China: Official Environmental-Economic Accounting in the Past Decade Wang Yixuan Department of National Accounts National Bureau of Statistics, China New York, Feb. 22, 2010

Background of China ’ s Environmental-Economic Accounting Great economic development in the past 3 decades Restriction to the development depletion of natural resources environmental pollution Economy-Environment-Society sustainable development Demand of EEA establishment – since 1994, study and research - since 1998, practices

Main Points Theory and methodology foundation What have done Partners and cooperation ways Relationship between E-statistics and EEA Applications of users

Theory and methodology foundation SEEA-2003 by UNSD (Integrated Environmental Economic Accounting) SEEAW by UNSD (Environmental Economic Accounting for Water ) IEEAF-2002 by the Euro stat (The European Framework For Integrated Environmental and Economic Accounting For Forests ) SEEA For Forestry by the FAO (Manual For Environmental And Economic Accounts For Forestry: A Tool For Cross-sector Policy Analysis published by the FAO )

What have done since 1998 Energy Accounts – from physical to hybrid (lasts 12 years) Environmental Accounting – pollution treatment cost and residual accounts Forest Accounting – stock and flow accounts Water Accounting – hybrid, stock and economic accounts Mineral Accounting – valuation SEEA-China

Energy Accounts — physical and hybrid Physical accounts - supply table shows primary input, transformation and final consumption of energy by energy production sectors - demand table presents final consumption of energy by non-energy production sectors and households - demand table divided into three tables according to consumption purposes for feedback, heat and transportation Hybrid accounts - Combining energy physical accounts and IOT for analyzing energy consumption intensity yearly and historically

Environmental Accounts — physical and monetary Emission Accounts - SO 2 - COD Cost estimation - simulative management cost - environmental degradation cost

Forest Accounting Stock accounts (physical/monetary) - forest land and wood stock accounts - change accounts Product flow accounts (physical/monetary) - Wood forestry products - Non-wood forestry products Ecosystem service valuation, Including seven aspects : forestry water reserve maintaining bio-diversity keeping soil and fertilizer fixing carbon & releasing oxygen warding wind & fixing sand purifying air, and sight & visiting

Water Accounting National level Pilot level One of drainage basins, rivers and cities were selected for accumulating different experience of developing water resource accounting in different aspects Accounts - SUT and hybrid accounts - Emission accounts - Stock accounts of water resource - Water quality accounts - Economic accounts of fixed assets water industries finance

Mineral Accounting — valuation NPV Appropriation Method

SEEA-China —— Framework

SEEA-ChinaFramework Mineral Stock Accounts Water SUT/hybrid Water Stock Accounts Forest Stock Accounts Land Stock Accounts Mineral and Energy Accounting Water Accounting Land- resource Accounting Forest Accounting Forestry SUT Waste Emission Accounting EPE and Environment Degradation Accounting Water Emission Accounts Air Emission Accounts Waste Pollutant Accounts EPE Resources accounting Environment accounting Energy SUT/hybrid Ecological Accounting Forest Ecological Service Environment Degradation Accounting

SEEA-China — Classifications Classification of Resource and Environment as - Natural Resource - Land Resource - Energy Production - Waste/Residuals - Environmental Activities

SEEA-China — Classifications Classification of Main Industries by Accounts - Energy industries coherent with IOT Coal Mining Crude petroleum and natural gas production Electricity, steam and hot water production and supply Petroleum refineries Coking, manufacture of gas and coal products - Water products Hydropower Production and Supply of Water Tap Water Waste Water Water Conservancy Management

Partners and cooperation - Internationally: technical support International - Statistics Norway - Statistics Canada - UNSD

Partners and cooperation - Domestically: data source and work division Domestically (Administrations, Academies and Universities) - Ministry of Environmental Protection - State Forestry Administration - Ministry of Water Resource - Ministry of Land and Resource

Relationship between Environmental Statistics and Environmental Accounts Environmental Statistics - Administrations / academies MEP: Environmental monitoring (since 1980s) MWR: Water conservancy and water resources (1950s) MLR: Mineral and land administration/resources (1950s) SFA: Forest production and forestry census (1950s) - NBS Approve of environmental statistical systems (1980s) Integrates main information of environmental statistics into publication since 1998 (freshwater environment, marine environment, atmospheric environment, solid waste, ecosystem environment, natural disasters, investment in the treatment of environmental pollution, urban environment, rural environment, etc.)

Relationship between Environmental Statistics and Environmental Accounts Environmental Accounts - NBS Methods participation Related accounts compilation energy accounts (physical and hybrid) mineral valuation hybrid water accounts physical forest stock accounts - Administrations Methods participation (with associated academies) Statistics (data source) Most of accounts compilation

Applications — Overview General application of environmental statistics - resource statistics: physical data - administration statistics Application of environmental accounts (new information) - physical data broken down by industrial classification - combine with economic information

Applications — suggestions on improvement of Statistics Propose to improve the administrational statistics in order to suit national and local environmental- economic sustainable development - Capital stock in water Statistics - Financial information in water statistics - Forestry production as a whole in forestry statistics (timber, sub-products) - Strengthen air and water monitoring in rural area in order to get households and agriculture emission data in environmental statistics

Applications — suggestions on improvement of Statistics A long way to go

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