The Development of Regional Hybrid
Environment Accounts
Tsunenori Ashiya
tsunenori_ashiya@pref.hyogo.lg.jp
Data & Analysis division, Policy Planning &
Coordination Office
Hyogo Prefectural Government , JAPAN
CONTENTS
1. Establishment and Development of
Regional Hybrid Accounting System
2. Framework and Features of Regional
Hybrid Accounting System
3. Estimation Results for Regional
Accounting System
4. Application of Regional Hybrid
Accounting System
Profile of Hyogo Prefecture
・Hyogo Prefecture contains a rich variety of communities ranging
from large cities to rural villages.
・Hyogo Prefecture has become known as a Japan in Miniature.
・Hyogo has an overall area of
8,392 square kilometers, with a
population of about 5.6 million
as of January 2007.
Backgrounds
１ The Japanese hybrid accounting system fails to
specify the process for disposal of wastes from
household and industry sectors as part of
economic activities or a physical cyclulation.
２ A regional hybrid account system should be
developed to detect emerging environmental
problems and to plan effective environmental and
economic policies.
The purposes of this study are
• to model the waste-disposal process in
Hyogo Prefecture in a detailed way
• to develop a regional hybrid accounting
system prototype
(a Hyogo Prefecture pilot-case version)
The purposes of this study were
• to aim at helping
prefectural government (statistical and
environmental administration departments) ,
researchers at universities ,
other institutes
– to estimate a Hyogo Prefecture pilot-case
version of the regional hybrid accounting system
prototype to specify the waste disposal process.
Overview of research activities on
environmental accounting in the
Cabinet Office of Japan
2005～2007
１ Developing the common framework of
Regional Hybrid Accounting System Prototype
(research on interactions between economy and
environment)
２ To estimate a Hyogo Prefecture pilot case
version of the regional hybrid accounting
system
Features of Japanese Hybrid
Accounting System
１ It attaches the stock accounts to the capital accounts and
records the various social capitals and environmental
protection plants.
２ It estimates the emission of pollutions not only by households,
but also by the government.
３ It introduces the land use accounts.
４ It adds coal, forests, water, and fish to the category of natural
resources.
Note) “ The Development of Japanese NAMEA”
http://www.esri.cao.go.jp/en/sna/sateraito/041012/text.pdf
Outline of the common framework of
Regional Hybrid Environment Accounts
１ It is based on the original NAMEA
estimates for 1990, 1995, 2000 and 2003
* NAMEA : National Accounting Matrix
including Environmental Accounts.
２ It has twofold parallel structure: national
accounting matrix (NAM) in the monetary
term and environmental accounts (EA) in the
physical term.
Figure 1 Concept of Basic Table for
Regional Hybrid Accounting System
Environmental accounts
Disposal of water pollutants
Input of goods for internal disposal
Transportation to incineration or
final disposal sites
Waste goods
for disposal
Table for accumulations in economy
and environment
(recording wastes for final disposal)
Disposal of air pollutants
Goods for
internal disposal
Input
Water pollutants
Emission
Air pollutants
Waste account
(recording waste emissions)
Prefectural NAM
(recording economic
activities)
EA on quantitative basis
Water pollution
Attached NAM table on quantitative basis
Quantitative account
(recording wastes
subjected to internal
disposal)
NAM on monetary value basis
Air pollution
Economic accounts
Structure of Basic Table for Regional Hybrid
Accounting System
Attached
NAM table
NAM
Prefecture NAM
(recording
economic
activities)
Waste account
(recording waste
emissions)
Air pollutants
Water pollutants
Goods for
internal disposal
Waste goods
disposal
feedback
EA
Quantitative
account
(recording wastes
subjected to
internal disposal)
Table for
accumulations in
economy and
environment
(recording wastes
for final disposal)
Emitted
environment
accounts
Estimation Results for Hyogo pilotcase (Hybrid Accounting System)
Environmental protection service supply and
use tables
– to allow viewers to see easily which parties
provide sewage treatment, waste disposal,
recycling and other environmental
protection services
– to see how these services are provided and
utilized.
Feature 1 Quantitative illustration
of waste disposal process
1. The table is designed to quantitatively
record details of the process.
2. The process is as follows;
Waste goods for disposal are emitted
through economic activities.
Waste goods are put into a recycling path
or transported to incineration or final
disposal sites.
Feature 2 Illustration of internal
disposal operations
1.The table is designed to quantitatively record the
process in which air and water pollutants emitted
through economic activities are reduced by internal
disposal operations.
2. This table would shed light on internal disposal
activities before being emission.
3. These activities the efforts by producers and
consumers to reduce environmental pollutions (they
might be the results environmental policies) .
Feature 3 Economic tabulation of
waste disposal and internal operations
The NAM includes a mechanism to
specifically record the economic
activities.
That is on a monetary value basis.
Feature 4 Potential Applications
The regional hybrid accounting system is
different from the Japanese hybrid
accounting system.
The former fails to include
・details of materials accounts,
environmental problems, environmental
indicators.
・stock accounts.
Regional System of Integrated
Environmental and Economic Accounting
1. Basic Table for Regional Hybrid
Accounting System (Table 1) see page 4
2. Regional Environmental Protection
Service-Supply Table (Table 2)
3. Regional Environmental Protection
Service-Use Table (Table 3) see page 5
Framework of Regional Hybrid
Accounting System
Attached NAM table (on Quantitative basis )
１ Air pollution： CO2、Nitrogen oxide, Sulfur
oxide
2 Water pollution: Chemical oxygen, Total
phosphorus, Total nitrogen
3 Wastes: Goods for Internal disposal,
Recyclable goods, Goods for incineration,
Goods for Final disposal, Final waste disposal
Application of Regional Hybrid
Accounting System
１ The regional hybrid account system
gives a prototype Environmental
Efficiency Improvement Index
2 It is the SAM Multiplier Analysis
Based on Regional Hybrid Accounting
System
3 It is the comparison of Regional and
Japanese Hybrid Accounting Systems
What does EDP indicate?
１ If NDP has larger growth rate than
imputed environmental cost, EDP is
increasing while the imputed
environmental cost is increasing.
Therefore, EDP is not adequate
indicator for sustainability.
２ We need other indicators such as
OECD’s decoupling indicator.
Environmental Efficiency Improvement
Index (EEII)
EEII＝（１－
Closing EP／Opening EP
Closing DF／Opening DF
) X 100
EP: Environmental Pressures
DF: Driving Forces ( ex. GDP )
EEII≧0 ⇒ EP’s growth rate ≦ DF’s growth rate
⇒”Environmental efficiency is improving”
EEII＜0 ⇒ EP’s growth rate ＞ DF’s growth rate
⇒”Environmental efficiency is deteriorating”
Remarks on EEII
１ EEII represents the relationship between
economic activities and environmental
pressures .
２ OECD calls this type of index "decoupling
indicator."
３ EEII does not represent a strong
sustainability because environmental
pressures may be larger than sustainable flow
level even if environmental efficiency is
improving.
(continued)
Remarks on EEII
４ EEII is flow a indicator and not a stock
indicator. Stock of EP (environmental
pressures) is increasing as long as EP
occurs every year, even if EP’s growth rate is
on the downward trend ( EEII is on the
upward trend) year by year.
５ Therefore, the stock of EP might increases
over the sustainable stock level of EP. EEII is
efficiency indicator, not necessarily
adequate indicator for sustainability.
Decoupling index
improving: wastes final disposal volume
deteriorating:CO2,NOx,SOx emissions
D ecoupling index ( H yogo P refecture )
％
1995/1990
40.00
2000/1995
2003/2000
29.38
30.00
28.65
21.29
16.38
27.67
24.64
20.00
10.00
-0.46
0.00
-2.07
-10.00
-20.00
-5.85 -8.72
-11.81
-16.63
C O 2 em ission total
N O X gross em issions S O X gross em issions
W astes final disposal
volum e
Degree of Improvement in Environmental
Efficiency Improvement Index
The index is designed to measure the changes in
pollution level for the environmental themes.
1 wastes : final waste disposal volume per unit
GDP
2 greenhouse gas effects (global warming)
3 acidification or any other themes.
SAM Multiplier Analysis
• We can use for analyzing economic spillover effects in
following situations.
– greater export growth
– greater internal-disposal activities
– greater consumption of recycled products by
households
• We use the model for simulation under following
conditions.
– a 10% increase in other goods and service
– greater export growth case
– industry for goods and services other than those
specified below
SAM model analysis
1 We can analyze the case
– greater export growth
– greater internal disposal activities
– greater consumption of recycled products by
households
2 We can record
– pollutants emitted through economic activities
– waste disposal processes
– waste accumulations
Result: SAM Multiplier Analysis of
Greater Export Growth Case (FY 2000)
Table 5 SAM Multiplier Analysis of Greater Export Growth Case (FY 2000)
Goods and
services other
than those
specified on the
right
Goods and
service
account
NAM(monetary value)
1a
Government service producers
For households and private nonprofit
organization
Recycled products
1b
Waste disposal service
1e
1c
719,267.1
32,077.1
4.7
687,190.0
1d
7,601.1
4,172.7
514.0
4.7
4,320.0
72.1
7.2
5.4
6.9
0.0
6.4
-1.4
105,621.0
77,883.0
7,427.0
65,961.0
67,463.0
-5,245.0
Non-market
Industry activities other than those
specified below
External
Recycling activities
environmental
Other waste disposal
protection
activities
activities
Internal disposal activities in industry
1i
113,222.1
82,055.7
7,941.0
65,965.7
71,783.0
-5,172.9
2a
36,929,269.8
2,493,456.7
7.2
34,435,813.1
2b
94,495.9
6,343.9
7.2
88,152.0
2c
78,015.3
3,967.3
5.4
74,048.0
2d
Government service producers
Government
External
Other waste disposal
service
environmental
activities
producers
protection
Sewage treatment
activities
activities
For households and private non-profit service producers
Private final
Private final
Consumption account
consumption
consumption
Employee income
Income
2e
19,975.6
2,443,637.8
1,348.7
11,239.8
7.2
0.5
18,626.9
2,432,398.0
2g
73,906.7
518.7
0.7
73,388.0
2h
66,605.9
4,391.9
7.1
62,714.0
2j
693,329.4
30,920.4
4.7
662,409.0
3a
11,289,176.6
623,425.4
5.8
10,665,751.0
4
accrual
account
6
655,056.4
117,738.2
373,467.2
904,011.4
5.7
7.1
8.4
5.2
11,509,130.0
1,663,846.0
4,435,278.0
17,468,432.0
Industry
Government
service
producers
Economic accounts
Industry
Estimation results
Baseline
Gap
Ratio(%)
51,299,302.3
3,463,718.3
7.2
47,835,584.0
2,474,787.0
11,383.0
0.5
2,463,404.0
Industry
Production
account
(broken down
by category)
Waste disposal
Sewage
Market
1f
Non-market
1g
Market
1h
Operating surplus, mixed income
7
Current transfer (by category)
Institutional sector (net prefectural
accrual income)
Institutional sector (net prefectural
disposable accrual income)
8
12,164,186.4
1,781,584.2
4,808,745.2
18,372,443.4
9
37,126,959.2
2,050,273.2
5.8
35,076,686.0
10
20,756,850.8
1,146,261.8
5.8
19,610,589.0
11
219,152.0
5,262,745.3
5,315,474.0
0.0
267,660.3
270,342.0
0.0
5.4
5.4
219,152.0
4,995,085.0
5,045,132.0
Gross value added Taxes on production and imports - Subsidies
Income distribution and use
account
Capital transfer (net)
Accumulation
Non-financial asstets
accounts
Institutional sector (net prefecture savings)
12
13
Result: SAM Multiplier Analysis of
Greater Export Growth Case (FY 2000)
Waste account
Air polution
Water polution
CO2 etc
15a
NOx
15b
SOx
15c
COD
15d
T-P
15e
T-N
15f
Goods for internal
16
Total emissions
Waste goods
for
disposal
Recycable goods
Goods for
incineration
Good for final
17
18
19
disposal
Final waste disposal 20
Quantitative
account
Attached NAM table(on quantitative
basis)
EA(quantitiative
basis)
Envuronmental
accounts
Economic accounts
Table 5-2 SAM Multiplier Analysis of Greater Export Growth Case (FY 2000)
Air pollution
Water pollution
CO2 etc
21a
NOx
21b
SOx
21c
COD
22a
T-P
22b
T-N
22c
Emissions
Disposal
Accumulationｓ
Estimation results
Baseline Estimation results
Baseline Estimation results
Baseline
Gap
Ratio(%)
Gap
Ratio(%)
Gap
Ratio(%)
83,081.4 5,418.4
7.0 77,663.0 82,586.0 4,923.0
6.3 77,663.0
0.0
0.0
－
0.0
125,725.5 8,381.5
7.1 117,344.0 125,242.8 7,898.8
6.7 117,344.0
0.0
0.0
－
0.0
52,213.7 3,490.7
7.2 48,723.0 52,057.4 3,334.4
6.8 48,723.0
0.0
0.0
－
0.0
31,649.8 1,931.9
6.5 29,717.9 30,728.6 1,010.7
3.4 29,717.9
0.0
0.0
－
0.0
2,064.6
128.4
6.6 1,936.2 2,015.3
79.2
4.1
1,936.2
0.0
0.0
－
0.0
31,897.0 2,005.8
6.7 29,891.2 31,232.9 1,341.7
4.5 29,891.2
0.0
0.0
－
0.0
0.0
0.0 －
0.0
0.0
0.0 －
0.0
0.0
0.0
－
0.0
0.0
0.0 －
0.0
0.0
0.0 －
0.0
0.0
0.0
－
0.0
10,170.2
683.8
7.2 9,486.4 10,169.1
682.7
7.2
9,486.4
1.1
1.1
－
0.0
3,419.8
213.0
6.6 3,206.8 3,206.8
0.0
0.0
3,206.8
213.0
213.0
－
0.0
2,501.9
144.9
6.1 2,357.0 2,357.0
0.0
0.0
2,357.0
144.9
144.9
－
0.0
2,357.0
0.0
0.0 2,357.0
0.0
0.0 －
0.0
2,357.0
0.0
0.0 2,357.0
82,659.2
125,242.8
52,057.4
30,728.6
2,015.3
31,232.9
4,996.2
7,898.8
3,334.4
1,010.7
79.2
1,341.7
6.4 77,663.0
6.7 117,344.0
6.8 48,723.0
3.4 29,717.9
4.1 1,936.2
4.5 29,891.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
－
－
－
－
－
－
0.0 83,154.6
0.0 125,725.5
0.0 52,213.7
0.0 31,649.8
0.0
2,064.6
0.0 31,897.0
5,491.6
8,381.5
3,490.7
1,931.9
128.4
2,005.8
7.1 77,663.0
7.1 117,344.0
7.2 48,723.0
6.5 29,717.9
6.6 1,936.2
6.7 29,891.2
Comparison of Hyogo Prefecture and
Japanese Hybrid Accounting Systems
1. Economic activities and their
environmental pressures (Table 6)
2. Air pollutant emissions (Table 7)
3. Water pollutant emissions (Table 8)
4. Waste emissions (Table 9)
Table 6 Comparison of population ,GDP
• Hyogo prefecture accounts for
– 4.4% of Japan’s population
– 4.0% of nation’s production value and GDP
– 3.8% of nationwide final consumption
expenditure
Table 6　C om parison of P roduction V alue,G ross D om estic P roduct and Final
C onsum ption Expenditure D ata (betw een Japan and H yogo P refecture for 2000)
P opulation
1,000 persons
Japan
P roduction value
G ross dom estic
Finalconsum ption
(in producer prices)
product
expenditure (for private
(in producer prices)
and governm ent sectors)
1 billion yen
1 billion yen
1 billion yen
126,887
941,271
506,373
369,770
H yogo P refecture
5,551
37,882
20,188
13,943
H yogo's share (%)
4.4
4.0
4.0
3.8
Table 7 Air Pollutant Emissions
1)Production activities
CO2,NOx, SOx emissions: accounting for 6.0% of nationwide emissions
2)Final consumption
NOx,SOx emissions: accounting for 6.0% of nationwide emissions
ｔ
Air Pollutant Em issions per U nit Production Value and Final C onsum ption
Expenditure(per 100 m illion yen　for 2000)
350.0
JAPAN
300.0
H yogo Prefecture
250.0
200.0
150.0
100.0
50.0
0.0
C O 2,etc
N ox
P roduction activities
S ox
C O 2,etc
N ox
S ox
Final consum ption Expenditure
Table 8 Water Pollutant Emissions
1)Production activities
COD and T-N emissions :accounting for 4.0% of Japan’s total
T-P emissions : accounting for 4.8% of Japan’s total
2)Final consumption expenditure
COD ,T-N and T-P emissions : accounting for 4.0% of Japan’s total
kg
W ater P ollutant Em issions per production value and final
consum ption expenditure (per 100 m illion yen for 2000)
JA P A N
120.0
H yogo P refecture
100.0
80.0
60.0
40.0
20.0
0.0
CO D
T -P
T -N
P roduction activities
CO D
T -P
T -N
Final consum ption expenditure
Table 9 Waste Emissions
1) Production activities
totaled 27,337,000 tons accounting for 6.4% of the national total
2) Final consumption expenditure
totaled 1,806,000 tons accounting for 5.0% of the national total
W aste Em issions per unit production value and final
consum ption expenditure (per 100 m illion yen for 2000)
kg
100,000
JA P A N
H yogo P refecture
75,000
50,000
25,000
0
P roduction activities
Final consum ption expenditure
Table 10 Recyclable Goods Emissions
1)Recyclable goods
totaled 9,486,000 tons accounting for 4.9% of the national total
2) Recyclable volume per unit production value in recycling industry
10,761 tons per 100 million yen, equivalent to 87.6% of national level
R ecyclable volum e per production value in recycling industry
(per m illion for 2000)
t
15,000
12,500
JA P A N
H yogo P refecture
10,000
7,500
5,000
2,500
0
P roduction activities
Final consum ption
expenditure
T otal
Table 11 Emissions of Wastes for Final Disposal
1) Final waste disposal volume
totaled 2,357,000 tons accounting for 4.2% of Japan’s total
2) Final disposal volume per production value in the waste disposal industry
1,599 tons per 100 million yen, equivalent to 97.6% of the national level
Final w aste disposal volum e per production value in w aste
disposal industry (per m illion yen for 2000)
t
2,000
JA P A N
H yogo P refecture
1,500
1,000
500
0
P roduction activities
Final consum ption
expenditure
T otal
Examples of Regional
Environmental Assessment Indexes
Index
Hybrid accounting
system indexes
Item
Input-ouput ratio
Goal attainment ratio
Others
Corporate activity index
Environmental
conservation activities
Environmental conditions
Waste disposal activities
Other indexes
Others
Benefit/cost
Achievement/Goal
Environmental pressure indicators
Wastes
Air environment
Environmental conservation
Environmental assessment
Environmetnal loss from internal factors
Environmental loss from external factors
Environmental conservation cost
Raw materials cost for disposal
Capital cost for disposal
Labor cost for disposal
Economic efficiency indicator
Induced final disposal volume
General social indicators
Source: "Manual for Developing Regional Hybrid Accounting System," Cabinet Office, 2007
Research issues for the future
１ The regional hybrid account system should
include more regional specific features.
２ The account system fails to include
details of materials accounts,
environmental problems environmental
indicators or stock accounts.
Prefecture governments may be
encouraged to add these contents to make
their own hybrid accounts system.
Closing remarks
I think that International exchange of
information is extremely useful.
Especially on this party, I would
extend my best thanks to organizing
this conference and giving me the
opportunity of this presentation.
Thank You for Your Attention