An Overview of Istat's Environmental Accounting in the Light of Eu
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An Overview of Istat’s Environmental Accounting in the Light of Eu Methodological Achievements Una visione d’insieme della contabilità ambientale dell’Istat alla luce di avanzamenti metodologici a livello europeo Cesare Costantino Istat, Direzione Centrale Contabilità Nazionale, Via Ravà 150, Roma, [email protected] Riassunto: La contabilità ambientale è una disciplina sviluppata nell’ambito degli organismi internazionali in relazione alle esigenze dello sviluppo sostenibile; essa trae origine dalla contabilità nazionale e si occupa in maniera sistematica e comprensiva del rapporto economia-ambiente. Una pluralità di conti, standardizzati in ambito europeo, consente di focalizzare aspetti specifici dell’interazione tra economia e ambiente, permettendo di confrontare i fatti economici e i fatti ambientali correlati attraverso un sistema coerente di definizioni e classificazioni. La produzione dell’Istat risponde alle esigenze conoscitive del paese e degli organismi internazionali, in particolare comunitari; in linea con la strategia europea per la contabilità ambientale, essa è a regime per quanto concerne la MFA, la NAMEA e l’EPEA, i conti a più elevata priorità. Keywords: economy-environment interaction, SEEA, DPSIR, MFA, NAMEA, EPEA. 1. Sustainable development strategy and environmental accounting Sustainable development calls for a variety of changes in the functioning of society. Innovations are needed involving different aspects such as e.g. production and consumption patterns and mechanisms for determining social choices. New statistical information is needed as well, to support decisions by institutions, enterprises and individuals, being clear that it is essential to integrate the institutional, economic, social and environmental dimensions of sustainable development. In Italy the importance of integrating economic and environmental aspects has been emphasized in the political agenda since the ’nineties. According to the National plan for the implementation of Agenda XXI1, setting up a national system of environmental accounting is one of the actions needed in order to actually implement a strategy for sustainable development: this new tool includes, in a broad sense, both a new way of defining policies and a new kind of statistical information on the interactions between economy and environment. Environmental accounting is also mentioned – specifically understood as a system of integrated environmental and economic accounts within official statistics – among the main tools to achieve ecologically sustainable development in the Environmental action strategy for sustainable development2. Parallel to the action taken by the central government through the definition of the above mentioned strategies, a political debate is going on in the Italian Parliament on a 1 Adopted in 1993 by the Inter-Ministry Committee for Economic Planning (CIPE). 2 Adopted by CIPE in 2002. – 29 – bill3 which aims at introducing the integration of economy and environment in political decisions at the different government levels. It is envisaged, in particular, that the central and the local governments regularly adopt ecological sustainability planning tools together with their traditional economic planning tools; the former should be supported by environmental accounts to be produced within the National Statistical System (Sistan), in the same way as the latter are currently supported by the economic national accounts as far as the national level is concerned. In a sustainable development perspective, then, there is a strong demand for a new kind of statistical information, which is characterised by having specific contents in terms of integration of environmental and economic aspects and by being part of official statistics. As far as the latter point is concerned, the debate on the bill on environmental accounting highlights, among other things, how important it is that the statistical information used by policy makers and the one available for the general public be the same. The environmental accounts developed by Istat are particularly appropriate to meet this demand of statistical information, being part of official statistics. These accounts, in fact, have to comply with quality standards concerning both the product and the production process; in particular, they are supposed to be transparent4, complete5, flexible6, referred to a coherent framework7, readily available to users8. Furthermore, they are supposed to be produced on a regular basis. 2. Background frameworks, accounting tools and value added of environmental accounting The accounting system developed by Istat to measure the interactions between economy and environment builds on two types of background frameworks: a) an analytical framework, so as to have a proper way to look at the real world under examination; b) a statistical accounting framework, so as to have a well established reference to organise the different pieces of statistical information. The DPSIR model, explained in Figure 1, is seen in this context as a significant representation of the economy-environment interaction circuit. It is therefore adopted as the background analytical framework, and the contents of the accounting system are specified in a way that reflects such model. For the statistical accounting framework, on the other side, the starting reference is the SNA9, which provides, among other things, general guidelines for satellite accounting, with a special focus on environmental accounting10. 3 See Giovanelli et alii (2000). 4 Through dissemination of meta-information. 5 Information that is partial is likely not to be neutral. 6 Suitable for use in different contexts. 7 Through classifications, schemes and concepts as much as possible common to the various areas covered. 8 Keeping information hidden or difficult to access is not providing a good service to the community. 9 United Nations (1993a). 10 See chapter XXI. – 30 – Figure 1: The DPSIR model and the economy-environment interaction circuit Driving forces Pressures Anthropic activities and processes generate Direct stresses from the anthropic system that cause pressures: production on the natural environment: release of (agriculture, industry, part of polluting substances (emissions to air, to transports…), consumption, water, waste...), radiation emissions, recreation outside the economic intake of natural resources, use of soil, system… eliminate, other changes of the natural environment reduce, modify, prevent influence, substitute, modify remove restorate, Responses influence State Actions of the anthropic system to solve environmental problems: pollution prevention Conditions and tendencies in the and reduction activities, economic natural environment: air, water and “environmental damage” prevention and soil quality, global temperatures reduction, sustainable use of resources...° compensate, evolution pattern... mitigate stimulate, Impacts provoke, ask for cause Effects on the anthropic system due to changes in the state of the natural environment: negative consequences on human health, economic loss in production activities, floods...§ In satellite environmental accounting the integration of economy and environment is realised by considering certain areas of interest and by making use of certain accounting tools for the statistical representation of the relevant phenomena. A simplified overview of the areas of interest is given in Table 1, where the phenomena taken into account are also classified according to the DPSIR concept. These are dealt with also in other systems of statistical information on the environment, but what is special here is the rationale followed, which is based on the concept of natural patrimony, thus paralleling the hand-made capital concept in economic accounting. Table 1 – Main areas of interest in environmental accounting Main areas of interest Main phenomena Types of Stage of the phenomena DPSIR circuit Amount and state of the natural Amount of the various natural resources (e.g. Stock State patrimony forests, subsoil assets, etc.); Qualitative state of the various natural resources and environmental media (e.g. forests, air, etc.). Use, degradation and depletion, Intake of natural resources; Flow Pressures of the natural patrimony Emission of pollutants. Defensive expenditures Prevention and reduction of quantitative use of Flow Responses natural resources and of pollution; Restoration of environmental damage. – 31 – Figure 2: Structure of an asset account for a natural asset Structure of an asset account Structure of an asset adjusted for a natural asset account Opening stock [+] Opening stock [+] Variations Variations Increases [+] Natural Decreases [ - ] Increases [+ ] Closing stock [=] Decreases [ - ] Anthropog.. How it becomes for a natural Increases [+] asset Decreases [ - ] Closing stock [=] Figure 3: Structure of a national accounting matrix including environmental accounts Economic aggregates Environmental Environmental pressures: pressures: intake of pollution natural resources Economic activities and household s s l consumption ls r l sse e ra Fina Wat Mine Emissions Emissions Bioma Production Fossil Fue Employment Atmospheric Value Added Consumption Agriculture Industry Services Household consumption: transport heating other – 32 – Figure 4: Structure of an economy-wide material flow balance sheet Indirect flows associated to imports Imports Exports Raw Materials and semi- manufactured products Net addition to stocks Finished Products Transport infrastructure and buildings Machinery Domestic