1. Ecosystem valuation and asset account in Japan
Londoｎ Group meeting in San Jose,
Costa Rica, October
Ecosystem valuation and asset account in Japan
Takashi Hayashi 　
Policy Research Institute, Ministry of Agriculture, Forestry and Fisheries (PRIMAFF) Japan
Masayuki Sato
Graduate School of Human Development and Environment, Kobe University, Japan

2. 1. Introduction Developing of ecosystem accounting in Japan
Several research initiatives have been conducted so far along with MEA, WAVES and TEEB initiatives
Our project
Led by Kobe University and financially supported by the Ministry of the Environment
Purposes:
To collect physical and economic data for ecosystem and ecosystem services by desktop study
To conduct economic valuation of ecosystem and ESS
To compile ecosystem accounting

3. 2. Basic concepts Our approach
Primarily based on utilization of existing studies on economic valuation of ecosystems and ESS
Our accounting includes monetary account as well as physical accounts
Type of ecosystem：forest and wetland
Years of estimation：2000, 2007, 2012 for forest
2000 and 2009 for wetland
Spatial unit: 47 prefectures and whole Japan

4. 2. Basic concepts Our approach (Cont’d)
Methodologies of monetary valuation
Exchange value: consistent with SEEA/SNA concept, but some of functions of ecosystem is difficult to be measured by this methodology
Surplus value: can evaluate broader values of ecosystem but not consistent with SEEA/SNA concept
Which methodology should be applied depends on the purpose of estimates use
If we want to incorporate the values of ES into SNA: exchange value
If we want to understand the broader value of ES: surplus value
Both two methodologies are applied and put together on the same monetary account

5. 2. Basic concepts Basic calculation
Both physical and monetary values are recorded on the ES stock accounts by prefecture
Monetary value = physical value * unit monetary value
Assume linearity
Estimate value of ES stock
The value is disaggregate by its function
Water storage, land slide protection, climate change mitigation, ES conservation, and timber production

6. 3. Forest stock accounting framework
Integrated physical and monetary account
Forest account
“ ” account and “ ” account
Wetland account
account but currently underway…

7. 4. Estimates Physical data Unit monetary value
Area of forest and forest volume are referred from existing statistics
Tree type (conifer or broadleaf) and nature (manmade or natural)
Unit monetary value
Exchange value
Apply TEEB methodology（van der Ploeg et al., 2010）
Surplus value
Originally conducted national level CVM survey
Also identified factors affecting on WTP
Assume that unit monetary values are unchanged overtime

8. 4. Estimates Result (unit monetary value)
Exchange value
662 thousand JPY/ha
This value is applied to all
prefectures at moment
Surplus value
2042JPY/ha/Household（Kochi）
to 2815JPY/ha/household（Tokyo）
Higher in eastern and lower in western part
By multiplying these values to area of forest (and number of household), we estimate stocks of forest in 2000, 2007 and 2012
森林の価値推定値（円/ha/世帯）
■ 2,239円未満
■ 2,239～2,363円
■ 2,363～2,508円
■ 2,508円以上
（余剰価値）

9. 4. Estimates Surplus value in 2012 Change 2007 to 2012
Higher in eastern and lower
in westernpart
Change 2007 to 2012
Increased in Hokkaido (northern JPN)
Decreased in Kyushu (southern JPN)

10. 5. ES asset account and its use
47 prefs and whole nation: 48 accounts in total
Disaggregation by cause of change (e.g. natural events or human activities) have not done yet

11. 5. ES asset account and its use
Characteristics of our ES asset account
Both exchange and surplus values
Supplement each other and can provide broader valuation of ES
Depending on its purpose of use
Mainstreaming of ES: Exchange value
Cost benefit analysis of ES conservation：Surplus value
Accounts are compiled by prefecture
Can reflect local condition of ES

12. 5. ES asset account and its use
Use of ES asset account
As a database for measuring various indicators
Use for Aichi target and SDGs
Other initiatives to achieve sustainable development both domestically and internationally
Cost benefit analysis of government’s ES conservation policies
Assessment of enterprises’ CSR activities for mainstreaming ESS

13. 6. Concluding remarks Discussion
Huge gap between exchange value and surplus value
Exchange: ,442 billion yen
Surplus: 30,640,777 billion yen
Caused by range of beneficiary
Exchange value: 662,000 JPY/ha
Surplus value: ,161 JPY/ha/household
Multiplying the number of household
Even though both methodologies have different concept, the gap is too large…

14. Thank you very much for your attention!
2017/9/10
Thank you very much for your attention!
Corresponding author
Takashi Hayashi