The System of Environmental and Economic Accounts—2003 and the Economic Relevance of Physical Flow Accounting

Abstract

Summary The international handbook on integrated environmental and economic accounting (SEEA-2003) provides a detailed overview of environmental accounting approaches that have been developed in parallel with the system of national (eco- nomic) accounts. In addition to natural resource stock ac- counts and environmental protection expenditure accounts, SEEA-2003 pays considerable attention to physical flow ac- counting. Expanding the national economic accounts with physical data sets facilitates the joint analysis of environmental and economic policy issues. This article discusses the main characteristics of national accounts-oriented physical flow ac- counting approaches and provides an overview of the kind of indicators they may put forward. Although this article is not an attempt to provide a comprehensive review of macro- oriented physical flow accounting approaches, the analytical advantages of national accounts-oriented physical flow ac- counts are illustrated.