Environmental Indicators

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ENVIRONMENTAL INDICATORS:

A SYSTEMATIC APPROACH TO MEASURING AND REPORTING ON ENVIRONMENTAL POLICY PERFORMANCE IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT

Allen Hammond Albert Adriaanse Eric Rodenburg Dirk Bryant Richard Woodward

WORLD RESOURCES INSTITUTE ENVIRONMENTAL INDICATORS: A Systematic Approach to Measuring and Reporting on Environmental Policy Performance in the Context of Sustainable Development

Allen Hammond Albert Adriaanse Eric Rodenburg Dirk Bryant Richard Woodward

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WORLD RESOURCES INSTITUTE

May 1995 Kathleen Courtier Publications Director

Brooks Belford Marketing Manager

Hyacinth Billings Production Manager

Sam Fields Cover Photo

Each World Resources Institute Report represents a timely, scholarly treatment of a subject of public concern. WRI takes responsibility for choosing the study topics and guaranteeing its authors and researchers freedom of inquiry. It also solicits and responds to the guidance of advisory panels and expert reviewers. Unless otherwise stated, however, all the interpretation and findings set forth in WRI publications are those of the authors.

ACKNOWLEDGMENTS v FOREWORD vii I. Introduction 1 National-level Indicators 2 Environmental Indicators in the Context of Sustainable Development 2 II. BACKGROUND AND CONTEXT 5 III. HOW INDICATORS CAN INFLUENCE ACTION: TWO CASE STUDIES 7 The Dutch Experience 7 WRI Experience—The Greenhouse Gas Index 8 IV. ORGANIZING ENVIRONMENTAL INFORMATION: INDICATOR TYPES, ENVIRONMENTAL ISSUES, AND A PROPOSED CONCEPTUAL MODEL TO GUIDE INDICATOR DEVELOPMENT 11 Pressure, State, and Response Indicators 11 Focusing on Environmental Issues 12 A Conceptual Model for Developing Environmental Indicators 15 V. POLLUTION/EMISSION: ILLUSTRATIVE CALCULATIONS OF INDICATORS AND OF A COMPOSITE INDEX FOR THE NETHERLANDS 17 Climate Change 17 Depletion of the Ozone Layer 18 Acidification of the Environment 18 Eutrophication of the Environment 19 Dispersion of Toxic Substances 19 Disposal of Solid Waste 20 Composite Pollution Index 20 VI. RESOURCE DEPLETION: ILLUSTRATIVE CALCULATIONS OF COMPOSITE INDICES FOR SELECTED COUNTRIES 23 VII. BIODFVERSITY: AN ILLUSTRATIVE APPROACH TO THE DEVELOPMENT OF COMPOSITE INDICATORS 27 VIII. HUMAN IMPACT/EXPOSURE INDICATORS 29 IX. APPROACHES TO SUSTAINABLE DEVELOPMENT INDICATORS 31 X. IMPLICATIONS FOR ACTION 33 Implications for Data Collection and Statistical Reporting 33 Involving Users 33 Reporting to the Public 34 NOTES 35 APPENDIX 1 37 Valuation Methods in Natural Resource Accounting 37 Country Notes 37 APPENDIX II. ENVIRONMENTAL INDICATOR REPORTING FORMATS 43 LIST OF FIGURES Figure 1. The Information Pyramid 1 Figure 2. Pressure-State-Response Framework for Indicators 11 Figure 3. Matrix of Environmental Indicators 13 Figure 4. Matrix of Environmental Indicators 14 Figure 5. A Model of Human Interaction with the Environment 15 Figure 6. Climate Change Indicator 18 Figure 7. Ozone Depletion Indicator 18 Figure 8. Acidification Indicator 19 Figure 9. Eutrophication Indicator 19 Figure 10. Toxics Dispersion Indicator 20 Figure 11. Solid Waste Disposal Indicator 20 Figure 12. Composite Pollution Indicator 21 Figure 13. Resource Depletion Index: Resource Depreciation/Gross Fixed Capital Formation 25 Figure 14. Resource Depletion Index: Resource Depreciation/Sector Domestic Product (Agriculture-forestry-fisheries sector) 26

• ACKNOWLEDGMENTS

Two of the authors of this report—Dr. Ham- Bartelmus, Donella Meadows, Kirit Parikh, and mond and Dr. Adriaanse—participated in the Pro- Manuel Winograd, through several revisions of ject on Indicators of Sustainable Development of this work. The authors would also like to thank the Scientific Committee on Problems of the Envi- John O'Connor, Ted Heintz, Don Rogich, Tim ronment (SCOPE), an international scientific Stuart, Dave Berry, Francisco Mata, David Pearce, effort intended to contribute to the indicator Wayne Davis, Brian Groombridge, and Rick Coth- activities of the U.N. Commission on Sustainable ern, all of whom provided valuable comments Development. An earlier version of this report and encouragement on earlier drafts of this report. was reviewed by the SCOPE project and provided Our gratitude is also extended to those within background for an international policy meeting WRI who helped with this report—to Jonathan on indicators of sustainable development hosted Lash, Walt Reid, Alan Brewster, Paul Faeth, and by the Belgium and Costa Rican governments in Dan Tunstall for their reviews, to Kathleen Cour- collaboration with SCOPE and the U.N. Environ- rier for her skillful editing, to Maggie Powell for ment Programme. Dr. Hammond and Dr. preparation of figures, and to Sharon Bellucci for Adriaanse have benefited from the advice and desktop production and support throughout the comments of their international colleagues, includ- project. Of course, we alone bear responsibility ing Bedrich Moldan, Arthur Dahl, Peter for the final result.

A.H. A.A. E.R. D.B. R.W. FOREWORD

All across the United States, policy-makers There are exceptions, of course—most nota- and pundits sit up and take notice when the Dow bly the Netherlands. As the authors demonstrate, Jones inches up, housing starts plummet, or unem- the Dutch have made good use of indicators ployment rates rise—and millions of Americans re- based on strong national goals to curb such envi- think personal financial decisions. In every ronmental problems as ozone depletion, climate country, leaders find changes in gross national change, and acid rain. Since 1991, the Dutch gov- product (GNP) similarly riveting. These economic ernment has published indicators showing how indicators show the power of a single number the nation's contribution to such problems has when its importance is widely understood. Yet, changed from one year to the next. When com- no remotely similar numbers exist to indicate how bined with targets for future performance, these in- the environment is faring. dicators show Dutch citizens how effectively A significant attempt to bridge this knowl- current policies are helping to improve both the edge gap is Environmental Indicators: A System- Dutch environment and global conditions, and atic Approach to Measuring and Reporting on how far they have yet to go. As this report docu- Environmental Policy Performance in the Context ments, the Dutch experience also shows that of Sustainable Development by Allen L. Hammond, when conditions don't improve, indicators stimu- director of WRI's Resource and Environmental In- late the search for improved policies. formation program; Albert Adriaanse, senior minis- WRI's experience also testifies to the efficacy terial advisor to the Netherlands' Directorate for of indicators as agents of change. In 1990, WRI's the Environment; Eric Rodenburg, WRI senior pol- World Resources report published data showing an icy analyst; Dirk Bryant, WRI policy analyst; and acceleration in the rate of tropical deforestation Richard Woodward of the University of Wiscon- and summed up in a single indicator for each sin. The authors begin by laying out a concep- country—the Greenhouse Gas Index—the poten- tual approach for producing "highly aggregated tial impact on global warming of both deforesta- indicators"—that is, for turning mountains of tion and fossil energy use. The results, admittedly data into a set of simple, significant, and user- controversial, attracted worldwide attention and friendly tools. helped to focus the efforts of scientists and govern- The authors note the special utility of environment policy-makers on deforestation's possible mental indicators in democratic countries, where role in climate change. electorates push governments to act on perceived Environmental Indicators will not be the last problems. Indeed, they maintain, creating environ- word on this new field. On the contrary, it deliber- mental indicators that the public can easily grasp ately proposes bold ideas to spark dialogue on is the surest way to compel high-level government which data to compile and how to massage a attention—both to the environment and to the effi- mass of facts into a handful of meaningful num- cacy of policies for protecting or restoring it. Be- bers that signal whether environmental problems sides illustrating environmental trends, indicators are getting better or worse. The authors acknow- can be designed to measure how well (or how ledge the work of others laboring in the field— poorly) policies work, implicitly pointing the way not only the Canadian and Dutch governments toward better approaches. In most countries, and the Organization for Economic Cooperation though, policy-makers and the public are equally and Development, but also a growing number of in the dark when it comes to timely warnings other institutions and university researchers. The about whether policies are taking the nation in United Nations Commission on Sustainable Devel- the right direction. opment, for one, is exploring ways to create "sustainable development indicators;" so is the which we need better means of assessing our U.S. Government. problems or our progress. Dr. Hammond, Dr. Adriaanse, and their col- We would like to thank The Florence and leagues argue that environmental indicators are John Schumann Foundation for an initial grant the best place to begin. They suggest that those that enabled WRI to begin its indicator research, they describe are good candidates to become the and express our appreciation to the U.S. Environ- environmental components of sustainable developmental Protection Agency, the Aeon Group Envi- ment indicators some years down the road. But ronment Foundation/Environmental Information first things first, they say. Economic and social in- Center-Japan, the Swedish International Develop- dicators already influence policy. What's utterly ment Authority, and the Netherlands Ministry for missing is a set of simple and unambiguous sig- Foreign Affairs for continuing support of these ef- nals of how human activities are affecting the en- forts. We would also like to acknowledge the environment. couragement of this work by the United Nations Environmental Indicators extends WRI's ear- Environment Programme. We are deeply grateful lier work on indicators—including such reports as to this array of partners and sponsors for their Biodiversity Indicators for Policy-makers—and the assistance. analyses set forth in our biennial series of World Resources reports. We are continuing our indicator Jonathan Lash research program, focusing on biodiversity and President the coastal environment—critical resources for World Resources Institute I. INTRODUCTION

The term "indicator" traces back to the Latin statistics or primary data. Indeed, indicators and verb indicare, meaning to disclose or point out, to highly aggregated indices top an information pyra- announce or make publicly known, or to estimate mid whose base is primary data derived from or put a price on. Indicators communicate informa- monitoring and data analysis. (See Figure 1.) Indi- tion about progress toward social goals such as cators represent an empirical model of reality, not sustainable development. But their purpose can reality itself, but they must, nonetheless, be analyti- be simpler too: the hands on a clock, for example, cally sound and have a fixed methodology of indicate the time; the warning light on an elec- measurement. tronic appliance indicates that the device is Indicators also fulfill the social purpose of im- switched on. proving communication, but can play a useful role As commonly understood, an indicator is only where communication is welcomed, where something that provides a clue to a matter of decisionmaking is responsive to information about larger significance or makes perceptible a trend or new social issues or the effectiveness of current phenomenon that is not immediately detectable. policies. In an international context, the need for (A drop in barometric pressure, for example, may comparability in the way indicators are formulated signal a coming storm.) Thus an indicator's significance extends beyond what is actually measured to a larger phenomena of interest. Since the concern in this report is public pol- Figure 1. The Information Pyramid icy issues and specifically the process of communi- cating information to decisionmakers and to the public, indicators are defined more precisely. Indi- cators provide information in more quantitative form than words or pictures alone; they imply a metric against which some aspects of public policy issues, such as policy performance, can be measured. Indicators also provide information in a simpler, more readily understood form than complex statistics or other kinds of economic or scientific data; they imply a model or set of assumptions that relates the indicator to more complex phenomena. Those who construct indicators for public policy purposes have an obligation to make explicit both the metric and the underlying model inherent in them. As used in this report, indicators have two defining characteristics:1 • indicators quantify information so its significance is more readily apparent; • indicators simplify information about complex phenomena to improve communication. Even though indicators are often presented in statistical or graphical form, they are distinct from and calculated becomes obvious. If every nation The choice of indicators depends not only on calculated GDP in a different manner, this indica- the desired purpose—on the goals a nation seeks tor would be of little value. to achieve—but also on the audience. The indica- Experience in public policy also illustrates sev- tors discussed in this report are intended to improve eral additional characteristics of successful indicators: national policy and decisionmaking—specifically, • user-driven. Indicators must be useful to the identification of environmental problems, policy their intended audience. They must con- formulation and target setting, and, especially, policy vey information that is meaningful to deci- evaluation. The obvious audience comprises na- sionmakers and in a form they and the tional and international decisionmakers. Since public public find readily understandable. Simi- opinion shapes democratic decisionmaking, the pub- larly, they must be crafted to reflect the lic is also an important audience for national per- goals a society seeks to achieve. formance indicators. Indeed, the power of economic • policy-relevant. Indicators must be perti- and social indicators to shape public opinion com- nent to policy concerns. For the national- pels high-level officials to take action when, for ex- level indicators described in this report, ample, the GDP declines or the unemployment policy-relevant means not just technically index rises. relevant, but also easily interpreted in terms of environmental trends or progress toward national policy goals. • highly-aggregated. Indicators may have many components, but the final indices must be few in number; otherwise deci- Since the United Nations Conference on Envi- sionmakers and the public will not readily ronment and Development in 1992, sustainability absorb them. How much indicators should has become a widely shared goal. Although infor- be aggregated depends on who is to use mation can provide an improved basis for decision- them and for what. making and gauging progress, accountability is possible only if goals and measures of progress are explicit. Appropriately formulated indicators—as defined in this report—can provide such measures, Indicators can be used for many purposes at enhancing the diagnosis of the situation and mak- many levels—community, sectoral, national, or in- ing progress or stalemate obvious to all. ternational. All are important, but in this report dis- Sustainability involves—at a minimum—inter- cussion is restricted to indicators that can support acting economic, social, and environmental fac- national or international decisionmaking. These in- tors. Progress toward sustainability thus requires dicators can guide national decisionmaking and fo- directing policy attention to all three. But analysts cus top-level policy attention. Those gauging don't agree on whether existing economic and so- national performance explicitly can show citizens cial indicators—such as GDP, the consumer price and decisionmakers alike whether trends are in the index, or the unemployment index—are useful desired direction and, hence, whether current poli- measures of progress toward sustainable develop- cies work. Indicators can also provide a frame- ment and so far no consensus has formed on indi- work for collecting and reporting information cators of sustainable development. There is not within nations and for reporting national data to even agreement on which conceptual framework such international bodies as the United Nations is best for developing such indicators—a question Commission on Sustainable Development. Indica- raised later in this report. tors can provide guidance to those organizations That said, many highly aggregated economic on needs, priorities, and policy effectiveness. and social indicators have been widely adopted and are frequently reported. They focus public attention and influence national and international policy decisions for better or worse. But there are Many highly aggregated economic virtually no comparable national environmental indicators to help decisionmakers or the public and social indicators have been evaluate environmental trends or assess the effec- widely adopted, but there are tiveness of national efforts to maintain environ- virtually no comparable national mental quality. True, local air quality indicators or environmental indicators to help smog indices of one kind or another are in common use in a number of industrial countries, but decisionmakers or the public only a handful of indicators are widely adopted evaluate environmental trends. and systematically reported. Even the environmental indicators developed and compiled by the OECD are not routinely and publicly reported by national governments in most OECD countries or by most international development organizations. ment and identifies the need for additional envi- Consequently, environmental policy issues have ronmental indicators and for more highly aggre- often been overlooked at the highest levels of na- 2 gated measures. It suggests new approaches for tional and international decisionmaking, and virtu- formulating these indicators and illustrates how ally nowhere is accountability for environmental such approaches might be carried out. Nonethe- decisionmaking as high as it is for economic and less, this report is a work in progress: it also con- social issues. tains ideas and indicator concepts that are This report attempts to lay a basis for environ- preliminary, in the hope that they will stimulate mental indicators in the context of sustainable de- discussion and further work. velopment. It briefly surveys past efforts to (The indicators proposed here can be under- develop such indicators and reports evidence that stood as candidates for the environmental compo- they can influence policy decisions. However, it nents of sustainability indicators. As such, their also suggests that indicators based on conven- interaction with social and economic factors is im- tional environmental data won't capture many portant and is so noted in the text where links exist environmental issues key to sustainable develop- to specific economic sectors or social concerns.) II. BACKGROUND AND CONTEXT

Growing concern over environmental issues In 1993, WRI hosted Albert Adriaanse of the in recent decades drives the need for more com- Dutch Ministry of Housing, Physical Planning, and prehensive and reliable environmental informa- Environment for a month's working visit that be- tion. It has also generated "State of the gan a collaboration leading to this report. Later Environment" efforts in many countries and in that year, the United Nations Statistical Division such international organizations as the U.N. Envi- (UNSTAT) and the United Nations Environment ronment Programme to provide, analyze, and re- Programme (UNEP) organized a Consultative Ex- port on scientifically-based environmental pert Group Meeting on Environmental and Sustain- information. Still neither decisionmakers nor the able Development Indicators in Geneva to survey public have been able to easily interpret large the approaches to indicator development being quantities of new environmental data. To simplify pursued by many organizations. By 1994, the information and thus to improve communication, number of conferences and workshops on envi- the Canadian government began developing environmental or sustainable development indicators ronmental indicator concepts in the late 1980s. In had grown enormously, as had the number of or- 1987, the Dutch government initiated similar ganizations pursuing indicator work; national or re- work. After a G-7 Economic Summit in 1989, the gional initiatives were launched in Europe (by the seven economic powers asked the OECD to de- European Commission for Europe), in the United velop environmental indicators. Pioneering work States, and in many other countries. Notable by the Canadian and Dutch governments and by among more recent meetings was a technical the OECD ensued.3'4'5 workshop convened by the World Bank in late International interest in the environment and 1994 to find common ground on approaches to in sustainable development issues hit a new peak sustainable development indicators and, in early at the 1992 United Nations Conference on Environ- 1995, an international policy conference hosted by ment and Development in Rio de Janeiro. The Dec- the Belgian and Costa Rican governments in con- laration of Rio de Janeiro on Environment and nection with UNEP and the Scientific Committee Development emphasized the need for sustainabil- on Problems of the Environment (SCOPE) to seek ity and for respect for the precautionary principle consensus on the need for and the uses of indica- to protect the environment; Agenda 21 called for tors internationally. The United Nations Commis- the development of indicators. (See Box 1., Formal sion on Sustainable Development (UNCSD) Commitments at the Earth Summit.) agreed that indicators of sustainable development WRTs involvement in environmental indicator would be discussed at its third session in 1995. research began in the late 1980s. In 1991, it sur- Parallel to these efforts were attempts to re- veyed more than 100 organizations and carefully form the GDP and other economic indicators to reviewed the literature. At that time, it found that better take environmental concerns into account. fewer than a dozen organizations were working Pioneering work at WRI and at the World Bank on environmental or sustainable development indi- helped to launch what is known as environmental cators at a national or international level. In 1992, or "green" national accounting or as natural re- WRI organized and hosted an international work- source accounting, which adjusts national eco- shop on environmental indicators to discuss con- nomic accounts to reflect pollution costs and the cepts, methods, and tentative approaches; the depletion of natural resources. The basic idea ih attendees concluded that it was premature at that green accounting is that the depletion of nature's time to attempt a synthesis but pointed out the need capital—natural resources—has a real cost to soci- for innovative approaches and experimentation. ety and should be treated in national accounts in Box 1. I;orma! Commitments at the Earth Summit Principle -i of the Kin Declaration stales: 'In order lo achieve sustainable development, environmental protection shall constitute an integral pail of the developmental process and cannot be considered in isola- tion from it." Principle IT of the Declaration states: "In order to protect the environment, the precautionary approach shall he widely applied by slates according lo their capabilities. Where there are threats of .serious or irre- versible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation." Agenda 21 comments .specifically on the need for indicators in Chapter 'it): "Indicators of sustainable development need to be developed to provide, solid bases for decisionmaking at all levels and to contribute lo a self-regulating suslainabilily of integrated environment and development systems." This chapter also recommends that, the United Nations system work with other relevant organizations lo develop a harmonized set of indicators of sustainable development.

the same way as the depletion of economic capi- at University College-London, for example, have tal assets. Support for this idea was immediate. It developed widely used concepts of "weak" and was endorsed in Agenda 21, which in Chapter 40 "strong" sustainability.9 (See Chapter 9.) calls for "establishing systems for integrated envi- In recent years, the importance of "human ronmental and economic accounting," and a pro- capital"—human and social development—to over- posed system of such accounts has been all development has been emphasized by the Hu- published by the United Nations Statistical Office man Development Index pioneered by the U.N. as the System of Integrated Environmental and Development Programme.1 So too, indicators of Q sustainable development must also reflect the de- Economic Accounting or SEEA. So far, no country gree to which human needs—including that for a has yet greened its GDP, even though preliminary safe, healthy, and productive environment—are studies of individual countries show that the GDP met. Thus, measures of environmental impacts on would be more accurate and useful if such envi- human health and welfare are key to sustainabil- ronmental corrections were included. In any ity—either as environmental indicators or as com- event, the SEEA accounts can also be used to cal- ponents of social indicators. Equally important are culate environmental indicators, as illustrated later measures of the degree to which exposure to pol- in this report. lution or access to clean water and clean air vary In addition to adjustments to economic indica- among social and economic groups, as discussed tors, purely economic approaches have been used later. to calculate measures of sustainability. Researchers III. HOW INDICATORS CAN INFLUENCE ACTION: TWO CASE STUDIES

the wide difference between current emissions and the level judged to be sustainable over the The environmental policy performance indica- long term—prompted the Dutch government to tors discussed in Chapter 5 have been published set progressively stricter policy targets for reduc- annually since 1991 by the Dutch government. ing emissions of each of the primary acidifying These indicators have increased Dutch awareness gases (SO2, NOX, NH3) covered by the indicator. of environmental issues, influenced policy decisions, and spurred planning efforts to reduce environmental pressures. When first published, the indicators attracted considerable attention. Government officials, the Interest in the overall trend private sector, and citizens all found such quantita- shown by one indicator—and the tive description of environmental trends intrigu- wide difference between current ing. Initial discussions centered on the relevance of the trends presented and the methods used to emissions and the level quantify and construct the indicators. As they be- considered sustainable over the came accepted by decisionmakers and others as a long term—prompted the Dutch proper model or representation of the pressures government to set progressively driving these environmental issues, the indicators began to exert a significant influence on policy- stricter policy targets. making; they were used to help set the policy agenda on environmental issues and to measure policy success or failure. As users grew more familiar with the indicators and the methodology used to construct them, A second example concerns the dispersion of attention focused on the component pres- toxics into the environment. Typically, targets for sures—whether specific gases or sectoral activi- reductions in emissions are set in negotiations ties—that contributed to the overall trend with the relevant economic sectors. As the indica- described by a given indicator. They thus became tor has helped the private sector to appreciate a tool for setting detailed cleanup priorities. Users how its various activities contribute to the total also began to use the whole information sys- burden of toxics released within the Netherlands, tem—symbolized by the information pyramid attitudes have changed. Recently, the Minister of (Figure 1)—interactively to assess the effects of Housing, Physical Planning, and the Environment proposed or planned policy measures on the and representatives of industry have signed volun- trend of environmental pressures represented by tary agreements to significantly reduce toxic emis- the indicators. In short, the information system has sions. Welcome alternatives to regulation, these become a kind of model for exploring alternative agreements harness the knowledge and creativity policies. of the private sector in designing mitigation meas- As one example, indicators have deeply influ- ures to meet policy targets. Such agreements are enced policy-making in the Netherlands on the is- possible only with the industry's active participa- sue of environmental acidification. Here, interest tion and involvement—owed in large part to the in the overall trend shown by the indicator—and visibility of the environmental indicators and the "transparency" of the information system on One source of the initial controversy was the which they rest. methodology used to estimate the cumulative ef- The construction and regular publication of fects of greenhouse gas emissions on the atmos- environmental indicators related to policy perform- phere. In the absence of an established scientific ance in the Netherlands has helped it progress to- methodology, WRI adopted a simple empirical ward sustainability. By quantifying key trends and method that differed from the method sub- compressing enormous amounts of data into sim- sequently published by the Intergovernmental ple, comprehensible graphical indicators, this proc- Panel on Climate Change, an international scien- ess has moved the policy debate toward specific tific collaboration. It later turned out, however, mitigation measures and inspired additional policy that the two methods yielded closely comparable measures where progress was limited. The Dutch results.12 Indicators, as this report emphasizes, are experience has attracted wide interest in other a simplified model of reality, but in this instance countries. the model was quite accurate. A second source of controversy came from strenuous objections by Brazil to estimates of the rate of deforestation in that country, which made its total emissions high. The estimates came from In 1990, WRI published the first estimates of an unpublished study done by a Brazilian scien- greenhouse gas emissions for all major countries.11 tific agency for the amount of deforestation in Although background data were also given, the es- 1987—the year for which emissions were esti- timates were presented as an aggregated green- mated for all countries, but also a year, as it hap- house index—an indicator that summed up for pened, in which forest clearing and burning in each country the overall impact on the atmos- Brazil were more extensive than ever before. The phere of its annual emissions of the major green- satellite technique used in the 1987 estimates was house gases. The estimates attracted widespread criticized as imprecise, and Brazil subsequently press attention and became very controversial, found a more reliable technique. On the other partly because the index allowed users to compare national emissions. Yet, they also helped provoke worldwide debate over the causes of such emissions, such as the combustion of coal, oil, and other fossil fuels and the clearing and burning Estimates of greenhouse gases of tropical forests, inspiring research, and influenc- attracted widespread press ing policy actions in several countries. attention and became very WRI has continued to publish the greenhouse index and to note trends in greenhouse gas emis- controversial, partly because the sions and their potential implications for climate index allowed users to compare change. With the passing of time, the controversy national emissions. Yet, this has faded: estimates once fiercely contested now attract no unusual attention. Indeed, countries that indicator also helped provoke have signed the Climate Convention have commit- worldwide debate, inspiring ted themselves to calculate and report their own research and influencing policy emissions. Yet, the controversy and subsequent actions in several countries. changes in both received wisdom and public policies illustrate the power of indicators to communicate and to influence public discourse. • hand, even reducing the estimated deforestation used WRI's estimates of greenhouse gas emissions in 1987 by 40 percent would not have significantly to calculate an alternative index of "excess emis- altered the result: Brazil would still have ranked sions," taking into account the Earth's natural abil- among the highest three or four nations in green- ity to sequester greenhouse gases and allocating house gas emissions that year. How much the pub- this "global sink" to countries in proportion to lic attention given deforestation rates after the theirpopulationsize.13 The Centre's index—and greenhouse index was published affected Brazil's charges that more standard ways of calculating subsequent actions is uncertain, but new and emissions represented "environmental colonial- tougher policies did combine with better enforce- ism"—engendered a debate over sinks and addi- ment and wetter weather, which reduces burning, tional research on these poorly understood to dramatically cut deforestation rates in sub- aspects of the carbon cycle. sequent years. As this experience illustrates, indicators that A third source of controversy was a com- can capture complex environmental data in an plaint from the Centre for Science and Environ- easy-to-communicate form can heighten public ment, an NGO in India. Analysts at the Centre awareness and inspire policy action. IV. ORGANIZING ENVIRONMENTAL INFORMATION: INDICATOR TYPES, ENVIRONMENTAL ISSUES, AND A PROPOSED CONCEPTUAL MODEL TO GUIDE INDICATOR DEVELOPMENT

The goal of environmental indicators is to them all, so the data are sometimes confusing. For communicate information about the environ- this reason, a conceptual framework is needed to ment—and about human activities that affect it structure diverse environmental information and —in ways that highlight emerging problems and to make it more accessible and intelligible to deci- draw attention to the effectiveness of current poli- sionmakers and the general public. Such a struc- cies. Indicators must tell us, in short, whether ture can also reveal data gaps, thus guiding data things are getting better or worse. To tell this collection efforts. story, an indicator must reflect changes over a A widely used framework for environmental period of time keyed to the problem, it must be indicators arises from a simple set of questions: reliable and reproducible, and, whenever possi- What is happening to the state of the environment ble, it should be calibrated in the same terms as or natural resources? Why is it happening? What the policy goals or targets linked to it. are we doing about it? Indicators of changes or trends in the physical or biological state of the natural world (state indicators) answer the first question, indicators of stresses or pressures from human activities that cause environmental change Many human activities have environmental (pressure indicators) answer the second, and meas- consequences, and these consequences can be nu- ures of the policy adopted in response to environ- merous and wide-ranging. The information base mental problems (response indicators) answer the used to build environmental indicators must span third. (See Figure 2.) More specifically, state indica-

Figure 2. Pressure-State-Response Framework for Indicators

Human subsystem Environmental subsystem

pollution cviviionmoMtal 1 1 c compartments 1 PRESSURE iriifi.u s iArr I inifKK i-s

resource depletion I I population Mjl>sy<;fem 1 [ ocosystonis

natural feedbacks 1 1 ^RESPONSE societal response

human system feedback tors measure the quality or "state" of the environ- Response indicators measure progress toward ment, particularly declines attributable to human ac- regulatory compliance or other governmental ef- tivities. Examples include measures of stratospheric forts, but don't directly tell what is happening to ozone concentrations, of urban air quality, or of the environment. As a practical matter, data to stocks of fish. Pressure indicators, in contrast, show construct indicators is usually most available for the causes of environmental problems: depletion pressure indicators and sparsest for response of natural resources through extraction or overhar- indicators. vesting, releases of pollutants or wastes into the environment, and interventions such as infrastructure development or the conversion of natural ecosystems to other uses. In other words, these indicators measure environmental stress. For practicality's sake, most efforts to de- Response indicators gauge the efforts taken velop environmental indicators have chosen to by society or by a given institution to improve the focus on a limited set of key environmental issues. environment or mitigate degradation. Thus they The OECD, for example, compiles and reports in- measure how policies are implemented by track- dicators for eight environmental issues. The advan- ing treaty agreements, budget commitments, tages of working from a common international list research, regulatory compliance, the introduction should be obvious, even though the importance of financial incentives, or voluntary behavioral of any single issue will vary by region or country. changes. To keep indicators as simple as possible, a This pressure-state-response framework, fol- single measure is usually selected for each major lowing a cause-effect-social response logic, was environmental issue. Often a considerable degree developed by the OECD from earlier work by the of aggregation is required. For instance, emissions Canadian government. Increasingly widely accepted and internationally adopted, it can be applied at a national level (as in this report), at sectoral levels, at the level of an individual industrial firm, or at the community level. A widely used framework for Pressure indicators measure policy effective- environmental indicators arises ness more directly—whether emissions increase from a simple set of questions: or decrease, whether forest depletion waxes or wanes, and whether human exposure to hazard- What is happening to the state of ous conditions grows or shrinks. Accountability the environment or natural for the pressures each country exerts on the en- resources? Why is it happening? vironment is clear—as in the case of the amount of ozone-degrading gases emitted. These indica- What are we doing about it? tors are not only descriptive. They can also provide direct feedback on whether policies meet stated goals because they are based on measures or model-based estimates of actual behavior. Pressure indicators are thus particularly of many greenhouse gases can be combined useful in formulating policy targets and in evalu- —through appropriate weights based on physical ating policy performance. They can also be properties of the gases and models of their life- used prospectively to evaluate environmental im- times in the atmosphere—to yield a single indica- pacts of socioeconomic scenarios or proposed tor of "equivalent" emissions. In a similar way, policy measures. data on emissions of various nutrients that cause E lakes and estuaries to eutrophy can be combined from such a matrix under consideration by UNEP. based on their chemical behavior, and measures Figure 4 shows a similar matrix adapted from one of the depletion of various resources can be aggre- being considered by the World Bank. gated using economic valuation techniques. Although they organize or structure environ- Aggregation of similar data related to a sin- mental indicators (and have been extended to so- gle environmental issue is quite common, and, cial and economic indicators as well), such arrays though experts can debate which weighting or matrices still provide an unwieldy amount of in- scheme to use, usually aggregation can be based formation. Accordingly, they may not simplify in- on generally accepted scientific or economic formation enough for decisionmakers and the principles. public. For this reason, a still higher level of aggre- Core lists of environmental issues—and of gation or structuring is recommended: grouping relevant indicators—have been and are being de- environmental issues into a few broad categories veloped by several organizations, building on the based on a conceptual model of human-environ- OECD's initial work. Such indicators can be organ- ment interaction. The indicators presented in this ized within the pressure-state-response framework report give a preliminary sense of how such aggre- into a matrix of indicators. Figure 3 is adapted gation might work and what the result might be,

Figure 3. Matrix of Environmental Indicators

Issues Pressure State Response Climate Change (GHG) emissions Concentrations Energy intensity; env. measures Ozone Depletion (Halocarbon) emissions; (Chlorine) concentrations; Protocol sign.; CFC production O3 column recovery; Fund contrib'n Eutrophication (N,P water, soil) emissions (N, P, BOD) concentrations Treatm. connect.; investments/costs

Acidifcation (SOX, NOX, NH3) emissions Deposition; concentrations Investments; sign, agreements Toxic Contamination (POC, heavy metal) (POC, heavy metal) Recovery hazardous emissions concentrations waste; investments/costs

Urban Env. Quality (VOC, NOX, SOx) emissions (VOC, NOX, SOx) Expenditures; transp. concentrations policy Biodiversity Land conversion; land Species abundance comp. to Protected areas fragmentation virgin area Waste Waste generation Soil/groundwater quality Collection rate; recycling mun'pal, ind. agric. investments/cost Water Resources Demand/use intensity Demand/supply ratio; Expenditures; water resid./ind./agric. quality pricing; savings policy Forest Resources Use intensity Area degr. forest; Protected area use/sustain, growth ratio forest, sustain, logging Fish Resources Fish catches Sustainable stocks Quotas Soil Degradation Land use changes Top soil loss Rehabilitation/protection Oceans/Coastal Emissions; oil spills; Water quality Coastal zone managment; Zones depositions ocean protection Environmental Index Pressure index State index Response index Source: OECD and UNEP

1 Figure 4. Matrix of Environmental Indicators

; Issues Pressure State Response I. Source Indicators 1. Agriculture Value Added/Gross Output Cropland as % of wealth Rural/Urban Terms of Trade a. Land Quality Human-Induced Soil Degrad. Climatic Classes & Soil constraints b. Other 2. Forest Land Use Changes, Inputs for Area, volumes, distribution; In/Output ratio, main users; EDP value of forest recyc. rates 3. Marine Resources Contaminants, Demand for Stock of Marine Species % Coverage of Int'l Fish as Food Protocols/Conv. 4. Water Intensity of Use Accessibility to Pop. Water efficiency measures (weighted % of total) 5. Subsoil Assets Extraction Rate(s) Subsoil assets % wealth Material balances/NNP a. Fossil Fuels Extraction Rate(s) Proven Reserves Reverse Energy Subsidies b. Metals & Minerals Extraction Rate(s) Proven Reserves In/Output ratio, main users; recyc. rates

n. Sink or Pollution Indicators 1. Climate Change a. Greenhouse Gases Emissions of CO2 Atmosph. Concentr. of Energy Efficiency of NNP Greenhouse Gases b. Stratospheric Ozone Apparent Consumption of Atmosph. Concentr. of CFCs % Coverage of Int'l CFCs Protocols/Conv.

2. Acidification Emissions of SOx, NOx Concentr. of pH, SOX, NOx in Expenditures on Pollution precipitation Abatement 3. Eutrophication Use of Phosphates(P), Biological Oxygen Demand, % Pop. w/waste treatment Nitrates(N) P, N in rivers 4. Toxification Generation of hazardous Concentr. of lead, cadmium, % Petrol unleaded waste/load etc. in rivers

m. life Support Indicators Land Use Changes Habitat/NR Protected Areas as % 1. Biodiversity Threatened Threatened, Extinct species 2. Oceans % total

3. Special Lands(e.g.,wetland) IV. Human Impact Indicators Burden of Disease Life Expectancy at birth % NNP spent on Health, 1. Health (DALYs/persons) vaccination Dissolved Oxygen, faecal Access to safe water a. Water Quality coliform Energy Demand Concentr. of particulates, b. Air Quality SO2, etc. c. Occupat'l Exposures,etc. 2. Food Security & Quality 3. Housing/Urban Population Density % NNP spent on Housing (persons/km ) 4. Waste Generation of industrial, Accumulation to date Exp. on collect. & treatmt, municipal waste recyc. rates 5. Natural Disaster

Source: The World Bank Figure 5. A Model of Human Interaction with the Environment

Environment impact on people

Human Activity

Economy

waste, pollution, And dissipative use

H torosysttMTi LiKTo.ichmenl H

^M Ecosystem services

thus illustrating the approach's feasibility. Highly- other natural resources of use in economic aggregated indicators, by compressing and simpli- activity, thus potentially depleting these re- fying information, communicate more effectively. sources or degrading the biological systems If all the assumptions and sources of data are (such as soils) on which their continued clearly identified, and the methodology is explicit production depends; and publicly reported, the index can readily be • sink: natural resources are transformed by disaggregated to the separate components and no industrial activity into products (such as information is lost. pesticides) and energy services that are used or disseminated and ultimately dis- carded or dissipated, thus creating pollution and wastes that (unless recycled) flow back into the environment; • life support: the earth's ecosystems—espe- Indicators are models of a more complex real- cially unmanaged ecosystems—provide es- ity, and so are systems of indicators. The appropri- sential life-support services, ranging from ateness of any model can be better judged if it is the decomposition of organic wastes to nu- explicit. Here we propose an explicit conceptual trient recycling to oxygen production to the model to guide the development of environmental maintenance of biodiversity; as human ac- indicators, acknowledging that it does not repre- tivity expands and degrades or encroaches sent the only way to organize environmental infor- upon ecosystems, it can reduce the environ- mation. (See Figure 5) ment's ability to provide such services; This model describes four interactions be- • impact on human welfare: polluted air tween human activity and the environment: and water and contaminated food affect hu- • source: from the environment, people de- man health and welfare directly. rive minerals, energy, food, fibers, and For each of these types of interactions, com- If the methodology described earlier is ap- posite indicators can be constructed. For instance, plied to this model, specific leading issues for the source and sink type of interaction are closely each of the component interactions can be identi- related to organized economic activity and can be fied. In principle, indicators can be developed for linked with specific sectors that play major roles. each such issue to describe environmental pres- Economic sectors that withdraw materials from the sures from human activity, the state of the environ- environment include the managed ecosystems (ag- ment, and the policy response. Here we focus on riculture, forestry, fisheries), energy, construction, pressure indicators, partly because they best sat- and manufacturing (including mining). Pollutants, isfy the criteria of policy-relevance and interna- waste, and materials dissipation stem mainly from tional commonality across countries and because manufacturing (including mining), energy production and consumption, agriculture, the transport sector, and the municipal and household sectors. a tors Environmental indicators for both source and sink Box 2. l-our Key \i>,nregjle Indie interactions thus potentially contain important in- • pollution formation about the sustainability of certain eco- • resource depletion nomic sectors; indeed, a source indicator can be • ecosystem risk stated in economic terms (namely, depletion) as • environmental impact on human well as physical terms. Chapters V and VI describe welfare how highly aggregated sink indicators can be summarized in a composite pollution index and how the sustainability of resource use for many they provide the basis for assessing policy per- types of resources can be summarized in a formance. Nonetheless, state and response indica- resource depletion index. tors may be immensely important, particularly in The third type of interaction described in the developing countries concerned primarily with model above is closely related to the ability of eco- identifying environmental issues and formulat- systems to provide essential ecosystem services, in- ing environmental policies, or in international including the maintenance of biodiversity. These stitutions trying to gauge their program issues are of growing importance—witness the inter- effectiveness. national agreements formalized in the Biodiversity These indices track four broad types of hu- Convention—but almost no policy-relevant indica- man interaction with the environment. As such, tors exist. Chapter VII describes how such indicators they suggest a comprehensive yet easily compre- for a central life-support function, maintenance of hended basis for national reporting and policy biodiversity, might be constructed from a geo-refer- evaluation. The four indices are aggregated from enced database and summarized for each broad eco- more than 20 primary environmental indicators, system type in a composite biodiversity measure, the many of which are themselves aggregations of a ecosystem risk index. number of similar data series—compressing a lot The fourth type of interaction is concerned of information into a simple message. These four directly with environmental conditions that might indices and their supporting indicators can be re- affect human health and welfare. Closely related garded as the environmental pressure element of to social indicators, environmental indicators a pressure-state-response matrix. They are also, keyed to this interaction thus potentially contain we submit, a possible basis for assessing national important information about social conditions and environmental policies that is practical, covers the development successes or failures. Such indicators environmental concerns that are most critical to could be summarized in an index of environ- sustainability, and can easily be communicated to mental impact on human welfare. policy-makers and the public. V. POLLUTION/EMISSION: ILLUSTRATIVE CALCULATIONS OF INDICATORS AND OF A COMPOSITE INDEX FOR THE NETHERLANDS

In human activities that treat the environment the need for completeness and the need for simplicity as a sink, what most needs to be measured are in methodology and in data coEection. In practice, emissions, wastes, and dissipative uses of materi- only the principal contributing substances are selected als. Such activities can degrade the environment in for each issue, though it is important to check that the various ways. Some create a global impact, others indicator is sufficiently representative and that no ma- primarily a local or regional impact. Those pollu- jor factor has been neglected. tion issues, important mainly because they affect The indicators are presented to be self-ex- human health and welfare, are discussed in a later planatory. Each consists of a single graph—show- chapter. So here the focus is on phenomena that ing the course of the total environmental pressure primarily alter the character or health of the measured by the indicator over time—one or Earth's physical or biological systems. Climate more policy targets, and a single percentage, change; depletion of the ozone layer; acidification which is the percentage reduction in the pressure of soils and lakes; eutrophication of water bodies; required to reach the target. In the graph, the pres- toxification of soils, water bodies, and ecosystems; sure indicator and the policy target for that issue and the accumulation of solid wastes all fall into are expressed in the same units, such as ozone- this category. These problems are of importance depletion equivalents. in the Netherlands, but other countries may give highest priority to others. Indicators for these six environmental issues are illustrated along the lines taken by the Nether- Emissions of greenhouse gases alter the com- lands.14 They are measured in physical units. position of the Earth's atmosphere so that it traps These indicators are already aggregated, since the additional heat radiated by the earth, thus increas- environmental pressures for each of the six all ing the likelihood of global warming. The main stem from emissions or releases of more than one greenhouse gases released by human activities are material or substance. Because the environmental carbon dioxide, methane, nitrous oxide, chlo- effects of the components of a given indicator rofluorocarbons (CFCs), and halons. Emissions of vary, each type of contributing emission must be any of these substances increase the atmosphere's appropriately weighted before emission can be to- warming potential. talled or aggregated to create an overall indicator How much emissions of greenhouse gases for a given issue. Halon 1301, for instance, dam- add to the potential for global warming depends ages the ozone layer more than ten times as much on how long they remain in the atmosphere be- as the reference substance CFC-11 and is fore being removed or breaking down into other weighted accordingly. Based on comparable compounds and on how well they absorb the weighting principles, a unit of measure has been heat radiated by the earth. These two factors are developed for each issue—an ozone-depletion combined in the Global Warming Potential (GWP) equivalent, for example. When the contributions for each gas, which is used as a weighting factor of each component are expressed in these units, for emissions of that gas. The weighted summa- the effects of each can be compared and then tion of the Dutch annual discharge of CO2, CH4, summarized in a single indicator. N2O, and the Dutch use of CFCs and halons, ex- The selection of contributing substances for a pressed in CO2 equivalents, forms the indicator for given indicator is based on a compromise between climate change. In 1980, the Dutch contribution to Figure 6. Climate Change Indicator Figure 7. Ozone Depletion Indicator

carbon dioxide equivalent) ozona depletion equivalents-thousand! > 300- — Actual — Actual • Goal • Goal 250- 20- •

200- • 15-

150- \ 10- \ 100-

5- 50-

1980 1985 1990 1995 2000 2005 2010 1980 1985 1990 1995 2000 2005 2010

the greenhouse effect was approximately 286 of pressed in ozone-depletion equivalents, forms the these units; in 1991, approximately 239, a decline indicator. In 1980, Dutch use and, consequently, of 16 percent in environmental pressure caused emissions, were estimated to be 20,000 of these by the discharge of greenhouse gases in the Neth- units. By 1991, it had dropped to 8,721 units, a 56 erlands. The trend of the climate change indicator percent decline in environmental pressure from is shown in Figure 6. the emission of ozone-depleting substances. This The aim of the Dutch policy is to reduce the trend in the ozone depletion indicator is shown in 1988 discharge levels of greenhouse gases by more Figure 7. than 50 percent by the year 2020. The near-term The Dutch policy target is nearly complete policy targets are to reduce emissions to 205 CO2 termination of production of ozone-depleting sub- equivalents by 1995 and to 195 by the year 2000. stances—to a level of 54 ozone-depletion equivalents—by 1995. By the year 2000, the target goal is zero production. The assumption here is that the use and, consequently, the emissions of CFCs The ozone layer blocks ultraviolet rays that and halons will follow the same trend as their are harmful to people, flora, and fauna. Its deple- production. tion is caused by pollution of the stratosphere by substances that catalyze the decomposition of ozone (O3). When this happens, ultraviolet radiation increases. The compounds most damaging to the ozone layer are chlorofluorocarbons (CFCs) Air pollution by substances that form acids and halons, which may take 10 to 15 years to acidifies the environment. Acid deposition can di- reach it once released. rectly damage buildings, materials, and plants. In- How damaging these ozone-depleting com- direct damage occurs via acidification of the soil. pounds are depends on how long they reside in The three main acidic substances are sulphur diox- the atmosphere and how readily their constituent ide, nitrogen oxides, and ammonia; other acidic chemicals react to break down ozone. These two components and ozone are not incorporated in factors are combined in an Ozone Depletion Po- the indicator. tential for each gas, which is used as a weighting The potential environmental damage from factor for emissions of that gas. The weighted sum- acidifying substances that are deposited in the soil mation of the Dutch use of CFCs and halons, ex- Figure 8. Acidification Indicator Figure 9. Eutrophication Indicator

acidiftcation equivalent per hectare) {eutrophication equivalent) 7,000 - — Actual —Adual • Target 6,000 - - Sustainabtlity Level 300 - ^~X - SusUinability Level 5,000 - V 250 -

4,000 - ^ • 200 -

3,000 - 150 -

2,000 - 100 -

1,000 - 50 -

o- 1990 1995 2000 2005 2010 1980 1985 1990 1995 2000 2005 2010

is expressed in units of acidification equivalents reason why heaths or peat bogs are becoming in- per hectare per year. In 1980, deposition consisted creasingly overgrown with grass. In addition, ni- of 6,700 units; in 1991, the comparable figure was trate levels in groundwater are now so high that 4,100, reflecting a decline in the environmental drinking water supplies are under threat. Phos- pressure from acidification of 39 percent. This phates and nitrogen compounds are the primary trend in the acidification indicator is shown in substances that cause eutrophication; in the Figure 8. Both foreign and domestic sources con- Netherlands, the principal sources are manure, fer- tribute to acid deposition; in 1980 and 1989, tilizer, wastewater, sewage sludge, dredge spoil, Dutch sources contributed 48 percent and 54 per- and solid waste. cent, respectively, of total acidic deposition in the Releases of phosphates and nitrogen com- Netherlands. pounds to the environment can be expressed in The policy target set by the Dutch govern- units of eutrophication equivalents. In the indica- ment is to reduce deposition to 4,000 acidification tor, only releases from Dutch sources are in- equivalents by 1994, to 2,400 units by 2000, and cluded. In 1980, such releases totalled 302 units; to 1,400 units by 2010. The sustainability level, or in 1991, the amount was 273 units, a decline of 10 the long-term target, is estimated to be 400 acidifi- percent in environmental pressure resulting from cation units. These targets relate to the total depo- the discharge of the two main eutrophying sub- sition, which includes the foreign contribution. stances. The trend in the eutrophication indicator is shown in Figure 9- The Dutch policy objective is to restore the balance between the supply and removal of phosphates and nitrates in water and soil so as to safe- Eutrophication of the environment occurs guard the natural processes. The target for the when an excessive supply of plant nutrients dis- year 2000 is calculated to be 95 eutrophication rupt ecological processes in water bodies or in equivalents. soil. One manifestation of eutrophication is an un- desirably large quantity of algae in ponds and lakes, which leads to a shortage of oxygen. Plant species that thrive in low-nutrient environments Many chemicals, heavy metals, radioactive sub- often disappear as a result of eutrophication—one stances and other toxic or hazardous substances Figure 10. Toxics Dispersion Indicator Figure 11 Solid Waste Disposal Indicator

(loxlc and hazardous pollution equivalent) dumped solid waste equivalents) 350- 20- — Actual — Actual 300- A • Goal • Goal

15- —-— 250- . -A

200- • 10- 150-

100- 5- • • 50-

980 1985 1990 1995 2000 2005 2010 980 1985 1990 1995 2000 2005 2010

are released to the environment in industrial pollution or waste or in consumer products. Some toxic materials, such as pesticides, are deliberately dis- The disposal of solid wastes involves collec- persed into the environment. tion, treatment, processing, recycling, reuse and The indicator for dispersion focuses on re- incineration, discharge, and dumping. Here dis- leases of three main categories of substances: posal is represented as the total quantity of solid pesticides, radioactive substances, and priority sub- waste dumped annually, apart from dredge spoil, stances (chemical and heavy metals deemed to manure, phosphoric acid gypsum, and polluted pose the greatest risks). A distinction is made be- soil. Dumped residues from waste-incineration tween agricultural and non-agricultural uses of plants are included. The dumped quantity is ex- pesticides; only the former is included in the in- pressed in waste equivalents in millions of tonnes dicator. Releases are weighted according to their per year. In 1980, an estimated 15.3 such units toxicity and their longevity in the environment were dumped in the Netherlands, and 14.1 units and measured in units of dispersion equivalents. in 1991. The trend in the waste disposal indicator In 1980, the total quantity of substances re- is shown in Figure 11. leased into the environment was estimated to be The Dutch policy objective is primarily to pre- 251 units; in 1991, this quantity had fallen to vent the creation of waste products. Where waste 222 units, a decline in environmental pressure products exist, the goal is first to bring about a from toxic dispersion of 11 percent. The trend shift from dumping and incineration to recycling in the toxic dispersion indicator is shown in (in the same production chain) and reuse (in Figure 10. another production chain). The waste disposal The Dutch policy objective is to reduce the policy target for the year 2000 is 5.0 waste quantity of each of the hazardous substances re- equivalents. leased into the environment to a level at which the risk posed by each substance is negligible. *•.'} - trv.x^ Reduction targets have been set for each category of substances. The policy target calculated on this These six indicators—already highly aggre- basis is to reduce releases to 196 dispersion gated—can be further aggregated into a composite equivalents by the year 1995 and to 139 units by pollution index, representing the overall pressure the year 2000. from the use of the environment as a sink. To do so requires aggregating unlike quantities. This is done by weighting each environmental issue on Figure 12. Composite Pollution Index the basis of the gap between the current value of the indicator and the long-term policy target for sustainability: the greater the gap, the larger the weight assigned. Figure 12 shows a composite pollution index calculated on that basis for the Neth- erlands and incorporating six indicators, each disturbance 6000 • disposal measured in units of environmental pressure ^Hliill dispersion 4000 ' equivalents. The overall trend shows a decline in * % yfy cutrophication environmental pressure from 1980 through 1991- .indication 2000 • The trend in the individual indicators or in change the composite pollution index over time provides 1 ' ' 1 ' ' 1 1 a strong measure of whether actions to reduce the pressures on the environment are moving the Netherlands toward or away from its goals for sustainability. A comparison of such an index across arising from other pollution problems. As the comparable countries on a per capita or per GNP Dutch examples illustrate, the indicators greatly basis would suggest where the intensity of pollu- compress and simplify data on environmental pol- tion is most severe. lution, making the trends comprehensible to pol- Although the specific pollution or emission- icy-makers and the public. The composite related problems that are most important will dif- pollution index provides an even greater degree of fer from country to country, the methodology simplication and a corresponding ease of communi- employed here can be used to develop appropri- cation about the overall effectiveness of a country's ate indicators of the environmental pressures environmental policies in reducing pollution.

a In the composite index shown here, an indicator for environmental disturbance from odor or noise has been used in- stead of the ozone depletion indicator discussed above. VI. RESOURCE DEPLETION: ILLUSTRATIVE CALCULATIONS OF COMPOSITE INDICES FOR SELECTED COUNTRIES

The key issue for human activities based on indicators of fisheries depletion and other renew- natural resources is the sustainability of resource able resource depletion are also stated in physi- extraction or production. Extraction of subsoil min- cal units. Here, however, we illustrate two erals and of energy minerals depletes the resource; versions of a composite index based on eco- by definition, it can't be sustained indefinitely. On nomic units, which permit easy aggregation of current evidence, many renewable resources (or various resources. the biological base that sustains them) are also be- The indices illustrated here use the methodol- ing depleted. Managed ecosystems (agriculture, ogy of natural resource (or "green") accounting. forests, and fisheries) and groundwater systems Rather than seeking to modify the value of the are especially threatened in many locations. For GDP, however, the methodology is used here to example, erosion, micronutrient depletion, com- create highly aggregated indicators of resource de- paction, or the excessive use of pesticides are tak- pletion. These indicators directly measure the sus- ing a widespread toll on soil fertility. In principle, tainability of natural resource use and thus forests can be harvested sustainably, but all too provide a signal of the effectiveness of natural often they are simply cleared, fragmented, or cut resource policies that may be especially important excessively. Many groundwater resources are for economies dependent on such resources. The index of resource depletion proposed here measures the value of the decline in natural resource stocks in a country relative to the value of gross (or net) investment in man-made capital These indicators directly measure during the given year. Roughly speaking, the in- the sustainability of natural dex indicates the degree of departure from sustainable resource use, assuming that the depletion of resource use, so they signal the natural resources is sustainable if their use leads effectiveness of natural resource to the creation of other assets of equal value. In policies— especially important for the language of the economics of sustainable de- economies dependent on such velopment, this is an assumption that natural resource assets can be substituted by fixed assets if resources. society's total capital does not decrease as a result (so-called "weak sustainability"). The index is normalized so that an index of one indicates that the increase in man-made capital is offset exactly by the depreciation of the na- being pumped or degraded by pollution, far faster tion's natural assets. An index much less than one than they can be replenished. Overfishing has se- indicates that resource depletion is small com- verely depleted stocks in many marine fisheries pared with the increase in man-made assets (a de- and may have permanently degraded the produc- sireable circumstance); an index greater than one tivity of some. indicates that resource depletion exceeds the for- Resource depletion can be measured in mation of man-made capital (evidence of unsus- physical and in economic units. Mineral resources tainable development). A negative value indicates are usually quoted in physical units, and many the development or discovery of new resources. The data used to generate the index come ner consistent with the SEEA. It was thus neces- from fifteen separate natural resource or environ- sary to recalculate resource depreciation using mental accounting studies and from the standard raw data from the studies. Also, the original stud- national economic accounts. (See Appendix 1.) En- ies include significant caveats regarding their credi- vironmental accounting, a relatively new method- bility and precision. (None has been published as ology, has been implemented only on a trial or an official government document.) Given these illustrative basis and only in a few countries. The qualifications, the index described here must be United Nations Statistical Office's new handbook seen as illustrative only and cannot be used to for Integrated Environmental and Economic Ac- draw conclusions about one country as compared counting proposes a System of Environmental and to another. Economic Accounts (SEEA) which amounts to a The trend of resource depletion over time framework for describing natural resource deple- within a given country is not subject to the qualifi- tion in "satellite" accounts that parallel the conven- cations described above, but other caveats hold in tional national economic accounts.17 interpreting these trends. As applied in most stud- Because most efforts to carry out natural re- ies to date, the level of resource depreciation is source accounting will probably follow the pro- highly sensitive to prices. Even after adjusting for posed UN system, the index illustrated here is inflation, the depreciation in one year might differ based on that framework. Most natural resource substantially from that in the following year be- accounting studies implemented to date corre- cause of price changes from one year to the next. spond to a particular version of the SEEA (de- The present system of national economic accounts scribed in the UN handbook as Version IV, which avoids these problems by establishing a base-year extends the boundary of measured economic activ- value, so year-to-year changes in economic meas- ity far enough to take renewable resource deple- ures reflect changes in the physical quantities con- tion into account). An important issue in such sumed or produced, not price fluctuations. If this studies is how changes in resource stocks are practice were extended to the SEEA, then annual measured. If the resource is bought and sold di- variation in the proposed index of resource deple- rectly, stock changes can be valued by standard, tion would reflect only the changes in the physical market-based methods. But if the resource is not depletion of the resource base. directly bought and sold in markets, less standard With these qualifications, however, the illus- and more controversial methods must be used. Be- trative calculations of the resource depletion index cause of differences in methodology and similar for some fifteen countries show some interesting differences in the range of resources included in patterns. (See Figure 13.) In Australia, for example, the studies, the resource-depletion estimates sum- fixed capital formation appears to outweigh the marized in this illustrative index are not directly depletion of mineral stocks and soils, though the comparable across countries (or even across stud- trend is to ever greater depletion. In Brazil, on the ies for the same country). Comparability can come other hand, after a brief excursion into unsustain- only when the SEEA is implemented consistently. able territory (when the depletion of mineral and Nonetheless, for the purpose of illustrating how forest resources seemed to exceed fixed capital an index based on the SEEA could be developed, formation), the trend has been toward relatively the index of resource depletion presented here in- less resource depletion and, hence, toward more cludes all resource-depletion estimates developed sustainable practices. In the Philippines, two stud- in the original studies. ies focused on different resources and came to dif- Further qualifications are necessary. With ferent conclusions about the extent of resource three exceptions, the natural resource accounting depletion relative to fixed capital formation. In In- studies on which the index illustrated here are donesia, the depletion of oil, forest, and soil re- based did not develop and present data in a man- sources appears to fluctuate relative to fixed Figure 13. Resource Depletion Index: Resource Depreciation/Gross Fixed Capital Formation

Australia Brazil China Costa Rica

IMO IMS 1970 1075 1M0

Indonesia Mexico Nepal Papua New Guinea

1970 1975 1980

Philippines-NRAP Philippines- WRI Thailand United Kingdom

IMS IMO

United States - BEA United States - G&M

capital formation, but the trend is toward increas- ard GDP for these resource sectors. This ratio ing sustainability. In China, the depletion of coal, shows whether the sector is operating sustainably iron, and the city of Beijing's groundwater re- or not. Here, a value of one means essentially no sources appears to be greater than fixed capital depletion; a value much less than one suggests formation, though the trend is toward increased that most of the sector's product comes at the ex- sustainability. pense of natural resources, and a negative value The index of resource depletion is macro-eco- indicates depletion even greater than output; a nomic, representing the overall role of resources value greater than one, on the other hand, indi- in the economy. If fully implemented, the SEEA cates that growth of stocks more than compen- framework enables analysts to calculate compara- sated for harvesting or that the resources had ble indices for any given economic sector. This otherwise increased in value during the year. disaggregation of the index by sector could be par- The patterns in Figure 14 show wide vari- ticularly important in developing or monitoring ation. In Australia, Brazil, Thailand, and (in one the effectiveness of sectoral policies. Figure 14 il- study) the Philippines, the renewable resources as- lustrates this disaggregation for the major renew- sessed are only slightly depleted. In another study able resources, giving the ratio of the environ- of somewhat different resources, depletion in the mentally adjusted domestic product for agricul- Philippines appears high, exceeding sector output ture, forestry, and fisheries combined to the stand- toward the end of the period studied. Depletion Figure 14. Resource Depletion Index: Resource Depreciation/Sector Domestic Product (Agriculture-forestry-fisheries sector)

Australia Brazil Costa Rica Indonesia

1MB tWO 197S 1980 ISM 1985

Mexico Papua New Guinea Philippines • NRAP Philippines - WRI

IMS IMO 1 Thailand United Kingdom United States - BEA

appears to fluctuate in Indonesia and Costa Rica, ability of natural resource use. The trends re- with an overall trend toward higher depletion. vealed by such indicators over time show whether Because the SEEA accounting practices have natural resource use is becoming more or less sus- not been implemented, the indices illustrated here tainable. A multi-country comparison of a compa- could not now be routinely calculated. In princi- rable resource depletion index could suggest ple, however, the depletion indicators described where depletion is most severe. A natural target is here can be calculated from the SEEA and a re- suggested by the structure of the index, either no source depletion index could be calculated in net depletion (for "strong sustainability") or no de- physical units for many countries. The point is to pletion in excess of the creation of fixed assets illustrate the potential of resource-depletion indica- (for "weak sustainability"), but specific targets tors to help decisionmakers and the public to bet- would depend on national policies yet to be ter assess policy effectiveness and the sustain- adopted. VII. BIODIVERSITY: AN ILLUSTRATIVE APPROACH TO THE DEVELOPMENT OF COMPOSITE INDICATORS

Nature provides many services necessary to activity can be assigned. In addition, it is far easier the support of all life. So-called ecosystem serv- to monitor how changes in many human activi- ices range from oxygen production to water purifi- ties—such as cutting of forests—affect ecosystems cation, nutrient recycling, and maintenance of than to monitor populations of species. biological diversity, among others. In our model At present, virtually the only widely reported of how human activities interact with the environ- indicators pertinent to biodiversity are lists of en- ment, indicators of biodiversity are a proxy for dangered species (a state indicator), statistics on measures of fundamental life-support functions. the amount of wilderness area (also a state indica- Focusing on biodiversity also serves the emerging tor showing the absence of human activity), or sta- need for methods of national monitoring and re- tistics on the percentage of land accorded various porting under the Biodiversity Convention. degrees of protection (a response indicator). None The diversity of life is reflected at the levels of these measure the pressures on ecosystems of genes, species, and ecosystems. Although all from human activities. Human activities that en- three reflect important elements of Earth's biologi- croach upon or degrade ecosystems (ecosystem cal heritage, many of the interactive processes criti- pressures) and measures of an ecosystem's ability cal to all life take place at the ecosystem level. to maintain biodiversity or provide other ecosys- Thus, while biodiversity can in some sense be tem services (ecosystem condition or state) per- force vary significantly from one area to another, even within the same ecosystem. For these rea- sons, national measures of biodiversity of use to policymakers may be impossible to compile un- While biodiversity can in some less they are based on spatially referenced data—essentially, digital maps. Such maps, featur- sense be measured by counting ing the spatial distribution of vegetation types or species or listing endangered other markers of broad ecosystem type, basic species, policies to preserve physical data on land type and microclimate, as well as the location and intensity of various hu- biodiversity must aim higher man activities, represent a novel but increasingly —at the ecosystem or habitat. important kind of primary data. We suggest that such data constitute the essential information base needed to construct meaningful biodiversity indicators. Fortunately, increasingly sophisticated Geographic Information System (GIS) techniques measured on a species level by counting species allow researchers to manipulate and interrelate or listing endangered species, policies to preserve digital maps. The biodiversity indicators proposed biodiversity must of necessity aim higher—at the here, then, consist of summary national statistics ecosystem or habitat. extracted from digital maps and the interrelation- Another reason to take this approach is that ships among them. Concrete examples might be ecosystems correspond at least roughly to geo- the percentage of wetlands at high risk of biodiver- graphical units for which administrative responsi- sity loss, or a graph showing the trend over time bility for conservation and land management of total pressures on forests. Human activities that directly pressure ecosys- sionmakers a more sophisticated and useful indica- tems include destruction of habitats or conversion tor than uncalibrated pressure data alone can. of land to other uses—say, clearing of forests or The trend over time of summary statistics filling in wetlands; overharvesting, e.g. of fire- drawn from a digital map of ecosystem risk would wood or overgrazing of domestic animals; intro- provide a strong measure of whether the pressures ducing exotic species; or polluting or diverting of human activity are undermining a nation's biodi- water. Some of these activities are not easily meas- versity. A comparison—by country or by major eco- ured and can only be estimated on the basis of system type—of such indicators across a region such indirect measures as human population distri- would suggest where the risks are most severe. bution or the presence of roads and other infra- Targets for such indicators would need to be structure. Others can be measured, and many set in conjunction with the Biodiversity Conven- countries already posses relatively good spatial tion and by individual nations. Indeed, such indi- data on them. Superimposed digital maps of such cators and the digital maps used to calculate them variables crudely show the distribution of pres- could form the basis for national policy action and sures on ecosystems. reporting under the Biodiversity Convention. Information on the pattern of pressures on an Meanwhile, development planners and others ecosystem and their trend over time can speak vol- eager to improve the sustainability of land use umes in itself. But the same level of pressure—a and land management practices should find these stocking density of one cow-equivalent per hec- maps invaluable. At any rate, efforts to develop tare in grasslands, for example—may have little or such map-based indicators of ecosystem risk can no effect in one area but may exceed local biologi- serve several information purposes. cal thresholds and alter the species mix in an- Such efforts are already afoot. Similar map- other. Thus, an ecosystem's inherent sensitivity to based tools have been developed by the U.N. human disturbance and its heightened sensitivity Food and Agriculture Organization to guide agricul- as degradation worsens also help determine its vul- tural planning and by the U.S. Forest Service to as- nerability to further degradation. In terms of eco- sess fire risk.19 Digital maps showing population system services, this vulnerability translates into distributions and existing infrastructure are already the risk that the ecosystem will be unable to main- being compiled for most countries in Africa and tain biodiversity.18 Measures of inherent sensitivity provided to those countries for checking and local include the distribution of geophysical and biologi- use as a development planning tool.20 Building on cal parameters (such as soil type, climate zones, that effort, the World Resources Institute is work- slope, and proximity to waterways); and the cur- ing with the World Conservation Monitoring Cen- rent degree of modification in the area (whether tre, RTVM, Conservation International, and the habitat fragmentation or soil erosion, for instance). Institute for Sustainable Development to collect ex- Combining pressure and sensitivity data—by inter- pert knowledge and to prepare preliminary pres- relating digital maps through algorithms that re- sure, sensitivity, and ecosystem risk maps for a few flect the regions' ecological thresholds—can show countries in Africa.21 The digital maps and the indi- the relative risk of degrading biodiversity through- cators calculated from them will then be evaluated out an ecosystem. Such measures, either in map by experts and potential users in the mapped coun- form or as summary national statistics compiled tries. In short, although it's too early to assess the from it—an ecosystem risk index indicating the utility of ecosystem risk indicators, composite biodi- percentage of area at high risk—would give deci- versity indicators seem both feasible and promising. VIII. HUMAN IMPACT/EXPOSURE INDICATORS

Many forms of environmental pollution or of Further discussion is needed to establish a natural resource degradation are important be- consensus on how to measure social equity in en- cause they directly affect people. Sanitation prob- vironmental exposures. (For instance, should expo- lems, such as polluted drinking water, are a major sure be correlated to income or to other relevant cause of human disease; urban air pollution and social groups?) Hence no prototype indicators are exposure to environmental disease vectors also im- included here. That said, such indicators and their pair health. The key questions here thus concern human welfare, the environmental conditions that undermine it, and the social equity of how invol- untary exposures to such environmental pressures Further discussion is needed to are distributed among people. The component issues of the overall index establish a consensus on how to proposed here include drinking water pollution, measure social equity in environ- air pollution, environmental disease vectors, con- mental exposures. taminated food, inadequate housing, and occu- pational exposures to toxics. Typically, such conditions vary widely within a country and affect some people but not others, so that, for example, measures of air pollution in a few cities aggregate, a composite index of environmental im- do not provide a useful national index. In the in- pact on human welfare, could be profoundly im- dicators proposed here, the degree of exposure portant in many developing countries. Indeed, is weighted by the population exposed. Thus, their trend over time could provide a measure of data on the number of days on which ambient whether environmental pressures on a nation's hu- concentrations of major air pollutants—sulfur di- man welfare are improving or getting worse, and oxide, ozone, carbon monoxide, particulates, a comparison of such an index across countries and lead—exceed WHO standards might be mul- could reveal trouble spots where the international tiplied by the number of people exposed, city community might want to help diffuse threats to by city, to give a national impact number. Other human welfare or lessen the inequity of environ- indicators can reflect the size of the populations mental risks. This index could provide important exposed to substandard drinking water, living in environmental information; it could also be com- substandard housing, exposed to toxic sub- bined with other health information to create an stances on the job, or exposed to food supplies overall health index of use as an indicator of sus- contaminated by pesticides or heavy metals. tainable development. IX. APPROACHES TO SUSTAINABLE DEVELOPMENT INDICATORS

This report spells out an approach to struc- framework is taxonomic rather than causal—there ture environmental pressure indicators into four is no inherent connection between pressure and highly aggregated indices. The working assump- state indicators. How existing economic and social tion is that a similar approach could be taken to indicators fit into such a framework also appears construct state and response environmental indica- to be somewhat arbitrary. tors. In this chapter, we move beyond environ- A second approach, proposed by Peter mental indicators to consider in a preliminary way Bartelmus of UNSTAT, consists of pairing sustain- integrated frameworks and indicators for sustainability policy issues (represented by clusters of able development. Agenda 21 topics) with data-collection and statisti- The concept of sustainable development rep- cal validity issues, as represented by indicators se- resents an attempt to reconcile or establish a bal- lected from the Framework for the Development ance among economic, social, and environmental of Environmental Statistics and other standard sta- factors. As part of efforts to give the term opera- tistical series.22 This approach yields a large set of tional meaning, many proposals for indicators of indicators that can be undergirded by generally re- sustainable development have emerged since the liable data, but reflects the point of view of data 1992 Earth Summit on environment and develop- providers rather than users and, more important, ment. Those involved generally agree that a suitable does not address some important issues for which overall framework must link the environment to eco- solid data are not yet available (such as life- nomic and human development, but beyond that support issues). opinion diverges—witness the following sampling of A third approach, proposed by Albert information tools being considered or proposed. Adriaanse, of the Dutch Ministry of Housing, Physi- One approach is simply to extend the pres- cal Planning, and the Environment (and a co- sure-state-response framework used for environ- author of this report), follows the conceptual mental indicators into economic and social realms. approach used here to develop aggregated envi- That approach is reflected in a preliminary list of ronmental indicators. Indicators in economic and sustainable development indicators prepared social domains, as in the environment, would be jointly by the staff of the U.N. Commission on Sus- structured by a few key determinants (or indices) tainable Development and the U.N. Statistical Of- that reflect the primary policy focus in each do- fice (UNSTAT) and in a similar list contained in a main.23 For environmental policy, the proposed de- forthcoming World Bank publication, Monitoring terminants are resource use, pollution releases, Environmental Progress. Such lists are typically and ecosystem risk; for economic policy, resource presented as a large matrix of indicators, with col- use, productivity, poverty and equity, and invest- umns representing pressure, state, and response ment; and for social policy, education, health, and and rows clustered by Agenda 21 topics or lists of the status of women. Although the environmental issues (including those discussed in this report). In determinants of this approach arise out of a model an environmental context, the pressure-state-re- of human interactions with the environment, the sponse framework highlights the causal link be- proposed economic and social determinants are tween environmental pressures and the degrada- more ad hoc; ideally, the choice of those determi- tion of the environment, thus connecting to a key nants should arise out of an international discus- environmental goal of sustainable development sion of users' needs. (managing pressures to maintain environmental Just such an approach is proposed by mem- quality). In economic and social contexts, the bers of the U.S. Interagency Working Group on Sustainable Development Indicators. This team is and at the World Bank focuses on measures of to- trying to expand the causal chain of the pressure- tal wealth as well as net savings.28'29 Such eco- state-response framework and apply it equally to nomic approaches have many useful applications. environmental, social, and economic variables.24 But, because they depend on monetary valuation In their approach, the links in this chain are natu- and the price system, they can't easily incorporate ral events and human activities; causes of change aspects of environmental or social sustainability (both positive and negative); states of economic that have no price. Thus while such approaches assets, natural and environmental resources, and provide an important method of creating indica- social capital; measures of human well-being; and tors (as is illustrated in Chapter VI of this report), responses. The U.S. group is also calling for the they may not be broad enough to serve as an development of new indicators of social capital. overall framework for monitoring and guiding sus- Another approach, proposed by Edgar E. tainable development. Gutierrez-Espeleta of the University of Costa Rica, a consultant to the Earth Council, bases a framework for sustainable development indicators on concepts or attributes of agro-ecosystems: productivity, equity, resilience, and stability.25 Environ- Indicators are not an end in mental, economic, and social indicators already in themselves. Rather, they are tools use represent these attributes at a national level, that, used with wisdom and and they are aggregated first under each attribute and then into a single Approximated Sustainability restraint, can build support for Index. But the indicators of each attribute appear needed change. to be assigned somewhat arbitrarily and the attributes themselves may overlap. (Resilience and stability, for instance, are similar.) The approach has been applied in an illustrative way to calculate an overall index for Costa Rica over a period of The proposals discussed here exemplify, but by years. no means exhaust, the range of options for creating Other approaches to measuring sustainability integrated frameworks for sustainable development based on natural resource accounting or on alter- indicators. Each has distinct advantages and innova- native economic concepts—such as sustainable tive features, but it seems premature to endorse any economic welfare—have also been proposed and particular one. Indeed, the proper framework for 26 illustrated in country-specific applications. One economic and social (as well as environmental) indi- of the most explicit is that proposed by David cators of sustainable development belongs high on Pearce and his colleagues at University College- the international research agenda. Such research of- London, which builds on his definitions of "weak" fers an important opportunity to free society from and "strong" sustainability. Pearce suggests focus- world views that have outlived their utility and, ing on savings rates and argues that sustainability hence, to rethink whether existing social, economic, in the weak sense means that the value of savings and environmental indicators continue adequate for must at least equal the depreciation of manufac- the future. tured capital less the depletion of natural capital, Of course, indicators are not an end in them- 27 so that society's total capital does not decline. selves. Rather, they are tools that, used with wis- For strong sustainability, an additional constraint dom and restraint, can build support for needed applies: the natural capital stocks on which the changes and guide the actions of governments, in- life-support system depends must also not decline. ternational organizations, the private sector, NGOs More recent work at University College-London and other major groups toward sustainability. X. IMPLICATIONS FOR ACTION

Although this report has focused on a core most pressing in developing countries, such as en- list of environmental issues, these are far from the vironmental impacts on health and the depletion only environmental concerns. Nor will they have of renewable resources. Nor do they provide an equal importance in all regions or over all time. appropriate "geo-referenced" or location-specific For this reason, environmental indicators information base for such issues as biodiversity —and sustainable development indicators as and land use. well—must be viewed flexibly and need to be sub- We do not believe that nations should focus ject to frequent reconsideration as conditions solely on the data that support the indicators out- change, new issues arise, and responses to some lined in this report. Certainly each nation will problems begin to work. have its own priorities for data collection and analysis, reflecting local needs for resource management, environmental regulation, etc. Yet, both international organizations and individual nations should note the data needs that these indicators (or others that become widely accepted) imply The four highly aggregated indices pro- and, where possible, incorporate these data and posed in this report rest on a core set of more analytical procedures into their standard environ- than 20 environmental indicators that are, in mental monitoring and data-reporting efforts. The turn, based on a significantly larger field of pri- development of such a common database would mary data and analytical procedures. Thus, this itself be a significant step toward improving or any set of indicators chosen to guide national shared knowledge of the environmental pressures policy-making and international reporting also on the planet and the effectiveness of current poli- has implications for the rest of the information cies in counteracting them. The broader aware- pyramid: they establish implicit priorities for en- ness of environmental pressures that would result vironmental monitoring and thus structure data from such a common data-collection, analysis, and collection and analysis. Many existing statistical reporting effort (and from similar efforts on eco- series—as assembled in the pre-UNCED Frame- nomic and social indicators) itself is an essential work for the Development of Environmental Sta- precondition for sustainable development. tistics, for example—focus heavily on the environmental problems common in industrial countries, such as pollution, and slight those Indicators play a key role in the policy process by reducing uncertainty in decisionmaking or otherwise facilitating better decisions. But indicators can play such a role only if decisionmakers Each nation will have its own consider them useful and use them. In the end, priorities for data collection and only users know what information they need—the bedrock principle for those who structure the data analysis, reflecting local needs for collection, analysis, interpretation and aggregation resource management and envi- that results in indicators. ronmental regulation. A complicating matter is the need for conver- gence. The users of the indicators discussed in this report are national and international decisionmakers, an audience that spans many interests can significantly add to or detract from effective and needs. But if each country uses different in- communication. Graphical presentations can help dicators or different methodologies, interna- users visualize key information, and so can short tional agencies can't plan effectively and textual explanations. Conversely, long or overly opportunities for countries to cooperate to solve technical presentations may irritate or exclude global or continent-wide environmental issues both decisionmakers and the larger public. may be missed. Thus, we plead strongly for in- One model format for reporting is used by ternational discussions to bring about a consen- the Canadian government for environmental indi- sus on which indicators to develop first and cators. Each edition of this 4-page nontechnical which methodologies to use. Obviously, conver- bulletin treats a given environmental issue. Each gence can be facilitated by the use of electronic includes pressure, state, and response indicators networks and other modern information tech- in graphical form, together with explanatory text. nologies and techniques. (See Appendix 2.) Technical details are published in an accompanying bulletin. Similar short bulletins have also been used by the Dutch government and are being considered by the U.S. The format in which indicators are reported Environmental Protection Agency.

Allen Hammond is Director of the World Resource Institute's Program in Resource and Environmental Information and was formerly editor-in-chief of its World Resources series. Previously, he was editor-in-chief of the National Academy's policy journal Issues in Science and Technology, founder and editor-in-chief of the popular science magazine Science 80, and reporter and Research News editor at the scientific journal, Science. Albert Adriaanse is a professional environmentalist working since 1971 in the Dutch Ministry of Housing, Spatial Planning, and Environment. There he has been engaged since 1981 in environmental information management and was responsible for the development of the National Reference Centre for Environ- mental Information. Since 1987, he has directed the development of environmental policy performance indicators for the Netherlands. Eric Rodenburg is a Senior Associate in WRI's Program on Resource and Environmental Information, where he is Director of Research for the World Resources series and also works on environmental indicators. Formerly, he worked in famine research and international development issues. Dirk Bryant is currently heading efforts to develop biodiversity indicators for WRI's Program in Resource and Environmental Information, where he is a research associate. Prior to coming to WRI, he worked on environmental and rural development projects in Senegal, the Gambia, and Belize. Richard Woodward collaborated on a natural resource accounting study in Costa Rica for WRI's Program in Economics and Population and has also worked as a consultant to the Program on Resource and Environmental Informa- tion. He is currently pursuing his Ph.D. in agricultural economics at the University of Wisconsin. NOTES

1. Albert Adriaanse, Policy Performance Indica- 11. World Resources Institute in cooperation with tors (SDU Publishers, the Hague, 1993). the U.N.Environment Programme and the U.N. 2. A.L. Hammond, D. Tunstall, et.al., Environ- Development Programme, World Resources mental Information In the Bank: Assessment 1990-92 (Oxford University Press, New York, and Recommendations (World Resources Insti- 1990), pp. 13-19. tute, Washington, D.C., unpublished report 12. World Resources Institute in collaboration submitted to the World Bank, December, with the U.N. Environment Programme and 1993). the U.N. Development Programme, World Re- 3- Environment Canada, A Report on Canada's sources 1992-93 (Oxford University Press, Progress Toward a National Set of Environ- New York, 1992), pp. 205-211. mental Indicators, State of the Environment 13. Anil Agarwal and Sunita Narain, "Global Report No. 91-1 (Environment Canada, Wanning in an Unequal World" (Centre for Sci- Ottawa, 1991). ence and Environment, New Delhi, 1990- 4. Government of the Netherlands, National Envi- 14. Albert Adriaanse, Policy Performance Indica- ronmental Program, 92-95 (Second Chamber tors (Ministry of Housing, Physical Planning, of Parliament, The Hague, 199D- and Environment, the Hague, 1993). 5. Organization for Economic Cooperation and 15. R. Repetto et.al., Wasting Assets: Natural Re- Development (OECD), Environmental Indica- sources in the National Income Accounts tors (OECD, Paris, 1994). (World Resources Institute, Washington, D.C, 6 .Dan Tunstall, Allen Hammond, and Norbert 1989); E. Lutz and S. El-Serafy, "Environmental Henninger, Developing Environmental Indica- and Resource Accounting: An Overview" tors (World Resources Institute, Washington (World Bank, Washington, D.C, 1989). D.C, 1994). 16. D.W. Pearce, G.D. Atkinson, and W.R. 7. R. Repetto et.al., Wasting Assets: Natural Re- Dubourg, "The Economics of Sustainable De- sources in the National Income Accounts velopment," Annual Reviews of Energy and En- (World Resources Institute, Washington, D.C, vironment, vol. 19 (1994), pp.457-74. 1989); E. Lutz and S. El-Serafy, "Environmental 17. United Nations Statistical Office, Integrated En- and Resource Accounting: An Overview" vironmental and Economic Accounting (World Bank, Washington, D.C, 1989). (United Nations, New York, 1993). 8. United Nations Statistical Office, Integrated En- 18. Based on concepts proposed by John MacKin- vironmental and Economic Accounting non at a WRI/WCMC workshop on habitat in- (United Nations, New York, 1993). dicators, Cambridge, U.K., October 11-12, 9- W. Pearce and G.D. Atkinson, "Capital theory 1994. and the measurement of sustainable develop- 19- United Nations Food and Agriculture Organiza- ment: an indicator of 'weak' sustainability," tion (FAO) and the International Institute for Ecological Economics, vol 8 (1993), pp. 103- Applied Systems Analysis, Agroecological 108; D.W. Pearce, G.D. Atkinson, and W.R. Assesssment for National Planning: the Exam- Dubourg, "The economics of sustainable devel- ple of Kenya, FAO Soils Bulletin, No. 67 (FAO, opment," Annual Reviews of Energy and Envi- Rome, 1993). ronment, vol 19 (1994), pp.457-74. 20. World Resources Institute (WRI) in collabo- 10. U.N. Development Programme, Human Devel- ration with Planning and Development Col- opment Report (Oxford University Press, New laboration International and the World Con- York, 1994). servation Monitoring Centre, African Data Sampler: An Internationally Comparable Map presented at the Network Seminar on Sustain- and Georeferenced Data Base (WRI, Washing- able Development Indicators, London, October ton, D.C., 1994). 1994. 21. D. Bryant and R. Luxmore et.al., Developing In- 26. H. Daly and J. Cobb, For the Common Good: dicators of Habitat Condition and Vulnerabil- Redirecting the economy towards community, ity: Report on a WRI/WCMC Workshop and the environment, and a sustainable future Subsequent Research (World Resources Insti- (Green Print, London, 1990); T. Jackson and tute, Washington, D.C., in press). N. Marks, Measuring Sustainable Economic 22. Peter Bartelmus, FISD: A Framework forIndica- Welfare: A pilot index, 1950-1990 (Stock- tors of Sustainable Development (New York, in holm Environment Institute in cooperation press). with the New Economics Foundation, Stock- 23. Albert Adriaanse, "In Search of Balance: A con- holm, 1994). ceptual framework for sustainable develop- 27. D.W. Pearce, G.D. Atkinson, and W.R. ment indicators," presented at the Network Dubourg, "The economics of sustainable devel- Seminar on Sustainable Development Indica- opment," Annual Reviews of Energy and Envi- tors, London, October 1994. ronment, vol. 19 (1994), pp. 457-74. 24. Don Rogich and Ted Heinz, personal commu- 28. K. Hamilton, "Green Adjustments to GDP," nication, February 1995. Resources Policy, vol. 20 (No. 3, 1994), pp. 156- 25. Edgar E. Gutierrez-Espeleta, "The Approxi- 168. mated Sustainability Index: A tool for evaluat- 29. World Bank, Monitoring Environmental Pro- ing sustainability national performance," gress (World Bank, Washington, D.C., 1995). APPENDIX I.

volved, the source of the physical changes, and the data available.

Two primary means of market valuation are used in natural resource accounting studies: the Alaska, United States. Oil is the only natural re- net-rent method and the user-cost method. Strictly source considered in the analysis. In the speaking, both methods are applicable only to the original study, additions to the asset base use of non-renewable resources, but have been were not identified separately (5). For years applied to renewable resources on the assumption in which major increases occurred (1961, that these resources are being used up or mined as 1969, and 1978), depletion of the stock was if they were non-renewable. For the net-rent estimated assuming that the ratio of deple- method, the unit value (or net-rent per unit) is cal- tion to value-added in those years was the culated by subtracting from the unit price all unit same as in the next year. Resource deprecia- costs necessary for the resource owner to obtaih tion is estimated using the net-rent method. that price, including the cost of capital (1)(2). The The relatively low unit values reflect high de- total depreciation estimate is equal to the quantity velopment costs. change in the resource times the net-rent. The user- cost method determines how much the user of a Alberta, Canada. Resource-depreciation estimates non-renewable resource would need to invest to ob- are made for forests (6), oil and natural gas tain a constant and perpetual flow of income (3). (7), and soils (8). Resource-depreciation estimates for oil and natural gas include only ex- The user-cost method is theoretically correct traction; new finds are not counted. Forest if the price of the resource is constant over a depreciation (or appreciation) corresponds known period until the resource is completely ex- to anthropogenic changes in volume, so hausted and if the interest rate is known in ad- fires are excluded but managed growth is in- vance. The net-rent method is theoretically correct cluded. To assign value to forests, the net- if the net-rent is rising at the rate of interest, a phe- rent method is used. The estimated value of nomenon that is consistent with basic theory but soil erosion is so small that it does not affect inconsistent with historical trends of most natural the indicators. resource prices. While neither method is entirely satisfactory, the comparatively simple net-rent Australia. Indicators are derived from very rough method has been applied in more case studies estimates of resource depreciation (9). De- than the user-cost method. In studies where both preciation estimates include soil erosion, sa- values were calculated, the depreciation estimate linity, habitat loss, and changes in the value based on the net-rent method is used here to of mineral stocks. In estimates of erosion, maximize comparability across countries. the assumption is that on-site productivity losses total $5,000 per farm and that off-site The non-market valuation of resources is nec- costs equal 50 percent of on-site losses. To essary when the resource to be evaluated does capture the positive relationship between not have a market price. Soils, fisheries, and the total rainfall and erosion, all losses are environmental services provided by ecosystems weighted by the inverse of the nation's are examples of such resources. Various method- wheat yield. Damages due to salinity are ologies can be used to value resources when a taken from case studies and reflect current price cannot be observed (4). Which works best costs imposed upon families and agriculture. in each instance depends upon the resource in- Habitat loss is valued at $1,000 per hectare, Gulf of Nicoya is valued by the decline in as- and the total loss of native forests is roughly set value of the fishery attributable to the ex- estimated at 230 thousand hectares per year. pansion of the fishing fleet. Soil-erosion Mineral depreciation is valued using the net- losses are valued using the replacement cost price method. Mineral accounts include both method Gross fixed capital formation data new finds and revaluations, which is incon- are taken from the UN National Accounts sistent with the SEEA and, therefore, with Statistics from a variety of years. When data the statistics for the other countries pre- is available only in constant 1984 colones, it sented here. is converted to 1966 colones using the im- Brazil. Resource depreciation covers forest and plicit deflator for capital formation. mineral resources (10). Forest resources in- Indonesia. Oil, forest, and soil depreciation are clude extractive products—latex, chestnut, included (2)(l4). For oil and forests, the babassu, palm cabbage, and carnauba—and value of stock changes is calculated using are valued using the net-rent method. Min- the net-rent method. Oil-depreciation values eral resources include oil, coal, lead, chro- used here exclude new finds, which are in- mium, iron, aluminum, gold, tin, mangan- cluded in the original study. Values for for- ese, tungsten, calcareous rock, and white est depreciation do not take losses due to clay. Mineral values used here are taken fire into account. The estimates of deprecia- from the user-cost method. National Ac- tion for 1985-1987 include only oil deprecia- counts (GDP and GFCF) data are taken from tion. The on-site cost of soil erosion is World Tables (11) in 1987 cruzados and con- calculated using the value of the decline in verted first to 1987 dollars and then to 1980 soil productivity for the island of Java. Data dollars using the GDP deflator. on gross fixed capital formation data are China. Depreciation covers coal, iron, and Bei- taken from the UN National Accounts Statis- jing's groundwater resources (12). Volume tics from a variety of years. Gross fixed capi- withdrawals are valued using net-rent tal formation for 1970-1983 includes changes method. Groundwater resources are valued in stocks and, for 1983-1987, are converted using an adaptation of the net-price method to 1973 rupiah using the average deflator for in which an estimate of the price that would capital from 1980 to 1983- yield demand at a target level is used rather Mexico. Resource depreciation includes oil, tim- than prevailing price per cubic meter. The ber, transfers of land to agriculture, soil ero- single year price of $0.29 per cubic meter is sion, the degradation of land by solid then applied to all years for which physical wastes, net groundwater extraction, water estimates are available. National accounts pollution, and air pollution (15). Valuation data are taken from U.N. National Income of oil and timber is based on the net-rent Accounts. Sector level values of Gross Do- method. Land transfers from forest to other mestic Product are not available, so the alter- uses are valued by considering the net-value native, Net Material Product, is used. added by forestry. All other sources of degra- Costa Rica. Resource depreciation includes loss dation are valued according to the cost of of timber plus the resource loss attributable avoiding such damage. to the conversion of land, fisheries deple- Nepal. Depreciation includes the loss of forests tion, and soil erosion (13). Standing timber and soils (16). Forest values reflect both tim- is valued using the net-rent method, and the ber and fuelwood. Valuation is based upon loss due to land conversion is valued as the net-rent method, though the estimates though under a sustainable forest manage- are preliminary and the methodology is ment plan. Fisheries depreciation for the sketchy. Soil erosion is valued taking into account both soil productivity loss and the from 1970 to 1984, by which time the fish- replacement cost. Total fertilizer expendi- ery's asset value had fallen to zero. Fishery tures are used as a proxy for the replace- depreciation is set equal to zero from 1984 ment cost. Although the methodology is not to 1987. National Accounts data are taken presented in detail, this appears to be a dou- from United Nations (various years). Data ble counting of the value of soil-deprecia- for 1970-1979 were converted from 1972 pe- tion losses. Data on gross fixed capital sos to 1985 pesos in order to be consistent formation data are taken from the UN Na- with the study using the average implicit ra- tional Accounts Statistics for a variety of tio of 1985 constant values to 1972 constant years. Constant GFCF values are calculated values for the years 1980-1989- Data on the using the GDP deflator. The capital con- consumption of fixed capital were converted sumption allowance (depreciation of man- to constant pesos using the GFCF deflator. made capital) is calculated as the difference Philippines (NRAP Study). Depreciation esti- between GDP and NDP presented in the mates are taken from Phase I of the Philip- study. pine Natural Resource Accounting Project Papua New Guinea. Resource depletion includes (19X20X21X22X23). Phase II estimates oil, timber losses associated with logging would add a number of sources of resource and transfers of land to agriculture, soil ero- depreciation and degradation, but are for sion, the degradation of land by solid only single year values, so these values are wastes, net groundwater extraction, water not considered here. Depreciation estimates pollution, and air pollution (17). Valuation are made for forest resources (dipterocarp, of oil and timber is based on the net-rent pine plantation, and mangrove) and rattan method, and degradation issues are valued for the period 1970-1989 using the net-rent according to the cost of avoiding such dam- method. Data on national accounts are age. Gross and net products of the forest, taken from United Nations (various years). electric, and mining sub-sectors were not Thailand. Only the depreciation of forest re- available for all years, so these quantities sources is considered (24). For the statistics were estimated. (The assumption is that the here, timber depreciation is valued using the share of these sub-sectors in the sector prod- net-rent method, though in the original pa- uct remains constant over the period.) Data per user-cost valuation is also presented. on gross fixed capital formation are taken Data on gross fixed capital formation and from the UN National Accounts Statistics for capital consumption allowance are taken a variety of years. from UN National Accounts Statistics from a Philippines (WRI Study). Resource depreciation variety of years. includes timber, soil erosion, and coastal United Kingdom. Resource depreciation includes fisheries (18). Timber depreciation is valued depletion of oil, coal, and natural gas for all using the net-rent. Net depreciation includes years and includes estimates of the value of growth, reforestation, harvesting, deforesta- the net change in forest, and of the degradation, and logging damage. Fire damage is ex- tion of land, water, and unspecified "other" re- cluded in the current summary statistics here sources only for 1990 (25). The depreciation but is included in the original study. Soil of subsoil assets is calculated using the user- degradation is estimated on the assumption cost method. Other sources of environmental that the replacement cost of nutrients degradation are valued based on the cost of eroded from upland crops is $50 per hec- preventing the degradation. Data on standard tare. Fishery depreciation is estimated on the national accounts come from the official na- assumption that asset value declines linearly tional accounts of the United Kingdom. United States (G&M Study). Resource deprecia- National Income Accounts (World Resources tion includes the net change in timber re- Institute, Washington, D.C., 1989). sources, plus oil and mineral depletion, as 3. Salah El Serafy, "The Proper Calculation of In- well as the degradation of groundwater and come from Depletable Natural Resources" in air quality, and the environmental costs of Ysuf J. Ahmad, Salah El Serafy, and Ernst Lutz, solid wastes (26). Timber and mineral re- Environmental Accounting for Sustainable De- sources are valued using the net-rent velopment (World Bank, Washington, D.C., method. Air pollution and water pollution 1989). are valued based on the estimated cost of re- 4. Myrick A. Freeman III, The Measurement of En- ducing the flow of pollutants to zero. vironmental and Resource Values: Theory and United States (B.E.A. Study). Depreciation in- Methods (Resources for the Future, Washing- cludes that of subsoil assets for the entire pe- ton, D.C., 1993). riod (27X28). Depreciation and degradation 5. Mathew Berman, Eric Larson, and Bradford of timber stocks, vineyards, cattle and Tuck. "Natural Resource Depletion and Social calves, and soil are estimated for 1987 only. Income Accounting: Sustainable Income in Pe- Stock changes are valued here using the net- troleum-dependent Economies," paper pre- price method, though other methods are ex- sented at The First OPEC/ALASKA Conference plored. Current value estimates were used to on Energy Issues in the 1990s, 1992. generate the summary statistics. Data on na- 6. Mark Anielski, "Natural Resource Accounting: tional accounts are taken from World Bank Alberta's Forest Account in 1991," unpublished and United Nations sources. The data manuscript (Alberta Environmental Protection, needed to calculate the value added by agri- Edmonton, 1993). culture for the years 1987-1990 were unavail- 7. Alice Born, "Development of Natural Resource able. Accounts: Physical and Monetary Accounts for Zimbabwe. Depreciation estimates are for forests Crude Oil and Natural Gas Reserves in Al- (based on their value as sources of fuel- berta," unpublished manuscript (National Ac- wood) and for soil erosion (29). The valu- counts and Environment Division, Statistics ation of forest depreciation is conducted Canada, 1993). using the net-rent method. Soil erosion is val- 8. David Watson and Mel Lerohl, "Reflecting Pro- ued using estimates of the decline in the ductivity Losses due to Erosion in Physical and soil's productive capacity. Depreciation of Financial Accounts for Agricultural Soils," un- man-made capital includes only that in the published manuscript (Department of Rural agricultural sector and that is calculated by Economy, University of Alberta, Edmonton). the authors. 9- Mike Young, "Natural Resource Accounting: Some Australian Experiences and Observa- tions," in Ernst Lutz, Toward Improved Account- NOTES ing for the Environment (World Bank, Wash- ington, D.C.). 1. Steven J. Landefeld and James R. Hines, Na- tional Accounting for Non-renewable Natural 10. Ronaldo Seroa da Mota, "Sustainability Princi- Resources in the Mining Industries, Review of ples and Depreciation Estimates of Natural Income and Wealth (vol. 31, no. 1 (March), Capital in Brazil," paper presented at the Inter- 1985), pp.1-20. national Symposium of Models of Sustainable 2. Robert Repetto, William Magrath, Michael Development, Universite Pantheon—Sor- Wells, Christine Beer and Fabrizio Rossini, bonne/AFCET (Paris, France, March 16-19, Wasting Assets: Natural Resources in the 1994). 11. World Bank, World Tables (International groves," Technical Report No. 2, Natural Re- Bank for Reconstruction and Develop- sources Accounting Project Final Workshop ment/The World Bank, Washington, D.C., (National Institute of Geological Sciences, 1992). U.P., Diliman, Quezon City, Philippines, Octo- 12. Li Jinchang, Gao Zhenang, Zhong Zhaoxiu, ber 15, 1991). He Xianjie, Kong Fanwen, and Fu Dedi, Natu- 21. Antonio P. Carandang, Isabelita M. Pabuayon, ral Resource Accounting for Sustainable Devel- and Nestor R. Manalo, "Natural Resource Ac- opment (China Environmental Science Press, counting: Pine Forests," Technical Report No. Beijing, 1990). 3, Natural Resources Accounting Project Final 13- Tropical Science Center and World Resources Workshop (National Institute of Geological Sci- Institute, Accounts Overdue: Natural Resource ences, U.P., Diliman, Quezon City, Philip- Depreciation in Costa Rica (World Resources pines, October 15, 1991). Institute, Washington, D.C., 1991). 22. Antonio P. Carandang, Isabelita M. Pabuayon, 14. Widjajono Partowidagdo, "Natural Resources and Nestor R. Manalo, "Natural Resource Ac- Accounting Applied to the Indonesian Petro- counting: Plantation Forests," Technical Report leum Sector," paper presented at the World Re- No. 4, Natural Resources Accounting Project Fi- sources Institute Conference on Natural nal Workshop (National Institute of Geological Resource Accounting (Vancouver, Canada, Sciences, U.P., Diliman, Quezon City, Philip- 1991). pines, October 15, 1991). 15. Jan Van Tongeren, Stefan Schweinfest, Ernst 23. Isabelita M. Pabuayon, "Natural Resource Ac- Lutz, Maria Gomez Luna, and Francisco Guil- counting: Rattan," Technical Report No. 5, len Martin, Integrated Environmental and Eco- Natural Resources Accounting Project Final nomic Accounting: A Case Study for Mexico Workshop (National Institute of Geological Sci- (Environment Working Paper No. 50, The ences, U.P., Diliman, Quezon City, Philip- World Bank, Washington, D.C., 1991). pines, October 15, 199D- 16. Drigha Nidhi Twari, "Integrating Economic 24. Claudia Sadoff, "Natural resource accounting: and Environmental Policy in Nepal," unpub- A case study of Thailand's Forest Manage- lished manuscript (Asian Institute of Technol- ment," doctoral dissertation submitted to the ogy, Bangkok, 1992). University of California at Berkeley, 1992. 17. Peter Bartelmus, Ernst Lutz, and Stefan 25. Chris Bryant and Paul Cook, "Environmental Schweinfest, Integrated Environmental and Issues and the National Accounts," Economic Economic Accounting: A Case Study for Papua Trends (No. 46, 1992), pp. 99-122. New Guinea (Environment Working Paper No. 26. Anne Grambsch and R. Gregory Michaels, 54, The World Bank, Washington, D.C., 1992). "The United Nations Integrated Environmental 18. Wilfrido Cruz and Robert Repetto, The Envi- and Economic Accounting System: Is it Right ronmental Effects of Stabilization and Struc- for the U.S.?," paper presented at the 1994 tural Adjustment Programs: The Philippines AERE Workshop, "Integrating the Environment Case (World Resources Institute, Washington, and the Economy: Sustainable Development D.C., 1992). and Economic/Ecological Modeling," Boulder, 19. United States Agency for International Devel- Colorado, June 6, 1994. opment (USAID), The Philippine Natural Re- 27. Bureau of Economic Analysis, "Integrated source Accounting Project (NRAPphase I) Economic and Environmental Satellite Ac- Executive Summary (USAID, Manila, Philip- counts," Survey of Current Business (April, pines, 1991). 1994), pp.33-49. 20. Ma Bennagen, Eugenia Cabahug, and Dexter 28. Bureau of Economic Analysis, "Accounting for Cabahug, "Natural Resources Accounting: Man- Mineral Resources: Issues and BEA's Initial Estimates," Survey of Current Business (April, in R. Kerry Turner, ed., Sustainable Environ- 1994), pp.50-72. mental Economics and Management: Princi- 29. Neil Adger, "Sustainable National Income and ples and Practice (Bellhaven Press, London, Natural Resource Degradation in Zimbabwe," 1993). APPENDIX II. ENVIRONMENTAL INDICATOR REPORTING FORMATS

Following are indicator bulletins or reporting formats from Canada and the Netherlands. Environment Environnement ••• Canada Canada SOE Bulletin No. 92-1 1992

ENVIRONMENTAL INDICATOR BULLETIN

STRATOSPHERIC OZONE DEPLETION

Issue Context The issue of stratospheric ozone depletion can be represented by a sequence of indicators, beginning Ozone is a naturally occurring gas that is found with the production of ozone-depleting chemicals and in trace quantities throughout the atmosphere but is ending with the effects of increased levels of ultravio- most abundant in the stratosphere, at an altitude of let-B radiation. 20-40 km, where it forms the stratospheric ozone layer. This layer of ozone varies naturally in density. It shields the earth's surface from extreme intensities STRATOSPHERIC OZONE DEPLETION of ultraviolet radiation and influences the heating and INDICATORS cooling of the Earth and its atmosphere. Depletion of the stratospheric ozone layer has been linked to the action of a number of manufactured chlorine and bromine compounds. Their long lifetimes allow them to penetrate the stratosphere, where they eventually break down, releasing ozone- depleting chlorine and bromine. Investigations of the seasonal antarctic ozone "holes" and other studies have confirmed the involvement of these chemicals in stratospheric ozone destruction. As stratospheric ozone diminishes, increased intensities of ultraviolet radiation — particularly the more energetic UV-B wavelengths — are expected at the Earth's surface. Excessive exposure to UV-B radiation is known to increase the incidence of sun- burns, skin cancer, cataracts, and damage to the immune system in humans, to reduce the yields of crops, and to cause disruption of marine food chains. Reduction of stratospheric ozone could also contribute to changes in world climate patterns. The Montreal Protocol of 1987 and subsequent amendments have set timetables for phasing out the production of the major ozone-depleting substances. Eighty-six countries, including Canada and all major producers of ozone-depleting substances, had ratified The indicators in this bulletin reflect the first the Montreal Protocol as of September 1992. three stages of this cycle.

State of the Environment Reporting Canada Indicator: Canadian domestic supply of ozone- Further indicators may be introduced at a later depleting substances. date to measure (1) trends in the intensity of UV-B reaching the earth's surface; and (2) effects of Indicator: Global atmospheric concentrations of increasing UV-B intensities on human health and on CFC-U and CFC-12. food production in Canada, once statistically reliable Indicator: Stratospheric ozone levels over Canada. data bases have been established.

INDICATOR: CANADIAN DOMESTIC SUPPLY OF OZONE-DEPLETING SUBSTANCES

Domestic Supply of Ozone-Depleting Substances in Canada

GDP I- 600

500

1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 GDP: Gross Domestic Product Source: Commercial Chemicals Branch, Environment Canada; Statistics Canada.

Canadian domestic supply (production plus ozone-depleting substances more accurately, the imports minus exports) of ozone-depleting sub- total for each chemical has been weighted in pro- stances has decreased by 53%, from a peak of portion to its ozone-depleting potential relative to 27.8 kilotonnes in 1987 to 13 kilotonnes in 1991. CFC-11. The trend in domestic supply of ozone-depleting The ozone-depleting substances in this indicator substances tends to parallel an increase in eco- include chlorofluorocarbons, halons, methyl chlo- nomic activity, as represented by the Canadian roform, carbon tetrachloride and hydrochlorofluo- GDP, up to 1987 but declines in relative terms rocarbons, but not methyl bromide for which data thereafter. are unavailable. Individual ozone-depleting substances vary con- Canada accounted for just under 2% of the siderably in their capacity to destroy ozone. To world's supply of CFCs and halons in 1986. reflect the combined destruction capacity of all Use of CFCs tn Canada In 1991 Global supply of CFCs and halons declined by

• ' - -. 31% from an estimated 1260 kilotonnes to 870 Miscellaneous 4% -- Foam 3S% kilotonnes between 1986 and 1990. Aerosols 1%. X _^ At the end of 1990, countries that had ratified the HlliniL^ \ . Aircoridfttonjnp Montreal Protocol accounted for about 93% of Solvents 9% —W&r ^B• incafS23% world supply of CFCs and halons. Other coun- f tries, including India and China, have since rati- - Other air conditioning fied the protocol. & reWgeratien 28% CFCs are the most widely used and abundant of source, iiomrnaiiCMii uusrnicais wtariCh, environment uanaga. ozone-depleting substances.

INDICATOR: GLOBAL ATMOSPHERIC CONCENTRATIONS OF CFC-11 AND CFC-12

Global Atmospheric Concentrations of CFC-11 and CFC-12 600

500

400 CFC-12 c '•§ 300

CFC-11 ,.—o —' 200

,.--0

100

1977 1979 1981 1983 1985 1987 1989 1991

ppt = parts per trillion Source: Elkins, et al., NOAA, Boulder, Colorado, U.S.A.

This indicator tracks the magnitude and rate of It is technically difficult to report on all CFCs in change of the atmospheric reservoir of the most the atmosphere. However, CFCs -11 and -12 abundant ozone-depleting substances. Because of account for half of the ozone-depleting chlorine the long lifetimes of these chemicals and the in the atmosphere. quantities still contained in cooling systems and rigid foams, with the potential to escape, these Global atmospheric concentrations of CFC-11 chemicals will persist in the atmosphere for and CFC-12 have increased steadily since mea- decades. There is therefore concern that CFCs surements began in 1977. However the rate at will continue to cause stratospheric ozone deple- which CFC-11 has been increasing has slowed tion long after their production has ceased. since 1989. INDICATOR: STRATOSPHERIC OZONE LEVELS OVER CANADA

Stratospheric Ozone Levels for Three Canadian Cities 410 -

390 /

% y Resolute 74° N f ^—^ 370

* . . Toronto 43° N ° 350 ° _r__^_r

^ Edmonton 53° N 330 <

1 i i i i i i i 1 III! 1 1 1 1 1 1 1 1 1 I 1 1 1 1 1 1 ! 1 1 1 1 1 1 1 1955 1960 1965 1970 1975 1980 1985 1990 1995 DU = Dobson Unit Source: Atmospheric Environment Service, Environment Canada

Stratospheric ozone levels over Toronto and due to the biennial oscillation of stratospheric Edmonton have declined by about 4% since the wind patterns. Other natural factors affecting late 1970's. These observations are consistent ozone levels include seasonal changes in solar with results from other mid-latitude stations in the radiation, the 11-year sunspot cycle, the sporadic northern hemisphere. The trend is less clear for El Nino Southern Oscillation every 3-5 years, and Resolute. volcanic eruptions. The observed decline over Canada is still consid- The indicator measures total ozone, which ered to be within the range of natural ozone fluctu- includes tropospheric (the air between the earth's ations and has not yet been conclusively attributed surface and the stratosphere) as well as stratos- to the effects of manufactured ozone-depleting pheric ozone. Stratospheric ozone accounts, on substances. average, for about 90% of the total ozone column. Increases in tropospheric ozone as a result of The data have been statistically smoothed over a urban air pollution may partially mask a decline in two-year period to adjust for natural fluctuations stratospheric concentrations.

Acknowledgements: For further information, please contact: Data and advice provided by the following agen- Stale of the Environment Reporting cies are gratefully acknowledged: Environment Canada Commonwealth Scientific and Industrial Research Ottawa. Ontario 50% recycled n|Bnt Organization. Aspendalc, Vicloria. Australia. KIA 0H3 ™ Environment Canada - Atmospheric Environment Service. THIS BULLETIN WILL BE - Conservation and Protection. UPDATED ANNUALLY - Corporate Policy Cjroup. Aussi disponible en francais sous le titre : L'appau- Health and Welfare Canada. vrissemcnl dc la cnuchc d'ozone stratospherique. National Oceanic and Atmospheric Administration Cat. No. En 1-19/92-IE (NOAA), Climate Moniloring and Diagnostic ISBN 0-662-20092-6 Laboratory, Boulder. Colorado, United States. ISSN 1192-4454 Statistics Canada. INFORMATIEBLAD KLIMAATVERANDERING

Dit informatieblad gaat in op een onderwerp uit het NMP 2 aangevuld met de inzichten uit het Milieuprogramma 1995 -1998. Meer informatie over dit onderwerp kunt u verkrijgen bij het Bureau Persoonlijke Voorlichting van het Ministerie van VROM, telefoonnummer 070 - 339 50 50.

Er zijn informatiebladen van de milieuthema's klimaatverandering, verzuring, vermesting, verspreiding, verwijdering, verstoring, verdroging en verspilling. Ook zijn er informatiebladen van de doelgroepen van het milieubeleid landbouw, bouw, industrie, raffinaderijen, energiebedrijven, verkeer en vervoer, consumenten en afvalbedrijven.

BESCHRIJVING THEMA ALGEMENE AANPAK NMP 1

probleem - broeikaseffect - broeikaseffect . energiebesparing (ook voor verkeer en - afbraak ozonlaag vervoer) . stromingsenergie mogelijke effecten . verschuiving brandstofinzet (van kolen - stijging gemiddelde temperatuur naar aardgas) - verschuiving klimaatzones . gebruik afvalwarmte (WKK, - zeespiegelstijging stadsverwarming) - huidkanker, staar, verminderde weerstand - aantasting ozonlaag oorzaken . snelle afbouw gebruik ozonaantastende - verbruik fossiele brandstoffen, onder meer stoffen

in het verkeer (CO2, CO, NOX N2O) . vernietiging CFK's, halonen

- ontbossing (CO2)

- energiewinning en -transport (CH4) Doelstellingen 2000

- voedselproduktie (CH4)

- storten van afval (CH4) - broeikas-effect

- industriele produktie (CFK's en halonen) . C02: 3-5 % emissie-reductie t.o.v.

- verbruik kunstmest (N2O) 1989/1990

. CH4: 10 % emissie-reductie t.o.v. 1990

relevante stoffen . N20: stabilisatie t.o.v. 1990

- koolstofdioxide (CO2)

- methaan (CH4) - aantasting ozon-laag

- distikstofoxide (N2O) . CFK's: 100% reductie (in 1996) - chloorfluorkoolwaterstoffen (CFK's) . halonen: 100% reductie (in 1994) - halonen

- stikstofoxiden (N0x) - koolstofmonoxide (CO)

- ozon (O3) (gevormd door NOX, C02, CH4)

belangrijkste sectoren 1994 - industrie, energiebedrijven, verkeer en vervoer, huishoudens Ontwikkelingen 'broeikas-effect'

Verandering van klimaat 1 - CO, + CH. + N.O + CFK + Halonen Aftiame 1993to.V. 1980: 24% 2CO CH N|O Toename 1993 t.o.v. 1980: 7 %

JJoelstelllng

1980 1985 1990 1995 2000 2005 2010

•'BJSrt 1 n/n da Mkacta etfacten van CFtCs an halonan, die da bmatkasuarHng aantianV/k afzwakkan, weggalatan; da Ukbaga van CFK'a an hatonan Is dus uHattOend gabaaaard op da (starka) dfrocts bmaBtaswaimg, hatgaan ats thaoraSach mwdmum kan worden baachouwd.

Bijdragen sectoren

COj -emtssie (miljard kg) CH4-emissie (miljoen kg)

1200-

1000- Ovefig ^8 [

Overig 800- NMP2 I Huishoudens | NMP-2 Verkeer 600- l> J Energie 400- H Undbouw ^^R ^H ^H 200- m Ml I 0 — 1990 2000 __• 2010

Conclusie ^O-ennissie {miljoen kg) - zonder aanvullend beleid zal in 2000 nog 80-, 15 Mton CO2 teveel worden uitgestoten om 70- \IMP-2 •IMP-2 Doel de doelstelling van -3% te kunnen halen 60- I . T. - de doelstelting voor CH4 en N2O zal worden "ij 50- gehaald Overig 40- 30- LJ — Verkeer 20- • Landbouw ^H ^^| j^M ^^| 10-

0- 1990 2000 2010 Ontwikkelingen 'aantasting ozonlaag'

Aantasting van de ozonlaag Afname 1993 to. v. 1980

milieubelasting 20000- 86% i

quivalente n \

|> 10000- 1 S 5000- \

Conclusie - realisatie doelstellingen CFK's en halonen op schema

Ontwikkeiing milieulasten thema Klimaatverandering (mln gulden/jaar) ALGEMENE AANPAK NMP 2

Uitgangspunten - doelstellingen blijven gehandhaafd; 3% - uitvoering Milieu-actieprogramma 2(MAP 2) reductie wordt met maatregelen ingevuld (begin 1994 door elektriciteits- - beslissing over 5 % reductiedoelstelling in distributiesector vast te stellen), C02- 1995 convenant (SEP) en Milieuplan Industrie - blijvende erkenning klimaatprobleem (Gasunie) - internationale aanpak (uitvdering - inzet Wet Milieubeheer (vergunningen, Klimaatverdrag VN) AMvB's) ter ondersteuning

- CO2-uitstoot mag na 2000 in principe niet meerjarenafspraken, etc. verder toenemen (EG stabilisatiedoel- - verkeersmaatregelen, waaronder stelling) rekeningrijden en Europese regelgeving - voortzetting CFK-aktieprogramma CO2-emissiereductie

- CO2-certificaten in verband met Onzekerheden bosaanplant - ontwikkeling van de economische groei - intensiveren beleid N20 en HCFK's - ontwikkeling energieprijzen Conclusie Pregnante maatregelen - indien rekening wordt gehouden met EG- - voorkeur energieheffing in EG, voorbereiding heffing en mogelijke meevallers wordt 3 % invoering nationaal of in EG-verband, reductie van C02 in 2000 gerealiseerd beslissing in 1994 - verdere energiebesparing in meerdere sectoren, onder meer door meerjarenafspraken

Overzicht uitvoering

Wat is in uitvoering: Wat komt in uitvoering: Extra aandacht nodig voor:

Nota klimaatverandering - C02-convenant SEP - achtergronddocument HFK's en N20 - CFK-actieprogramma - MAP 2 (actie nr. 51) - Nota Energiebesparing - 2e fase nationaal onderzoeksprogramma - EG-klimaatbeleid (actie nr. 81) - MAPI mondiale luchtverontreiniging en - acceptatie 'Joint Implementation' klimaatverandering internationaal - proefprojecten Joint Implementation - steun ontwikkelingslanden - Vervolgnota energiebesparing - ontwikkeling technologie - Vervolgnota klimaatverandering - Klimaatkaderverdrag - Aktieprogramma technologieontwikkeling voor de lange termijn - demonstratie-project energie-extensivering huishoudens - maatregelen t.a.v. wegverkeer - bijdragen aan tot stand brengen EG-regelgeving C02-emissies wegvoertuigen - intensivering energiewinning afval - CO2-certificaten

Publikatie van: Mintsterie van Volkshuisvesting, Ruimtelijke Ordening en Milieubeheer Centrale Directie Voorlichting en Externe Betrekkingen Rijnstraat 8, 2515 XP Den Haag

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