Ecosystem Accounting: Implementation Challenges and Possible Solutions J. Steven Landefeld, Director Learning Centre on Experimental Ecosystem Accounting February 25 th, 2013

2 Need for Further Research and Consensus Building ▪ “From Exxon to BP: Has Some Number Become Better than No Number.” Kling, Catherine L., Daniel J. Phaneuf and Jinhua Zhao ▪ “Contingent Valuation: A Practical Alternative when Prices Aren’t Available.” Richard T. Carson ▪ “Contingent Valuation: From Dubious to Hopeless” Jerry Hausman Source: Fall 2012 Journal of Economic Perspective, Vol. 26, No. 4

Need to Build Public, Policy and Budgetary Support ▪ Lack of strong support for SEEA in the Rio+20 ▪ Reduced budgets at statistical agencies are forcing agencies to focus on core statistics and reduced funding for environmental and other activities ▪ Public good problem ▪ Fewer Americans, Europeans view global warming as a threat  Americans continue to prioritize growth over environmental protection.  Developing countries - stronger support 3

Americans Still Prioritize Economic Growth Over Environment 4 BP Oil Spill

Measures to Build Support ▪ Focus on low hanging fruit with “maximum bang for the buck” ▪ Need for short-term deliverables with high importance and that create “buzz” ▪ Use the SEEA as a platform for experimentation and standardization 5

Measures to Build Support ▪ Develop better links, and ultimately consensus, with statisticians, economists, scientists, and ecological and environmental experts ▪ Form partnerships with relevant policy agencies ▪ Don’t forget long-term data collection plans 6

7 ▪ Work can be done that both benefit existing accounts and pave the way for satellite accounts:  More detailed economic data on key energy and environmental industries:  Expanded Input-Output Accounts and Annual KLEMS Estimates (with Energy Information Administration)  Integration with natural resource and environmental data (with National Oceanic and Atmospheric Administration)  More accurate, up-to-date, and detailed geographic data  SNA harmonization:  GDP growth most important determinant of global warming projections U.S. Building Blocks to Environmental Accounting

8 U.S. Building Blocks to Environmental Accounting  Improvement of existing measures of health care (with National Institutes of Health):  Cost by disease category and by type of service  Improved measures of real output  Development of household production estimates, with special attention to energy intensive activities  Complimentary Academic-Statistical Agency Research Agenda (with Cutler-NIH health group and Nordhaus et al. environmental accounting group)  Regular review and updates with Academic Advisory Committees