Keuning (1996) and Chap. 2, 4 etc. of United Nations (2003)
1. Overview of Research Activities on Environmental Accounting in Cabinet Office of Japan (see Table 1)
(continued)
7
04 ~ 06:
1) Application of Japanese NAMEA to Policy Analysis (research on interactive analysis on economy and environment)
2) Pilot Study on Regional (Prefectural) NAMEA
1. Overview of Research Activities on Environmental Accounting in Cabinet Office of Japan (see Table 1)
(continued)
8
CONTENTS
1. Overview of Research Activities on Environmental Accounting in Cabinet Office of Japan
2. Japanese SEEA : Outline and the controversial points
3. Japanese NAMEA : Outline, Features, and Indicators
4. Issues for the Future
9
(10 billion yen)
Air Water Soil LandCoaletc.
1 2 3 4 5 6 7 8 9 10 11 12
1 - - 3,122,124.6 1,207,444.2 ・・ ・・ ・・ 1,914,011.1 669.3 - - -
2 406,898.4 347,878.5 140,338.6 135,741.0 ・・ ・・ ・・ 4,597.6 0.0 45,461.6 -40,473.5 24,556.6
3 3,173.8 5,192.4 ・・ - ・・ ・・ ・・ ・・ ・・ ・・ ・・ -1,238.0
4 403,724.6 342,686.1 140,338.6 135,741.0 ・・ ・・ ・・ 4,597.6 0.0 45,461.6 -40,473.5 25,794.6
5 88,442.3 - -88,442.3 -88,442.3 - - - - - - - -
6 3,640.2 1,936.2 5,576.4 -5,575.6 0.0 -2,346.1 -894.6 ・・ -2,333.5 -2.2 ・・ ・・ -
7 2,256.1 1,936.2 4,192.3 -4,192.3 ・・ -2,346.1 -894.6 ・・ -951.6 ・・ ・・ ・・ -
8 1,381.9 ・・ 1,381.9 -1,381.9 0.0 ・・ ・・ ・・ -1,381.9 ・・ ・・ ・・ -
9 2.2 ・・ 2.2 -2.2 ・・ ・・ ・・ ・・ ・・ -2.2 ・・ ・・ -
10 ・・ ・・ ・・ ・・ ・・ ・・ ・・ ・・ ・・ ・・ ・・ ・・ -
11 ・・ ・・ ・・ ・・ ・・ ・・ ・・ ・・ ・・ ・・ ・・ ・・ -
Restoration of natural assets 12 ・・ -18.1 -18.1 18.1 ・・ ・・ 9.2 8.9 ・・ ・・ ・・ ・・ -
13 -774.4 774.4 0.0 - - - - - - - ・・ ・・ -Eco-margin ( Sum of imputedenvironmental costs )
14 -2,865.8 -2,692.4 -5,558.2 - - - - - - - - - -
Net Domestic Product(NDP)
15 429,319.6 - - - - - - - - - - -
Output 16 924,660.3 - - - - - - - - - - -
17 - - 5,920.1 379.1 2,346.1 885.4 -8.9 2,333.5 -15.1 - - -
18 - - -116,346.5 -28,569.2 ・・ ・・ ・・ -87,777.3 ・・ - - -
19 - - 3,058,037.0 1,226,552.8 ・・ ・・ ・・ 1,830,831.4 652.0 - - -
Shift in environmental cost
Use of land, forest etc.
Other reconciliation items
Closing stocks
Depletion of natural assets
Discrep-ancy
Exports Imports
Other use of natural assets
Discharge of residuals
Production(economicactivities)
Finalconsumption
(sectors)
Non-produced assetsNon-financialassets
Producedassets
Effect on global environment
Use of non-produced natural assets
Use of products
Use of produced fixed assets
Notes) This table is a summary of tabel 2.3.1.7-5 of Research Report on Establishment of Integrated Environmental and Economic Accounting by J apan Research Institute,commissioned from Cabinet Office of J apan, 2001. In table, "-" shows a cell which does not exist conceptually, and "・・" shows a cell which cannot estimate.
Table 2 J apanese SEEA (1995) - Summary Table -
Impu
ted
envi
ronm
enta
l cos
ts
Environmentallyadjusted netdomestic product(EDP)
Reconciliation items on accumulation of naturalassets
Goods and services related to environment
Other goods and services
Opening stocks
Imputedenvironmenta
l costs
Sum of imputed environmental costs (-) Sum of deterioration of non-natural=
Economicindicator
Environmentalindicator(2) What does EDP indicate ?
(3) What kinds of problemsdoes maintenance costapproach cause ?(4) What do imputedenvironmental cost bymaintenance cost approachmean ?
(1) Outline of Japanese SEEA
10
1) It’s based on version .2 (Maintenance Ⅳcost approach) of UN’s SEEA93,
2) Maintenance cost approach is indirect valuation method which evaluates environmental pressure by imputed cost needed if some environmental measure is taken.
(1) Outline of Japanese SEEA
2. Japanese SEEA : an Outline and the Controversial Points
11
3) Maintenance cost approach chooses one of possible environmental measures, and calculates imputed environmental cost as follows:
4) Imputed environmental costs = (maintenance costs / eliminated environmental pressures)× national total of environmental pressures.
5) EDP = NDP - Imputed environmental costs.(EDP: Environmentally adjusted net Domestic Products)
(1) Outline of Japanese SEEA
(continued)
12
1) If NDP has larger growth rate than imputed environmental cost, EDP is increasing while imputed environmental cost is increasing. Therefore, EDP is not adequate indicator for sustainability.
2) We need other indicators such as OECD’s decoupling indicator.
(2) What does EDP indicate?
Does Larger EDP bring more sustainable economy ?
13
1) Choice of environmental measures : Different imputed environmental costs are derived by what kinds of environmental measures are chosen.
2) Zero-emission principle : Imputed environmental costs are calculated from a point of view of zero-emission principle.
(3) What kinds of problems does maintenance cost approach cause?
14
3) Simple calculation by cost-per-elimination: It does not take account of increasing cost caused by increasing volume of elimination.
4) Maintenance cost approach as a model : This approach is a model and different from ordinary data estimation. If imputed environmental costs are actually paid by producers and consumers, various economic data would be affected. ---- Greened economy GDP!
From Japanese SEEA to Japanese NAMEA !
(3) What kinds of problems does maintenance cost approach cause?
(continued)
15
1) It gives a sketch of actual environmental cost which producers and consumers have to pay if abatement policy for environmental pressure is actually taken
2) Japanese SEEA using maintenance cost approach is an economic accounting which incorporates the response of producers and consumers to environmental policy.
(4) What do imputed environmental cost calculated by maintenance cost approach
mean ? (I thank Prof. Sakuma for his helpful suggestions)
16
3) It gives an interesting policy analysis to simulate influences on various economic activities when producers and consumers pay actually imputed environmental cost in response to environmental policy.
* See Ariyoshi, Sakuma and Taniguchi, 2006
(4) What do imputed environmental cost calculated by maintenance cost approach
mean ?
(continued)
17
CONTENTS
1. Overview of Research Activities on Environmental Accounting in Cabinet Office of Japan
2. Japanese SEEA : Outline and the controversial points
3. Japanese NAMEA : Outline, Features, and Indicators
4. Issues for the Future
18
Ac
cu
mu
lati
on
to
en
vir
on
me
nt
Disposal of pollutants
Input of natural assets
Decrease in land use
Em
issi
on
of p
ollu
tan
ts
Incr
ea
se in
na
tura
l ase
ts
Incr
ea
se in
lan
d u
ses
Opening stocks Opening stocks
National accounting matrix(on the monetary basis)
Substances accounts
Hidden material flows
Closing stocks Closing stocks
A
BA-B C
ha
ng
es
in n
atu
ral a
sse
ts
Ch
an
ge
s in
lan
d u
se
Environmental problem accounts
Hid
de
n m
ate
ria
l flo
ws
Pol
luta
nt’s
con
trib
utio
n to
env
ironm
enta
l pro
blem
s
C
Environmental indicators
Environmental accounts (on the quantity basis)
Figure 1 Sketch of J apanese NAMEA
D
19
Global
CO
2
Oth
ers
(5)
SO
2
Oth
ers
(2)
T-P
T-N
&
Was
tew
ater
1 2 3 4 5 6 7 8 9 10a 10b 10c 10d 10e 10f 10g 10h 10i 10j 10k 10l 10m 10n X1 X2 11a 11b 11c 11d 11e 11f 11g 11h 11i 11j 11k 11l
OA 2,885.8 - - - - - 21,371 - - - 4,950 25,370 -
1 434.9 369.8 134.4 55.32 941.5 1,017,275 36,609 775 1,889 490 360 424,8403 369.8 221,424 20 45 143 346 406 35,9934 468.0 -98.0 0.05 370.0 82.6 13.06 -0.2 38.7 44.27 5.1 44.2 -1.0 -40 408 36.4 0 64 0 0 - - - 0 72,841 0 09 47.9 0.0 7.4 11.9 - - - - -
CO2 10a 1,238,699 1,238,699 CO2
Others(5) 10b 36,693 94,246
SO2 10c - 820 820 SO2
Others(2) 10d - 2,032 1,422
T-P&T-N 10e 0 835 466 T-P & T-N
Wastewater 10f 0 766 17
10g 405,319 55,514 55,514
10h 199 16,813 -199 16,813 -199
10i 18,019 81,241 54,822 -81,241 54,822
10j 87,000 0 -87,000 0 -87,000
10k 5,736 5,883 -5,736 -5,883 -5,736
Agricultural land 10l -40 -40
Others (5) 10m 40 40
Hidden material flows 10n 1,095 2,826 -1,095 -2,826 -1,095
R -92.9 1,332,945 2,242 466 17 55,514 -199 54,822 -87,000 -5,736 -40 40 -1,095
CA 2,829.3 - - - - - 21,172 - - - 4,910 25,380 -
1,00
0to
nnes
-CO
2
1,00
0 t
-N2O
1,00
0 t
-NO
X1,
000t
-SO
2
1,00
0 t
1,00
0 t
1,00
0 t
PJ
1,00
0 m3
1 m
illion
m3
1,00
0 t
1,00
0 ha
1,00
0 ha
1 m
illion
tonn
es Unit Unit
1,00
0to
nnes
-CO
2
1,00
0t-S
O2
1,00
0 t
-PO
43-.
1,00
0 t
-PO
43-.
1,00
0
tonn
es
PJ 1,00
0
m3
1 m
illion
m3
1,00
0
tonn
es
1,00
0ha 1,00
0ha
1 m
illion
tonn
es
Note) This is a summary table of the attachment#1-3 of New System of Integrated Environmental and Economic Accounting , Department of National Accounts, Economic and Social Research Institute (ESRI), Cabinet Office ofJ apan, 2004 (http://www.esri.cao.go.jp/jp/sna/kouhyo.html).
Val
ue a
dded
(ca
tego
ries)
Dis
trib
utio
n & u
se (se
ctor
s)
Tax
es (ta
x ca
tego
ries)
Cap
ital (
sect
ors)
Accumu. To env.
Land
for
hou
sing
Oth
er la
nds
Changes in natural resources
Table 3 J apanese NAMEA (2000) - Summary Table -
Res
t of
the
wor
ld
Fore
sts
(vol
ume)
Environmental problems
Hid
den
mat
eria
l flow
s
Changes inland uses
Was
tew
ater
Was
te
Fore
sts
Ener
gy r
esou
rces
Wat
er
Fish
Gre
enho
use
effec
ts
Regional
Pro
duct
ion
(act
iviti
es)
Aci
dific
atio
n
Eutr
ophi
catio
n
Air
Greenhouse effects Acidification
Oth
rs (5)
Agr
icul
tura
l lam
d
Acc
umul
atio
n of
sub
stan
ces
to t
he e
nviro
nmen
t
Cha
nges
of na
tura
l res
ourc
esin
RO
W c
ause
d by
impo
rt
Substances
Qualityof water
Hid
den
mat
eria
l flow
s
Pollutants Natural resources
Was
te (2)
Land use
Wat
er (w
ater
use
)
Waste(2)
Pollu
tions
Distribution & use (sectors)
Billion Yen
Reconciliation/indicators
Closing Stocks
Subs
tanc
es
Air
Qualityof water
Acidifi-cation
Energy(3)
Unit
Fishery resources(marine products)
Landuse
Forest (volume)
Natu
ral r
esou
rces
Water resources(wateruse)
Value added (categories)
Green-house
Rest of the world
Taxes (tax categories)Capital (sectors)Non-financial assets (kinds)
Fish
ery
reso
urce
s(m
arin
e pr
oduc
ts)
Ener
gy (3)
Final consumption (purposes)Production (activities)Goods & services (products)
Opening stocks
Fina
l con
sum
ptio
n (p
urpo
se)
Account(classification)
Goo
ds &
ser
vice
s (p
rodu
cts)
Non
-fina
ncia
l ass
ets
(kin
ds)
Final disposition of wasteWastewate
Agricultural land
Changes infishery resources
Processing and recycleof pollutants
Exploitation ofdomestic natural
resources
The potential contributions to Global warming, acidification andEutrophication are expressed in GWP, AEQ and EEQ, respectively. Global Warming Potencials (GWP) CO2 1, N2O 310, CH4 21: : : Acid Equivalents (AEQ) Nox 0.7, So2 , NH3: :1 Eutrophication Equivalents (EEQ) P 3.06, N 0.42: :
Processing of pollutants andexploitationof natural resources
Pressures on natural resources andrestoration of natural resources
Changes in Forests
Chamges inwater esources
Changes innatural
resources
Changes inland use
Contribution to global environmental issues
Contribution to regionalenvironmental issues
B
A
Nationaleconomy
ROW
C
Exploitation of ROW'snatural resourcescaused by imports
Hidden material flowsin domestic area
Hidden material flows inROW caused by imports
汚染物質の排出 Changes in land useEmission of pollutants
Restoration of Natural resources
A-B
Making indicatorsPressures onenvironment
Others
Others
Depletion of energy resources
Others
Hidden material flowsEnvironmental indicators D
Closing stocks
Opening stocks
Environmental indicators
Monetary flows Material flows : Cells for environmental flow dataareas
: Cells for environmental indicator
20
1) It is based on the original NAMEA* by the Netherlands, estimates for 90, 95, and 00
* NAMEA : National Accounting Matrix including Environmental Accounts.
2) It has twofold parallel structure: national accounting matrix (NAM) at monetary term and environmental accounts (EA) at physical term.
3) It has twofold structure of EA : substance accounts and environmental problem accounts.
3. Japanese NAMEA : Outline, Features, and the Problem
(1) Outline of Japanese NAMEA
21
(2) Features of Japanese NAMEAto original NAMEA
1) It attaches the stock accounts to capital accounts and records the various social capitals and environmental protection plants.
2) It estimates the emission of pollutions not only by households, but also by the government.
3) It introduces the land use accounts.
4) It adds coal, forests, water, and fish to the category of natural resources.
22
(2) Features of Japanese NAMEAto original NAMEA
5) It records the depletion of natural resources in the rest of the world caused by imports.
6) It records the hidden material flows induced by domestic activities and imports.
7) It attaches the stock accounts to parts of the environmental theme accounts. Damage from environment to us is caused by deteriorated environmental assets. See page 11 of my paper
(continued)
23
Global
CO
2
Oth
ers
(5)
SO
2
Oth
ers
(2)
T-P
T-N
&
Was
tew
ater
1 2 3 4 5 6 7 8 9 10a 10b 10c 10d 10e 10f 10g 10h 10i 10j 10k 10l 10m 10n X1 X2 11a 11b 11c 11d 11e 11f 11g 11h 11i 11j 11k 11l
OA 2,885.8 - - - - - 21,371 - - - 4,950 25,370 -
1 434.9 369.8 134.4 55.32 941.5 1,017,275 36,609 775 1,889 490 360 424,8403 369.8 221,424 20 45 143 346 406 35,9934 468.0 -98.0 0.05 370.0 82.6 13.06 -0.2 38.7 44.27 5.1 44.2 -1.0 -40 408 36.4 0 64 0 0 - - - 0 72,841 0 09 47.9 0.0 7.4 11.9 - - - - -
CO2 10a 1,238,699 1,238,699 CO2
Others(5) 10b 36,693 94,246
SO2 10c - 820 820 SO2
Others(2) 10d - 2,032 1,422
T-P&T-N 10e 0 835 466 T-P & T-N
Wastewater 10f 0 766 17
10g 405,319 55,514 55,514
10h 199 16,813 -199 16,813 -199
10i 18,019 81,241 54,822 -81,241 54,822
10j 87,000 0 -87,000 0 -87,000
10k 5,736 5,883 -5,736 -5,883 -5,736
Agricultural land 10l -40 -40
Others (5) 10m 40 40
Hidden material flows 10n 1,095 2,826 -1,095 -2,826 -1,095
R -92.9 1,332,945 2,242 466 17 55,514 -199 54,822 -87,000 -5,736 -40 40 -1,095
CA 2,829.3 - - - - - 21,172 - - - 4,910 25,380 -
1,00
0to
nnes
-CO
2
1,00
0 t
-N2O
1,00
0 t
-NO
X1,
000t
-SO
2
1,00
0 t
1,00
0 t
1,00
0 t
PJ
1,00
0 m3
1 m
illion
m3
1,00
0 t
1,00
0 ha
1,00
0 ha
1 m
illion
tonn
es Unit Unit
1,00
0to
nnes
-CO
2
1,00
0t-S
O2
1,00
0 t
-PO
43-.
1,00
0 t
-PO
43-.
1,00
0
tonn
es
PJ 1,00
0
m3
1 m
illion
m3
1,00
0
tonn
es
1,00
0ha 1,00
0ha
1 m
illion
tonn
es
Note) This is a summary table of the attachment#1-3 of New System of Integrated Environmental and Economic Accounting , Department of National Accounts, Economic and Social Research Institute (ESRI), Cabinet Office ofJ apan, 2004 (http://www.esri.cao.go.jp/jp/sna/kouhyo.html).
Val
ue a
dded
(ca
tego
ries)
Dis
trib
utio
n & u
se (se
ctor
s)
Tax
es (ta
x ca
tego
ries)
Cap
ital (
sect
ors)
Accumu. To env.
Land
for
hou
sing
Oth
er la
nds
Changes in natural resources
Table 3 J apanese NAMEA (2000) - Summary Table -
Res
t of
the
wor
ld
Fore
sts
(vol
ume)
Environmental problems
Hid
den
mat
eria
l flow
s
Changes inland uses
Was
tew
ater
Was
te
Fore
sts
Ener
gy r
esou
rces
Wat
er
Fish
Gre
enho
use
effec
ts
Regional
Pro
duct
ion
(act
iviti
es)
Aci
dific
atio
n
Eutr
ophi
catio
n
Air
Greenhouse effects Acidification
Oth
rs (5)
Agr
icul
tura
l lam
d
Acc
umul
atio
n of
sub
stan
ces
to t
he e
nviro
nmen
t
Cha
nges
of na
tura
l res
ourc
esin
RO
W c
ause
d by
impo
rt
Substances
Qualityof water
Hid
den
mat
eria
l flow
s
Pollutants Natural resources
Was
te (2)
Land use
Wat
er (w
ater
use
)
Waste(2)
Pollu
tions
Distribution & use (sectors)
Billion Yen
Reconciliation/indicators
Closing Stocks
Subs
tanc
es
Air
Qualityof water
Acidifi-cation
Energy(3)
Unit
Fishery resources(marine products)
Landuse
Forest (volume)
Natu
ral r
esou
rces
Water resources(wateruse)
Value added (categories)
Green-house
Rest of the world
Taxes (tax categories)Capital (sectors)Non-financial assets (kinds)
Fish
ery
reso
urce
s(m
arin
e pr
oduc
ts)
Ener
gy (3)
Final consumption (purposes)Production (activities)Goods & services (products)
Opening stocks
Fina
l con
sum
ptio
n (p
urpo
se)
Account(classification)
Goo
ds &
ser
vice
s (p
rodu
cts)
Non
-fina
ncia
l ass
ets
(kin
ds)
Final disposition of wasteWastewate
Agricultural land
Changes infishery resources
Processing and recycleof pollutants
Exploitation ofdomestic natural
resources
The potential contributions to Global warming, acidification andEutrophication are expressed in GWP, AEQ and EEQ, respectively. Global Warming Potencials (GWP) CO2 1, N2O 310, CH4 21: : : Acid Equivalents (AEQ) Nox 0.7, So2 , NH3: :1 Eutrophication Equivalents (EEQ) P 3.06, N 0.42: :
Processing of pollutants andexploitationof natural resources
Pressures on natural resources andrestoration of natural resources
Changes in Forests
Chamges inwater esources
Changes innatural
resources
Changes inland use
Contribution to global environmental issues
Contribution to regionalenvironmental issues
B
A
Nationaleconomy
ROW
C
Exploitation of ROW'snatural resourcescaused by imports
Hidden material flowsin domestic area
Hidden material flows inROW caused by imports
汚染物質の排出 Changes in land useEmission of pollutants
Restoration of Natural resources
A-B
Making indicatorsPressures onenvironment
Others
Others
Depletion of energy resources
Others
Hidden material flowsEnvironmental indicators D
Closing stocks
Opening stocks
Environmental indicators
Monetary flows Material flows : Cells for environmental flow dataareas
: Cells for environmental indicator
1) Stock accounts 7) Stock accounts 3) Land use accounts
4) Natural resources accounts
5) Depletion by imports
2) Emission of pollution by household and government
6) Hidden material flows
Features of Japanese NAMEA to original NAMEA
24
1) Global warming (CO2: approximate estimate)1) Unit 1990 1995 2000Growth rate
(95/90)Growth rate
(00/95)Growth rate
(00/90)Output \ 1 billion 859,688.1 922,938.0 941,518.8 7.4 2.0 9.5 Notes:Final consumption \ 1 billion 291,161.4 349,633.2 369,769.5 20.1 5.8 27.0
Production activities 1,000 tonnes (CO2) 959,805 1,015,987 1,017,275 5.9 0.1 6.01 tonne (CO2)/\ 100 million 111.6 110.1 108.0 (1.4) (1.8) (3.2)
Final consumption 1,000 tonnes (CO2) 162,312 194,921 221,424 20.1 13.6 36.41 tonne (CO2)/\ 100 million 55.7 55.8 59.9 0.0 7.4 7.4
Pollutants (air/water pollution)2) Unit 1990 1995 2000Growth rate
(95/90)Growth rate
(00/95)Growth rate
(00/90)1,000 tonnes(CO2) 1,187,050 1,323,288 1,332,945 11.5 0.7 12.31,000 tonnes (SO2) 2,388 2,407 2,242 0.8 (6.9) (6.1)1,000 tonnes (PO43-) 556 539 483 (3.0) (10.4) (13.1)
Eutrophication (T-P, T-N) 1,000 tonnes (PO43-) 534 521 466 (2.6) (10.4) (12.8)
Waste disposal Unit 1990 1995 2000Growth rate
(95/90)Growth rate
(00/95)Growth rate
(00/90)Waste disposal (final disposal volume) 1,000 tonnes 105,810 82,602 55,514 (21.9) (32.8) (47.5)
1,000 tonnes 153,669 152,185 191,860 (1.0) 26.1 24.9
Natural resources extracted Unit 1990 1995 2000Growth rate
(95/90)Growth rate
(00/95)Growth rate
(00/90)Overseas natural resources extracted due to imports
Energy PJ 14,297 16,246 16,813 13.6 3.5 17.6Forest1) 1,000m3 81,793 89,015 81,241 8.8 (8.7) (0.7)
Domestic natural resources extractedEnergy PJ 370 279 199 (24.5) (28.8) (46.2)Forest1) 1,000m3 29,367 22,915 18,019 (22.0) (21.4) (38.6)
1) A forest usually absorbs more volumeof CO2 in the growth period than in themature period. However, the researchteam did not evaluate the fluctuation inforest CO2 absorption capacity becausethere is much uncertainty. If any reliablecalculation result becomes available inthe future, it will be incorporated in theabove tables.2)The research team employedapplicable conversion coefficients in orderto grasp pollutant's contribution toenvironmental problems.
Table 4 Trends of Major Environmental Pollutants based on J apanese NAMEA
Water quality-related substances (T-P, T-N, wastewater)Acidification gases (NOx, SO
2)
Greenhouse gases (CO2, N2O, CH4, HFCS, PFCS, SF6)
CO2 Emission level vs. output
Emission level vs. final consumption
Source)
Total recycled volume
This table is reprinted from Table 3 of New System of Integrated Environmental and Economic Accounting, Department of National Accounts, Economic and Social Research Institute (ESRI), Cabinet Office of Japan,2004 (http://www.esri.cao.go.jp/jp/sna/kouhyo.html).
25
(3) Remarks on Japanese NAMEA
1) EA (environmental accounts) part of NAMEA is recorded in physical term. Therefore, it includes no problems on monetary valuation.
2) Does EA give sufficient information to make environmental policy? In order to adequately understand environmental problems and those priority and to make environmental policy, is it unnecessary to estimate the monetary costs to eliminate environmental pressures and the monetary damage cost caused by environmental pressures?
26
(3) Remarks on Japanese NAMEA
2) (continued) For example, Physical data on the environmental pressure not necessarily represent the seriousness of the environmental issue. ----- See page 12 of my paper
3) It would be important to have both physical and monetary environmental data
(continued)
27
EP: Environmental Pressures
DF: Driving Forces ( ex. GDP )
Closing DF/ Opening DF
Closing EP/ Opening EP ) X 100EEII =(1
-
EEII 0≧ EP’s growth rate DF’s growth rate ⇒ ≦”Environmental efficiency is ⇒ improving”
EEII< 0 EP’s growth rate ⇒ > DF’s growth rate ”Environmental efficiency is ⇒ deteriorating”
(4) Environmental Efficiency Improvement Index (EEII)
28
Glasshouse effect Acidification Eutrophication Waste Residential areaspace
Urban area space
1990-1995 -3.4% 6.5% 9.5% 27.6% 2.1% -0.5%1995-2000 6.0% 13.1% 16.5% 37.3% 1.8% 0.3%1990-2000 2.8% 18.7% 24.5% 54.6% 3.8% -0.2%
Environmental efficiency improvement index (EEII)
Table 6 Trends of EEII based on J apanese NAMEA
1990-1995 1995-2000 1990-2000
0 0
Impr
ovem
ent
in e
nviro
nmen
tal e
fficie
ncy
Glasshouseeffect
Acidification Eutrophication Waste Residential areaspace
Urban areaspace
Det
erior
atio
nin
env
ironm
enta
l effi
cienc
y
20
20
40
60 (%)
29
(5) Remarks on EEII
1) EEII represents the relationship between economic activities and environmental pressures .
2) OECD calls this type of index "decoupling indicator."
3) EEII does not represent strong sustainability because environmental pressures may be larger than sustainable flow level even if environmental efficiency is improving.
30
(5) Remarks on EEII
4) EEII is flow indicator and not stock indicator. Stock of EP (environmental pressures) is increasing as long as EP occurs every year, even if EP’s growth rate is on the downward trend ( EEII is on the upward trend) year by year.
5) Therefore, the stock of EP probably increases over the sustainable stock level of EP. EEII is efficiency indicator, not necessarily adequate indicator for sustainability.
(continued)
31
(6) Hicks’ Income and Indicator for Sustainability
1) Hicks’ Income is a maximum of weekly outlay which the economic situation at week beginning can be still sustained at the week end. It is ex-ante concept and give a guideline for prudent behavior.
2) Hicks’ Income suggests, as a sustainable indicator, a maximum of National Income which the environmental stocks at beginning of year can be still sustained at end of year.
32
(6) Hicks’ Income and Indicator for Sustainability
3) Can we calculate, at beginning of the year, a maximum use of environmental stocks as a sink of pollutants and as a source of natural resources which the environmental stocks at beginning of year can be still sustained at end of year?
4) Use of environmental stocks is a debt for environmental stocks. We have to use environmental stocks according to plan, as same as financing (borrowing and repaying) on bank
(continued)
33
CONTENTS
1. Overview of Research Activities on Environmental Accounting in Cabinet Office of Japan
2. Japanese SEEA : Outline and the controversial points
3. Japanese NAMEA : Outline, Features, and Indicators
4. Issues for the Future
34
4. Issues for the future
1) Further improvements of the precision of estimation on Japanese NAMEA.
2) Development of regional version of Japanese NAMEA. Pilot study of Regional NAMEA starts from 2005.
3) Development of stock indicators which represent strong sustainability.
4) Application of Japanese NAMEA to policy analysis. Purpose of Japanese NAMEA is not compilation itself but application to policy.
35
International exchange of information and experiences is extremely useful.
In this respect, I would extend my best thanks to the ESRI and JRI (Japan Research Institute) for organizing this workshop and giving me the opportunity of this presentation.
Closing remarks
Top Related