1

Introduction to the System of Introduction to the System of Environmental-Economic Accounting for Water Environmental-Economic Accounting for Water

Part IIPart II

Training Session on the System of Environmental-Economic Training Session on the System of Environmental-Economic Accounting for Water (SEEAW) for the Arab Gulf CountriesAccounting for Water (SEEAW) for the Arab Gulf Countries

August 25-28, 2008August 25-28, 2008UN House- Beirut-LebanonUN House- Beirut-Lebanon

Michael VardonMichael VardonUnited Nations Statistics DivisionUnited Nations Statistics Division

2

OutlineOutline• The economy

• Statistical units, enterprises and establishments • Classification of units to industry

• The environment• SEEAW

• Development • Structure standard tables• Indicators • Countries implementing SEEAW

• Lessons from implementation• Work by UNSD

3

Water accountingWater accounting

• Brings together economic and Brings together economic and environmental infromationenvironmental infromation

Economic information

Integrated Environmental and Economic information

Environmental information

Environmental and Economic Accounts

4

Need to understand the building Need to understand the building blocks of environment and blocks of environment and economic statisticseconomic statistics

• These are large fields and require These are large fields and require knowledge and experience to fully masterknowledge and experience to fully master

• It is possible to understand the basics It is possible to understand the basics relatively quicklyrelatively quickly

5

Statistical UnitsStatistical Units

A statistical unit is an entity about which information is sought and for which statistics are ultimately compiled. It is the unit at the basis of statistical aggregates to which tabulated data refer.

These units can be divided into two categories: (a) observation units – identifiable legal/organizational or physical entities which are able, actually or potentially, to report data about their activities;

(b) analytical units – entities created by statisticians (also referred to as statistical constructs), often by splitting or combining observation units in order to compile more detailed and more homogeneous statistics than it is possible by using data on observation units. Analytical units are not able to report data themselves about their activities, but there exist indirect methods of statistical estimation.

http://unstats.un.org/unsd/isdts/docs/StatisticalUnits.pdf

6

Units of the economyUnits of the economy

Economy

Ent

erpr

ise

1

Ent

erpr

ise

2

Ent

erpr

ise

5

Ent

erpr

ise

3

Ent

erpr

ise

4

Est

abli

shm

ent 1

Ent

erpr

ise

6

Ent

erpr

ise

n+

1

Ent

erpr

ise

n

Ent

erpr

ise

n+

2

Est

abli

shm

ent 2

Est

abli

shm

ent 3

Est

abli

shm

ent

Est

abli

shm

ent

Est

abli

shm

ent

Est

abli

shm

ent n

Est

abli

shm

ent n

+1

Est

abli

shm

ent n

+2

Hou

seho

lds

Gov

ernm

ent

Est

abli

shm

ent

Est

abli

shm

ent

Est

abli

shm

ent

Est

abli

shm

ent

Est

abli

shm

ent

Est

abli

shm

ent

7

EnterprisesEnterprises

DefinitionDefinition• An institutional unit in its capacity as a producer

of goods and services is known as an enterprise. An enterprise is an economic transactor with autonomy in respect of financial and investment decision-making, as well as authority and responsibility for allocating resources for the production of goods and services. It may be engaged in one or more economic activities at one or more locations. An enterprise may be a sole legal unit.

http://unstats.un.org/unsd/isdts/docs/StatisticalUnits.pdf

8

EstablishmentsEstablishments

DefinitionDefinition• The establishment is defined as an enterprise or part of an

enterprise that is situated in a single location and in which only a single productive activity is carried out or in which the principal productive activity accounts for most of the value added.

• In other words, an establishment can be defined, ideally, as an economic unit that engages, under a single ownership or control - that is, under a single legal entity – in one, or predominantly one, kind of economic activity at a single physical location - for example, a mine, factory or workshop.

http://unstats.un.org/unsd/isdts/docs/StatisticalUnits.pdf

9

Industrial Classification – what is Industrial Classification – what is an industry?an industry?

• An industry is a grouping of establishments engaged in the same or similar kinds of activities

• The classification used in national accounts and water accounts is the International Standard Industrial Classification (ISIC)

10

ISIC – International Standard ISIC – International Standard Industrial ClassificationIndustrial Classification

• Enterprises and establishments are classified using ISIC Revision 4 according to the goods and services they produce

http://unstats.un.org/unsd/cr/registry/default.asphttp://unstats.un.org/unsd/cr/registry/default.asp • Sometimes all establishments of an enterprise are Sometimes all establishments of an enterprise are

classified to the same ISIC codeclassified to the same ISIC code• Sometimes establishments of the one enterprise Sometimes establishments of the one enterprise

are classified to different ISIC classes.are classified to different ISIC classes.

11

Units and Units and industry classificationindustry classification

Industry 1

Economy

Ent

erpr

ise

1

Industry 2 Industry n

Ent

erpr

ise

2

Ent

erpr

ise

5

Ent

erpr

ise

4

Est

abli

shm

ent 1

Ent

erpr

ise

6

Ent

erpr

ise

n+

1

Ent

erpr

ise

n

Ent

erpr

ise

n+

2

Est

abli

shm

ent 2

Est

abli

shm

ent 3

Est

abli

shm

ent 4

Est

abli

shm

ent 5

Est

abli

shm

ent 6

Est

abli

shm

ent n

Est

abli

shm

ent n

+1

Est

abli

shm

ent n

+2

International Standard Industrial Classification

Government Households

Ent

erpr

ise

2

Ent

erpr

ise

Ent

erpr

ise

Est

abli

shm

ent

Est

abli

shm

ent

Est

abli

shm

ent

12

National AccountsNational Accounts

• National Accounts aggregate the information on National Accounts aggregate the information on the economy, obtained from the units of the the economy, obtained from the units of the economy, into a standard format from which well economy, into a standard format from which well known indicators are derivedknown indicators are derived

• Gross Domestic Product is the best known of the Gross Domestic Product is the best known of the indicators from the national accountsindicators from the national accounts

• Use of international standard System of National Use of international standard System of National Accounts (SNA), classifications (e.g. ISIC) and Accounts (SNA), classifications (e.g. ISIC) and table formats allows for meaningful comparisons table formats allows for meaningful comparisons over time and between countriesover time and between countries

13

The environmentThe environment

• The environment has 4 componentsThe environment has 4 components• Land Land • Atmosphere (Air)Atmosphere (Air)• WaterWater• Life (biodiversity)Life (biodiversity)

• Energy, and solar energy are also important in Energy, and solar energy are also important in environment statisticsenvironment statistics

• The components of the environment interact with The components of the environment interact with each other and with the economyeach other and with the economy

14

The Hydrological CycleThe Hydrological Cycle

Evaporation

Transpiration

Precipitation

(dew, mist, rain, sleet, hail, snow)

Groundwater

(aquifers)

Surface water

(rivers, lakes, glaciers)

Sea/ocean

Infiltration

Evaporation

Soilwater

15

SEEAWSEEAW

Economy

Exports

Evapo-transpiration

Other Industries(incl. Agriculture)

Imports

Abstraction

Sea

Atmosphere

Collection ofprecipitation

Households

Abs

trac

tion

Water collection,treatment and supply

Inland Water Resource System

Surface water(reservoirs, lakes, rivers,snow, ice and glaciers)

Soil water

Groundwater

upstreambasins and

aquifersoutside

the territoryof reference

Natural transfers(e.g. infiltration,seepage, etc.)

Sea

Inflows

downstreambasins and

aquifersoutside

the territoryof reference

Outflows

Pre

cipi

tatio

n

Eva

po-

tra

nspi

ratio

n

Sewerage

Rest ofthe WorldEconomy Rest of

the WorldEconomy

Re

turn

s

Ret

urn

s

Ret

urn

s

• Integrates information on the economy and environment

http://unstats.un.org/unsd/envaccounting/SEEAWDraftManual.pdf

16

Development of SEEA WaterDevelopment of SEEA Water• Sub-group on Water Accounting established at the 2003 meeting

of the London Group (Rome)• Sep 2004 SEEA Water discussed at London Group Meeting

(Copenhagen)• May 2005 1st draft SEEA Water discussed in by sub-group (New

York)• May 2006 2nd Draft discussed at the User-Producer Conference

(Voorburg)• Jun 2006 2nd Draft discussed by London Group and UNCEEA• Jul-Dec 2006 SEEA Water finalised by electronic discussion• More than 20 experts participated in the Sub-group• UNSD coordinated the group and prepared the various

manuscripts

17

SEEA Water – an interim SEEA Water – an interim international statistical standardinternational statistical standard

• Part 1 of SEEA Water was adopted by the United Nations Statistical Commission in March 2007 as an interim statistical standard

• Part 2 contains the elements of SEEA Water for which there is less country experience and there is still some debate

• SEEA Water has been recognized as useful by the users of information

18

SEEW - StructureSEEW - Structure9 Chapters, 2 parts:• Part 1

• Ch 1. Introduction• Ch. 2 Water Accounting Framework• Ch. 3 Physical Supply and Use Tables• Ch. 4 Emission Accounts• Ch. 5 Hybrid and Economic Accounts• Ch. 6 Asset Account

• Part II• Ch. 7 Quality Account• Ch. 8 Valuation• Ch. 9 Policy use

19

SEEW – Focus of workshopSEEW – Focus of workshop9 Chapters, 2 parts:• Part 1

• Ch 1. Introduction• Ch. 2 Water Accounting Framework• Ch. 3 Physical Supply and Use Tables• Ch. 4 Emission Accounts• Ch. 5 Hybrid and Economic Accounts• Ch. 6 Asset Account

• Part II• Ch. 7 Quality Account• Ch. 8 Valuation• Ch. 9 Policy use

20

12 Standard Tables12 Standard Tables

1. Physical supply 2. Physical use3. Gross and net emissions4. Emissions by ISIC 375. Hybrid (Monetary and Physical) supply6. Hybrid use7. Hybrid supply and use8. Hybrid water supply and sewerage for own use9. Government accounts for water related collective consumption services

(Monetary)10. National expenditure for waste management (Monetary)11. Financial accounts for waste water management (Monetary)12. Asset account (Physical)

12 Supplementary tables

Our focus will be on the first 8 tables and the 12th table

21

Example Standard Table VI: Example Standard Table VI: Hybrid use tableHybrid use table

Physical and monetary units

 

Intermediate consumption of industries (by ISIC categories) Actual final consumption

Capital formation

Exports

Total uses at purchaser’s price1

2-33, 41-43

35

36 37

38,39, 45-99

Total industry

Households

Government

Total

of which: Hydro

Final consumpt

ion expenditu

res

Social

transfers in kind from

Government and NPIS

Hs Total

Total intermediate consumption and use (monetary units)                              

of which: Natural water (CPC 1800)      

Sewerage services (CPC 941)      

Total value added (monetary units)                              

Total use of water (physical units)          

U1 - Total Abstraction          

of which: a.1- Abstraction for own use          

U2 - Use of water received from other economic units                              

22

Supplementary tables and further Supplementary tables and further disaggregation of data itemsdisaggregation of data items

• The 12 SEEAW standard tables are the The 12 SEEAW standard tables are the minimum data that countries are minimum data that countries are encouraged to compileencouraged to compile

• Supplementary tables are presentedSupplementary tables are presented• Data items and industries can be further Data items and industries can be further

disaggregateddisaggregated

23

Example of disaggregated dataExample of disaggregated data

• The industry 12 SEEAW standard tables are The industry 12 SEEAW standard tables are the minimum data that countries are the minimum data that countries are encouraged to compileencouraged to compile

• Supplementary tables are presentedSupplementary tables are presented• Data items and industries can be further Data items and industries can be further

disaggregateddisaggregated

24

Source of pressure on water resources: • Macro trends in total water use, emissions, water

use by natural source and purpose, etc. ‘Decoupling’ economic growth and water use, pollution

• Industry-level trends: indicators used for environmental-economic profiles

• Technology and driving forces: water intensity/productivity and total (domestic) water requirements to meet final demand

• International transport of water and pollution

Indicators and policy uses of Indicators and policy uses of SEEAWSEEAW

25

Audiences for informationAudiences for information

Indicators

Micro data

AccountingSNA, SEEA, SEEAW

PublicPoliticians

Policy MakersStrategic planners

Researchers

Indicators are part of communicating information

26

Indicators: economic growth and water pollution

80

85

90

95

100

105

110

115

120

1996 1997 1998 1999 2000 2001

nutrients

metals

wastewater

GDP

Netherlands: water pollution and economic growth, 1999-2001

27

Indicators: economic growth and water use

0.90

0.95

1.00

1.05

1.10

1.15

1.20

1.25

1.30

1993/94 1994/95 1995/96 1996/97 1997/98 1998/99

Volume of water

Per capita water use

GDP per m3 water

Botswana: water use and economicGrowth, 1993-1998

28

Pulp, paper and paper products

0 20 40 60 80 100

P roduction value

Value added

Hours worked

Use of energy

Use of self-supplied water

Use of distributed water

Use of water for cooling

Use of water in the industrial process

Other uses of water

Direct discharge of wastewater

Discharge to MWWTP

EP E internal expenditures

EP E payments to MWWTP

EP I for wastewater

Chemicals and chemical products

0 20 40 60 80 100

Environmental Economic Profiles Sweden 1995

29

International transport of pollution

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Arsenic Copper Zinc

Share of pollution in rivers in the Netherlands originating abroad

30

Projecting future water demandsAustralia 2050

31

Key lessons from countries Key lessons from countries implementing SEEA Waterimplementing SEEA Water

1. Build on existing statistical/scientific knowledge and information2. Cooperation essential• Within statistical offices• Between statistical offices, water departments, economic/planning

departments and agricultural departments• With the water supply industry• With the scientific and research communities• Between users and producers of information3. A phased approach is needed• Start with issues of most importance. In general for water scarce

countries it has been water supply and use. In industrialized countries it has been water pollution.

4. Pilot or experimental accounts are very useful• Users will appreciate the benefits more easily with concrete examples,

even if they are small scale.

32

22 countries have water accounts22 countries have water accounts(As report in the Global Assessment of Environmental (As report in the Global Assessment of Environmental

Statistics and Accounts 2006)Statistics and Accounts 2006)

Australia

Bhutan

Bulgaria

Canada

China

Colombia

Denmark

Dominican Republic

Germany

India

Israel

MexicoMongoliaNauruNetherlandsNew ZealandPapua New GuineaPhilippinesSouth AfricaSpainSwedenTanzania

Countries accounts are at different stages of development

33

11 countries want to develop water 11 countries want to develop water accountsaccounts

(As report in the Global Assessment of Environmental (As report in the Global Assessment of Environmental Statistics and Accounts 2006)Statistics and Accounts 2006)

• BahamasBahamas• BoliviaBolivia• Burkina FasoBurkina Faso• CubaCuba• GeorgiaGeorgia• GuatemalaGuatemala

• JordanJordan• KiribatiKiribati• MauritiusMauritius• TunisiaTunisia• TurkeyTurkey

34

UNSD – current work on water UNSD – current work on water accounts and water statisticsaccounts and water statistics

• Developing International Recommendations for Water Developing International Recommendations for Water StatisticsStatistics

• Developing training materialsDeveloping training materials• Conducting training coursesConducting training courses• Assisting countries with implementation via:Assisting countries with implementation via:

• Country missionsCountry missions• Telephone and emailTelephone and email

• Work with other partners e.g. UN regional commissions and Work with other partners e.g. UN regional commissions and other UN agencies, Medstat, OECD, Eurostat, World Bank, other UN agencies, Medstat, OECD, Eurostat, World Bank, Asian Development Bank.Asian Development Bank.

35

60 countries have requested assistance or 60 countries have requested assistance or advice from UNSD on the implementation advice from UNSD on the implementation of SEEAWof SEEAW

AlgeriaAlgeriaAntigua and BarbudaAntigua and BarbudaArmenia, Republic ofArmenia, Republic ofBahamasBahamasBahrainBahrainBoliviaBoliviaBotswanaBotswanaBrazilBrazilBulgariaBulgariaBurkina FasoBurkina FasoChileChileChinaChinaColombiaColombiaCubaCubaDominican Republic Dominican Republic EgyptEgyptGeorgiaGeorgiaGuatemalaGuatemalaIndiaIndiaIndonesiaIndonesia

IraqIsraelJamaicaJordanKiribatiKorea, Republic of KuwaitLebanonMauritiusMexicoMongoliaMoroccoMozambiqueNamibiaNauruNepalNetherlandsNew ZealandOmanPalestine

PanamaPapua New GuineaPeruPhilippinesQatarQatarSaudi ArabiaSaudi ArabiaSouth AfricaSouth AfricaSpainSpainSri LankaSri LankaSuriname Suriname SyriaSyriaTanzaniaTanzaniaTrinidad and TobagoTrinidad and TobagoTunisiaTunisiaTurkeyTurkeyUkraineUkraineUnited Arab EmiratesUnited Arab EmiratesVietnamVietnamYemenYemenZimbabweZimbabwe

36

International Recommendations International Recommendations for Water Statistics (IRWS)for Water Statistics (IRWS)

• UNSD is developing IRWS UNSD is developing IRWS • The IRWS will define and support the compilation of basic The IRWS will define and support the compilation of basic

statistical data to support the SEEAW and the water statistical data to support the SEEAW and the water indicators used by international agencies (e.g. the FAO, indicators used by international agencies (e.g. the FAO, World Bank and UN MDGs)World Bank and UN MDGs)

• It will provide information on the concepts, sources and It will provide information on the concepts, sources and methods needed for basic water statisticsmethods needed for basic water statistics

• It will also provide practical guidance on the compilation It will also provide practical guidance on the compilation of water accounts and indicatorsof water accounts and indicators

• A draft of the IRWS should be available for discussion in A draft of the IRWS should be available for discussion in mid-2008. mid-2008.

• An expert group meeting is planned to discuss the draftAn expert group meeting is planned to discuss the draft

37

Contact detailsContact details

Michael VardonAdviser on Environmental-Economic AccountingUnited Nations Statistics DivisionNew York 10017 USARoom DC2 1532

Phone: +1 917 367 5391Fax: +1 917 363 1374Email: vardon@un.org