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I.
BACKGROUND
1. The consultative meeting on environmental and
resource accounting was held in ESCAP Bangkok, 3 and
4 October 1994 as an initial activity of the project
entitled "Systems of Environmental and Resource Accounting".
The project, which was funded by the Government of
the Netherlands, was part of ESCAP efforts to assist
the countries in developing the systems of environmental
accounting; to help country experts with the comprehensive
knowledge and understanding on the subject of -SNA
satellite accounts- and the framework of the system
of integrated environmental and economic accounts
(SEEA); and to compile the figures of environmentally
adjusted gross domestic product - green GDP. 2. The
Statistics Division of ESCAP is responsible for the
implementation of the project. The case study was
planned to be undertaken in six developing countries
namely: Guam, India, Iran, Pakistan, Philippines and
Republic of Korea.
I.
CONSULTATIVE MEETING
A.
Participants
3. The consultative meeting was attended by four
country-experts (those from Iran and Pakistan could
not attend), and professional staff members from Statistics
Division of ESCAP. The list of participants appears
in annex I.
4. The group of experts was quite heterogeneous,
in terms of professional background representing various
governmental bodies and the research institutes. Hence,
the discussion and consultations were very fruitful.
B.
Organization and content
5. The consultative meeting covered the items, based
on SNA 1993; Handbook on National Accounting, Series
F. No. 61; Environmental Accounting: An Operational
Perspective WP Series No. 1 DESIPA; and a short approach
paper prepared by the consultant "Satellite System
for Integrated Environmental and Economic Accounting";
and other references including country papers and
outlines case study on the SEEA. Each topic was presented
by the consultant and country paper by respective
country experts, and was followed by an open and intensive
discussions.
C. Summary of proceedings
Opening
and closing sessions
6. The meting was opened by the Director of Statistics
Division of ESCAP. In his remarks, he welcomed the
country experts and explained and the background and
objective of the project. He specifically stressed
that eventually the practical guidelines to be developed
by ESCAP, would draw significantly from the case study
being undertaken by the participating countries.
7. At the end of the meeting, the Section Chief
of Statistical Information Services Section, Statistics
Division, explained other matters related to the project,
and he also delivered the closing remarks. He congratulated
the country experts on their active participation
in the discussion, and expressed the hope to a successful
implementation of the project in each respective country.
Discussion
of the guidelines
8. The discussions follows the consecutive order
of chapters in the document prepared by the consultant
"Satellite System for Integrated Environmental and
Economic Accounting", such a short approach paper
containing the introduction to the understanding of
the central framework of the SNA including the satellite
system generated therefrom; the scope and coverage
of environmental accounting; the SEEA versions. Discussion
continued to the three main approaches to environmental
accounting and the basic structure of the SEEA as
the starting point to understand the general framework
of environmental accounting, and ended by the elaboration
of extended SNA framework. Some empirical evidence
from the experience of a pilot study in the Philippines,
Papua New Guinea, Mexico an Indonesia, has also been
discussed.
9. Findings from the references were also put forward
to the meeting for further discussion and to stimulate
the broader analytical vision of the participants.
The meeting discussed various methods and valuation
principles and approaches to the estimation of natural
resource depletion and environmental degradation.
10. Country papers were discussed thoroughly with
a view to finalize the action plan for the implementation
of case study on the SEEA in respective country. Natural
resources and environmental assets were identified
for each country to assign priority for the inclusion
of the resource in the estimation of EDP of the country.
11. Definition and terminology, classification and
standardization were discussed and provisionally adopted
for the operational guidance in the country case study.
Improvement of the concept, definition and methodology
were expected from the real working experience during
the implementation of the project in respective country.
12. Using table 2.2 and 2.4 of the Handbook (Series
F. No. 61) as a basis, further discussion were concentrated
to trace the disaggregation and/or aggregation values
of entry into the cells of various version of the
SEEA matrices. The purpose was to prepare relevant
worksheet for the estimating the valuation of resources
before linking them to the SEEA. However, the time
limitation constraint of the consultative meeting,
only selected semi-micro worksheet were discussed
by using pilot study result of Indonesia, Papua New
Guinea and Mexico.
13. Chapter VI of the Handbook had also been given
special attention in the consultative meeting to give
some idea of priority concern and choice of approaches
and methods to be adopted in the implementation of
the SEEA. The logic of the discussion following the
chart in figures VI of the chapter - Implementing
the SEEA.
III.
CONCLUSIONS
14. The consultative meeting made some observations
which are as following:
- The duration of the consultative
meeting was quite short to cover all topics in the
discussion. To take into consideration the vast
diversity of the participants, further detailed
elaboration and review of the specific topic and
area were needed to come to the similar perception
and common understanding of the subject.
- Part of the chapters in the
1993 SNA which is related to the central framework,
the production accounts, accumulation accounts and
satellite analysis and accounts need to be reproduced
and distributed to the country expert who did not
have chance to receive or reviewe the SNA before.
- The meeting was well-attended.
All the country experts, except Iran and Pakistan,
were able to participate in the meeting.
15. The consultant to the project should further
elaborate the short approach paper and prepare respective
worksheet, relevant to each methods and approach,
starting from the very beginning to the aggregation
and consolidation process to arrive at the SEEA.
16. The consultant together with the staff of the
Statistics Division of ESCAP visit the participating
country for observation and supervision during the
period of implementation of the case study and to
review the progress.
17. The consultant will have to prepare a set of
detailed technical guidelines to assist the countries
of the region in developing their environmental accounts
as well as other necessary technical documentations
for the Expert Group Meeting and the Regional Seminar.
Annex I
LIST OF PARTICIPANTS
GUAM
- Mr. William J. FitzGerald, Chief,
Economic Development and Planning, Department of
Commerce, Tamuning
INDIA
- Mr. V.K. Sharma, Associate Professor,
Indira Gandhi Institute of Development Research,
Bombay
PHILIPPINES
- Ms. Estrella V. Domingo, Assistant
Director, Economic and Social Statistics Office
(ESSO) National Statistical Coordination Board,
Manila
REPUBLIC OF KOREA
- Mr. Seung-Woo Kim, National
Project Director Korea Environmental Technology
Research Institute (KETRI), Seoul
SECRETARIAT
- Ms. Seiko Takahashi Deputy Executive
Secretary and Officer-in-Charge
- Mr. S. Thampi Acting Special
Assistant to Executive Secretary
- Mr. Andrew J. Flatt Director,
Statistics Division
- Mr. Bishnu Dev Pant Chief, Statistical
Information Services Section, Statistics Division
- Mr. Loh, Meng Kow Statistician,
Statistics Development Section, Statistics Division
- Ms. Francisca F. Martinez Statistician,
Statistical Information Services Section, Statistics
Division
- Mr. Ilpo Survo Programme Officer,
Statistics Division
- Ms. Kesarin Roongruangmanirat
Associate Statistician, Statistics Development Section,
Statistics Division
- Ms. Patricia de Renty Associate
Statistician, Statistics Development Section, Statistics
Division
- Mr. Jagdish Kumar Regional Adviser
on National Accounts
- Ms. Carmelita N. Erictra Expert
on Gender Statistics, Statistics Division
- Mr. Atsushi Ueda Expert on Computerized
Information Systems, Statistics Division
- Mr. Kusmadi Saleh Consultant,
Statistics Division
- Ms. Sirilux Bohren Administrative
Assistant, Statistics Division
- Mr. Colin S. McGregor Director,
Division of Administration
- Mr. Hunter H.T. Chiang Chief,
Conference and General Services Section, Division
of Administration
- Mr. Khaled Khali Chief, United
Nations Information Service
Annex II
TENTATIVE SCHEDULE
| Monday,
3 October 1994: |
| 09.00-09.30 |
1. Opening of the
meeting
2. Election of officers
3. Adoption of agenda |
| 09.30-09.45 |
COFFEE BREAK |
| 09.45-11.30 |
4. Continuation of discussion
of agenda item 4 |
| 11.30-13.00 |
LUNCH |
| 13.00-14.15 |
Continuation of discussion of
agenda item 4 |
| 14.15-14.30 |
COFFEE BREAK |
| 14.30-16.30 |
- Continuation of discussion
of agenda item 4
|
| Tuesday,
4 October 1994 |
| 08.30-09.45 |
5. Discussion of agenda item
5(a) |
| 09.45-10.00 |
COFFEE BREAK |
| 10.00-11.30 |
5. Discussion of agenda item
5(b) |
| 11.30-13.00 |
LUNCH |
| 13.00-14.15 |
5. Continuation of discussion
of agenda item 5(b) |
| 14.15-14.30 |
COFFEE BREAK |
| 14.30-17.00 |
6.-7. Discussion of agenda item
6 and Recommendations and suggestions of the consultative
meeting. |
Annex III
ESCAP PROJECT ON SYSTEMS
OF ENVIRONMENTAL AND RESOURCE ACCOUNTING
Recommendations for action by
participating countries
1. GENERAL FRAMEWORK
Basic structure of the SEEA as discussed thoroughly
in the 1993 SNA and its related handbook (Studies
in Methods Series F, No. 61; and Working Paper Series
No. 1 ST/ESA/1994/WP.1) will form the groundwork of
conceptual as well as methodological aspects for the
country case study. The participating countries will
prepare set of environmental accounts for selected
resource as well as compute the environmentally adjusted
GDP and other associated parameters
2. DEFINITION AND TERMINOLOGY
Concept, definition and terminology related to the
SEEA which is generally accepted for the use of case
study are as follows:
- Natural environment.
The natural environment is a unity of space with
all things, resources, situations and living creatures,
including human beings and their activities, influencing
the continuity of each others lives and welfare.
- Natural resource. Everything
which is inside and above the globe and potentially
in nature and not included in the production process
is called natural resources. Natural resources can
be distinguished into renewable resources and non-renewable
resources.
A renewable natural resource is a natural resource
which can be reproduced or recreated in a relatively
short period either by nature or by technology.
On the other hand, a non-renewable resource is a
kind of resource that needs a long period of time
(more than 100 years) for their creation.
- Economic Reserve. The
meaning of economic reserve is the reserve of natural
resources which can be used and marketed profitably
under a certain market condition and technology.
As an example, the oil reserve in an oil field is
called an economic oil reserve when the known technology
is able to extract oil and market it with a profit.
- Economic rent. The meaning
of economic rent is a surplus of revenue above the
cost to produce output and the cost to renew the
natural resource and environmental condition.
- Unit rent. Unit rent
is the result of economic rent divided by the volume
of physical resource commodity produced. Theoretically,
the calculation of unit rent may be approached by
using a marginal unit, namely the difference between
the price of the last output sold and the unit cost
of production of that output. However, this approach
is difficult to do in practice. Unit rent can also
be estimated by using net price, where net
price is meant to be the international price of
a resource commodity minus all costs of production
excluding tax, import duty and royalty, when royalty
is considered as a cost of production.
- Defensive expenditure.
Defensive expenditure is the executed expenses due
to the activities to defend environment from damages
or pollution created as the result of production
process and consumption of society. Examples, are
the expenditures to reduce air and water pollution,
and to maintain soil fertility.
- Depletion. Depletion
is a decrease in resource commodity to fulfil the
needs of production and consumption. For the nonrenewable
resources, depletion means extraction of the available
natural resources. For instance, a depletion of
oil and natural gas for a certain year is equal
to the production of oil and natural gas for the
same year. For the renewable resources, depletion
means the total value of deduction elements of the
stock. For example, forest harvest or extraction
of the forest products, deduction of forest stock
due to forest conversion and forest damage.
3. CLASSIFICATION
Classification of transactions, flows, stocks and
other related SEEA matrices should be based on the
Annexes A to E of the handbook (Series F, No. 61).
4. STANDARDIZATION
Standardization, conversion and other units of measurement
for quantity, quality changes and other environmental
impacts analysis will utilized the existing document
available in WHO, FAO, ESCAP as well as own country
source of information.
5. IDENTIFICATION OF RESOURCES
FOR THE RESPECTIVE COUNTRY CASE STUDY
| Country |
Resource |
| a. Guam |
1. Aquifers To be decided later.
2. Coastal Water. |
| b. Iran |
1. Oil To be decided later.
2. Natural gas. |
| c. India |
1. Air
2. Tanneries
3. Informal waste collection. |
| d. Pakistan |
1. Land To be decided later.
2. Forest. |
| e. Philippines |
1. Mineral Resources
2. Forest and biodiversity. |
| f. Rep. of Korea |
Water resources (mainly surface
water) |
6. TIME REFERENCE OF DATA
The availability of data is one of the major problems
of the study. However, the country case study to test
the SEEA handbook from the operational perspective
point of view, it is advisable to cover the information
during the period of 1985-1992.
7. COMPLETION OF THE PROJECT
The draft case studies will be prepared by September
1995.
Annex IV
LIST OF DOCUMENT AND REFERENCE
DISTRIBUTED
STAT/ERC/1
- Satellite system for integrated
environmental and economic accounting
- Integrated Environmental and
Economic Accounting, Handbook of National Accounting
- Series F, No. 61
- An Operational Definition of
Sustainable Development, Discussion Paper No. 21
(Revised)
- Natural Resource Accounting
Soils: Towards an Empirical Estimate of Costs of
Soil Degradation for India
- Integrated Environmental and
Economic Accounting - A Case Study for Papua New
Guinea, Environment Working Paper No. 54
- Integrated Environmental and
Economic Accounting - A Case Study for Mexico, Environment
Working Paper No. 50
- Wasting Assets: Natural Resources
in the National Income Accounts
- Natural Resource Accounting:
A Framework for India
- Environmental Accounting: An
Operational Perspective, Working Paper Series No.
1
- Natural Resources Accounting
for Sustainable Development
- Environmental and Natural Resource
Accounting: Where to Begin?
- Wasting Assets, The need for
national resource accounting
- Systems of Environmental and
Resource Accounting for India
Recommendations for action by
participating countries
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