MATERIAL FLOW ACCOUNTS OF MONGOLIA (2005-2013) J.Terbish, National Statistical Office of Mongolia 1
CONTENTS 1. Brief overview Types of environmental accounts 2. Material flow accounts Objective, importance Classifications, indicators 3. Results of experimental MFA, 2005-2015 Data source, methods Results 4. Further activities 2
1. Brief overview Types of environmantal accounts (SEEA) Physical flow accounts Material flow accounts (MFA) Physical supply and use tables for water (PSUT water) Physical supply and use tables for energy (PSUT energy) Air emissions accounts Water emissions accounts Waste accounts Monetary flow accounts Environmental protection expenditure accounts Resource use and management accounts Environmental goods and services sector Environmentally related payments by government Environmental tax accounts Permits and licenses to use environmental assets Emissions permits Asset account Mineral and energy resources Land Soil resources Timber resources Aquatic resources Other biological resources Water resources
2. Material Flow Accounts Material flow accounts are the framework for compiling statistics involving flows of materials from natural resources to national economy. The general purpose of MFA is to describe the interaction of domestic economy with natural environment and the RoW in terms of material flows. Importance: Provide the information on the structure and changes of physical metabolism of economy over time; Derive a set of aggregated indicators for the use of natural resources; Derive resources productivity and eco-efficiency indicators, like the relation between resource use indicators and GDP, and other economic indicators; Provide indicators for the material intensity of lifestyles by connecting these indicators to population size and other demographic indicators; Integrate information into the National Accounts.
2. Material Flow Accounts Main classification: Biomass; Metal ores; Non metallic minerals, and Fossil energy materials/carriers. Imports, exports Indicators based on MFA : Domestic Extraction Used (DEU) is the input from the natural environment to be used in economy. DEU is the annual amount of raw materials (with the exception of water and air) extracted from the natural environment. Physical Trade Balance (PTB) equals physical imports minus physical exports. The physical trade balance is thus defined reverse to the monetary trade balance (which is exports minus imports).
2. Material Flow Accounts Direct Material Input (DMI) measures the direct input of materials for use in economy, that is all materials that have economic value and are used in production and consumption activities. DMI equals DEU plus imports. Domestic Material Consumption (DMC) measures the annual amount of raw materials extracted and used in national economy, plus all physical imports minus all physical exports. DMC represents the part of all material inputs into economic system. Material Intensity is defined as Domestic Material Consumption (DMC) to Gross Domestic Product (GDP) ratio to indicate overall material efficiency of the economy. Resource productivity is the inverse of material intensity, thus GDP to DMC. It shows how productively economy consumes resources in the production of products and services for market needs. Domestic Material Consumption per capita measures the total amount of materials directly used by economy per capita.
Data sourse: Agricultural, crop and forest statistics Environmental statistics Industrial statistics Construction statistics Foreign trade statistics Agricultural Census Household income, expenditure survey Administrative statistics Methodology: Compilation guide of MFA Eurostat, 2013 National and international conversion factors were used.
Table 1. Domestic Extraction Used (DEU) per category of materials, 2005 2015 In 2005, Mongolia extracted 49.1 millions tonnes of materials from environment and used it in economic activity. In 2015, it reached 104.8 millions tonnes and domestic extraction used of materials increased twice or 55.7 millions of ton last 10 years.
Figure 1. Structure of Domestic extraction used (DEU) per category of materials, %, 2005 2015 Extraction of biomass s share was 70.2-72.5 % between 2005 and 2009. It reduced to 48.5-59.2 % in 2010-2015, were mainly from the increase of energy materials by 5.0-22.8 points in same years compared with previous years. The increase of extraction of energy materials was related to the rise of coal extraction. The share of extraction of non metallic minerals increased dramatically in 2013-2014. It is related mainly due to increase of new road kilometer, the sand and gravel used for road construction was also increased.
Figure 2. Structure of Domestic Extraction Used (DEU) per category of materials, %, 2005 and 2015 The share of biomass was 72.5 percent in 2005 and decreased to 59.2 percent in 2015. In the same time, share of fossil energy materials were 16.9 percent in 2005 and increased by 7.5 points in 2015.
3. Results of experimantal MFA, 2005-2015 Table 2. Imports per category of materials, thous.t, 2005-2015 In 2005, Mongolia 2.7 million of tonnes of materials imported from abroad. It reached 8.4 million of tonnes in 2015 and increased by 3.1 times more than 2005.
3. Results of experimantal MFA, 2005-2015 Figure 3. Structure of imports per category of materials,%, 2005 2015 Biomass and non metallic minerals had the greatest share in the observed period by 35.6-46.3 % and 26.1-34.7 %, respectively.
Table 3. Exports per category of materials, thous.t, 2005-2015 In 2015, Mongolia exported 23.2 millions of tonnes materials and it was 2.8 times more higher than the imports. Compared with 2005, the exported materials increased by 6.4 times more in 2015 was mainly due to increase of energy materials by 13.5 millions of tonnes or 6.9 times more. The increase of energy materials are directly related to the increase of coal exports.
Figure 4. Structure of exports per category of materials,%, 2005 2015 Energy materials had the greatest share in exports in the 2005-2015. Its share in total export was 68.8 % on average.
Table 4. Physical trade balance (PTB), 2005 2015 In 2005-2015, trade balance had a deficit all year. It means that Mongolia exported more materials than imports and shows that nondependent of resource. Trade deficit increased sharply from 2010 was related to the export rise of energy materials (coal exports) and metal ores (copper, iron, zinc). Table 5. Direct Material Input, thous.t, 2005 2015 Domestic Material Input reached 113.2 millions of tonnes in 2015 and increased by 61.4 millions of tonnes or 2.2 times more compared with 2005.
Table 6. Domestic Material Consumption (DMC), thous.t, 2005 2015 Domestic material consumption equal Direct material input minus Exports. Material consumption in national economy reached 90.0 millions of tonnes in 2015 and increased by 41.8 millions of tonnes or 86.8 % compared with the 2005.
Figure 5. Domestic Material Consumption (DMC) by materials, %, 2005 2015 Share of biomass are the highest in the domestic material consumption. In 2005-2015, its share reached 64.6-79.3 percent of total domestic material consumption with the 4 36.4-65.4 millions of tonnes of biomass were consumed in national economy
Table 7. Material intensity and Resource productivity, 2005-2015 Material intensity decreased during the period, while resource productivity increased; this means that less materials in kg was needed to produce one millions of tugrugs of GDP, i.e. the economy generated higher amount of GDP by using one unit of material.
Figure 6. Material intensity and Resource productivity, 2005-2015 In 2005, Mongolia produced 1 millions of tugrugs GDP using the 12.0 tonnes of materials, while in 2015, the 1 millions of tugrugs GDP were produced by 3.9 tonnes of materials. From the resource productivity perspectives, in 2005 and 2015, Mongolia used 1 kg materials to produce 83.0 and 257.1 tugrugs of GDP, respectively.
Figure 7: Domestic material consumption per capita, 2005-2015 Domestic material consumption per capita of Mongolia was 18.9-19.4 tonnes in 2005, 2006 and 2010, while 22.6-23.8 tonnes in 2007-2009 and 2011-2012 at same level. But, in 2013-2015, it reached 28.1-29.4 tonnes and increased by 9.2-10.5 tonnes or 48.7-55.6 % compared with 2005.
Figure 8: Domestic material consumption per capita, by countries, in ton, 2008 With DMC amounting to 23.4 tonnes per capita, Mongolia is positioned 8th among 33 observed European countries in 2008. Denmark /25.2/, Austria /22.9/ and Sweden /22.3/ are at same level with Mongolia. DMC per capita of Mongolia is higher by 7.1 points than the average of EU (16.3 tonnes per capita).
4. Further activities 1. Compile the national conversion factors ; 2. Continue the international comparisons in more indicators; 3. Apply an econometric and impact analysis linking with the socio-economic indicators.
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