Handbook of National Accounting Integrated Environmental and Economic Accounting for Fisheries Final draft circulated for information prior to official editing United Nations Food and Agriculture Organization of the United Nations Studies in Methods Handbook of National Accounting Integrated Environmental and Economic Accounting for Fisheries Final draft circulated for information prior to official editing United Nations Food and Agriculture Organization of the United Nations NOTE Symbols of United Nations documents are composed of capital letters combined with figures. The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. Where the designation “country” or “area” appears, it covers countries, territories or areas. Copyright © 2004 United Nations Food and Agriculture Organization of the United Nations The Department of Economic and Social Affairs of t he United Nations Secretariat is a vital interface between global policies in the economic, social and environmental spheres and national action. The Department works in three main interlinked areas: (i) it compiles, generates and analyses a wide range of economic, social and environmental data and information on which States Members of the United Nations draw to review common problems and to take stock of policy options; (ii) it facilitates the negotiations of Member States in many intergovernmental bodies on joint courses of action to address ongoing or emerging global challenges; and (iii) it advises interested Governments on the ways and means of translating policy frameworks developed in United Nations conferences and summits into programmes at the country level and, through technical assistance, helps build national capacities. This final draft is circulated for information prior to official editing. It will be issued in the series Studies in Methods, Series F, No.97 (ST/ESA/STAT/SER.F/97) PREFACE The handbook of national accounting Integrated Environmental and Economic Accounting for Fisheries (commonly referred to as SEEAF), presented in this volume has been undertaken by the United Nations and the Food and Agriculture Organization of the United Nations. The handbook is the first of a series of handbooks, which support the implementation of the handbook of national accounting Integrated Environmental and Economic Accounting 2003 (commonly referred to as SEEA-2003) by providing methodological and practical guidelines on selected components of the SEEA-2003. The handbook provides a common framework for organizing economic and environmental information related to fisheries, permitting the monitoring of the economic importance of fisheries, the improvement of fisheries management and the estimation of the full costs and benefits of fisheries. It is intended for data producers from national statistical offices, fisheries ministries or research institutes. It is also intended to meet the needs of fisheries managers and policy- makers in other agencies, including managers at the macro-economic level. Physical and economic information on fish stocks and catch can be used by fishery managers to better manage the resources. Moreover, the integration of economic and environmental information in the SEEAF framework provides a useful tool for Integrated Coastal Area Management, adopted in Agenda 21, as it allows the evaluation of costs and benefits of different fisheries and non-fisheries policies and development strategies. One chapter of the handbook is devoted to the illustration of possible policy uses and applications of the accounts and another presents five case studies from countries that have implemented environmental-economic accounts for fisheries. The first draft of the handbook was prepared by Mr. Asgeir Danielsson (National Economic Institute, Iceland) and Mr. Gerry Gravel (Statistics Canada) and discussed at the UNSD/FAO Workshop on Integrated Environmental and Economic Accounting for Fisheries (United Nations, New York 14-16 June 1999). A successive draft was prepared by Ms. Glenn Marie Lange (Columbia University, United States). The handbook has been presented in several international workshops in the Economic and Social Commission for Asia and the Pacific and in Southern Africa and has benefited from the advice received at these various workshops. The case studies were provided by Ms. Julie Haas and Mr. Knut Sorenson (Norway), Ms. Glenn Marie Lange (Namibia), Mr. Asgeir Danielsson (Iceland) and Mr. Robert Repetto (United States). The Institute of Advanced Studies of the United Nations University supported the initial phase of the development of this handbook, especially the organization of an electronic discussion group on fisheries accounting. All these contributions are gratefully acknowledged. The handbook was prepared under the coordination of Ms. Alessandra Alfieri (United Nations Statistics Division) and Mr. Rolf Willmann (Fisheries Department, Food and Agriculture Organization). Ms. Ilaria DiMatteo (United Nations Statistics Division) contributed to and assisted in the preparation of the handbook. v TABLE OF CONTENTS PREFACE iii ACRONYMS ix CHAPTER I : INTRODUCTION 1 A. BACKGROUND 1 B. POLICY USES OF FISHERIES ACCOUNTS 2 C. OVERVIEW OF ENVIRONMENTAL ACCOUNTS AND CONCEPTS OF SUSTAINABILITY 5 1. Environmental accounting in the United Nations 5 2. Concepts of sustainability 7 3. Fisheries management and concepts of sustainability 9 D. OBJECTIVES OF THE HANDBOOK 10 CHAPTER II : THE FRAMEWORK FOR FISHERIES RESOURCES ACCOUNTING 13 A. INTRODUCTION 13 B. SOME CONCEPTS OF THE 1993 SNA RELEVANT TO FISHERIES RESOURCES ACCOUNTING 14 1. Main economic agents 15 2. Concept of residency 15 3. Principal identities of the SNA accounting framework 16 C. THE FRAMEWORK 18 D. SPECIAL CHARACTERISTICS OF THE FISHERIES ACCOUNTS 21 E. ENVIRONMENTAL ASSETS AND FISHERY RESOURCES IN THE 1993 SNA AND SEEA- 2003 21 F. PHYSICAL ASSET ACCOUNTS FOR FISHERIES RESOURCES 23 1. SEEA asset classification for aquatic resources 23 2. Structure of physical asset accounts 24 3. Accounting for straddling and highly migratory stocks 25 4. Measuring changes in stock for cultivated and non-cultivated fisheries 25 5. Capture fishing by residents and non-residents 26 6. Disaggregation of the asset accounts by species and other characteristics 27 7. Accounts for fish habitat and assets related to fisheries 27 G. MONETARY ASSET ACCOUNTS 28 1. Structure of monetary accounts 28 2. Measuring resource rent 29 3. Measuring asset value: projecting future rent 30 4. Monetary depletion and degradation 33 H. FLOW ACCOUNTS 34 1. Fishing and related activities in the supply and use tables 34 2. Fisheries management and environmental protection expenditures 37 3. Buy-back or vessel decommissioning 40 CHAPTER III : IMPLEMENTING THE SEEAF 42 A. INTRODUCTION 42 vi B. FISHERIES ASSET ACCOUNTS 43 1. Physical accounts 44 2. Monetary Accounts 51 C. FLOW ACCOUNTS 59 1. Fishing and related activities in the Supply and Use Table 60 2. Fisheries management and environmental protection expenditures 61 3. Fisheries taxes, fees, and other charges 62 D. MACROECONOMIC INDICATORS AND MEMORANDUM ITEMS 63 1. Macroeconomic indicators 63 2. Memorandum items 66 CHAPTER IV : POLICY APPLICATIONS OF FISHERIES ACCOUNTS 67 A. INTRODUCTION 67 B. ASSET ACCOUNTS FOR FISH 68 1. Monitoring fish stocks and national wealth generated by fishery resources 69 2. Assessing fisheries management 75 C. PHYSICAL AND MONETARY FLOW ACCOUNTS FOR POLLUTION 81 D. MONETARY FLOW ACCOUNTS FOR ENVIRONMENTAL DEGRADATION 84 E. RESOURCE MANAGEMENT EXPENDITURES 85 F. CONCLUDING REMARKS 86 CHAPTER V : CASE STUDIES OF ACCOUNTS FOR FISH 91 A. INTRODUCTION 91 B. FISHERIES ACCOUNTS FOR NORWAY 92 1. Introduction 92 2. Physical accounts: methods, data and results 93 3. Monetary accounts: methods, data and results 96 4. Actual and potential value of fish stocks 101 C. FISHERIES ACCOUNTS FOR NAMIBIA 102 1. Introduction 102 2. Physical accounts: methods, data and results 105 3. Monetary accounts: methods, data and results 106 4. Resource management costs: divergence of private and social asset value 112 5. Recovery of resource rent 112 6. Economic efficiency: potential versus actual value of assets 114 D. FISHERIES ACCOUNTS FOR ICELAND 115 1. Introduction 115 2. Estimates of the value of fish stocks using prices of quota shares 116 E. FISHERIES ACCOUNTS FOR ATLANTIC SEA SCALLOPS IN THE UNITED STATES OF AMERICA 127 1. Background 127 2. Methodology of the study 129 3. Results of the analysis 137 ANNEX I: SEEA ASSET CLASSIFICATION 141 vii ANNEX II: THE CLASSIFICATION OF ENVIRONMENTAL PROTECTION ACTIVITIES AND EXPENDITURE (CEPA 2000) 147 ANNEX III: BIO-ECONOMIC MODELS OF FISHERIES AND METHODS FOR STOCK ASSESSMENT 161 ANNEX IV: FORMULAS TO CALCULATE THE INEFFICIENCY COSTS IN THE FISHERIES ACCOUNTS FOR ICELAND 169 REFERENCES 171 GLOSSARY 177 LIST OF TABLES Table II.1 National fish catch by residence of operator and location caught 27 Table II.2 Industries in the ISIC Rev.3.1 related to fisheries – Forward linkages 35 Table II.3 Industries in the ISIC Rev.3.1 related to fisheries – Backward linkages 36 Table II.4 Classification of environmental protection activities and expenditure (CEPA 2000) 39 Table III.1 Stocks of North-arctic cod, 1990-1996 45 Table III.2 Detailed structure of the asset accounts for fisheries 46 Table III.3 Resource rent for Norwegian fisheries 54 Table III.4 Discount rates used to calculate fisheries asset value 58 Table IV.1 Distribution of national wealth by asset in Namibia 1980, 1990 and 1998 75 Table IV.2 Resource rent and government appropriation of rent in Norway, Namibia, and the Philippines 78 Table IV.3 Resource rent and government appropriation of rent in Norway 1985 to 1995 81 Table IV.4 Contribution of ocean industry to Canadian economy in 1996 83 Table IV.5 Emissions of BOD and environmental damage by selected industries in the Philippines, 1993 85 Table IV.6 Fisheries resource management costs and revenues received by government in Namibia, 1994 to 1999 86 Table IV.7 Examples of programmes to reduce fishing capacity 87 Table V.1 Stock estimates for major commercial species in Norway 1985 to 1997 94 Table V.2 Size of North-arctic cod stocks depending on the year of evaluation 94 Table V.3 Stock of North-arctic cod, 1990-1996 95 Table V.4 Resource rent of North-arctic cod based on data from the Norwegian National Accounts 96 Table V.5 Alternative calculations for compensation for labour including self-employed fishermen 98 Table V.6: Labour costs from survey data and the corresponding resource rent 99 Table V.7 Estimates of monetary fish assets 100 Table V.8 Price, cost and unit rent for cod 101 Table V.9 Physical accounts for hake, pilchards, and horse mackerel in Namibia 1990- 2000 (thousands of tons) 107 viii Table V.10 Resource rent for fisheries, 1990-1998 109 Table V.11 Resource rent for pilchards, hake, and horse mackerel, 1990-1998 109 Table V.12 Monetary accounts for hake, pilchards, and horse mackerel in Namibia 1990-1998 111 Table V.13 Fisheries resource management costs and revenues received by the government, 1994 to 1999 113 Table V.14 Taxes paid by fishing companies, 1990 to 1998 114 Table V.15 Value of fishing access rights for major commercial species in Iceland, 1994 to 1999 117 Table V.16 Resource rent for major commercial species in Iceland, 1992 to 2000 119 Table V.17 Asset value of major commercial fish species in Iceland, 1994 to 2000 120 Table V.18 Biomass and economic value of Icelandic cod stock, 1992 to 2000 121 Table V.19 Stock, growth and depletion of cod estimated at different periods, 1992 to 2000 123 Table V.20 Depletion costs for Icelandic cod using different methods, 1992 to 2000 125 Table V.21 Depletion and inefficiency cost for the Icelandic cod stock 125 Table V.22 Physical accounts for Icelandic cod, 1992 to 2000 126 Table V.23 Monetary accounts for Icelandic cod, 1992 to 2000 126 Table V.24 Physical stock account for harvestable Atlantic sea scallops, 1985 to 1995 131 Table V.25 Alternative estimates of the monetary value of scallop stock 1985 to 1995 138 LIST OF FIGURES Figure II.1 Framework for Integrated Environmental Economic Accounts for Fisheries (SEEAF) 20 Figure II.2 Physical asset accounts for aquatic resources in the SEEAF 24 Figure II.3 Monetary assets for aquatic resources in the SEEA 28 Figure III.1 Catch concepts: diagrammatic presentation 49 Figure IV.1 Biomass of hake, pilchard, horse mackerel in Namibia, 1963 to 2001 70 Figure IV.2 Index of biomass for major fish species in Namibia, 1990 to 2000 71 Figure IV.3 Biomass, TAC, and catch for pilchard in Namibia 1990 to 2000 72 Figure IV.4 Asset value for fish in Namibia, 1990 to 1998 74 Figure V.1 Variation in estimates of North-arctic cod stock sizes 95 Figure V.2 The resource rent in current prices and calculated with three-years moving average compared 100 Figure V.3 Contribution of fisheries to GDP and exports in Namibia 1980 to 1999 104 Figure A.III.1 Growth function of fish stock 161 Figure A.III.2 Decline in stock size with increasing fishing effort 162 Figure A.III.3 The Schaefer Catch-Effort Curve 162 Figure A.III.4 The catch rate curve 163 Figure A.III.5 The Gordon-Schaefer bio-economic model 164 Figure A.III.6 Body length as a function of age 166 Figure A.III.7 Dynamics of a cohort 166 [...]... Economic and Environmental Accounts Net Present Value Natural Resource Accounting National Statistical Coordination Board Organization for Economic Cooperation and Development Resource Management Expenditure Social Accounting Matrix South East Atlantic Fisheries Organisation System of Integrated Environmental and Economic Accounts System of Integrated Environmental and Economic Accounts for Fisheries. .. national accounting concepts, and policy analysts The fishery resource accounts can be implemented alone or as part of a more comprehensive environmental accounting programme The purpose of this handbook is to expand on the SEEA to develop the System for Integrated Environmental and 10 Economic Accounting for the Fisheries (SEEAF) objectives: • • • • The SEEAF has several major Clarify the SNA and SEEA... the SNA and SEEA concepts and expand them for fisheries and related resources Such resources include ocean areas, inland lakes and rivers, and coastal areas surrounding these water systems, as well as the environmental services of the biological stocks living in these aquatic systems The main focus of this handbook will be on accounting for commercial fisheries and aquaculture and the natural resources... on Environmental Accounting was created in 1994 to provide a forum for practitioners to share their experiences on developing and implementing environmental accounts Increased discussion on concepts and methods of environmental accounting, accompanied with country experience led to a convergence of compilation methodologies for selected modules of the SEEA 19 The handbook Integrated Environmental and. .. policy analysis by both fisheries managers and non- fisheries policy- makers Agenda 21 (UN 1992) called for Integrated Coastal Area Management (ICAM) approach to development in these areas The SEEAF could provide a useful framework for ICAM for integrating environmental and economic information necessary for weighing up the costs and benefits of different policies and development strategies 15 The applications... such as land use, forestry, and ecosystems; • flow accounts for pollution, energy and materials, which provide information at the industry level about the use of energy and materials as inputs to production and final demand, and the generation of pollutants and solid waste These accounts are linked to the Supply and Use Tables of the SNA, which are used to construct input-output (IO) tables; • environmental. .. pollution, forest cover, water flow, and other environmental components As satellite accounts to the SNA, the SEEA is linked to the full range of economic activities; with a fairly comprehensive classification for environmental resources, the SEEA includes information about all critical environmental stocks and flows that may affect fisheries B Policy uses of fisheries accounts 8 Fish stocks and other... national priorities and policies of all sectors and based on weighing alternatives and tradeoffs among sectors 12 For fisheries and related accounts, there are two distinct users: fisheries managers and policy- makers in other agencies including managers at the macroeconomic level While the usefulness to fisheries managers of physical and economic information about fish stocks, catch, etc is fairly... Economic Activities Multi-Annual Guidance Program Maximum Economic Yield Material Flow Accounts Ministry of Fisheries and Marine Resources Marine Research Institute in Iceland Maximum Sustainable Yield Classification of Economic Activities in the European Community Northwest Atlantic Fisheries Organisation National Economic Institute in Iceland National Marine Fisheries Service NORwegian Economic and. .. information from the fisheries accounts can be grouped into three main categories - monitoring the economic importance of fisheries, improving fisheries management, estimating the full costs and benefits of fisheries A summary of these issues is provided below Monitoring the economic importance of fisheries • • • • • • contribution to national income, employment and foreign exchange earnings of fisheries . Handbook of National Accounting Integrated Environmental and Economic Accounting for Fisheries Final draft circulated for information. Iceland) and Mr. Gerry Gravel (Statistics Canada) and discussed at the UNSD/FAO Workshop on Integrated Environmental and Economic Accounting for Fisheries