National Accounting Matrix Research Articles

Effect analysis of carbon trading on Economy–Energy–Environment system and calculation of reasonable carbon price intervals

This paper constructs a 4-lier computable general equilibrium model which includes such modules as modeling carbon emission constraints and carbon trading (CT), and incorporates the cost of carbon emissions into constant elasticity of substitute production function. Under scenario settings under different carbon abatement targets, based on 2007 national social accounting matrix and related statistical data about energy consumption and carbon emission, effects on economic outputs, energy consumption, and carbon abatement are estimated and analyzed at both macro and sector level. By calculating selected novel indicators that compromise between macroeconomic opportunity cost and achievable carbon abatement, reasonable carbon price intervals are given for enhancing the robustness and liquidity of carbon market. Further, by decomposition and share-weighted methods, expected carbon abatement and energy price are measured and analyzed in details. Some results are meaningful for fundamental design of the future c...

Econometric Balancing of a Social Accounting Matrix Under a Power-law Hypothesis

Shannon-Kullback-Leibler cross-entropy (SKLCE) is particularly useful when ergodic system inverse problems require a solution. Though empirical application using the Shanon-Gibbs approach has recently met with notable success, it suffers from its ergodicity, constraining all micro-states of the system to appear with identical odds. The present document aims at extending applications of a non-extensive cross-entropy model (NECE) for balancing an input output stochastic system. The model then postulates that economic activity is characterized by long run complex behavioural interactions between economic agents and/or economic sectors. Applying scaling property of a Power-law we present a model which successfully balances a Polish national social accounting matrix (SAM) expected to exhibit Warlasian general equilibrium features. The Rao-Cramer-Kullback inferential information indexes are proposed. We note that increasing relative weight on the disturbance component of the dual criterion function leads to higher values of the q-Tsallis complexity index while smaller disturbance weights produce q values closer to unity, the case of Gaussian distribution. The great advantage of the approach presented over rival techniques is its allowing for the generalisation of Gaussian law enabled by its capability of including heavy tall distributions. The approach also constitutes a powerful instrument for the assessment of complexity in the analysed statistical system thanks to the q-Tsallis parameter.

Adoption of NAMEA Air Emission Accounts in Hungary

The current phenomena of accelerating climate change and global warming has urged scientists and policy makers to devise a comprehensive and reliable system to identify the main causes and sources of the adverse processes. NAMEA (National Accounting Matrix including Environmental Accounts”) developed by EUROSTAT has gained in popularity as it highlights the impacts of societal action on the environment by linking economic indicators to environmental material flows. The paper reports on the work done in the Hungarian Central Statistical Office to adopt and further develop the NAMEA system and demonstrates the crucial changes occurred in the emission of the major pollutants between 2000 and 2009 taking into consideration economic indicators.

Decomposition of Emission Multipliers in a National Accounting Matrix Including Environmental Accounts

This study defines a linear model of emission multipliers through the use of a national accounting matrix including environmental accounts (NAMEA) for the Catalan economy that integrates the regional economic information with the greenhouse gas emissions. As in the model of income multipliers, emission multipliers can be divided into own effects, open effects, and circular effects. This decomposition shows the channels of income generation and their effects on regional greenhouse gas emissions. Our results reveal significant differences among the three gases analyzed as well as important asymmetries at a sectorial level.

Industry-specific determinants of environmental indicators

The debate about exploring the drivers of pollution, material consumption and energy use has centred on estimating environmental Kuznet curves for countries in a time series, cross-sectional or panel analysis. Very often, evidence is mixed since especially institutional frameworks, market conditions and environmental policies are different between countries. This paper analyses industrial branches mirrored in the National Accounting Matrix including Environmental Accounts system with specific emphasis on the connections between the industrial production and selected environmental indicators in several panel estimations. Linkages between value added (VA) and environmental indicators are significantly positive only for the direct material consumption. For SO2, we find decoupling of VA and emissions. For energy consumption, CO2 and NOx emissions, the empirical estimations do indicate a stable relationship, neither positive nor negative. The results show that these linkages have to be analysed rather at the level of industrial branches than in an economy-wide framework.

The evolution of environmental and labor productivity dynamics

This paper provides new empirical evidence on delinking in income–environment dynamic relationships for CO2 and air pollutants at the sector level. A panel dataset based on the Italian NAMEA (National Accounting Matrix including Environmental Accounts) over 1990–2007 is analyzed, focusing on both emissions efficiency (EKC model) and total emissions (IPAT model). Results show that, looking at sector evidence, both decoupling and also eventually re-coupling trends could emerge along the path of economic development. The overall performance on greenhouse gases, here CO2, is not compliant with Kyoto targets. SOx and NOx show decreasing patterns, though the shape is affected by some outlier sectors with regard to joint emission-productivity dynamics. Services tend to present stronger delinking patterns across emissions than manufacturing. Trade expansion validates the pollution haven in some cases, but also shows negative signs when only EU15 trade is considered. This may due to technology spillovers and a positive ‘race to the top’ rather than the bottom among EU15 trade partners. General R&D expenditure shows weak correlation with emissions efficiency. SUR estimators (Seemingly Unrelated Regressions) suggest that, as regards manufacturing, the slope varies across sectors. Further research should be directed towards deeper investigation of trade relationship at the sector level and increased research into and efforts to produce specific sectoral data on ‘environmental innovations’.

RAMEA: how to support regional policies towards sustainable development

AbstractA Regional Accounting Matrix including Environmental Accounts (RAMEA) is the Regional version of a ‘National Accounting Matrix including Environmental Accounts’ (NAMEA), an environmental accounting system that combines economic and environmental accounts into a single framework, which is useful for the evaluation and comparison of the integrated economic–environmental–social performance of regions. Presenting the first results of compiling and applying a RAMEA in three European regions: Emilia‐Romagna (Italy), Noord‐Brabant (the Netherlands) and Małopolska (Poland), this paper analyses the difficulties in achieving internationally comparable regional models. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.

USING TIME-SERIES TO MEASURE UNCERTAINTY IN ENVIRONMENTAL INPUT–OUTPUT ANALYSIS

Environmental Input-Output Analysis (EIOA) is a tool for environmental analysis of broad classes of sectoral activities, taking into account indirect effects in other sectors in the supply chain. The core of EIOA is an input–output table (IOT) and national accounting matrix including environmental accounts (NAMEA) for a fixed base-year. We evaluate the uncertainty in EIOA using a time series of current-price IOT and NAMEA for 13 years from 1990 to 2002. We find annual variations in the current-price IOT and NAMEA, which may represent either realistic changes in production or measurement error. We assume the changes are errors and apply a regression analysis to remove the trends from the underlying data and estimate the uncertainty in the raw IOT. We then calculate the emissions for various final users and sectors to estimate the uncertainties from typical EIOA investigations. Using Monte Carlo analysis, we then investigate how well the variations in the current-price IOT and NAMEA over time may represent uncertainties. The results of this work have several implications for both statistical offices and the analyst. Statistical offices can provide details on data sources, methodologies, and estimates of annual variations. Analysts can incorporate this uncertainty information to understand the implications of uncertainty on their calculations and ultimately the policy recommendations derived from their studies.

Environmental Kuznets Curves for Air Pollutant Emissions in Italy: Evidence from Environmental Accounts (NAMEA) Panel Data

This paper provides new empirical evidence on delinking and Environmental Kuznets Curves (EKC) for greenhouse gases and other air pollutant emissions in Italy. A panel dataset based on the Italian NAMEA (National Accounts Matrix including Environmental Accounts) for 1990–2001 is analysed. The highly disaggregated dataset (29 production branches, 12 years and nine air emissions) provides a large heterogeneity and can help to overcome the shortcomings of the usual approach to EKC based on cross-country data. Both value added and capital stock per employee are used as alternative drivers for analysing sectoral NAMEA emissions. Trade openness at the same sectoral level is also introduced among the covariates. We find mixed evidence supporting the EKC hypothesis. The analysis of NAMEA-based data shows that some of the pollutants such as two greenhouse gases (CO2 and CH4) and CO, produce inverted U-shaped curves with coherent within-range turning points. Other pollutants (SOX, NOX, PM10) show a monotonic or even N-shaped relationship. Macro sectoral disaggregated analysis highlights that the aggregated outcome should hide some heterogeneity across different groups of production branches (industry, manufacturing only and services). Services tend to present an inverted N-shape in most cases. Manufacturing industry shows a mix of inverted U and N-shapes, depending on the emission considered. The same is true for industry (all industries, not only manufacturing): although a turning point has been experienced, N-shapes may lead to increased emissions with respect to very high levels of the economic driver. In general, EKC evidence is more pronounced for greenhouse gases. The results suggest that analysis at macro sector (whole industry, manufacturing only and services) can be the most promising approach to future research on EKC.

Environmental Kuznets Curves for Greenhouse Gas emissions. Evidence from Italy using National Accounts Matrix including Environmental Accounts and provincial panel data

This article provides a new empirical evidence on delinking and Environmental Kuznets Curves (EKC) for Greenhouse Gas (GHG) emissions in Italy. Two panel datasets ? sector disaggregated National Accounts Matrix including Environmental Accounts emissions (1990?2001) and geographically disaggregated emissions at provincial level (1990?2000) ? are analysed. We find mixed evidence supporting the EKC hypothesis. EKC evidence is present for GHGs when focusing on production activities, while the picture changes, in particular for CO2, when analysing the economy as a whole, including private activities. As expected, aggregate trends hide heterogeneous sectoral dynamics to a large extent. From a policy perspective, the investigation highlights that the reduction in GHG emissions in Italy in recent years has been driven largely by production activities, especially industry, which may have been responding to or anticipating environmental regulation. Nevertheless, the absence of any real decoupling in the economy as a whole is probably linked to inefficiencies in the household sector, especially transport, where not even a relative delinking has occurred, which seems to point to the need for incremental efforts towards higher efficiency and stronger regulation.

Integrated river basin accounting in the Netherlands and the European Water Framework Directive

The implementation of the European Water Framework Directive (WFD) has increased policy and decision-maker demand for integrated hydro-economic data, information and indicators at the level of river basins. In order to meet this increasing demand, a new integrated hydro-economic accounting system has been developed, called National Accounting Matrix including Water Accounts for River Basins (NAMWARiB). NAMWARiB provides information about the interactions between the physical water system and the economy at national and river basin scale. The main objective of this paper is to present and discuss the use and usefulness of the newly developed river basin information system for the implementation of the European WFD based upon the currently available time series data.

The use of EIO-LCA in assessing National Environmental Policies under the Kyoto Protocol: the Portuguese economy

The adoption of the Kyoto Protocol principles and targets at a EU level, is contributing to develop new environmental policy goals at European and national levels. Although in each nation, these goals are to be monitored at a macroeconomic level, reliable sector-based indicators are crucial to promote effective environmental policies. This paper discusses the use of an Economic Input-Output Life Cycle Assessment (EIO-LCA) framework, which makes use of official data, produced under the National Accounts Matrix including Environmental Accounts (NAMEA), to enable the analysis of the environmental performance of economic sectors. Methodological extensions to this framework, which enable the environmental assessment of processes and products, are also discussed. A Portuguese case study illustrates the use of the methodology for identifying diverse environmental performances across the main economic sectors, and this is relevant for defining new policies oriented towards enabling Portugal to comply with its commitments under the Kyoto Protocol.

Developing a Euro Area Accounting Matrix: Issues and Applications

An important part of external or policy shocks is transmitted throughout the economy via various channels of transactions. To analyse such channels and to predict the impact of shocks, it is expedient to know who recently exchanged what with whom and for what purpose. The most appropriate format for presenting intersectoral linkages at the national level is in a National Accounting Matrix (NAM). A NAM is defined as the presentation of a sequence of integrated accounts and balancing items in a matrix that elaborates the linkages between a supply and use table and institutional sector accounts. This paper compiles the first pilot Euro Area Accounting Matrix (EAAM) and considers its usefulness for the euro area's economic analysis. It also reports on the solution of a number of aggregation and consolidation issues that arise when constructing a multi-country accounting matrix.

A Structural Decomposition Analysis of Pollution in the Netherlands

This paper reviews the results of a structural decomposition analysis in which the annual changes in a number of air pollutants and solid waste are decomposed according to their causes. The analysis in this paper is applied with the help of the so-called National Accounting Matrix including Environmental Accounts (NAMEA) for the Netherlands, covering annual data for the period 1987-1998. In a sensitivity analysis it is shown that the average of any pair of so-called 'mirror image' decomposition forms will substantially reduce the variation in the estimates. These mirror image couples are approximately just as reliable as the full average of all decomposition forms. Besides reliable results, the full average also foresees the mutual comparability between the distinguished change factors and is therefore applied in the empirical analyses presented in this paper. The results of these analyses contain the macro-economic developments, results on the industry level as well as a comprehensive overview of the origin and destination of pollution in the Dutch economy that includes the environmental consequences of consumption and international trade.

The NAMEA as validation instrument for environmental macroeconomics

This paper shows how environmental issues can be incorporated into macroeconomic accounting and analysis by the construction and use of a National Accounting Matrix including Environmental Accounts (NAMEA). The paper firstly elaborates on a number of conceptual issues on the harmonisation of environmental statistics and the national accounts. Specific attention is given to the consistent allocation of pollution to production and consumption activities and the importance of aggregated environmental indicators. Further, various applications are presented which vary from simple comparisons of macroeconomic performance indicators for economy and environment to more comprehensive modelling exercises. The paper does not only review recent experiences in the Netherlands but also those from other countries.

Integration of sustainability indicators: the contribution of integrated economic and environmental accounting

There is a need to integrate indicators relating to complex human–nature systems. This paper discussesthe scope and limitations of achieving such integration through the interim version of the system of integrated environmental and economic accounting (SEEA) published by the United Nations in 1993. It also briefly considers alternative or complementary approaches such as the National Accounting Matrix including Environmental Accounts (NAMEA) developed in the Netherlands. Issues that arise when applying SEEA to the marine fisheries sector are discussed, and examples are given of indicators for the marine fisheries sector derived from the SEEA and NAMEA.

On the Global Accounting Matrices for Environment and Economy (GAMEE)

The purpose of this paper is to propose a common accounting framework which overcomes the apparent polarization between the SEEA1) and NAMEA2) and which includes almost all the approaches and modules that the revised SEEA might require. It is hoped that this will then stimulate further discussion on the common framework for the revised SEEA.In a previous paper, the Complete SEEA (CSEEA) was proposed as an extension of the SEEA with a national accounting matrix (NAM), a detailed rest of the world account and a global environment account. It could also be seen as an extension of NAMEA, containing full balance sheets and a detailed rest of the world account.In this paper, the CSEEA will be further extended and elaborated, using physical accounts such as natural resource accounts and material flow accounts, and a comprehensive, flexible and consistent accounting framework which includes both physical and monetary accounting will be proposed. It is named as the Global Accounting Matrices for Environment and Economy (GAMEE) in order to stress its extended applicability to the multinational accounts and global environment accounts and also its comprehensiveness and flexibility on various approaches and modules.The GAMEE contains a physical accounting framework for environment and economy (PAFEE) and a monetary accounting framework for environment and economy (MAFEE) within a common framework. The GAMEE is an extension of the CSEEA with physical accounts and the CSEEA is an extension of the SEEA with a NAM. Therefore, the GAMEE maintains not only the basic structure of the SEEA but also close links to the SNA. Furthermore, it is an extension of the NAMEA and can include almost all the approaches and modules, which are required of the SEEA revision.

The Netherlands’ NAMEA; presentation, usage and future extensions

The national accounting matrix including environmental accounts (NAMEA) contains figures on environmental burdens in relation to economic developments as reflected in the national accounts. In the NAMEA, existing national accounts matrices have been extended with accounts in physical units. Since 1994, the NAMEA is a regular part of the annual Dutch national accounts. In this article, an aggregate NAMEA will be described. Next, the contribution of economic activities to economic indicators is compared with their contribution to environmental themes, both based on the information in the NAMEA. In addition, the cumulative contribution of economic activities to economic and environmental indicators are also given, thus taking into account the relations between the production activities. Finally, a number of recent applications and extensions of the NAMEA in the Netherlands are described.

Material and energy flow accounting in Germany—Data base for applying the national accounting matrix including environmental accounts concept

In this paper, we discuss the background of German Environmental Economic Accounting (GEEA). One of the elements of GEEA is material and energy flow analysis. The corresponding accounts are presented in the Material and Energy Flow Information System (MEFIS). This data base can be used for many purposes including application in the National Accounting Matrix including Environmental Accounts (NAMEA). The data availability for analyzing particular environmental burdens is described. Specific indicators for greenhouse effect and acidification are presented in the form of charts and tables.

On the international harmonisation of environmental accounting: comparing the National Accounting Matrix including Environmental Accounts of Sweden, Germany, the UK, Japan and the Netherlands

This article presents a preliminary comparison of the systems of integrated economic and environmental accounts in Sweden, Germany, the UK, Japan and the Netherlands. These countries have presented their results in a National Accounting Matrix including Environmental Accounts (NAMEA). Although the first Dutch NAMEA may have served as an example, for each country different features can be found depending on differences in objectives, available statistical sources and subsequently institutional backgrounds. Moreover, most countries have developed the NAMEA simultaneously with other accounting approaches. The first section compares differences in objective, scope and methods. The second section presents an preliminary comparison of the results which shows that comparable accounts will not automatically lead to comparable results.