Overview of extensions

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Presentation transcript:

Overview of extensions THE CONTRACTOR IS ACTING UNDER A FRAMEWORK CONTRACT CONCLUDED WITH THE COMMISSION

Satellite systems Satellite systems of the national accounts enable analysis of specialised areas, and where assumptions and imputations can be made which are not appropriate for the core system The ntreatment outside the ESA may be due to uncertainty about the reliability of the extra data, or the extension beyond the concepts of existing national accounts standards

Satellite systems However, the satellite system will be clearly linked to the core system, so that the analysis can be consistent with important economic measures of the national accounts

Satellite systems have some of the following: The introduction of extra information reflecting areas of social or economic interest b) The introduction of new or alternative concepts c) Extended coverage of human activities d) The use of indicators to generate new data sets e) Linkage of physical measures to monetary value b)

Satellite systems examples Tourism Environmental protection Research and development Education Health Culture Social protection Sustainable development

Satellite systems - features I-O tables in money terms provides the basis for economic analysis I-O tables in physical units allows connection with non-economic events such as pollution, climate warming, neutral use of energy Time-use measures can assist in social behaviour studies

Satellite systems – typical features Go beyond the current boundary of what is production – include services carried out within the household by members - treat consumer durables as assets contributing capital services to the running of the household

Satellite systems – typical features Extend the coverage of transactions (exchanges) – impute an exchange of social transfers for collective public services supplied to members of society Extend the measure of economic welfare, by costing “free” goods from nature These can allow estimates of how sustainable an economy is

Satellite systems – typical features The System for Integrating Environmental and Economic Accounting (SEEA) is intended to guide such efforts to meaure the economy in a wider sense An economy is not simply in order to maximise current consumption, but to ensure a sustainable economy into the future. For example, the use of historic water in the West of the USA supports a non-sustainable economy

Satellite systems – sustainable development This is very difficult! A. Measures of sustainability into the future requires heroic estimates of the stock of degradable natural resources, and the rate of use B. An economy is not self-contained, neither in national accounts terms (increasing imports and exports of goods and services) nor environmental terms (Norway forests and water resources degraded by UK industrial pollution “blown over”)

Satellite systems Physical accounts Where no market transactions exist and non-market ones have no basis for imputation, physical units must be used. This can describe rates of degradation of natural resources through use and abuse in the economy

Satellite systems Physical accounting allows monitoring of natural resources in terms of sustainability – acreage of forests, energy generation in joules, using up of natural materials such as gold, fresh water, non-farmed fishing stocks, etc.

Satellite systems Time use accounting