Sustainable Development Indicators Based on National Accounts By Ismir Mulalic and Thomas Olsen Statistics Denmark Paper prepared for the 23:e Nordiska Statistikermötet Åbo, Finland 18-21 August 2004 The message!! Sustainable development indicators should be derived from systems where all data are based on the same definitions and classifications The System of National Accounts and its satellite accounts are well suited for that 1
Why do we need Sustainable Development Indicators? Information to the public Evaluation of sustainable development policies However, the possibility for disaggregation is essential in order to understand the reasons for the development in the indicators Introduction to Sustainable Development Indicators From an economic perspective Flow based indicators E.g. Net National Product Stock based indicators E.g. Genuine savings However, there are several issues 2
Introduction to Sustainable Development Indicators in Denmark Dimensions in the Danish strategy for sustainable development Economy Environment Sociological factors A series of indicators However, some of the indicators are based on elements originating from different statistical frameworks Potential problems Different indicators for the development in the Danish CO 2 -emissions Index 1990= 140 130 120 110 90 80 70 0 1990 1991 1992 1993 1994 1995 199 1997 1998 1999 2000 2001* 2002* Reliable indicator Misleading indicator NAMEA-type CO2 emissions compared to GDP at 1995-prices IPCC-type CO2 emissions compared to GDP at 1995-prices 3
Two issues in connection to current set of Sustainable Development Indicators The two most important are: Too large number of indicators Lack of linkages between the three dimensions of SD SD lies in the tradeoffs and interaction between incompatible goals of environmental protection and economic and social development Sustainable Development Indicators We want to evaluate the interdependence between different topics and the simultaneous achievement of different goals Economic Environmental Social We need a system which describes it all The System of National Accounts and its satellite accounts are well suited for that 4
The System of National Accounts The National Accounts provides the cornerstone IO tables (The economy) The satellite accounts NAMEA (Environmental goals) SAM (Social goals) All using the same definitions and classifications The Statistic Framework The system we are aiming at Accounting system dataset Aggregation (economic sociology, environment) Interaction between economic sociology, environment dimension SD indicators Integrated SD-analysis Integrated SD-policy 5
Information obtained from NAMEA Evaluation of economic and environmental goals Index 1990= 140 GDP (1995-prices) 120 Greenhouse gas effect 80 0 Acidification effect 40 20 1990 1991 1992 1993 1994 1995 199 1997 1998 1999 2000 2001* 2002* The NAMEA system makes disaggregation possible Environmental themes broken down by substances Emissions broken down by industries and households Emissions broken down by the use of energy products SESAME I System of Economic and Social Accounting Matrices and Extensions Combines IO tables, NAMEA and SAM One system where all data are based on the same definitions and concepts Indicators are derived by aggregation SESAME makes it possible to analyse interdependences between different topics and the simultaneous achievement of different goals
SESAME II All indicators derived from SESAME would share two crucial features: 1) Every indicator is computed from a single, fully consistent statistical system 2) Each indicator uses the most suitable measurement unit of the phenomenon it describes Information obtained from SESAME I All kinds of indicators based on combinations of statistics on the economy, environment and social factors are possible within the SESAME framework, e.g. Economic activity and environmental pressure broken down by industries and the households Environmental pressure broken down by different social groups in terms of income or educational level 7
Information obtained from SESAME II Contribution to GDP, employment and environment per type of labour in the Netherlands (1990) Types of labour Gross Domestic Product (GDP) Total employment Greenhouse gas effect (GWP) Ozone layer depletion (ODP) Acidification (AEQ) Eutrophication (EEQ) Accumula -tion of waste (min KG) Pct. of total employed persons Male with low education 27 28 31 34 3 42 38 Male with high education 49 41 55 55 51 45 48 Female with low education 8 13 5 7 Female with high education 1 18 8 7 5 7 Total Conclusion and perspectives Indicators should be based on elements from the same statistical framework Indicators should be derived by aggregation SESAME is such a statistical system Improved possibilities for analyses and modelling Statistics Denmark has developed a NAMEA in relation to the National Accounts but still needs to develop a SAM in order to create SESAME 8