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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