Bram Edens

Defining ecosystem assets for natural capital accounting

In natural capital accounting, ecosystems are assets that provide ecosystem services to people. Assets can be measured using both physical and monetary units. In the international System of Environmental-Economic Accounting, ecosystem assets are generally valued on the basis of the net present value of the expected flow of ecosystem services. In this paper we argue that several additional conceptualisations of ecosystem assets are needed to understand ecosystems as assets, in support of ecosystem assessments, ecosystem accounting and ecosystem management. In particular, we define ecosystems’ capacity and capability to supply ecosystem services, as well as the potential supply of ecosystem services. Capacity relates to sustainable use levels of multiple ecosystem services, capability involves prioritising the use of one ecosystem service over a basket of services, and potential supply considers the ability of ecosystems to generate services regardless of demand for these services. We ground our definitions in the ecosystem services and accounting literature, and illustrate and compare the concepts of flow, capacity, capability, and potential supply with a range of conceptual and real-world examples drawn from case studies in Europe and North America. Our paper contributes to the development of measurement frameworks for natural capital to support environmental accounting and other assessment frameworks.

A METHOD TO CREATE CARBON FOOTPRINT ESTIMATES CONSISTENT WITH NATIONAL ACCOUNTS

Although multiregional input–output (MRIO) databases use data from national statistical offices, the reconciliation of various data sources results in significantly altered country data. This makes it problematic to use MRIO-based footprints for national policy-making. This paper develops a potential solution using the Netherlands as case study. The method ensures that the footprint is derived from an MRIO dataset (in our case the World Input–Output Database (WIOD)) that is made consistent with Dutch National accounts data. Furthermore, usage of microdata allows us to separate re-exports at the company level. The adjustment results in a foreign footprint in 2009 that is 22% lower than the original WIOD estimates and a significantly altered country allocation. We demonstrate that already in the data preparation phase due to the treatment of re-exports and margins, large differences arise with Dutch national statistics, which may help explain the variation in footprint estimates across MRIO databases.

Reducing the variation of environmental footprint estimates based on multiregional input–output databases

Purpose – The purpose of this paper is to study reducing the variation of environmental footprint estimates based on multiregional input–output (MRIO) databases. Footprint estimates from various MRIO databases sometimes vary significantly. As a result, conclusions about the absolute levels or trends of a footprint may be inconsistent. The sources of these variations are attributable to three phases in the footprint calculations: differences in data preparation, MRIO database construction and footprint calculation. Design/methodology/approach – This paper provides a literature overview and a breakdown of the computation of footprints based on MRIO database. Based on these insights, strategies that lead to lower variation in footprint estimates are formulated. Findings – Convergence of footprint estimates require enhanced cooperation amongst academics, among statisticians and between academics and statisticians. Originality/value – Reducing the variation in footprint estimates is a major challenge. This pap...