Environmental and economic overview

The report applies accounting concepts and rules to the emerging field of ecosystem assessment and measurement. This framework can provide comparable and reliable data that supports coherent analytical and policy frameworks and informs debates on the relationship between the economy and the environment. Accounting for ecosystems in physical (i.e., non-monetary) can provide significant insights into ecosystem asset changes.

Objectives and challenges in ecosystem accounting

The accounting framework’s overarching objective is to provide the integration of environmental and economic information for policymaking. The report outlines specific objectives in establishing an accounting structure, such as the organization of information about the environment from a spatial perspective, and identification of information gaps. The development and testing of measurement methods are necessary to achieve these objectives.

The key disciplines in ecosystem accounting

Ecosystem accounting is a relatively new field with foundations in ecosystem science, economics, and national accounts. However, further advancement and testing of concepts, theories, and measurement methods are critical in the development of the ecosystem accounting framework.

Measurement frameworks for ecosystem accounting

This paper emphasizes the organization of physical information and approaches to accounting for ecosystems in monetary terms. Measurement in monetary terms for ecosystem accounting purposes is generally dependent on the availability of physical information since few observable market values exist for ecosystems and their services.

Approaches to estimating ecosystem extent, condition and ecosystem services

The report suggests a broad structure for organizing information on ecosystem extent and condition for a given ecosystem asset. Basic resource accounts serve as a useful starting point for compilers since they provide significant insights into changes in natural resources. The report also discusses approaches to estimating ecosystem services in physical and monetary terms.

Monetary accounting for ecosystems

The report describes three approaches to measure the stock of assets in monetary terms; using the general balance-sheet framework of the SNA, modelling total asset values, and shadow prices.

Integration of ecosystem accounts with other aggregates

The report suggests integrating information on economic activity beyond the market and standard economic measures of production, consumption, income, and wealth. The development of an ecosystem asset account in monetary terms requires significant measurement assumptions. Therefore, comprehensive wealth accounting or genuine savings are appropriate approaches to estimate the total value of assets.

Conclusions

This report provides an integrated framework for ecosystem accounting. Its usefulness in policy decision-making can aid in measuring sustainable development and progress and assessing global ecological cycles and global economic challenges. The report recommends further advancements in measuring ecosystem accounting concepts, theories, and measurement methods. Countries must consider ecosystem accounting most relevant in their own context, and ecosystem accounting should be integrated with the standard presentations of economic accounts.