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New System of Integrated Environment and Economic Accounting(Trial Calculation on Hybrid Accounting System integrating Environmental Pressures and Economic Activities)

October 12, 2004
Department of National Accounts
Economic and Social Research Institute (ESRI), Cabinet Office

Based on the SEEA (System of Integrated Environment and Economic Accounting) proposed by the United Nations in 1993, Department of National Accounts, Economic and Social Research Institute (ESRI), Cabinet Office has been making researches on a proper SEEA approach to identify the relationships between the Japanese economy and environments.
Traditional research approaches aimed to calculate Green GDP, recognizing them as external diseconomies and deducting them from domestic economic activities. However, Department of National Accounts developed new "Hybrid Accounting System integrating Environmental Pressures and Economic Activities." ESRI's new hybrid accounting system indicates national accounts (representing domestic economic performances) in parallel with resultant environmental pressures. Based on this new hybrid accounting system, the research team did some trial calculations for the years 1990, 1995 and 2000. When developing this new accounting framework, the research team adopted the Dutch framework called NAMEA (National Accounting Matrix including Environmental Accounts) and made some adjustments in a suitable manner to Japan.

In addition, the team has also developed Japan's "Supply and Use Table for Environmental Protection Services" in accordance with UN's "SEEA 2003" (final draft).

"Hybrid Accounting System integrating Environmental Pressures and Economic Activities" and the official announcement data about "Supply and Use Table for Environmental Protection Services" are from here.

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Cabinet Office, Government of JapanEconomic and Social Research Institute
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