Towards an Integrated Water Accounting System for Ontario and the Great Lakes
Roy Brouwer, Jorge Garcia Hernandez, Rute Pinto, Thomas Cheng
Department of Economics & Earth and Environmental Sciences
University of Waterloo
Presentation Outline
• Background
• Main objective
• Methodology
• Results
• Conclusions and next steps
Background
Increasing policy maker demand for the economic value of water resources internationally (e.g. EU Water Framework Directive) and in Canada
UN System of Environmental-Economic Accounts internationally agreed standard concepts, definitions, classifications, accounting rules and tables for producing internationally comparable statistics and accounts
SEEA-Water
Physical flow accounts (e.g. water abstraction by industry and emissions)
Physical asset accounts (e.g. water balance, stocks and their depletion)
Economic accounts (e.g. costs associated with water use and supply)
Background
Increasing policy maker demand for the economic value of water resources internationally (e.g. EU Water Framework Directive) and in Canada
UN System of Environmental-Economic Accounts internationally agreed standard concepts, definitions, classifications, accounting rules and tables for producing internationally comparable statistics and accounts
SEEA-Water
Physical flow accounts (e.g. water abstraction by industry and emissions)
Physical asset accounts (e.g. water balance, stocks and their depletion)
Economic accounts (e.g. costs associated with water use and supply)
Background
Statistics Canada, Physical flow account for water use (m3)
Published every 2 years (2005-2015)
Industrial and household water use
Canada as a whole
Total: 35.7 billion m3 in 2015
Source: Statistics Canada (2018)
7.4% 2.6%
68.1%
10.2%
0.3%
0.2%
2.4%
8.8% Agriculture
Mining
Utilities and construction
Manufacturing
Wholesale and retail
Transportation
Other services
Households
Background
Economy Water transformation
water as a source
water as a sink
Main objective
What are the economic values associated with different forms of water use in the Great Lakes Basin in Ontario?
Main objective
What are the economic values associated with different forms of water use in the Great Lakes Basin in Ontario?
Development integrated water accounting system for Ontario and the Great Lakes
Main objective
What are the economic values associated with different forms of water use in the Great Lakes Basin in Ontario?
Development integrated water accounting system for Ontario and the Great Lakes
Why Great Lakes? 20% of the planet’s freshwater resources Multiple pressures from different sources of pollution
Main objective
What are the economic values associated with different forms of water use in the Great Lakes Basin in Ontario?
Development integrated water accounting system for Ontario and the Great Lakes
Why Great Lakes? 20% of the planet’s freshwater resources Multiple pressures from different sources of pollution Economic importance to the economy of Ontario and Canada as a whole
Main objective
What are the economic values associated with different forms of water use in the Great Lakes Basin in Ontario?
Development integrated water accounting system for Ontario and the Great Lakes
Why Great Lakes? 20% of the planet’s freshwater resources Multiple pressures from different sources of pollution Economic importance to the economy of Ontario and Canada as a whole
Great Lakes Commission (since 2013)
Methodology
Agriculture Industry Households Gross output Discharge Emissions
Agriculture X1 X2 X3 X1+X2+X3 Y1 Z1
Industry X4 X5 X6 X4+X5+X6 Y2 Z2
Households Y3 Z3
Value added X2+X3-X4 X4+X6-X2 GDP
Extraction Y4 Y5 Y6 Balance
Absorption Z4 Z5 Deposition
Source: Brouwer, Schenau and van der Veeren (2005). Integrated river basin accounting
and the European Water Framework Directive. Statistical Journal of the UN, 22(2): 111-131.
Indicators at national and river basin level
PRESENTATION TITLE
80
85
90
95
100
105
110
115
120
1996 1997 1998 1999 2000 2001
nutrients
metals
wastewater
GDP
70
80
90
100
110
120
1996 1997 1998 1999 2000
nutrients
metals
wastewater
value added
Source: Brouwer, Schenau and van der Veeren (2005). Integrated river basin accounting
and the European Water Framework Directive. Statistical Journal of the UN, 22(2): 111-131.
Methodology
Explore the possibility of combining different data and information sources
Two-step approach
1) Link available economic and physical water data sources (across the same years)
2) Spatial upscaling or downscaling of the available data to (sub-)basin(s) and province
Methodology
Step 1
Economy Water transformation
water as a source
water as a sink
Economic flows
Water flows
Emission flows
Statistics Canada Annual provincial Supply and Use Tables
Statistics Canada Bi-annual national water use accounts
ECCC
Annual Reporting by National Pollutant Release Inventory (NPRI) Annual Effluent Regulatory Reporting Information System (WSER-ERRIS)
2012-2016 (IO tables 1997-2011)
1994-2016
2013-2017
2009-2015
2010-2016 2005-2015 2006,2009,2011,2013,2015
Bi-annual agriculture water survey Bi-annual industrial water survey
Bi-annual drinking water plants survey
Methodology
Step 2
Spatial (dis)aggregation based on Census Subdivisions (CSD) ≈ municipality level
Methodology
Step 2
Spatial (dis)aggregation based on Census Subdivisions (CSD) ≈ municipality level
CSD highest spatial resolution at which job data are available per sector
Methodology
Step 2
Spatial (dis)aggregation based on Census Subdivisions (CSD) ≈ municipality level
CSD highest spatial resolution at which job data are available per sector
Economic activities grouped according to the North American Industry Classification System (NAICS) in provincial SAUT’s
Methodology
Step 2
Spatial (dis)aggregation based on Census Subdivisions (CSD) ≈ municipality level
CSD highest spatial resolution at which job data are available per sector
Economic activities grouped according to the North American Industry Classification System (NAICS) in provincial SAUT’s
Activities allocated to Great Lakes sub-basins based on # jobs per CSD
Methodology
Step 2
- CSD located entirely in one sub-basin 100% allocated to that sub-basin (79%) - CSD located in multiple sub-basins allocated to each sub-basin based on area size (21%)
17.0%
11.2%
58.0%
1.2% 12.6%
Erie Huron Ontario Superior Rest province
Results Distribution of value added across sub-basins
Total GDP Ontario in 2016:$741.3 billion
Results
- 500 1,000 1,500 2,000 2,500
Rest province
Ontario
Erie
Huron
Superior
Mm3
Agriculture Mining Utilities Manufacturing Households
Water use across sectors and sub-basins in 2016
Results Value added of water use across sectors and sub-basins in 2016
-
20
40
60
80
100
120
140
Agriculture Mining Utilities Manufacturing
14.2
137.1
8.6 0.3
65.8
3.9
137.1
80.4
$/m
3
Lake Superior Lake Huron Lake Erie Lake Ontario
0
Results
Emissions to water
- Point source pollution (industry, wastewater treatment facilities)
- Non-point source pollution (agriculture)
Results
Emissions to water
- Point source pollution (industry, wastewater treatment facilities)
- Non-point source pollution (agriculture)
Results
NPRI:
- Release data various pollutants (e.g. kg’s of As, Cd, Hg, Pb, Se, TP, Zn)
- Sectors (linked to NAICS)
- Geographical location
- Employees (>10 FTE)
Emitting activities allocated to sub-basins based on geographical coordinates
Emitted pollutant in kg divided by jobs [kg/job]
Upscaling across CSD in each sub-basin based on jobs/sector
> sub-basin specific emission coefficient [kg/job/sector] x [jobs/sector]
Results
NPRI observations WWTPs limited to n=55
Cross-validated with WSER-ERRIS data (n=437, including 55 in NPRI)
Results
NPRI observations WWTPs limited to n=55
Cross-validated with WSER-ERRIS data (n=437, including 55 in NPRI)
NPRI: release to water in kg
ERRIS: effluent volume in m3
r = 0.97
Results
NPRI observations WWTPs limited to n=55
Cross-validated with WSER-ERRIS data (n=437, including 55 in NPRI)
NPRI: release to water in kg
ERRIS: effluent volume in m3
Upscaling to non-reporting facilities using median value [kg/m3] for each NAICS sector in each sub-basin
r = 0.97
Results P-release to water from WWTPs across sub-basins
Total P emissions from WWTPs in Ontario in 2016: 1,234,709 kg
9.1% 6.0%
45.6%
1.4%
38.0%
Erie Huron Ontario Superior Rest province
Results
Substantial P-release from agriculture (crop and animal production) across sub-basins
Total P emissions from all sources in Ontario in 2016: 3,192 tons
Results Phosphorous emission intensity economic production across sub-basins
0
100
200
300
400
500
600
Rest province Superior Huron Erie Ontario
Em
issi
on
TP
(k
g)/
Va
lue
ad
de
d (
$1,
00
0)
Agriculture Mining Utilities Manufacturing
Results
Similar graphs are available for other pollutant releases to water using both NPRI and ERRIS data
Results Lead emission intensity economic production across sub-basins
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
Rest province Superior Huron Erie Ontario
Em
issi
on
Pb
(k
g)/
Va
lue
ad
de
d (
$10
6)
Manufacturing Mining Utilities
Results Cadmium emission intensity economic production across sub-basins
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45
Rest province Superior Huron Erie Ontario
Em
issi
on
Cd
(k
g)/
Va
lue
ad
de
d (
$10
6)
Manufacturing Mining Utilities
Results Selenium emission intensity economic production across sub-basins
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
Rest province Superior Huron Erie Ontario
Em
issi
on
Se
(kg
)/V
alu
e a
dd
ed (
$10
6)
Manufacturing Mining Utilities
Next steps
Time series analysis 2012-2016 (Supply and Use Tables)
Two papers under review on integrated hydro-economic modelling
- Garcia, J. and Brouwer, R. (under revision). A multiregional Input-Output optimization model to assess the economic impacts of water supply disruptions in the Great Lakes Basin. Economic Systems Research.
- Garcia, J., Brouwer, R., Pinto, R. (under review). Estimating the total direct and indirect costs to the Canadian economy of Phosphorus emission reduction policies in the Great Lakes Basin using a multi-regional Input-Output model. Annual conference EAERE, June 2020, Berlin.
From pressures to impacts: inclusion of water quality monitoring data
Thank you for your attention
www.journals.elsevier.com/water-resources-and-economics
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