Forests in the National Accounts:
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1 Forests in the National Accounts: Economic Accounts for Forestry Franz Murbach HEG-Workshop on economic valuation of forest ecosystem services
2 Contents 1. Introduction: some key figures about Swiss forestry 2. Economic accounts for forestry (EAF) position in public statistics 3. Methodological principles 4. Dissemination of EAF statistics 5. Some results 6. Perspectives 7. Questions and discussion 2
3 1. Introduction: some key figures about Swiss forestry 3
4 Forestry, an economic activity which enhances 31% of the Swiss territory Forests = 1,3 million ha Source: FSO 4
5 Some key figures of Swiss forestry (2012) Public owners Private owners Jobs (companies) Jobs (incl. households) Volume standing timber Annual timber removals Gross value added (70% forest area) (30% forest area) 6300 jobs (5000 FTE) (2012) 8000 FTE (source: EAF) 450 million m3 (NFI ø ) 4,7 million m3 (source: FSO) 310 million CHF Part in total Swiss GVA 0,05% Sources: FSO, WSL 5
6 Forestry in the wood chain (2012) Forestry Jobs: FTE GVA: 310 million CHF 15% of jobs and 8% of GVA of wood chain Wood industry Jobs: FTE GVA: million CHF Papier industry Jobs: FTE GVA: million CHF Total Swiss wood chain Jobs: FTE (full time equivalent) GVA: 4,5 billion CHF (0,7% total Swiss GVA) Source: FSO 6
7 Forestry in the wood chain (2012) Forestry Jobs: FTE GVA: 310 million CHF 15% of jobs and 8% of GVA of wood chain Wood industry Jobs: FTE GVA: million CHF Papier industry Jobs: FTE GVA: million CHF Total Swiss wood chain Jobs: FTE (full time equivalent) GVA: 4,5 billion CHF (0,7% total Swiss GVA) Source: FSO 7
8 2. Economic Accounts for Forestry position in public statistics 8
9 National Accounts and forestry International standards in national accounting (UN, EU); strong cooperation between international agencies (UN, FAO, World Bank, IMF, Eurostat): - central framework (core of National Accounts) - satellite accounts (and bridges to NA) Forestry: branch (industry) in national economy: production account, input/output tables (IOT) specific coordinated satellite accounts for forestry bridges between the satellite accounts and to NA 9
10 National Accounts and forestry Category, main topics National Accounts: production, income, accumulation, assets Satellite Accounts: physical & monetary flows and stocks: central framework Experimental accounts UN EU CH SNA 2008: System of National Accounts SEEA 2012: System of Environmental- Economic Accounting SEEA AFF: Agriculture, Forestry, Fisheries: in development Experimental Ecosystem Accounting ESA 2010: European System of Accounts EAF: Economic Accounts for Forestry IEEAF: Integrated Environmental and Economic Accounting for Forestry FA: Forest Accounts: pilot data in progress Not (yet) part of official public statistics (ESA 2010) Forestry Branch Account EAF IEEAF / FA Part standing timber: introduction in
11 Zoom on the Swiss primary sector Economic and satellite accounts for the primary sector Zoom on the primary industries: agriculture, forestry, fisheries and aquaculture Concepts of National Accounts (NA) National Accounts 11
12 National Accounts (GDP) Satellite accounts for the primary sector 01 Agriculture branch 02 Forestry branch 03 Fishery branch Swiss level Economic accounts for agriculture Small agricultural units Economic accounts for forestry Regional level Regional accounts for agriculture Regional accounts for the primary sector Regional accounts (Cantons GDP) 12
13 The input sources 1 synthesis statistic, over 20 input sources Federal statistics (official pluriannual statistical programme) Federal administration Forestry branch Forestry statistics (FSO/FS) Forest enterprise network (FSO) Structural business statistics (FSO/STATENT) Producer price index (FSO/PPI) Wood price statistics (FSO - Forest Economy Switzerland - Swiss Farmer s Union) Value added tax (VAT) statistics (FTA) State accounts, public finances (FFA) Recommandations for contract work (ASEFOR) 13
14 Economic accounts for forestry: ID card Type of statistics Institution, producer Statistical system Economic branch Methodology Introduced in... Bridges, interfaces Regional dimension Timeseries Components measured Economic synthesis statistics, satellite account Federal Statistical Office (FSO) Economic and satellite accounts for the primary sector Forestry and logging European System of Accounts, Eurostat manuals 2003, then produced each year National Accounts (FSO) Environmental Accounts (FSO) Switzerland (CH), Cantons (main aggregates) (CH), (Cantons) Production, income, accumulation, assets 14
15 3. Methodological principles 15
16 Federal Department of Home Affairs FDHA Measuring forestry in the economic Environment circuit (simplified) (sun, rain, soil, residuals) Upstream actors materials energy services machinery land constructions State distribute, regulate Enterprises produce employ invest Standing timber Wood in the rough Households work consume save Downstream actors 16
17 Forestry and logging activities Economic activity (industries) Silviculture and other forestry activities Logging Gathering of wild growing non-wood products Support services to forestry Products forest nurseries, standing timber Wood in the rough (sawlogs, fire wood, industry wood) mushrooms, berries, resin, cork, moss, etc. Support services to forestry and logging, contract work Relevance for CH Yes Yes No Yes 17
18 The model of Swiss forestry Silviculture, forest nurseries Nursery plants Standing timber Silviculture and logging, private forests Forestry services, forestry contractors Contract work Silviculture and logging, Public forestry enterprises Wood in the rough Downstream industries and consumption Wood in the rough 18
19 Accounting construction Elements of accounting sequence are... Production process: creating value added [production account] Generation of primary income: operating surplus, mixed income, entrepreneurial income [generation of income and entrepreneurial income accounts] Accumulation: renewal of productive assets [elements of capital account] Productive assets [elements of balance sheets] 19
20 output From output to income other subsidies on production interest & rent, receivable Production process = gross value added Depreciation = net value added Distribution State enterprises = factor income +300 Remuneration of salaried labour = net operating surplus / mixed income -100 Remuneration of property (capital,land) = net entrepreneurial income intermediate consumption consumption of fixed capital other taxes on production compensation of employees interest & rent, payable 20
21 5. Dissemination of EAF statistics 21
22 Source and dissemination EAF Source for other statistics of the pluriannual programme National Accounts Producer Price Index (weighting scheme) Environmental Accounts (Material Flow Accounts) Dissemination FSO ( ) Secondary dissemination in Switzerland (Yearbook for Forests and Wood, FOEN) Secondary dissemination by Eurostat (european statistical data base) 22
23 6. Some results 23
24 Source: FSO 24
25 Vivian Lothar Demand Strong CHF Fire wood Source: FSO 25
26 Source: FSO 26
27 Source: Eurostat 27
28 7. Perspectives 28
29 Perspectives Yearly production New in 2016: Introduction of the economic valuation of standing timber = partial implementation of IEEAF / FA Balance sheet standing timber (physical, m3) Balance sheet standing timber (monetary, CHF) Variations closing stock opening stock net annual increment of standing timber (output) removals of standing timber (intermediate consump.) 29
30 Thank you for your attention! More information: Discussion and questions 30
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