1. How to “educate” the users to the potential of using environmental accounts for development policies: the case of Italy
Cesare Costantino
10th London Group Meeting
United Nations Headquarter Complex
New York, June 2006

2. “Educating” the users: a special issue for environmental accounting
SEEA: Chapter 11
(on applications and policy uses)
examples
what can reasonably be done by statistical offices on their own and what they would have to undertake in collaboration with other agencies
Issues included in the research agenda
need for “educating” the users to the potential of using the accounting approach for analysis and policy making
C. Costantino - Istat

3. The Italian experience
Promotion
Adoption of high level decisions
Discussion in the Parliament
how to make users’ aware about the potential of using environmental accounts still a crucial issue in Italy
C. Costantino - Istat

4. Joint work by Istat and the Ministry of Economy and Finance
project launched in autumn 2004
aimed at identifying ways in which environmental accounting can improve the design, monitoring and evaluation of development policies
national knowledge management program adopted by the CIPE
follow up launched in spring 2006
Difficulties in managing the financial resources obtained
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5. Istat’s partner in the project
Ministry of Economy and Finance (MEF)
Department for Development and Cohesion Policies
Public Investment Technical Evaluation and Monitoring Unit
Public Investment Evaluation Unit (UVAL)
UVAL provides:
technical support to public administrations. Specific tasks include to help improve effective spending and to favour better performance of European structural funds
evaluations of various aspects of investment programmes and development projects
especially interested in regional environmental accounts
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6. Main results of the Istat - Ministry of Economy and Finance joint project
Specific objectives reached:
defined a framework
identified a subset of environmental accounting aggregates especially important for development policies
calculated, on an experimental basis and by way of example, regional estimates of some of the aggregates identified as especially important;
formulated general hypotheses in order to start up a system of periodic production of selected environmental accounting data on a regional scale
disseminated a methodological document: “Development policies and the environment: using environmental accounts for better decision making” (htpp://
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7. Main steps of the joint work
concept of development policy in operational terms
UVAL experts aware about the features of environm. accounting and the specific outputs stemming from it
examples of policy-makers’ questions concerning environmental issues, to which environmental accounting data can provide proper answers
generalising of the policy-makers’ demand and the corresponding supply by environm. accountants
priorities for further work on environmental accounting at Istat
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8. Operational definition of the development policy concept
focus on capital
government decisions aimed at either directly or indirectly helping to conserve and increase the stock of public and private capital
enlarged concept of capital
produced capital, human capital, natural capital, knowledge capital, social capital
the natural capital
according to the SEEA concept and guidelines (e.g. & 1.23 of the handbook on the different functions of the natural capital)
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9. Main features of development policies
objectives
conservation/ growth of the capital stock (different forms)
conservation/ growth of the stock of a given form of cap (specific components)
reduction of territorial disparities concerning capital stock
target groups
different institutional sectors, different industries, different social groups
instruments
public expenditure
fiscal system
regulation
public help for capacity building
focus on allocation of expenditure to stocks of capital, sectors, territories
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10. Allocative decisions by kind and related policy-maker questions
kind of allocation
examples of questions
among different forms of capital
Which share of the materials used in production and consumption processes ends up in residuals and which share is turned into produced capital?
To what extent is the natural resources’ intake needed to satisfy the key economic sectors’ requirements?
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11. Allocative decisions by kind and related policy-maker questions
kind of allocation
examples of questions
among different target groups
What is the relationship between the economic performance and the environmental performance of various production activities?
Are the economic activities that pollute the most the same ones that spend the most on environmental protection?
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12. Allocative decisions by kind and related policy-maker questions
kind of allocation
examples of questions
among distinct territories
Are there significant differences among territories in terms of the availability of various natural resources and their quality?
Are the territories with the greatest pollution and degradation the same ones that spend the most on environmental protection?
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13. Answers from environmental accounts
SEEA and ESEA
framework
stress on main topics addressed, main phenomena described and their type, stage of the DPSIR circuit at issue
environmental accounting modules for which handbooks, compilation guides, standard tables are available within the ESS: EW-MFA, NAMEA, EPEA, asset accounts
focus on
- direct use of empirical evidence provided by env. accounts
- indirect use of data provided by env. accounts as an input for modelling
how
examples
based on data regularly produced by Istat
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14. Questions-answers: a framework
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15. The potential of using env. accounts at the individual decision stages
Choice of objectives
allocation of resources among forms of capital
the information provided by environmental accounts for the different forms of natural capital is of crucial importance, because the degradation of the natural resources in question can, in the medium- to long-term, compromise the prospects for development of key economic sectors
allocation of resources among territories
the information makes it possible to take into account the differences in the respective environmental situations deemed capable of impacting on the gaps in development
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16. The potential of using env. accounts at the individual decision stages
Choice of policy instruments
choice of mechanism (expenditure, fiscal and/or regulation policies)
the information provided by environmental accounts is deemed reduced
choice of target groups
the information appears especially important. Environmental accounts can also provide indications for the fine-tuning of the parameters of intervention tools (for example, determination of the price changes needed to bring about changes in behaviour)
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17. Value added of the individual environmental accounts
In relation to allocative decisions
environmental accounts able, by their very nature, to provide useful support for some decisions, not for others
able to provide useful support by favouring the reading of certain information at times and the reading of other information at other times: they can be read at various levels and for various objectives
able to provide information not otherwise available from other sources
able to provide more complete and/or more detailed information compared with other sources
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18. Value added of the individual environmental accounts
For purposes of ex post evaluation of development policies
the potential of using environmental accounts appears to be reduced, due to the difficulty of distinguishing the effects of the public intervention and effects originating from other causes
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19. A prioritisation exercise
key factors: importance for development policies, feasibility
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20. The case of Italy: some lessons learnt
Users’ interest
money for the project obtained from a public fund for the enhancement of knowledge in general, not from a budget specific for environmental issues
users’ willingness to assess the potential of using environmental accounts due to their involvement in public expenditure
Users’ capacity to understand environm. accounting
examples of policy-makers’ questions concerning environmental issues to which environmental accounting data can provide proper answers
calculation of indicators identified as especially important
focus on data regularly produced
Funding
after all, despite the Ministry’s willingness to pay, the society on the one hand and the statistical system on the other hand are not really engaged in developing environmental accounts and their use
C. Costantino - Istat

21. questions/points for discussion
How to arouse users’ interest
focusing on the need to integrate environmental and economic aspects as a standing alone point, or making a major effort to address knowledge issues with reference to overall sustainable development?
are there specific users’ interests (e.g. improving public expenditure) on which it is advisable to focus on?
Finding best ways to dialogue with users
to make use of a “questions-answers framework”?
to avoid controversial issues, starting discussion from those accounts for which handbooks, compilation guides, standard tables are available,?
to concentrate on environmental accounts/aggregates deemed especially important?
to start discussion from those accounts that are already produced on a regular basis?
what else?
C. Costantino - Istat

22. questions/points for discussion
To develop “methodological” documents specifically aimed at “educating” users?
Can an action aimed at “educating” users help to elevate the SEEA to an international statistical standard? and if so, how?
How to make the society and the statistical system actually engaged in developing environmental accounts and their use?
C. Costantino - Istat

23. for your kind attention
Thank you
for your kind attention
C. Costantino - Istat