Page 174 - Invited Paper Session (IPS) - Volume 2

IPS195 Albert B.
add substantially to well-being. Most social and environmental costs coming
along with economic growth are not deducted, or even worse, the repair
activities increase GDP. Excluded furthermore are natural processes not under
the control of resident economic units.
Looking at the GDP growth rates seems to suggest that unlimited
economic progress is possible. Opposed to this it has been realized since some
time, that the world and its resources are limited. This leads to the question,
whether we can continue like today or whether there is a need to consider a
more sustainable development. The issue of sustainability is further increasing
by the worldwide population growth: According to United Nations forecast
there will be over 10 billion people living on earth in 2055, representing a
population increase of more than 30 % in just 25 years. The challenges ahead
imply to think about developing adequate (additional) statistical indicators.
Sustainability is the core element in the resolution “Transforming our
world: the 2030 Agenda for sustainable development” adopted by the General
Assembly of the United Nations (UN, 2016). But already several decades before
the publication of the report of the Club of Rome on the limits to growth
(Meadows, D., 1972) initiated discussions at various levels of societies all over
the world. From these discussions the idea of a more comprehensive approach
emerged. Different strands and indicators were proposed. Developing a so-
called green GDP, i.e. an environmentally adjusted GDP, was an immediate
approach. In addition, the 1987 report of the Brundtland Commission "Our
Common Future" (World Commission on Environment and Development,
1987) focused on the links between economic, societal and environmental
development.
At the statistical level, research activities increased fostering integrated
environmental and economic accounts. Briefly, this led to the publication of a
corresponding UN-handbook in 1993, updated in 2003, ultimately revised and
published as System of Environmental-Economic Accounting 2012 - Central
framework, which in March 2012 was adopted as an international statistical
standard (SEEACF, 2012).
In general terms, the SEEA-2012-CF highlights the relationship between
economy and environment by looking at “natural inputs” from the
environment to the economy, e.g. mineral resources, timber, water or energy.
On the other hand “residuals” flowing from the economy to the environment,
e.g. solid waste, air emissions, return flows of water are considered as well
(SEEA-CF, 2012, p. 13). These flows usually are compiled in physical terms using
a supply-use framework known from national accounts. In addition to such
flows, the methodology for compiling environmental assets are covered,
where the focus is on individual components like mineral and energy
resources, timber, water resources and land, both, in physical and value terms.

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