1. How an economic understanding of the value of marine/coastal resources can help decision-making: using Environmental-Economic Accounting
Moving to blue economy depends on decision-makers understanding interactions between economic development & changes in environmental & social health.
Blue economy governance needs good economic, environmental, social data for decision-making.
Economic planners use System of National Accounts: shows GDP, employment, imports, exports, etc.
But need to add environmental (& social) data to SNA for fuller picture of interactions between economy, environment & community.
UN System of Environmental-Economic Accounting framework being used in national development planning to show linkages between economy & environment to help policy makers make informed decisions...

2. When economists think about ‘The Economy,’ they usually think like this
The System of National Accounts (SNA) used to compile data on market transactions between sectors (economic accounts)
Tables & graphs show trades over time between different sectors, as changes in stocks & flows of produced capital, financial capital, labour
Savings
Tax
Transfer
Government expenditure
Yield (Flow)
Consumption
Imports
EXports

3. BUT SNA doesn’t show quantity & quality of specific natural assets (natural capital) used in Pacific economies
e.g. in coastal tourism, fisheries, building materials, crafts…
NATURAL COASTAL/MARINE CAPITAL VITAL FOR PACIFIC ECONOMIES…

4. An economy showing natural capital could look like this:
Environmental-Economic Accounting uses SNA stocks-flows approach:
Stocks = Natural capital i.e. water/ energy resources, waste, timber, ecosystems etc.
Labour Market
Environment:
IM: Natural capital
X: Residuals, wellbeing incl. subsistence outputs
Environment:
IM: Natural capital
X: Residuals, wellbeing
outputs
Households: Human, social & Fin capital
Govt:
Fin capital
Companies: Produced & Fin. capital
Financial Markets
Savings
Tax
Transfer
Government expenditure
Yield (Flow)
Consumption
Imports
EXports
Flows = ecosystem services i.e.
Provisioning (food fibre)
Maintenance & regulating (blue, green, soil carbon capture)
Cultural services (spiritual connections)
Commodity Market
Imports/exports to rest of the World
Environment:
IM: Natural capital
X: Residuals, wellbeing outputs

5. GHG emissions Intensity < Employment < Water Intensity <
WHAT EEA CAN SHOW BY COMBINING ECONOMIC & ENVIRONMENTAL INFORMATION IN AN EEA ACCOUNT
Industry GVA ag. >
GHG emissions Intensity <
Employment <
Water Intensity <
Waste Intensity >
Energy intensity >
Information tells a story for policy makers...
(NB. range of metrics, not just $)

6. How does EEA contribute to blue economy?
EEA adds information about natural capital to SNA by showing impacts of economic development on environment: e.g...
If produced capital (e.g. building stock) is increasing from more tourist resorts, is natural capital (mangroves, blue carbon sequestration) declining (e.g. from land development)?
EEA can help guide blue economic development by showing linkages & suggesting what policies etc. needed to protect/rebuild natural capital levels for continuing sustainable development.

7. EEA stocks & flows framework shows importance of natural capital for blue economy development in PICTs & how Govts. can act:
Natural & other capital (stocks)
Degradation of natural capital
leads to loss of
flows
of ecosystem service benefits
EEA helps Govt. decision–making for blue economy development
Use EEA to understand economy-environment interactions & monitor effectiveness of programmes (e.g. NBSAP) strategies etc.
Policies to reinvest in NC include:
Reduce residuals
Reinvest in natural capital to maximise its contribution to economic & social wellbeing & blue economy
Ecosystem & other
Services (flows)
e.g. Provisioning
Regulating & maintenance
Cultural services
Production of residuals
Environmental, social & economic ‘bads’
Production & Consumption for wellbeing
Production of social & economic goods & services .

8. What is the potential for developing this approach in the Pacific?
Some PICTs starting to developing accounts for range of purposes e.g.
Fiji tourism satellite accounts
FSM Energy accounts
Palau, Marshall Islands accounts?
BUT NEED
High-level understanding of usefulness of EEA, & so commitment
Small demonstration projects linking SNA & environmental data
Integrate EEA thinking into strategic planning
Help from UN ESCAP, World Bank (WAVES), UNEP, NZ Statistics.
Thank you!