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Environmental 
economic accounting … 
Water Resource Accounting 
Environmental Economic Accounting 
Water Resource Accounting 
for South Africa 
Robert Parry 
Application of National Accounts 
October 2014 
The South Africa I know, the The South Africa I know, the home I understand home I understand
The South Africa I know, the home I understand 
System of National Accounts (SNA) 
• Internationally agreed standard set of 
recommendations on how to compile 
measures of economic activity. 
• Describes a coherent, consistent and 
integrated set of macroeconomic accounts in 
the context of a set of internationally agreed: 
– Concepts 
– Definitions 
– Classifications 
– Accounting rules. 
FEATURES
The South Africa I know, the home I understand 
System of National Accounts (SNA) 
• Provides overview of economic processes. 
• Records how production is distributed to: 
– Consumers 
– Businesses 
– Government 
– Foreign nations. 
• Shows how income originating in production, 
modified by taxes and transfers flows to 
consumers, businesses, government and 
foreign nations. 
FEATURES
The South Africa I know, the home I understand 
System of National Accounts (SNA) 
(continued) 
• Shows how consumers, businesses, 
government and foreign nations allocate 
these flows to consumption, saving and 
investment. 
• National accounts are one of the building 
blocks of macroeconomic statistics forming a 
basis for economic analysis and policy 
formulation. 
• SNA is designed to accommodate needs of 
countries at different stages of development, 
providing a framework for standards in other 
statistical domains to facilitate integration. 
FEATURES
The South Africa I know, the home I understand 
System of Environmental Economic 
Accounts (SEEA) 
• SEEA consists of 3 parts: 
– Central Framework 
– Experimental Ecosystem Accounting 
– Applications and Extensions. 
• Subsystems of SEEA elaborate on specific 
resources and sectors, including: 
– Energy 
– Water 
– Fisheries 
– Land 
– Ecosystems 
– Agriculture. 
FEATURES
• SEEA organizes statistical data for the 
derivation of coherent and descriptive 
statistics. 
• SEEA enables the monitoring of the 
interactions between the economy and the 
state of the environment. 
• SEEA propose no single headline indicator, 
rather a multi-purpose system generating a 
wide range of statistics and indicators with 
many different potential analytical 
applications. 
The South Africa I know, the home I understand 
System of Environmental Economic 
Accounts (SEEA) (continued) 
FEATURES
• SEEA is a flexible system – it can be adapted 
by each country to its own priorities and 
policy needs. 
• SEEA contains internationally agreed 
– Standard concepts 
– Definitions 
– Classifications 
– Accounting rules and tables. 
For producing internationally comparable statistics on 
the environment and its relationship with the 
economy. 
The South Africa I know, the home I understand 
System of Environmental Economic 
Accounts (SEEA) (continued) 
FEATURES
• The System of National Accounts (SNA) is a 
measurement framework to measure: 
– Economic activity 
– Economic wealth 
– General structure of the economy. 
• SEEA Central Framework applies the 
accounting concepts, structures, rules and 
principles of the SNA to environment 
information. 
• The SEEA allows for the integration of 
environmental information with economic 
information in a single framework. 
The South Africa I know, the home I understand 
SEEA’s relationship to SNA
• The SEEA-Water is a sub-system of the SEEA 
deliver more detailed structures and 
explanations on selected topics. 
• The SEEA-Water, adopted in 2007, covers the 
physical and economic stocks and flows 
associated with water. It also covers 
emissions of pollutants and water quality. 
The South Africa I know, the home I understand 
System of Environmental Economic 
Accounts for Water 
FEATURES
The South Africa I know, the home I understand 
EEA 
UN, 1993 
SEEA 
UN, 1993 
SEEAW 
UN, 2007 
EEA for Water 
SA 
CEEPA, CSIR, 
2000 
EEA for 
Water SA 
StatsSA, 
2002 
EEA for Water SA 
CEEPA & StatsSA, 
2007 
EEA for Water SA 
WRC & StatsSA 
current 
DWS 
History of EEA for Water in SA
The South Africa I know, the home I understand 
What does EEA for Water provide for? 
Physical 
Accounting 
Hybrid 
Accounting 
Monetary 
Accounting 
Environmental stats & Economic 
classification 
Linking physical and 
monetary accounts 
More detail than SNA data 
Allow variations in SNA 
accounting rules
The South Africa I know, the home I understand 
Water Accounts 
• Water 
– Past discussion document (2002, 2004, 
2005,2006,2009,2010) 
• Accounts developed 
– Supply and use tables
The South Africa I know, the home I understand 
Accounting for water resources. 
Water is in continuous movement 
through precipitation, evaporation, 
run-off, infiltration and flows to the 
sea. 
Asset accounts for water resources 
focus on the inflows and outflows to 
and from the land surface and 
subsurface, and on the destination of 
these flows. 
In conjunction with information on in-stream 
uses of water and seasonal 
variation, such a focus allows 
assessment of the availability of water 
to meet demand of the economy and 
to assess consistency with the 
sustainability of water supply.
The South Africa I know, the home I understand 
Hydrological system
The SEEA-Water describes the hydrological system in terms of 
flows and stocks. 
The South Africa I know, the home I understand 
Hydrological system
The South Africa I know, the home I understand 
Hydrological system
Hydrological system 
The South Africa I know, the home I understand 
Hydrological system
The South Africa I know, the home I understand 
Hydrological system
Supply Demand 
The South Africa I know, the home I understand 
Environment 
• Atmosphere and sea 
• Natural MAR 
• Surface water yield 
• Ground water 
• Soil water 
• Ecological reserve 
Distributors 
• DWS (total yield) 
• Irrigation boards 
• Water boards 
• Municipalities 
• ROW and other WMAs 
Production (SIC) 
• Agriculture 
Dry land & irrigation 
Livestock 
Plantation 
• Mining 
• Electricity 
• Manufacturing 
• Trade & Services 
• Domestic 
Urban & Rural 
Water supply and use in SA
Water Supply and Use in The South African Economy-2000 
(million m3). 
The South Africa I know, the home I understand 
Water supply and use in SA
Standard Physical water supply table. 
The South Africa I know, the home I understand 
Physical supply & use tables (SUT)
Standard Physical water use table. 
The South Africa I know, the home I understand 
Physical supply & use tables (SUT)
The South Africa I know, the home I understand 
Procedures for development physical EEA for Water 
• EEA for Water developed: 
Input-output (I-O) matrix developed 
I-O matrix consistent with definition of NWRS 
I-O matrix developed for each WMA 
Aggregated to national level 
National I-O matrix converted to UN SUT format
The South Africa I know, the home I understand 
Date Source: Physical 
External 
• Department of Water & Sanitation 
Water Resource Situation Assessment Model 
 National Water Resource Strategy (NWRS) 
 Dam capacities 
 Dam levels 
 Natural mean annual runoff and ecological 
reserve 
 Available yield in year 2000 
Water requirements for year 2000 
• South African weather service 
 Rainfall figures according to rainfall districts
The South Africa I know, the home I understand 
Date Source: Monetary 
Internal 
• Statistics South Africa 
 Stats SA 2000 Supply and Use tables 
External 
• Department of Water Affairs 
Tariff data 
Unpublished surveys
The South Africa I know, the home I understand 
Monetary Accounts 
Expenditure on water use by productive activities in South Africa, 2000.
The South Africa I know, the home I understand
The South Africa I know, the home I understand 
System of Environmental Economic 
Accounts for Water 
THANK YOU 
Robert Parry 
robertp@statssa.gov.za

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Environmental Economic Accounting Water Resource Accounting for South Africa

  • 1. Environmental economic accounting … Water Resource Accounting Environmental Economic Accounting Water Resource Accounting for South Africa Robert Parry Application of National Accounts October 2014 The South Africa I know, the The South Africa I know, the home I understand home I understand
  • 2. The South Africa I know, the home I understand System of National Accounts (SNA) • Internationally agreed standard set of recommendations on how to compile measures of economic activity. • Describes a coherent, consistent and integrated set of macroeconomic accounts in the context of a set of internationally agreed: – Concepts – Definitions – Classifications – Accounting rules. FEATURES
  • 3. The South Africa I know, the home I understand System of National Accounts (SNA) • Provides overview of economic processes. • Records how production is distributed to: – Consumers – Businesses – Government – Foreign nations. • Shows how income originating in production, modified by taxes and transfers flows to consumers, businesses, government and foreign nations. FEATURES
  • 4. The South Africa I know, the home I understand System of National Accounts (SNA) (continued) • Shows how consumers, businesses, government and foreign nations allocate these flows to consumption, saving and investment. • National accounts are one of the building blocks of macroeconomic statistics forming a basis for economic analysis and policy formulation. • SNA is designed to accommodate needs of countries at different stages of development, providing a framework for standards in other statistical domains to facilitate integration. FEATURES
  • 5. The South Africa I know, the home I understand System of Environmental Economic Accounts (SEEA) • SEEA consists of 3 parts: – Central Framework – Experimental Ecosystem Accounting – Applications and Extensions. • Subsystems of SEEA elaborate on specific resources and sectors, including: – Energy – Water – Fisheries – Land – Ecosystems – Agriculture. FEATURES
  • 6. • SEEA organizes statistical data for the derivation of coherent and descriptive statistics. • SEEA enables the monitoring of the interactions between the economy and the state of the environment. • SEEA propose no single headline indicator, rather a multi-purpose system generating a wide range of statistics and indicators with many different potential analytical applications. The South Africa I know, the home I understand System of Environmental Economic Accounts (SEEA) (continued) FEATURES
  • 7. • SEEA is a flexible system – it can be adapted by each country to its own priorities and policy needs. • SEEA contains internationally agreed – Standard concepts – Definitions – Classifications – Accounting rules and tables. For producing internationally comparable statistics on the environment and its relationship with the economy. The South Africa I know, the home I understand System of Environmental Economic Accounts (SEEA) (continued) FEATURES
  • 8. • The System of National Accounts (SNA) is a measurement framework to measure: – Economic activity – Economic wealth – General structure of the economy. • SEEA Central Framework applies the accounting concepts, structures, rules and principles of the SNA to environment information. • The SEEA allows for the integration of environmental information with economic information in a single framework. The South Africa I know, the home I understand SEEA’s relationship to SNA
  • 9. • The SEEA-Water is a sub-system of the SEEA deliver more detailed structures and explanations on selected topics. • The SEEA-Water, adopted in 2007, covers the physical and economic stocks and flows associated with water. It also covers emissions of pollutants and water quality. The South Africa I know, the home I understand System of Environmental Economic Accounts for Water FEATURES
  • 10. The South Africa I know, the home I understand EEA UN, 1993 SEEA UN, 1993 SEEAW UN, 2007 EEA for Water SA CEEPA, CSIR, 2000 EEA for Water SA StatsSA, 2002 EEA for Water SA CEEPA & StatsSA, 2007 EEA for Water SA WRC & StatsSA current DWS History of EEA for Water in SA
  • 11. The South Africa I know, the home I understand What does EEA for Water provide for? Physical Accounting Hybrid Accounting Monetary Accounting Environmental stats & Economic classification Linking physical and monetary accounts More detail than SNA data Allow variations in SNA accounting rules
  • 12. The South Africa I know, the home I understand Water Accounts • Water – Past discussion document (2002, 2004, 2005,2006,2009,2010) • Accounts developed – Supply and use tables
  • 13. The South Africa I know, the home I understand Accounting for water resources. Water is in continuous movement through precipitation, evaporation, run-off, infiltration and flows to the sea. Asset accounts for water resources focus on the inflows and outflows to and from the land surface and subsurface, and on the destination of these flows. In conjunction with information on in-stream uses of water and seasonal variation, such a focus allows assessment of the availability of water to meet demand of the economy and to assess consistency with the sustainability of water supply.
  • 14. The South Africa I know, the home I understand Hydrological system
  • 15. The SEEA-Water describes the hydrological system in terms of flows and stocks. The South Africa I know, the home I understand Hydrological system
  • 16. The South Africa I know, the home I understand Hydrological system
  • 17. Hydrological system The South Africa I know, the home I understand Hydrological system
  • 18. The South Africa I know, the home I understand Hydrological system
  • 19. Supply Demand The South Africa I know, the home I understand Environment • Atmosphere and sea • Natural MAR • Surface water yield • Ground water • Soil water • Ecological reserve Distributors • DWS (total yield) • Irrigation boards • Water boards • Municipalities • ROW and other WMAs Production (SIC) • Agriculture Dry land & irrigation Livestock Plantation • Mining • Electricity • Manufacturing • Trade & Services • Domestic Urban & Rural Water supply and use in SA
  • 20. Water Supply and Use in The South African Economy-2000 (million m3). The South Africa I know, the home I understand Water supply and use in SA
  • 21. Standard Physical water supply table. The South Africa I know, the home I understand Physical supply & use tables (SUT)
  • 22. Standard Physical water use table. The South Africa I know, the home I understand Physical supply & use tables (SUT)
  • 23. The South Africa I know, the home I understand Procedures for development physical EEA for Water • EEA for Water developed: Input-output (I-O) matrix developed I-O matrix consistent with definition of NWRS I-O matrix developed for each WMA Aggregated to national level National I-O matrix converted to UN SUT format
  • 24. The South Africa I know, the home I understand Date Source: Physical External • Department of Water & Sanitation Water Resource Situation Assessment Model  National Water Resource Strategy (NWRS)  Dam capacities  Dam levels  Natural mean annual runoff and ecological reserve  Available yield in year 2000 Water requirements for year 2000 • South African weather service  Rainfall figures according to rainfall districts
  • 25. The South Africa I know, the home I understand Date Source: Monetary Internal • Statistics South Africa  Stats SA 2000 Supply and Use tables External • Department of Water Affairs Tariff data Unpublished surveys
  • 26. The South Africa I know, the home I understand Monetary Accounts Expenditure on water use by productive activities in South Africa, 2000.
  • 27. The South Africa I know, the home I understand
  • 28. The South Africa I know, the home I understand System of Environmental Economic Accounts for Water THANK YOU Robert Parry robertp@statssa.gov.za