Physical Flow Accounts: Overview UNSD SEEA Training of Trainers Seminar 7-10 July 2015, Santiago Joe St. Lawrence Statistics Canada The Economy and The Environment -Natural Resources -Ecosystem Services Stocks The Economy Flows Expenditures 2 Statistics Canada • Statistique Canada -Residuals 2016-07-23 Uses of physical flow accounts 3 Material consumption Material productivity Energy use analysis Energy policy Emissions analysis Environmental assessment Natural resource management Multi-factor productivity Footprint calculations Statistics Canada • Statistique Canada 2016-07-23 System of National Accounts framework Final demand Sectors Industries Assets Financial and produced assets, opening balance Industrial intermediate demand Final demand Gross fixed capital formation Wastes Commodities Industrial output of goods and services Sectors Other changes in volume & holding gains/losses on financial & produced assets 4 Statistics Canada • Financial and produced assets, closing balance Statistique Canada 2016-07-23 System of Environmental-Economic Accounts (SEEA) framework Final demand Sectors Industries Assets Financial and produced assets, opening balance Natural resource assets, opening balance Natural resource assets, opening balance Industrial intermediate demand Final demand Gross fixed capital formation Environmental protection expenditures Environmental protection expenditures Capital expenditures for environmental protection Resource production by industries Resource production by households/gov’t Resource use by industries Resource use by households/gov’t Waste consumption by industries Waste consumption by households/gov’t Waste output by industries Waste output by households/gov’t Other changes in volume & holding gains/losses on financial & produced assets Sectors Wastes Commodities Industrial output of goods and services 5 Statistics Canada • Financial and produced assets, closing balance Statistique Canada Changes in and holding gains/losses on natural resource assets Changes in natural resource assets Natural resource assets, closing balance Natural resource assets, closing balance 2016-07-23 Physical Flow Accounting Final demand Sectors Industries Assets Financial and produced assets, opening balance Natural resource assets, opening balance Natural resource assets, opening balance Industrial intermediate demand Final demand Gross fixed capital formation Environmental protection expenditures Environmental protection expenditures Capital expenditures for environmental protection Resource production by industries Resource production by households/gov’t Resource use by industries Resource use by households/gov’t Waste consumption by industries Waste consumption by households/gov’t Waste output by industries Waste output by households/gov’t Other changes in volume & holding gains/losses on financial & produced assets Sectors Wastes Commodities Industrial output of goods and services 6 Statistics Canada • Financial and produced assets, closing balance Statistique Canada Changes in and holding gains/losses on natural resource assets Changes in natural resource assets Natural resource assets, closing balance Natural resource assets, closing balance 2016-07-23 Physical Flow Accounts: Basic Tables 7 Statistics Canada • Statistique Canada 2016-07-23 Physical Flow Accounts: Basic Tables 8 Physical Flow Accounts: Basic Tables 9 Physical Flow Accounts: Natural Inputs 3.45 Natural inputs are all physical inputs that are moved from their location in the environment as a part of economic production processes or are directly used in production. 10 Statistics Canada • Statistique Canada 2016-07-23 Physical Flow Accounts: Products 3.64 Following the SNA, products are goods and services that result from a process of production in the economy. North American Product Classification System (NAPCS) Canada 2012 Version 1.1 Classification structure 111 Live animals 112 Wheat 113 Canola (including rapeseed) 114 Fresh fruit, nuts and vegetables 115 Other crop products 116 Other animal products 121 Fish, shellfish and other fishery products 131 Logs, pulpwood and other forestry products 141 Crude oil and crude bitumen 142 Natural gas 143 Natural gas liquids and related products 144 Other energy products 145 Electricity 146 Natural gas distribution 151 Iron ores and concentrates etc… 11 Statistics Canada • Statistique Canada 2016-07-23 Physical Flow Accounts: Residuals 3.73 Residuals are flows of solid, liquid and gaseous materials, and energy that are discarded, discharged or emitted by establishments and households through processes of production, consumption or accumulation. 12 Statistics Canada • Statistique Canada 2016-07-23 Compilation Data sources: Survey data Administrative data Existing statistics Issues: Correcting for residence principle Disaggregating information to ISIC Consistency with National Account concepts Compiling time series 13 Statistics Canada • Statistique Canada 2016-07-23 Compilation Exercise Complete a water flow diagram based on the data provided. 14 Statistics Canada • Statistique Canada 2016-07-23 Compilation Exercise Complete a water flow diagram based on the data provided. 15 Statistics Canada • Statistique Canada 2016-07-23 Compilation of supply and use tables • Mining of oil resources by mining industry (100 mln kg) • Supply of crude oil to refinery (100 mln kg) • Refining of crude oil production of petrol (80 mln kg) • Export of petrol (50 mln kg) • Use of petrol by Households (30 mln kg) • With thanks to Statistics Netherlands! 16 Statistics Canada • Statistique Canada 2016-07-23 Mining of oil resources by mining industry (100 mln kg) Mining (ISIC 6) Refinery (ISIC 19) Households Supply Environment Import 100 Oil resources TOTAL 100 Natural inputs O2 0 Crude oil 0 Petrol 0 CO2 0 Products Residuals 0 TOTAL 0 Mining (ISIC 6) Refinery (ISIC 19) Households Use Oil resources 0 0 100 Environment Export 100 TOTAL 100 100 Natural inputs O2 0 Crude oil 0 Petrol 0 CO2 0 Products Residuals TOTAL 17 100 0 0 Statistics Canada • Statistique Canada 0 0 100 2016-07-23 Supply of crude oil to refinery (100 mln kg) Mining (ISIC 6) Refinery (ISIC 19) Households Supply Environment Import 100 Oil resources TOTAL 100 Natural inputs 0 O2 Crude oil 100 100 Products Residuals Petrol 0 CO2 0 100 TOTAL 0 Mining (ISIC 6) Refinery (ISIC 19) Households Use Oil resources 0 0 100 Environment Export 200 TOTAL 100 100 Natural inputs 0 O2 100 100 Crude oil Products Residuals TOTAL 18 Petrol 0 CO2 0 100 100 0 Statistics Canada • Statistique Canada 0 0 200 2016-07-23 Refining of crude oil petrol (80 mln kg) & Export of petrol (50 mln kg) Mining (ISIC 6) Refinery (ISIC 19) Households Supply Environment Import 100 Oil resources TOTAL 100 Natural inputs 0 O2 Crude oil 100 100 Products Residuals 80 80 Petrol 0 CO2 100 TOTAL 80 Mining (ISIC 6) Refinery (ISIC 19) Households Use Oil resources 0 0 100 Environment Export 280 TOTAL 100 100 Natural inputs 0 O2 100 100 Crude oil Products 30 Petrol Residuals TOTAL 19 80 50 0 CO2 100 100 30 Statistics Canada • Statistique Canada 50 0 280 2016-07-23 CO2 emissions by refineries Mining (ISIC 6) Refinery (ISIC 19) Households Supply Environment Import TOTAL Oil resources 100 100 O2 60 60 Natural inputs Crude oil 100 100 Products Residuals Petrol 80 80 CO2 80 80 100 TOTAL 160 Mining (ISIC 6) Refinery (ISIC 19) Households Use Oil resources 0 0 160 Environment Export 420 TOTAL 100 100 Natural inputs O2 60 60 Crude oil 100 100 Products 30 Petrol Residuals TOTAL 20 CO2 100 160 30 Statistics Canada • Statistique Canada 80 50 50 80 80 80 420 2016-07-23 CO2 emissions by households Mining (ISIC 6) Refinery (ISIC 19) Households Supply Environment Import TOTAL Oil resources 100 100 O2 150 150 Natural inputs Crude oil 100 100 Products Residuals 80 Petrol 80 CO2 80 120 160 120 100 TOTAL Mining (ISIC 6) Refinery (ISIC 19) Households Use Oil resources 200 0 250 Environment Export 630 TOTAL 100 100 Natural inputs O2 60 Crude oil 100 150 90 100 Products 30 Petrol Residuals TOTAL 21 CO2 100 160 120 Statistics Canada • Statistique Canada 80 50 50 200 200 200 630 2016-07-23 Check the accounting identities! Mining (ISIC 6) Refinery (ISIC 19) Households Supply Environment Import TOTAL Oil resources 100 100 O2 150 150 Natural inputs Crude oil 100 100 Products Residuals 80 Petrol 80 CO2 80 120 160 120 100 TOTAL Mining (ISIC 6) Refinery (ISIC 19) Households Use Oil resources 200 0 250 Environment Export 630 TOTAL 100 100 Natural inputs O2 60 Crude oil 100 150 90 100 Products 30 Petrol Residuals TOTAL 22 CO2 100 160 120 Statistics Canada • Statistique Canada 80 50 50 200 200 200 630 2016-07-23 Compilation Exercise continued... Use the water flow diagram to compile a supply and use table for water. 23 Statistics Canada • Statistique Canada 2016-07-23 Compilation Exercise solution... SUPPLY Industry (ISIC 05- HydroThermal Water Supply: Water Supply: Agriculture (ISIC 99 less 3510, 36, electricity (ISIC Electricity (ISIC drinking water irrication (ISIC 01-03) and 37) 3510) 3510) (ISIC 36-A) 36-B) Sewerage (ISIC 37) Households Environment Total Surface water 22,451 22,451 Ground water 438 438 39 39 Sea water Water, drinking (CPC 18-A) 469 Water, irrigation (CPC 18-B) 469 1,120 Reuse water Losses 40 50 Wastewater Evaporation, transpiration, included in products Total 24 1,120 190 644 141 966 61 1,660 202 19,600 316 618 556 287 32 19,600 650 659 Statistics Canada • Statistique Canada 40 1,436 327 280 21,570 70 1,129 350 22,928 2016-07-23 47,812 Compilation Exercise solution... USE Industry (ISIC 05- HydroThermal Water Supply: Water Supply: Agriculture (ISIC 99 less 3510, 36, electricity (ISIC Electricity (ISIC drinking water irrication (ISIC 01-03) and 37) 3510) 3510) (ISIC 36-A) 36-B) Surface water 345 Ground water 155 19,600 650 83 Sea water Water, drinking (CPC 18-A) Water, irrigation (CPC 18-B) Reuse water 420 Sewerage (ISIC 37) Households Environment 1,436 22,451 200 438 39 39 119 350 1,120 40 40 Wastewater Evaporation, transpiration, included in products 327 1,660 25 469 1,120 Losses Total Total 202 19,600 650 659 Statistics Canada • Statistique Canada 1,436 327 350 556 556 21,243 21,570 1,129 1,129 22,928 47,812 2016-07-23 Questions? Joe St. Lawrence Statistics Canada | 170 Tunney's Pasture Driveway, Ottawa ON K1A 0T6 Statistique Canada | 170, promenade Tunney's Pasture, Ottawa ON K1A 0T6 Joe.St.Lawrence@statcan.gc.ca Telephone | Téléphone 613-882-8598 Facsimile | Télécopieur 613-951-0634 Government of Canada | Gouvernement du Canada 26 2016-07-23