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The Development of Regional Hybrid Environment Accounts
Tsunenori Ashiya
[email protected] Data & Analysis division, Policy Planning & Coordina
tion OfficeHyogo Prefectural Government , JAPAN
CONTENTS
1. Establishment and Development of Regional Hybrid Accounting System
2. Framework and Features of Regional Hybrid Accounting System
3. Estimation Results for Regional Accounting System
4. Application of Regional Hybrid Accounting System
Profile of Hyogo Prefecture・ Hyogo Prefecture contains a rich variety of communities ranging from large cities to rural villages. ・ Hyogo Prefecture has become known as a Japan in Miniature.
・ Hyogo has an overall area of 8,392 square kilometers, with a population of about 5.6 million as of January 2007.
Backgrounds
1 The Japanese hybrid accounting system fails to specify the process for disposal of wastes from household and industry sectors as part of economic activities or a physical cyclulation.
2 A regional hybrid account system should be developed to detect emerging environmental problems and to plan effective environmental and economic policies.
The purposes of this study are
• to model the waste-disposal process in Hyogo Prefecture in a detailed way
• to develop a regional hybrid accounting system prototype
(a Hyogo Prefecture pilot-case version)
The purposes of this study were
• to aim at helping
prefectural government (statistical and environmental administration departments) ,
researchers at universities ,
other institutes– to estimate a Hyogo Prefecture pilot-case vers
ion of the regional hybrid accounting system prototype to specify the waste disposal process.
Overview of research activities on environmental accounting in the
Cabinet Office of Japan 2005 ~ 2007
1 Developing the common framework of Regional Hybrid Accounting System Prototype (research on interactions between economy and environment)
2 To estimate a Hyogo Prefecture pilot case version of the regional hybrid accounting system
Features of Japanese Hybrid Accounting System
1 It attaches the stock accounts to the 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.
Note) “ The Development of Japanese NAMEA”
http://www.esri.cao.go.jp/en/sna/sateraito/041012/text.pdf
Outline of the common framework of Regional Hybrid Environment Accounts
1 It is based on the original NAMEA
estimates for 1990, 1995, 2000 and 2003
* NAMEA : National Accounting Matrix including Environmental Accounts.
2 It has twofold parallel structure: national accounting matrix (NAM) in the monetary term and environmental accounts (EA) in the physical term.
Figure 1 Concept of Basic Table for Regional Hybrid Accounting System
Economic accounts Environmental accounts
NAM on monetary value basis Attached NAM table on quantitative basis EA on quantitative basis
Prefectural NAM(recording economic activities)
Input
Disposal of air pollutants
Disposal of water pollutants
Input of goods for internal disposal
Transportation to incineration or final disposal sites
Emission
Waste account (recording waste emissions)
Air
pol
luta
nts
Wat
er p
ollu
tant
s
Goo
ds fo
r in
tern
al d
ispo
sal
Was
te g
oods
fo
r dis
posa
l
Qua
ntita
tive
acco
unt
(rec
ordi
ng w
aste
s su
bjec
ted
to in
tern
al
disp
osal
) W
ater
pol
lutio
n
Air
pol
lutio
n
Tab
le fo
r acc
umul
atio
ns in
eco
nom
y an
d en
viro
nmen
t(r
ecor
ding
was
tes
for f
inal
dis
posa
l)
Economic accounts Environmental accounts
NAM on monetary value basis Attached NAM table on quantitative basis EA on quantitative basis
Prefectural NAM(recording economic activities)
Input
Disposal of air pollutants
Disposal of water pollutants
Input of goods for internal disposal
Transportation to incineration or final disposal sites
Emission
Waste account (recording waste emissions)
Air
pol
luta
nts
Wat
er p
ollu
tant
s
Goo
ds fo
r in
tern
al d
ispo
sal
Was
te g
oods
fo
r dis
posa
l
Qua
ntita
tive
acco
unt
(rec
ordi
ng w
aste
s su
bjec
ted
to in
tern
al
disp
osal
) W
ater
pol
lutio
n
Air
pol
lutio
n
Tab
le fo
r acc
umul
atio
ns in
eco
nom
y an
d en
viro
nmen
t(r
ecor
ding
was
tes
for f
inal
dis
posa
l)
Structure of Basic Table for Regional Hybrid Accounting System
NAM
Prefecture NAM(recording economic activities)
Attached NAM table
Waste account (recording waste
emissions)Air pollutants
Water pollutantsGoods for
internal disposalWaste goods
disposal
Emitted environment
accounts
EA
Quantitative account
(recording wastes subjected to
internal disposal)Table for
accumulations in economy and environment
(recording wastes for final disposal)
feedback
Estimation Results for Hyogo pilot-case (Hybrid Accounting System)
Environmental protection service supply and use tables
– to allow viewers to see easily which parties provide sewage treatment, waste disposal, recycling and other environmental protection services
– to see how these services are provided and utilized.
Feature 1 Quantitative illustration of waste disposal
process 1. The table is designed to quantitatively
record details of the process.
2. The process is as follows;
Waste goods for disposal are emitted through economic activities.
Waste goods are put into a recycling path or transported to incineration or final disposal sites.
Feature 2 Illustration of internal disposal operations
1.The table is designed to quantitatively record the process in which air and water pollutants emitted through economic activities are reduced by internal disposal operations.
2. This table would shed light on internal disposal activities before being emission.
3. These activities the efforts by producers and consumers to reduce environmental pollutions (they might be the results environmental policies) .
Feature 3 Economic tabulation of waste disposal and internal operations
The NAM includes a mechanism to specifically record the economic activities.
That is on a monetary value basis.
Feature 4 Potential ApplicationsThe regional hybrid accounting system is
different from the Japanese hybrid accounting system.
The former fails to include
・ details of materials accounts, environmental problems, environmental indicators.
・ stock accounts.
Regional System of Integrated Environmental and Economic Accounting
1. Basic Table for Regional Hybrid Accounting System (Table 1) see page 4
2. Regional Environmental Protection Service-Supply Table (Table 2)
3. Regional Environmental Protection Service-Use Table (Table 3) see page 5
Framework of Regional Hybrid Accounting System
Attached NAM table (on Quantitative basis )
1 Air pollution : CO2 、 Nitrogen oxide, Sulfur oxide
2 Water pollution: Chemical oxygen, Total phosphorus, Total nitrogen
3 Wastes: Goods for Internal disposal, Recyclable goods, Goods for incineration, Goods for Final disposal, Final waste disposal
Application of Regional Hybrid Accounting System
1 The regional hybrid account system gives a prototype Environmental Efficiency Improvement Index
2 It is the SAM Multiplier Analysis Based on Regional Hybrid Accounting System
3 It is the comparison of Regional and Japanese Hybrid Accounting Systems
1 If NDP has larger growth rate than imputed environmental cost, EDP is increasing while the imputed environmental cost is increasing. Therefore, EDP is not adequate indicator for sustainability.
2 We need other indicators such as OECD’s decoupling indicator.
What does EDP indicate?
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”
Environmental Efficiency Improvement Index (EEII)
Remarks on EEII1 EEII represents the relationship between
economic activities and environmental pressures .
2 OECD calls this type of index "decoupling indicator."
3 EEII does not represent a strong sustainability because environmental pressures may be larger than sustainable flow level even if environmental efficiency is improving.
Remarks on EEII4 EEII is flow a indicator and not a 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 might increases over the sustainable stock level of EP. EEII is efficiency indicator, not necessarily adequate indicator for sustainability.
(continued)
Decoupling index improving: wastes final disposal volume deteriorating:CO2,NOx,SOx emissions Decoupling index ( Hyogo Prefecture )
21.29
29.3824.64
-11.81
16.38
28.65
-16.63
-5.85
-0.46
-2.07
-8.72
27.67
- 20.00
- 10.00
0.00
10.00
20.00
30.00
40.00
CO2 emission total NOX gross emissions SOX gross emissions Wastes final disposalvolume
%
1995/ 1990 2000/ 1995 2003/ 2000
Degree of Improvement in Environmental Efficiency Improvement Index
The index is designed to measure the changes in pollution level for the environmental themes.
1 wastes : final waste disposal volume per unit GDP
2 greenhouse gas effects (global warming)
3 acidification or any other themes.
SAM Multiplier Analysis• We can use for analyzing economic spillover effects in
following situations.
– greater export growth
– greater internal-disposal activities
– greater consumption of recycled products by households
• We use the model for simulation under following conditions.
– a 10% increase in other goods and service
– greater export growth case
– industry for goods and services other than those specified below
SAM model analysis1 We can analyze the case
– greater export growth– greater internal disposal activities – greater consumption of recycled products by
households
2 We can record
– pollutants emitted through economic activities– waste disposal processes– waste accumulations
Result: SAM Multiplier Analysis of Greater Export Growth Case (FY 2000)
Table 5 SAM Multiplier Analysis of Greater Export Growth Case (FY 2000)Estimation results Baseline
Gap Ratio(%)1a 51,299,302.3 3,463,718.3 7.2 47,835,584.01b 2,474,787.0 11,383.0 0.5 2,463,404.0
1c 719,267.1 32,077.1 4.7 687,190.0
1d 113,222.1 7,601.1 7.2 105,621.01e 82,055.7 4,172.7 5.4 77,883.0
Market 1f 7,941.0 514.0 6.9 7,427.0Non-market 1g 65,965.7 4.7 0.0 65,961.0Market 1h 71,783.0 4,320.0 6.4 67,463.0Non-market 1i -5,172.9 72.1 -1.4 -5,245.0
2a 36,929,269.8 2,493,456.7 7.2 34,435,813.1
Recycl i ng act i vi t i es 2b 94,495.9 6,343.9 7.2 88,152.0Other waste di sposalact i vi t i es 2c 78,015.3 3,967.3 5.4 74,048.0
2d 19,975.6 1,348.7 7.2 18,626.92e 2,443,637.8 11,239.8 0.5 2,432,398.0
Other waste di sposalact i vi t i es 2g 73,906.7 518.7 0.7 73,388.0
Sewage treatmentact i vi t i es 2h 66,605.9 4,391.9 7.1 62,714.0
2j 693,329.4 30,920.4 4.7 662,409.0Pri vate fi nalconsumpti on
Pri vate fi nalconsumpti on 3a 11,289,176.6 623,425.4 5.8 10,665,751.0
4 12,164,186.4 655,056.4 5.7 11,509,130.06 1,781,584.2 117,738.2 7.1 1,663,846.07 4,808,745.2 373,467.2 8.4 4,435,278.08 18,372,443.4 904,011.4 5.2 17,468,432.0
9 37,126,959.2 2,050,273.2 5.8 35,076,686.0
10 20,756,850.8 1,146,261.8 5.8 19,610,589.0
Capital transfer (net) 11 219,152.0 0.0 0.0 219,152.0Non-financial asstets 12 5,262,745.3 267,660.3 5.4 4,995,085.0Institutional sector (net prefecture savings) 13 5,315,474.0 270,342.0 5.4 5,045,132.0
Econ
omic
acc
ount
s
NAM(
mone
tary
val
ue)
Goods andservi ceaccount
Goods andservi ces other
than thosespeci fi ed on the
ri ght
Consumpti on account
I ncome di stri buti on and useaccount
Governmentservi ce
producers
Governmentservi ce
producers
I ndustry
For househol ds and pri vate non-profi t servi ce producers
Recycl ed products
Waste di sposal servi ce
Sewage
Waste di sposal
I ndustry
Government servi ce producers
For househol ds and pri vate nonprofi torgani zat i on
Producti onaccount
(broken downby category)
I ndustry
I ndustry act i vi t i es other than thosespeci fi ed bel ow
Externalenvi ronmental
protect i onacti vi t i es
I nternal di sposal act i vi t i es i n i ndustry
Government servi ce producersExternal
envi ronmentalprotect i onacti vi t i es
I ncomeaccrualaccount
Gross val ue added
Empl oyee i ncome
Taxes on producti on and i mports - Subsi di es
Operati ng surpl us, mi xed i ncome
Current transfer (by category)I nst i tut i onal sector (net prefecturalaccrual i ncome)I nst i tut i onal sector (net prefecturaldi sposabl e accrual i ncome)
Accumulationaccounts
Result: SAM Multiplier Analysis of Greater Export Growth Case (FY 2000) Table 5-2 SAM Multiplier Analysis of Greater Export Growth Case (FY 2000)
Emissions Disposal AccumulationsEstimation results Baseline Estimation results Baseline Estimation results Baseline
Gap Ratio(%) Gap Ratio(%) Gap Ratio(%)CO2 etc 15a 83,081.4 5,418.4 7.0 77,663.0 82,586.0 4,923.0 6.3 77,663.0 0.0 0.0 - 0.0
NOx 15b 125,725.5 8,381.5 7.1 117,344.0 125,242.8 7,898.8 6.7 117,344.0 0.0 0.0 - 0.0SOx 15c 52,213.7 3,490.7 7.2 48,723.0 52,057.4 3,334.4 6.8 48,723.0 0.0 0.0 - 0.0COD 15d 31,649.8 1,931.9 6.5 29,717.9 30,728.6 1,010.7 3.4 29,717.9 0.0 0.0 - 0.0T-P 15e 2,064.6 128.4 6.6 1,936.2 2,015.3 79.2 4.1 1,936.2 0.0 0.0 - 0.0T-N 15f 31,897.0 2,005.8 6.7 29,891.2 31,232.9 1,341.7 4.5 29,891.2 0.0 0.0 - 0.0
16 0.0 0.0 - 0.0 0.0 0.0 - 0.0 0.0 0.0 - 0.00.0 0.0 - 0.0 0.0 0.0 - 0.0 0.0 0.0 - 0.0
17 10,170.2 683.8 7.2 9,486.4 10,169.1 682.7 7.2 9,486.4 1.1 1.1 - 0.018 3,419.8 213.0 6.6 3,206.8 3,206.8 0.0 0.0 3,206.8 213.0 213.0 - 0.019 2,501.9 144.9 6.1 2,357.0 2,357.0 0.0 0.0 2,357.0 144.9 144.9 - 0.020 2,357.0 0.0 0.0 2,357.0 0.0 0.0 - 0.0 2,357.0 0.0 0.0 2,357.0
CO2 etc 21a 82,659.2 4,996.2 6.4 77,663.0 0.0 0.0 - 0.0 83,154.6 5,491.6 7.1 77,663.0NOx 21b 125,242.8 7,898.8 6.7 117,344.0 0.0 0.0 - 0.0 125,725.5 8,381.5 7.1 117,344.0SOx 21c 52,057.4 3,334.4 6.8 48,723.0 0.0 0.0 - 0.0 52,213.7 3,490.7 7.2 48,723.0COD 22a 30,728.6 1,010.7 3.4 29,717.9 0.0 0.0 - 0.0 31,649.8 1,931.9 6.5 29,717.9T-P 22b 2,015.3 79.2 4.1 1,936.2 0.0 0.0 - 0.0 2,064.6 128.4 6.6 1,936.2T-N 22c 31,232.9 1,341.7 4.5 29,891.2 0.0 0.0 - 0.0 31,897.0 2,005.8 6.7 29,891.2
Goods f ori nci nerat i onGood f or fi nal
di sposalFi nal waste di sposal
Water pol ut i on
Goods f or i nternal
Total emi ssi ons
Recycabl e goods
Envu
ronme
ntal
acco
unts
Econ
omic
acco
unts
Wast
e ac
coun
t
Waste goodsfor
di sposal
Quan
tita
tive
acco
unt
EA(q
uant
itia
tive
basi
s)
Ai r pol l ut i on
Water pol l ut i on
Atta
ched
NAM
tab
le(o
n qu
anti
tati
veba
sis)
Ai r pol ut i on
Comparison of Hyogo Prefecture and Japanese Hybrid Accounting Systems
1. Economic activities and their environmental pressures (Table 6)
2. Air pollutant emissions (Table 7)
3. Water pollutant emissions (Table 8)
4. Waste emissions (Table 9)
Table 6 Comparison of population ,GDP • Hyogo prefecture accounts for
– 4.4% of Japan’s population
– 4.0% of nation’s production value and GDP
– 3.8% of nationwide final consumption expenditure
Table 6 Comparison of Production Value, Gross Domestic Product and Final
Consumption Expenditure Data (between J apan and Hyogo Prefecture for 2000)
Population Production value Gross domestic Final consumption
(in producer prices) product expenditure (for private
(in producer prices) and government sectors)
1,000 persons 1 billion yen 1 billion yen 1 billion yen
J apan 126,887 941,271 506,373 369,770
Hyogo Prefecture 5,551 37,882 20,188 13,943
Hyogo's share (%) 4.4 4.0 4.0 3.8
Table 7 Air Pollutant Emissions1)Production activities CO2,NOx, SOx emissions: accounting for 6.0% of nationwide emission
s 2)Final consumption
NOx,SOx emissions: accounting for 6.0% of nationwide emissions Air Pollutant Emissions per Unit Production Value and Final Consumption
Expenditure(per 100 million yen for 2000)
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
CO2,etc Nox Sox CO2,etc Nox Sox
Production activities Final consumption Expenditure
t
J APAN Hyogo Prefecture
Table 8 Water Pollutant Emissions1)Production activities COD and T-N emissions :accounting for 4.0% of Japan’s total
T-P emissions : accounting for 4.8% of Japan’s total 2)Final consumption expenditure COD ,T-N and T-P emissions : accounting for 4.0% of Japan’s total
Water Pollutant Emissions per production value and finalconsumption expenditure (per 100 million yen for 2000)
0.0
20.0
40.0
60.0
80.0
100.0
120.0
COD T- P T- N COD T- P T- N
Production activities Final consumption expenditure
kgJ APAN Hyogo Prefecture
Table 9 Waste Emissions1) Production activities
totaled 27,337,000 tons accounting for 6.4% of the national total 2) Final consumption expenditure
totaled 1,806,000 tons accounting for 5.0% of the national total
Waste Emissions per unit production value and finalconsumption expenditure (per 100 million yen for 2000)
0
25,000
50,000
75,000
100,000
Production activities Final consumption expenditure
kg
J APAN Hyogo Prefecture
Table 10 Recyclable Goods Emissions1)Recyclable goods
totaled 9,486,000 tons accounting for 4.9% of the national total 2) Recyclable volume per unit production value in recycling industry
10,761 tons per 100 million yen, equivalent to 87.6% of national level
Recyclable volume per production value in recycling industry (per million for 2000)
0
2,500
5,000
7,500
10,000
12,500
15,000
Production activities Final consumptionexpenditure
Total
t
J APAN Hyogo Prefecture
Table 11 Emissions of Wastes for Final Disposal
1) Final waste disposal volume totaled 2,357,000 tons accounting for 4.2% of Japan’s total2) Final disposal volume per production value in the waste disposal industry 1,599 tons per 100 million yen, equivalent to 97.6% of the national level
Final waste disposal volume per production value in wastedisposal industry (per million yen for 2000)
0
500
1,000
1,500
2,000
Production activities Final consumptionexpenditure
Total
t
J APAN Hyogo Prefecture
Examples of Regional Environmental Assessment Indexes Index Item
Input-ouput ratio Benefit/cost
Goal attainment ratio Achievement/Goal
Environmental pressure indicators
Others Wastes
Air environment
Corporate activity index Environmental conservation
Environmental assessment
Environmetnal loss from internal factors
Environmental loss from external factors
Environmental conservation cost
Raw materials cost for disposal
Capital cost for disposal
Labor cost for disposal
Other indexes Others Economic efficiency indicator
Induced final disposal volume
General social indicators
Source: "Manual for Developing Regional Hybrid Accounting System," Cabinet Office, 2007
Hybrid accountingsystem indexes
Environmental conditions
Waste disposal activities
Environmentalconservation activities
Research issues for the future1 The regional hybrid account system should
include more regional specific features.
2 The account system fails to include details of materials accounts, environmental problems environmental indicators or stock accounts. Prefecture governments may be encouraged to add these contents to make their own hybrid accounts system.
I think that International exchange of information is extremely useful.
Especially on this party, I would extend my best thanks to organizing this conference and giving me the opportunity of this presentation.
Closing remarks
Thank You for Your Attention