Extending the production boundary of the System of National Accounts (SNA) to classify and account for ecosystem services

Abstract

There is a broad acceptance to depicting the relationship between ecosystems and human well-being using the concept of ecosystem services, emanating in large from the findings and research published in the Millennium Ecosystem Assessment in 2005 . While the generic concept of ecosystem services provides an excellent platform for discussion, the ongoing lack of clarity surrounding the definition, classification and measurement of ecosystem services, is emerging as a barrier to more extensive collaboration across disciplines. This paper applies the principles of national accounting to bring additional rigor and consistency to the discussion on ecosystem services. In this paper we revisit four fundamental aspects of the System of National Accounts (SNA) that underpin the measurement of the economy, namely, the definition of economic units; the definition of production; the recording of transactions and the recording assets. By considering each of these aspects in the context of the United Nations’ System of Environmental-Economic Accounting, the paper presents a framework to describe the relationship between ecosystems and human activity that can then be used to consistently define, classify, measure and account for ecosystem services.

Keywords

• Ecosystem accounting
• system of national accounts
• ecosystem services
• ecosystem asset
• environmental accounting