Advancing environmental-economic accounting in the context of the system of economic statistics

Abstract

Natural capital and its increasing scarcity have been at the heart of concerns over sustainability for many decades. This paper highlights the significant advances in accounting for the stocks and flows of natural capital that have taken place in the statistical community through the ongoing development and implementation of the System of Environmental-Economic Accounting (SEEA). Through description of the history and key components of the SEEA and through presentation of various examples of accounting from around the world, this paper demonstrates not only the theoretical advances but also the feasibility and relevance of SEEA based accounts to policy making. The increasing recognition of the threats of climate change and the importance of halting biodiversity loss and maintaining healthy ecosystems which provide essential contributions to people, make the implementation of the SEEA extremely timely and relevant in supporting policies that take into account the environment. There is now clear support from the official statistics community and a clear role for national statistical offices in using the SEEA to go “beyond GDP”. We can no longer afford to ignore our dependence on the environment, our natural capital. Accounting for it is part of the pathway forward.