Clarifications and recommendations concerning differences

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Clarifications and recommendations concerning
differences between the OECD guidance manual on
material flows and resource productivity, Volume
II and the SEEA 2003 Karl Schoer and Ole
Gravgård 2nd meeting of the UNCEEA New York, 5
6 June 2007
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• Overview
• Introduction
• Terminology
• Economy-wide MFA
• Structure of the manual
• Questions for discussion

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• Introduction
• - Request of the London Group for summarizing and
  clarifying the
• differences between the material flow accounts
  of SEEA 2003 and
• the OECD manual part II and to suggest ways to
  change the presentation
• of the text in the manual.
• - The paper has preliminary character and
  presents only the view of
• the authors. It could not be coordinated with
  OECD and EUROSTAT
• due to time constraints. It is therefore
  suggested to put the whole matter
• of harmonizing SEEA material flow accounts and
  the OECD manual on
• the revision issue list.

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• 2. Terminology
• General proposal terminological differences
  between the SEEA
• And the OECD-manual should be removed completely
• The following issues are discussed
• 2.1 Physical flow accounts, MFA, MFAcc
• 2.2 Socio-economic system versus economic system

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2.1 Physical flow accounts, MFA, MFAcc SEEA
2003 The term physical flow accounts is used for
the description of material flows which follow
the SNA concept. Economy wide material flow
accounts is considered as a sub-system of
physical flow accounts (input of material to and
output of material from the Domestic
economy) OECD manual The term MFA is used for
material flow analysis. The term material flow
accounts (MFAcc) is used in a very broad sense.
It includes the SEEA physical flow accounts as
well as a number of non-SEEA MFAcc (e.g. specific
substance flow accounts, life cycle accounts).
Economy wide material flow accounts (EW-MFAcc)
widely corresponds to the SEEA economy wide
material flow accounts
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2.1 Physical flow accounts, MFA,
MFAcc Recommendation
Physical Flow Accounts (non-monetary accounts)
Physical Services Accounts (e.g. use of
settlement and traffic area, kilometers driven,
ton-kilometers)
Material Flow Accounts (MFAcc)
Non-SEEA-MFAcc
SEEA-MFAcc
PSUT PIOT EW-MFAcc
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• 2.2 Socio-economic system versus economic system
• SEEA
• The economic system covers all economic
  activities related to
• production and consumption of products
• OECD manual
• The economic system covers only the production
  activities.
• The consumption activities are assigned to the
  social system
• (as the transformation of material is not fully
  related to economic
• Transactions)
• Recommendation
• Follow the SEEA concept
• The description of material flows consumer goods
  should be

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• 3. Economy-wide MFA
• Harmonization issues
• 3.1 Residence versus territory principle
• 3.2 Cultivated crops and trees
• 3.3 Waste

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• 3.1 Residence versus territory principle
• The residence principle is applied in the SNA,
  SEEA and
• for PSUT/PIOT of the OECD manual
• The territory principle is applied for EW-MFA in
  the
• OECD manual (but not in the EUROSTAT MFA-guide
  for beginners)
• Major quantitative differences refer to energy
  use and air emissions for transport.
• Recommendation
• The residence principle should be adopted also
  for the EW-MFA
• Bridge tables to the territory concept should be
  provided for linking the accounting data to the
  international and national reporting systems for
  energy and air emissions.

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3.2 Cultivated crops and trees
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3.3 Waste Treatment of waste disposed on
controlled landfills SEEA 2003 Disposal of
waste on controlled landfills is considered as
remaining within the economic system. It is
booked as an addition to capital stock in the
PSUT/PIOT. For the EW-MFA as an alternative
approach it is was also allowed to book it as a
disposal of a residuals to the environment.
OECD manual Disposal of waste on controlled
landfills is considered as remaining within the
economic system for PSUT/PIOT as well as for
EW-MFA. It is assigned to the special entry
controlled landfills. Recommendation It is
recommended to follow the approach of the OECD
manual.
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4. Structure of the manual
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• Recommendation
• It is proposed to move the order of presentation.
  Instead of presenting the SEEA-MFAcc as a special
  case it is proposed to start with the systematic
  description of the SEEA-MFAcc.
• For the presentation of the SEEA-MFAcc it is
  proposed to take the close relationship between
  the SNA and the SEEA-MFAcc as a starting point.
  The system character of the SEEA type material
  flow accounts should be emphasized. For that
  purpose it seems useful to introduce the
  SEEA-MFAcc with the above diagram. That chart
  should guide the further description of the
  module in the manual.

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• 5.1 Questions for discussion
• Does the UNCEEA support the general proposal of
  striving for full
• harmonization of the SEEA and the OECD manual in
  terms of terminology
• and demarcation?
• 2. Does the UNCEEA support the general proposal
  of striving for full
• harmonization of the general SEEA-MFAcc and the
  EW-MFAcc?
• 3. What is the view of the UNCEEA regarding the
  proposal for restructuring
• the OECD manual part II?
• 4. Does the UNCEEA support the suggestion to put
  the questions raised
• by the recommendations for harmonization on the
  revision issue list for
• further exploration by using the concrete
  proposals as a starting point?
• 5. What is the view of the UNCEEA on the time
  frame (quick e-mail discussion
• or discussion at one of the next London Group
  meetings) for solving those issues?