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Ecosystem Accounting:
Implementation Challenges and
Possible Solutions
J. Steven Landefeld, Director
Learning Centre on Experimental Ecosystem Accounting
February 25th, 2013
www.bea.gov
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
www.bea.gov
2
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
www.bea.gov
3
Americans Still Prioritize Economic
Growth Over Environment
BP Oil Spill
www.bea.gov
4
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
www.bea.gov
5
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
www.bea.gov
6
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:




More accurate, up-to-date, and detailed geographic
data
SNA harmonization:

www.bea.gov
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)
GDP growth most important determinant of global
warming projections
7
U.S. Building Blocks to Environmental
Accounting

Improvement of existing measures of health care
(with National Institutes of Health):





www.bea.gov
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
8