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Analysis of Compilation Results Chapter 1 Overall Result Consistent with the guideline of UN's System of Environmental and Economic Accounting (SEEA), Taiwan's Green National Income Account presents physical flow accounts, physical asset accounts and environmental activity accounts resulting from the impacts that economic activities have on environmental resources. In addition to providing a synopsis of related accounting statement results, this chapter seeks to establish environmental-economic account indicators from an issue-oriented and multi-faceted perspective. The purpose is to integrate information and observe the systemic interaction between the economy and the environment during economic development. Ⅰ. Physical flow accounts Physical flow accounts are measured in physical units. They employ supply and use tables to present the flows from the environment into and out of the economy, as well as the flows inside the economy. The physical flow account for environmental emissions uses residue emission to show the pollutants recycled, collected and treated by the economy, as well as the flow and direction of their release back into the environment. The energy physical flow account for minerals, earth and rocks presents flows related to the manufacturing, production, supply, consumption and use of different types of energy associated with various the economy and environment. (Ⅰ) Physical flow accounts for environmental emissions In terms of the overall flows of the supply side of environmental emissions, the total supply of air pollution emission in 2015 reached 2,109 thousand metric tons. The top three emitting sectors accounted for more than 80% of the total, with emission from households reaching 725 thousand metric tons and 34.4% of the total; the next was the manufacturing with 564 thousand metric tons, accounting for 26.7%. The third was the transportation, which emitted 410 thousand metric tons, accounting for 19.4% of the total. Biochemical oxygen demand, chemical oxygen demand and suspended solids are the most commonly seen water pollutants discharged into the environment. For 2015, households; agriculture, forestry, fishing, and animal husbandry; and the manufacturing (including the electricity and gas supply) were the top 3 emitters of water pollutants. The three parties aggregated accounted for more than 93% of the whole. A total of 94,331 thousand metric tons of solid wastes were generated in 2015. Among them, the construction came in first by generating 62,442 thousand metric tons, more than 60% of the total; the next was the manufacturing with 15,503 thousand metric tons, 16.4% of the total. These two aggregated to account for more than 83% of the total. Table 2.1.1 Supply and use table for environmental emissions, 2015 Unit: thousand M. T. Total supply Total Total use Agriculture, forestry, fishing and animal husbandry Mining and quarrying Manufacturing Electricity and gas supply Water supply and remediation activities Construction Transportation Households Others Flows into the environment 2,109 119 16 564 138 10 88 410 725 39 2,109 BOD 257 31 2 16 3 - - 195 10 257 COD 655 81 7 54 9 - - 473 32 655 SS 263 40 3 16 4 - - 190 10 263 94,331 4,635 73 973 62,442 - Air pollution Water pollution Solid waste 15,503 3,315 7,389 (Ⅱ) Energy physical flow accounts In terms of the energy supply and use table for 2015, energy supply totaled 206,383 thousand metric tons of oil equivalent. Within this, energy products that were imported reached 127,756 thousand metric tons of oil equivalent, accounting for 61.9% of the total. The amount of energy goods transformed output from primary and secondary energy reached 75,809 thousand metric tons of oil equivalent, accounting for 36.7% of the total. The amount of energy for natural inputs derived from Taiwan's environment reached 2,817 thousand metric tons of oil equivalent, accounting for only 1.4% of the total. Within energy for natural inputs, 79% was transformed and invested into 94,331 electricity generation, with the main consumers being energy sector (own use), industrial sector, service sector, residential sector, etc. Imports accounted for 62.8% of all energy products. Yields from the transformation of primary and secondary energy accounted for 37.2%. Among these, 59% was primarily invested in coke ovens, petroleum refineries and electricity, while the other 36% was for domestic consumption. Table 2.1.2 Energy supply and use table of 2015 Unit: thousand M. T. of oil equivalent Supply side Statistical discrepancy Energy residue loss 75,809 591 Stock changes - 127,756 2,226 International marine bunkers & civil aviation - Export - 2,817 127,424 78,959 Domestic consumption 75,809 Final supply 2,817 127,756 Transfers & transformation (2) Transformation output (1) Energy for natural inputs Energy products From import From Taiwan environment Total Use side 74,403 16,456 3,654 1,126 1,019 7,281 582 0 - 6 - 3 125,198 78,368 73,821 16,456 3,654 1,120 1,019 7,278 Electricity - - - - 24,978 (3) Note: (1) Transformation output: energy amount as transformed from primary energy and secondary energy. (2) Transfers and transformation refer to the amount of energy committed to processing. Among them, transfers mean intermediate conversion between products, as one petroleum product into another petroleum product; transformation means transforming into other types of energy. However, aside from energy being transferred and transformed into energy products, it may also be directly provided in its final supply application. (3) The final supply in the table equals to the total supply amount less transfers and transformation. However, hydro power, solar-photovoltaic and wind power, pumped-storage hydroelectricity, thermal power, cogeneration, nuclear power and so forth have all been integrated into the power grid for consumption by various domestic sectors. Therefore, they have been presented in terms of their final supply of electricity here. Energy is provided for a multitude of applications. In addition to domestic consumption, it can be exported or used in international marine bunkers and civil aviation. By the kinds of energy for domestic consumption, the petroleum products had the largest share, accounting for 54.0% of the total; the next was the total usage of electricity (including self-use power by power-generating units and power integrated into the power grid), 28.9% of the total. The others were the usage of natural gas, coal products, etc. With domestic consumption, we can also break it down into energy sector own use, energy use, and non-energy use (i.e., usage of energy products for non-combustion purposes). Among these, energy use was the staple, accounting for 63.5%; while non-energy use has been given a boost since Formosa Plastics' Sixth Naphtha Cracker started producing ethylene in 2000, accounting for 30.3% of the total in 2015. Energy sector own use accounted for 6.2%. According to energy use by sectors, the industrial sector was the leader, accounting for 48.5% in 2015. The transport sector accounted for 25.7%, while the residential and service sectors accounted for 12.3% and 12.1%, respectively. Figure 2.1.1 Status of domestic energy consumption, 2015 Energy category Petroleum products Total electricity LNG Natural gas Others 0 6 12 18 24 30 36 42 Million M. T . of oil equivalent Energy sector own use Agriculture Non-energy use Industrial Service Transportation Residential Note: Total electricity included hydro power, solar-photovoltaic and wind power, pumped-storage hydroelectricity, thermal power, cogeneration, and nuclear power; they were divided into self-use power and the power integrated into the power grid. Ⅱ. Physical asset accounts Physical asset accounts involve documenting asset reserves and their variation in physical material units during the accounting period. As far as Taiwan's natural resources are concerned, the statistics for non-metallic minerals are for those with high economic values for extraction, such as marble, serpentine, limestone and dolomite. The reserve of non-metallic minerals by the end of 2015 was estimated to be around 10.33 billion metric tons, while the amount of extraction was 0.02 billion metric tons. Energy minerals are the tally of natural gas and condensed oil. As of the end of 2015, the energy mineral reserve was estimated to be 4,334 thousand kiloliters of oil equivalent, with 359 thousand kiloliters of oil equivalent in annual amount of extraction. Earth and rock resources are the tally of earth and rocks in rivers and lakes; earth and rocks on the land; and earth and rocks in the coastal regions and marines. As of the end of 2015, the estimated reserve was 3.98 billion cubic meters, with 0.04 billion cubic meters of the amount of extraction. Table 2.1.3 Physical asset accounts for mineral and earth & rock resources, 2015 Opening stocks Non-metallic mineral resources Energy minerals resources (Thousand metric tons) (Thousand metric tons of oil equivalent) (Thousand cubic meters) 10,348,739 4,687 3,985,035 18,168 359 37,623 - 5 31,417 10,330,570 4,334 3,978,829 Extraction Other changes in volume Closing stocks Earth & rock resources Note: Other changes include re-estimated resource reserves and the discovery of new lodes. Ⅲ. Environmental activity accounts Environmental activity accounts are a documentation of transaction payments made for the purpose of preserving and maintaining the environment. Environmental protection expenditures reached NTD 156.23 billion in 2015, up 1.4% from 2014. The industrial sectors accounted for 56.5% of these expenditures, while the government sectors accounted for 43.5%. Environmental payments to the government in 2015 reached NTD 319.54 billion, up 6.8% from 2014. The transportation category accounted for 65.0% of these, with NTD 207.84 billion; the energy category followed with NTD 90.92 billion, accounting for 28.5%. These two categories aggregated accounted for 93% of the total. In addition, the pollution category totaled NTD 20.15 billion and the resource category reached NTD 0.63 billion, accounting for 6.3% and 0.2% of the total, respectively. Table 2.1.4 Environmental activity accounts Unit: million NT$ 2013 2014 2015 Annual rate of increase (%) Environmental protection expenditures 144,564 154,132 156,233 1.4 Government agencies 66,809 66,810 67,938 1.7 Industrial sectors 77,756 87,322 88,294 1.1 281,755 299,114 319,539 6.8 86,008 88,719 90,925 2.5 175,150 189,439 207,840 9.7 Pollution category 19,755 20,187 20,147 -0.2 Resource category 841 769 628 -18.3 Environmental payments to the government Energy category Transportation category Ⅳ. Environmental-economic account indicators Environmental-economic account indicators are diverse indicators built up from related information about the environment and resource statistics, comprehensively compiled in Taiwan's Green National Income Account (see table 2.1.5). They encompass the four facets of environmental emissions, natural resources, environmental activities, and the comprehensive indicators. There are also eight topics: air; water; solid waste; minerals, earth and rocks; water resources; environmental protection expenditures; environmental payments to the government; and degradation & depletion. All told, there are 91 indicators. Through variations in these different indicators figures over the past three years, we may observe environmental loading, environmental quality, the circumstances of natural resource usage, and related actions by society and the government with regard to the environment. Table 2.1.5 Environmental-economic account indicators (1/4) Facets Topics Indicator items Air Environmental emissions Annual rate of increase in air pollution emissions Unit 2013 2014 2015 % -3.72 0.54 0.53 Concentration of air pollution emissions M.T. / million NT$ 0.14 0.14 0.13 Annual rate of increase in greenhouse gas emissions % 0.27 0.33 - 18.93 18.25 - 12.10 12.11 - % 0.21 0.31 - CO2 emissions intensity M.T. / million NT$ 17.93 17.29 - CO2 emissions per capita M.T. 11.47 11.47 - % 1.5 1.3 0.6 ug/m3 24.0 23.6 22.0 -Nitrogen dioxide (NO2) ppb 14.3 14.4 13.6 -Sulfur dioxide (SO2) ppb 3.4 3.4 3.1 -Carbon monoxide (CO) ppm 0.4 0.4 0.4 ppmC 0.2 0.2 0.2 Concentration of greenhouse gas emission Greenhouse gas emissions per capita Annual rate of increase in carbon dioxide emissions Percentage of days of PSI>100 M.T. of CO2 equivalent / million NT$ M.T. of CO2 equivalent Annual average concentration of air pollutants -Suspended particulates (PM2.5) -Hydrocarbon(Non-methane) (NMHC) Water Annual rate of increase in water pollution emissions -Biochemical oxygen demand (BOD) % -0.93 -1.72 -1.34 -Chemical oxygen demand (COD) % -0.88 -1.46 -1.43 -Suspended solids (SS) % -0.73 -1.82 -1.62 0.02 0.02 0.02 0.05 0.04 0.04 0.02 0.02 0.02 % 70.1 72.1 74.8 -Dissolved oxygen (DO) % 87.7 87.9 87.2 -Biochemical oxygen demand (BOD) % 64.7 65.8 68.6 -Suspended solids (SS) % 67.9 68.7 71.8 -Ammonia nitrogen (NH3-N) % 58.1 57.9 59.1 Concentration of water pollution emissions -Biochemical oxygen demand (BOD) -Chemical oxygen demand (COD) -Suspended solids (SS) Percentage of lengths of major rivers lightly-polluted or non-polluted M.T. / million NT$ M.T. / million NT$ M.T. / million NT$ River quality achievement rate Note: "-" denotes data that is one year behind. Table 2.1.5 Environmental-economic account indicators (2/4) Facets Topics Indicator items Unit 2013 2014 2015 Water Reservoir eutrophication index Environmental emissions -Number of reservoirs in eutrophic state Reservoir 2 5 7 -Number of reservoirs in mesotrophic state Reservoir 16 13 12 -Number of reservoirs in oligotrophic state Reservoir 2 2 1 Qualified rate of coastal water quality Solid waste -Dissolved oxygen (DO) % 99.8 99.6 99.0 -PH % 99.8 99.5 100.0 -Heavy metals % 100.0 100.0 100.0 Sewage treatment rate % 47.0 48.9 51.1 Qualified rate of drinking water (tap water) quality % 99.87 99.86 99.88 Annual rate of increase in solid waste generated % 7.60 4.00 -13.41 -Municipal waste % -0.24 -0.70 -1.59 -Agricultural waste % -7.40 6.44 -5.39 -Industrial waste % 0.72 2.71 -1.00 -Construction waste % 11.68 4.67 -18.34 -Medical waste % 0.67 2.94 0.83 % 96.81 96.94 96.93 -Municipal waste % 100.00 100.00 99.98 -Agricultural waste % 98.20 98.81 99.47 -Industrial waste % 97.87 97.89 97.88 -Construction waste % 96.11 96.27 96.08 -Medical waste % 99.86 99.86 99.85 % 55.72 55.78 55.56 Volume of municipal waste generated per capita M.T. 0.32 0.32 0.31 Annual rate of increase in volume of municipal waste recycled by implementing agencies % 3.33 2.09 0.94 Reuse rate for proper recycling of industrial waste % 83.10 82.57 84.52 Reuse rate for proper recycling of medical waste % 4.51 5.46 6.34 Treatment rate of solid waste Waste recycling rate Table 2.1.5 Environmental-economic account indicators (3/4) Facets Topics Indicator items Unit Minerals, earth and rocks Natural resources Annual rate of increase in amount extracted -Non-metallic minerals 2013 2014 2015 % -3.47 -5.08 -12.48 % -13.68 1.09 -2.97 % -19.44 -2.26 -3.53 % 2.42 0.69 -0.27 % LOE / thousand NT$ 97.58 97.75 97.53 7.67 7.43 7.37 % 2.20 2.07 2.30 % 4.28 3.80 4.06 % -0.40 -0.69 1.90 0.01 0.01 0.01 1.79 1.60 1.15 % -16.19 -35.05 - % -1.25 -3.60 0.16 -Government sectors % 46.21 43.35 43.49 -Industry sectors % 53.79 56.65 56.51 % 86.48 90.18 91.18 -Research & development (R&D) % 0.66 0.67 1.05 -Others % 12.86 9.15 7.78 % 34.14 36.06 28.15 % 28.23 28.73 31.23 % 37.11 34.14 38.20 % 0.95 0.96 0.93 -Earth & rock resources -Energy minerals Annual rate of increase in domestic energy consumption Dependence on imported energy Energy intensity Water resources Renewable energy supply/ total primary energy supply Renewable energy power generation/ total power generation Annual rate of increase in effective reservoir capacity 10 thousand cubic meters / million NT$ 10 thousand cubic Ratio of agricultural usage of reservoir meters water to agricultural production value / million NT$ Ratio of industrial usage of reservoir water to industrial production value Annual rate of increase in river runoff Environmental protection expenditures Environmental activities Annual rate of increase in the amount of groundwater ultra-pumped Environmental protection expenditures by executive agencies (structural ratio) Environmental protection expenditures by purpose of expenditure (structural ratio) -Pollution abatement and expenditures control Air pollution control expenditures as a proportion of pollution abatement and control expenditures Water pollution control expenditures as a proportion of pollution abatement and control expenditures Waste treatment expenditures as a proportion of pollution abatement and control expenditures Environmental protection expenditures as a proportion of GDP Table 2.1.5 Environmental-economic account indicators (4/4) Facets Topics Indicator items Unit 2013 2014 2015 Structural ratio of environmental payments to the government Environmental payments to the government Degradation & depletion General indicators -Energy category % 30.53 29.66 28.46 -Transportation category % 62.16 63.33 65.04 -Pollution category % 7.01 6.75 6.30 -Resource category % 0.30 0.26 0.20 Ratio of energy tax to energy consumption million NT$ /103KLOE 0.75 0.77 0.79 Ratio of air pollution tax to air pollution emissions Ratio of general waste pollution tax to generation load Annual rate of increase in the environmental taxes paid to the government for minerals, earth and rocks exploitation Environmental payments to the government as a proportion of GDP million NT$ /103M.T. million NT$ /103M.T. 3.48 3.53 3.36 0.63 0.65 0.66 % 70.20 -8.66 -18.32 % 1.85 1.86 1.91 % -3.95 -2.80 -3.43 % -3.51 -3.74 -4.94 % -7.29 -5.64 -4.26 % -1.33 -2.40 -4.93 % 2.40 -5.48 -10.92 % -5.15 -0.18 0.62 % -13.69 8.75 0.48 % -1.42 -3.60 0.67 Degradation and depletion as a proportion of GDP % 0.46 0.43 0.40 Annual rate of increase in Green GDP % 3.74 5.83 4.05 Annual rate of increase in degradation & depletion values Annual rate of increase in degradation value -Air -Water -Solid waste Annual rate of increase in depletion value -Minerals, earth and rocks resources -Groundwater Attached table. Environmentally-adjusted Green GDP Unit: million NT$ 2013 2014 Annual rate of increase ( 2015 %) Ⅰ. GDP (a) Ⅱ. Depletion (Ⅰ) Water resource (groundwater) (Ⅱ) Minerals, earth and rocks resources 15,230,739 16,111,867 16,759,016 4.02 18,703 18,669 18,784 0.62 13,526 13,039 13,127 0.67 5,177 5,630 5,657 0.48 51,964 50,019 47,551 -4.94 (Ⅰ) Air pollution 19,449 18,352 17,570 -4.26 (Ⅱ) Water pollution 30,323 29,596 28,136 -4.93 2,192 2,071 1,845 -10.92 70,667 68,688 66,335 -3.43 0.46 0.43 0.40 -- 15,160,072 16,043,179 16,692,681 4.05 Ⅲ. Degradation (Ⅲ) Solid waste Ⅳ. Sum of Depletion and Degradation (b) Proportion to GDP (%) Ⅴ. Green GDP (a - b) Note: 1. About the evaluations of natural resource depletion and environmental pollution degradation, according to SEEA 2003 suggestion, we adopt the Net Price Method and Cost-maintenance, respectively. 2. The contents of the compilation of SEEA 2012 have moved toward economic impacts on the flow accounts and asset accounts for environmental resources. There has been no further mention of the indicator of environmentally-adjusted GDP. Green GDP environmentally-adjusted is the accounting statements for natural resource usage and environmental pollution emissions, as studied and compiled in accordance with SEEA 2003 guideline. Such statements are used to estimate the monetary value of natural resource depletion and environmental quality degradation. The values of both are then deducted from the GDP to become the Green GDP. In terms of the overall data from 2013 to 2015, the aggregated value of natural resource depletion and environmental quality degradation totaled NTD 70.7 billion, 68.7 billion and 66.3 billion. Their proportion of GDP dropped from 0.46% in 2013 to 0.40% in 2015. With regard to natural resource depletion, the current items evaluated include water resources (groundwater) and minerals, earth & rock resources (non-metallic minerals; energy minerals; earth and rock resources). The aggregated value of depletion reached NTD 18.8 billion in 2015, up 0.62% from 2014 when the total was NTD 18.7 billion. Within this, depletion of water resources was valued at NTD 13.1 billion in 2015, up 0.67% from 2014. This was mainly due to water shortages and water rationing as a result of droughts, which led to increased drafting of groundwater. In addition, even though the amount extracted of minerals, earth & rock resources declined, their depletion was still valued at NTD 5.7 billion, a slight increase of 0.48% from 2014. This was due to energy and earth & rocks price hikes. About environmental quality degradation, we refer to the suggestions of SEEA 2003. Currently, we mainly compile and calculate the three categories for environmental pollutants: air pollution, water pollution and solid waste, and the Cost-maintenance approach is also adopted to estimate their degradation value. The aggregated degradation value of the three categories in 2015 totaled NTD 47.6 billion, down 4.94% from 2014. Within these, water pollution degradation value was the highest, at NTD 28.1 billion in 2015; it was followed by air pollution degradation value at NTD 17.6 billion while solid waste degradation was valued at NTD 1.8 billion. Compared with 2014, the water pollution degradation value was down 4.93%, due to decreased municipal sewage discharges. Despite an uptick in air pollution emissions, the degradation value was down 4.26%, owing to the fact that most emissions were compliant with air quality standards. As a result of decreased amounts of industrial and construction wastes that were not properly treated, the solid waste degradation value was down 10.92%. If the estimated results of the aforementioned natural resource depletion and environmental quality degradation are deducted from the GDP, the Green GDP in 2015 reached NTD 16.6927 trillion, up 4.05% from 2014, when the Green GDP totaled NTD 16.0432 trillion.