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Economy-Wide Material Flow Accounts Handbook – 2018 Edition

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Economy-Wide Material Flow Accounts Handbook – 2018 Edition Economy-wide material flow accounts HANDBOOK 2018 edition Economy-wide material flow accounts flow material Economy-wide 2 018 edition 018 MANUALS AND GUIDELINES Economy-wide material flow accounts HANDBOOK 2018 edition Manuscript completed in June 2018 Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use that might be made of the following information. Luxembourg: Publications Office of the European Union, 2018 © European Union, 2018 Reproduction is authorized for non-commercial purposes only, provided the source is acknowledged. The reuse policy of European Commission documents is regulated by Decision 2011/833/EU (OJ L 330, 14.12.2011, p. 39). Copyright for the photographs: Cover © Vladimir Wrangel/Shutterstock For any use or reproduction of photos or other material that is not under the EU copyright, permission must be sought directly from the copyright holders. For more information, please consult: http://ec.europa.eu/eurostat/about/policies/copyright Theme: Environment and energy Collection: Manuals and guidelines The opinions expressed herein are those of the author(s) only and should not be considered as representative of the official position of the European Commission Neither the European Union institutions and bodies nor any person acting on their behalf may be held responsible for the use which may be made of the information contained herein ISBN 978-92-79-88337-8 ISSN 2315-0815 doi: 10.2785/158567 Cat. No: KS-GQ-18-006-EN-N Preface Preface Economy-wide material flow accounts (EW-MFA) are a statistical accounting framework describing the physical interaction of the economy with the natural environment and the rest of the world economy in terms of flows of materials. EW-MFA is one of the modules included in Regulation (EU) No. 691/2011 on European environmental economic accounts. It contributes directly to the Union's policy priorities on circular economy, green growth, and resource productivity by providing important information and statistical indicators on material use. This handbook presents the theoretical and conceptual foundations of EW-MFA and provides compilation guidelines as well as possible applications. It primarily addresses compilers of EW-MFA but also the users who are interested in understanding more of the underpinning statistical methodology. The EW-MFA handbook 2018 edition is the successor of two previous documents: Economy-wide material flow accounts and derived indicators - A methodological guide, (Eurostat, 2001); Economy-wide Material Flow Accounts, Compilation Guide (Eurostat, 2013a). Compared to them, this EW-MFA handbook has revised significantly the conceptual part with references to the most recent versions of the systems of national accounts (SNA 2008, ESA 2010) and environmental-economic accounting (SEEA-CF 2012). The data structure definition has been revised for EW-MFA. Next to the usual dimensions (GEO, TIME, UNIT) each material flow record is now characterised and specified by a combination of material-type (MATERIAL) and type of flow and derived indicators (INDIC_NV). The classification of materials – in particular its coding – has been revised (see paras. 81ff). The previously separated material classifications for various questionnaire tables have been integrated into one list. This handbook was written by Eurostat staff with contributions from Renato Marra Campanale, Arturo de la Fuente, Maaike Bouwmeester, and Stephan Moll. Draft versions were subject to two written consultations involving experts from national statistical institutes, international organisations, and research institutions. Particular thanks deserve Aldo Femia, Nina Eisenmenger, Stephan Lutter, Lucia Maier, Sylvia Gierlinger, Florian Kohler, James West, Reamonn McKeever, Lajos Franczen, Mário Baptista, Mårten Berglund, Edith Brodda Jansen, Raúl Figueroa Díaz, Eva Smelkova, Myriam Linster, Florian Flachenecker, and José Antonio Sena. I warmly thank all the colleagues that contributed to make this publication possible. Anton Steurer Head of Unit E2 Environmental statistics and accounts; sustainable development Economy-wide material flow accounts handbook 3 List of abbreviations and acronyms List of abbreviations and acronyms ACS Annual crop statistics AEA Air emissions accounts BGS British Geological Survey BPM6 Balance of Payments and International Investment Position Manual - Sixth Edition CN Combined Nomenclature COMEXT Eurostat online database for external trade CPA Statistical Classification of Products by Activity CRF Common reporting format DE Domestic extraction DMC Domestic material consumption DMI Direct material input DPO Domestic processed output EAA Economic Accounts for Agriculture EFTA European Free Trade Association (Iceland, Liechtenstein, Norway, Switzerland) ESA European System of Accounts ESS European Statistical System EU European Union EW-MFA Economy-wide material flow accounts FAO Food and Agriculture Organization FSS Farm structure survey GNB Gross nutrient balance IEA International Energy Agency IEEAF European framework for integrated environmental and economic accounting for forests IMTS International Merchandise Trade Statistics ITGS International trade in goods statistics MFA-RME Material flow accounts in raw material equivalents NACE Statistical classification of economic activities in the European Community NAS Net additions to stock NSI National statistical institute PGM Platinum group metals PPS (current prices in) Purchasing Power Standards PRODCOM PRODuction COMmunautaire (Community survey of industrial production) PSUT Physical Supply and Use Tables Economy-wide material flow accounts handbook 4 List of abbreviations and acronyms PTB Physical trade balance RAMON Reference and management of nomenclatures RME Raw material equivalents RMC Raw material consumption RMI Raw material input RP Resource productivity SEEA-CF System of Environmental Economic Accounting – Central Framework SNA System of National Accounts UNFCCC United Nations Framework Convention on Climate Change CLRTAP Convention on Long Range Transboundary Air Pollutants USGS United States Geological Survey Economy-wide material flow accounts handbook 5 Table of contents Table of contents Preface ........................................................................................................................................... 3 List of abbreviations and acronyms ........................................................................................... 4 Table of contents .......................................................................................................................... 6 1. Introduction ............................................................................................................. 9 1.1 Scope of economy-wide material flow accounts and its legal base .................................. 9 1.2 Short historical overview of EW-MFA in Europe ............................................................... 10 2. Conceptual foundations of EW-MFA .................................................................. 12 The physical economy as a metabolism ............................................................................ 12 Conceptual roots ................................................................................................................ 12 EW-MFA = physical flow accounts ..................................................................................... 12 2.1. Definition of the national economy – an important 'boundary' in EW-MFA ............. 13 2.2. Basic EW-MFA concepts as regards material flows between environment and economy ......................................................................................................................... 14 Simple environment-economy model ................................................................................. 14 Material flows from the environment to the economy = domestic extraction ..................... 14 Material flows from the economy to the environment = domestic processed output ......... 14 As regards to the 'boundary' between environment and economy, specific EW-MFA recording conventions have been established ................................................................... 15 2.3. Basic EW-MFA concepts as regards material flows between economies – the residence principle and the change-in-ownership principle ..................................... 15 Trade = change in ownership between resident unit and non-resident unit ....................... 16 The national economy vis-a-vis the rest of the world economy (residence principle) ........ 16 2.4. Conceptual relation between EW-MFA and SEEA-CF ................................................ 16 The framework of physical supply and use tables (PSUT-framework) .............................. 16 Types of physical flows: natural inputs, products, and residuals ....................................... 17 EW-MFA articulate only parts of SEEA's PSUT-framework ............................................... 17 Specific EW-MFA recording conventions have been agreed ............................................. 17 2.5. Specific EW-MFA recording conventions .................................................................... 18 Bulk material flows of water are excluded from EW-MFA .................................................. 18 Bulk flows of air are excluded from EW-MFA's core accounts; some selected gaseous material flows are recorded under balancing items...........................................................
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