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Ecosystem Accounting: Implementation Challenges and Possible Solutions

Ecosystem Accounting: Implementation Challenges and Possible Solutions. J. Steven Landefeld, Director. Learning Centre on Experimental Ecosystem Accounting February 25 th , 2013. Need for Further Research and Consensus Building .

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Ecosystem Accounting: Implementation Challenges and Possible Solutions

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  1. Ecosystem Accounting: Implementation Challenges and Possible Solutions J. Steven Landefeld, Director Learning Centre on Experimental Ecosystem Accounting February 25th, 2013

  2. Need for Further Research and Consensus Building • “From Exxon to BP: Has Some Number Become Better than No Number.” Kling, Catherine L., Daniel J. Phaneuf and Jinhua Zhao • “Contingent Valuation: A Practical Alternative when Prices Aren’t Available.” Richard T. Carson • “Contingent Valuation: From Dubious to Hopeless” Jerry Hausman Source: Fall 2012 Journal of Economic Perspective, Vol. 26, No. 4

  3. Need to Build Public, Policy and Budgetary Support • Lack of strong support for SEEA in the Rio+20 • Reduced budgets at statistical agencies are forcing agencies to focus on core statistics and reduced funding for environmental and other activities • Public good problem • Fewer Americans, Europeans view global warming as a threat • Americans continue to prioritize growth over environmental protection. • Developing countries - stronger support

  4. Americans Still Prioritize Economic Growth Over Environment BP Oil Spill

  5. Measures to Build Support • Focus on low hanging fruit with “maximum bang for the buck” • Need for short-term deliverables with high importance and that create “buzz” • Use the SEEA as a platform for experimentation and standardization

  6. Measures to Build Support • Develop better links, and ultimately consensus, with statisticians, economists, scientists, and ecological and environmental experts • Form partnerships with relevant policy agencies • Don’t forget long-term data collection plans

  7. U.S. Building Blocks to Environmental Accounting • Work can be done that both benefit existing accounts and pave the way for satellite accounts: • More detailed economic data on key energy and environmental industries: • Expanded Input-Output Accounts and Annual KLEMS Estimates (with Energy Information Administration) • Integration with natural resource and environmental data (with National Oceanic and Atmospheric Administration) • More accurate, up-to-date, and detailed geographic data • SNA harmonization: • GDP growth most important determinant of global warming projections

  8. U.S. Building Blocks to Environmental Accounting • Improvement of existing measures of health care (with National Institutes of Health): • Cost by disease category and by type of service • Improved measures of real output • Development of household production estimates, with special attention to energy intensive activities • Complimentary Academic-Statistical Agency Research Agenda (with Cutler-NIH health group and Nordhaus et al. environmental accounting group) • Regular review and updates with Academic Advisory Committees

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