Beyond GDP Ecosystem Services as Part of Environmental Economic Accounting?
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1 Beyond GDP Ecosystem Services as Part of Environmental Economic Accounting? Walter Radermacher President of the Federal Statistical Office, Germany Workshop Ecosystem Services Solution for problems or a problem that needs solution? May 2008, Salzau
2 Official statistics and progress measurement 14/05/2008 Folie 2
3 The Economic System in Statistics: A flat projection space stocks depreciation investment export flows import time 14/05/2008 Folie 3
4 Good policy needs good statistics (Tony Blair) Theoretical Consistency Quality of Statistics Political Relevance Empirical Measurability 14/05/2008 Folie 4
5 Species of Statistical Information degree of aggregation/ model character high multi-dimensional indicator systems composite indicators social accounting national accounts environment al accounting low accuracy short-term data structural data coherence 14/05/2008 Folie 5
6 Reductionism + Holism: Complementary Views Synthetic indices signalling a high-level governance Overview Indicator sets or aggregates with a single unit of measure Quantitative indicators with a multiple dimension space of measures Accounting data supplemented by satellite systems Basic statistical data from surveys etc. Details 14/05/2008 Folie 6
7 Official Statistics and Environment Driving forces Pressures State of Environment Responses Population Production Consumption Productivity Main Working Area of Official Statistics 14/05/2008 Folie 7
8 Toolbox Environment Statistics Toolbox Environment Statistics Basic Statistics Geographical Information Systems (GIS) Accounting (SEEA: MFA, Valuation ) Modelling Indicators (I-Sets, Composite Indicators) Collection X X Systematisation X X X Analysis X X X Aggregation X X Communication X 14/05/2008 Folie 8
9 Millenium Assessment: Ecosystem Services with open ends $$?? $$? 14/05/2008 Folie 9
10 Ecosystem Services Provisioning Goods produced or provided by ecosystems Regulating Benefits obtained from regulation of ecosystem processes Cultural Non-material benefits from ecosystems 14/05/2008 Folie 10 Photo credits (left to right, top to bottom): Purdue University, WomenAid.org, LSUP, NASA, unknown, CEH Wallingford, unknown, W. Reid, Staffan Widstrand
11 Provisioning Services Goods produced or provided by ecosystems Food Fiber Crops Livestock Capture Fisheries Aquaculture Wild Foods Timber Cotton, hemp, silk Wood Fuel Genetic resources Biochemicals Freshwater 14/05/2008 Folie 11 Photo credit (top): Tran Thi Hoa (World Bank),
12 egulating Services Benefits obtained from regulation of ecosystem processes Air Quality Regulation Climate Regulation Global (CO 2 sequestration) Regional and local Erosion regulation Water purification Disease regulation Pest regulation Pollination Natural Hazard regulation 14/05/2008 Folie 12
13 Cultural Services Non- material benefits obtained from ecosystems Spiritual and Religious Values Knowledge Systems Educational values Inspiration Aesthetic Values Social Relations Sense of Place Recreation and Ecotourism 14/05/2008 Folie 13 Photo credits ( top to bottom): W. Reid, Mary Frost, Staffan Widstrand, unknown.
14 Holistic Measures on Different Levels of Aggregation Extended national accounts (e.g. SEEA / System of integrated Environmental Economic Accounting) Indicators, indicator sets (e.g. EU structural indicators, EU sustainable indicators, UNSD, OECD) Composite indicators on environment, well-being, quality of life 14/05/2008 Folie 14
15 Political Demands once and now 1990: GREEN ACCOUNTING And in between: many indicators. GPI (2006) Genuine Progress Indicator Living Planet Index Happy Planet Index MEW Measure of economic welfare Ecological Footprint ISEW (1989) Index on sust. human welfare HDI Human Devel. Indedx Genuine Savings Rate (2005) 2008: Beyond GPD, Measuring Progress 14/05/2008 Folie 15
16 SEEA 2003 UN Handbook, Part I Part I Standard 2011 Material (Physical) Flow Accounts Environmental related activities and products Balance sheets for natural resources Environmental expenditures 14/05/2008 Folie 16
17 SEEA UN Handbook, Parts II + III Non- standard in 2011 Part II: Valuation Valuation techniques for environmental degradation Accounting adjustments for environmental degradations Part III: Applications & policy uses e.g. climate change e.g. sustainability 14/05/2008 Folie 17
18 What is already done in Germany? German Environmental - Economic Accounting (similiar to part I of SEEA) Material Flow Accounts Resources, Energy, Water, Air Emissions Land Use Environmental Expenditure Accounts Special thematic reporting modules to Traffic Agriculture Indicator set for Sustainable Development 14/05/2008 Folie 18
19 Valuation is all All can be valuated? Why not a green / adjusted GDP? Availability of physical data? Market prices / Shadow prices? Simple: Cost of a car in market prices (private goods) Difficult: Valuation of ecosystem services (or its loss), like climate change (public goods) Axiom for valuation: At least there should be something similiar to a market price. 14/05/2008 Folie 19
20 any services are public goods Spiritual & religious Aesthetic Flood/Fire regulation Disease regulation??? Economic Valuation? Difficult or impossible Private Benefit Capture Difficult Water purification? Climate regulation? Freshwater? Genetic Resources? Recreation & tourism? Fiber? Easy Easy Food? Source: MilleniumAssessment Economic Value ($) 14/05/2008 Folie 20
21 Is Valuation all? provisioning ECOSYSTEM SERVICES flows, no market price $ $ $ $ $ $ $ $ $ $ $ $ ECONOMY $ $ $ regulating cultural Many ECOSYSTEM SERVICES do not fit with the principles of official statistics 14/05/2008 Folie 21
22 How to get beyond GDP? Modelling Basic data Basic data Basic data Accounting OFFICIAL STATISTICS cooperation Valuation? Scenarios for environmental adjusted economies RESEARCH INSTITUTES 14/05/2008 Folie 22
23 Aims of global environmental policy (H.Daly) Scale: Global limits Distribution: to nations Efficiency: Allocation of emission rights In the end there could be a market price Source image:mithradam.org 14/05/2008 Folie 23
24 What else should / could official Statistics do? Sound data on the state of ecosystems (stocks) Background for ecosystem services Inventory in physical terms 14/05/2008 Folie 24
25 Example for inventory stocks from Germany: Ecological Area Sampling Statistical approach: Stratified random sample (Based on CLC; Landclasses+landuse patterns) Two levels: Landscape, Species Periodical performance in permanent plots Representative for the normal landscape Efficiency: Few sites for the whole Country Uniform methods, reliable results: area balances, indicators (physical data) 14/05/2008 Folie 25
26 INDICATORS AGRICULTURAL LANDSCAPE Level 1 Landscape quality Intensity of use Structural diversity Naturalness Fragmentation Risk of erosion Biotope diversity Length of linear features Species diversity (birds) Endangerment Occurrence of endangered biotopes Level 2 Species in biotope types Mean number of species Share of indicator values Share of endangered species 14/05/2008 Folie 26
27 Current situation of Ecological Area Sampling Approval, but little funding Representative set of 1000 sample sites for Germany defined (national level) Representative set of additional sites for German Länder defined (regional level) 1rst step of monitoring (birds) is implemented (research project, supported by volunteers) Basis for national sustainability strategy (Indicator no. 5: Species diversity and landscape quality) Funding as main problem! Implementation step by step? 14/05/2008 Folie 27
28 Requirements for next steps of the official statistics Provide resources for adequate quality of official statistics Broaden the accounting systems (concepts, standards): environment, sustainability, R&D, human capital; core system and satellite systems Make sure that necessary basic data is available Agree on indicator sets, based on available information Develop standards (handbooks) on international level Build up databases to analyse transboundary flows (esp. for climate change) Improve communication tools 14/05/2008 Folie 28
29 Working together society Inter- und supranational institutions, e.g. OECD, UN European official statistics economy National official statistics government Research institutes environment 14/05/2008 Folie 29
30 Thank you for your attention! Walter Radermacher Telefon: +49 (0)611 / walter.radermacher@destatis.de 14/05/2008 Folie 30
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