Measuring Sustainable Development - OECD.org

1 STATISTICS. STATISTICS. Measuring Sustainable Development Measuring Sustainable Development INTEGRATED ECONOMIC, ENVIRONMENTAL AND SOCIAL. FRAMEWORKS. Sustainable Development has been defined by the Brundtland Commission as Development that meets Measuring the needs of the present without compromising the ability of future generations to meet their own needs . However, converting this definition into manageable policy objectives is a daunting task encompassing the economic, environmental, and social realms of society. The delicate trade-off decisions that must be undertaken by policy makers necessitate a working framework to measure Sustainable Development comprised of appropriate indicators that can adequately synthesise all dimensions. In May 2003 the OECD hosted a workshop to compare projects launched by OECD countries and International Organisations to extend the well known economic accounts schemes to environmental Sustainable and social phenomena. The papers contained in this volume address the various conceptual, measurement and statistical policy issues that arise when applying accounting frameworks to this complex problem.

2 Proceedings of an OECD workshop Workshop for Accounting Fameworks in Sustainable Development , Development May 2003. INTEGRATED ECONOMIC, ENVIRONMENTAL AND SOCIAL FRAMEWORKS. INTEGRATED ECONOMIC, ENVIRONMENTAL AND SOCIAL. FRAMEWORKS. OECD's books, periodicals and statistical databases are now available via , our online library. This book is available to subscribers to the following SourceOECD themes: Environment and Sustainable Development General Economics and Future Studies Social Issues/Migration/Health Statistics: Sources and Methods Ask your librarian for more details on how to access OECD books on line, or write to us at ISBN 92-64-02012-8. 30 2004 04 1 P. -:HSTCQE=UWUVWW: Page 1 Thursday, June 17, 2004 11:42 AM.. 45"5*45*$4..FBTVSJOH 4 VTUBJOBCMF . %FWFMPQNFOU. */5&(3"5&% &$0/0.*$ &/7*30/.&/5"- "/% 40$*"- '3".&803,4. 03("/*4"5*0/ '03 &$0/0.*$ $0 01&3"5*0/ "/% %&7& Page 2 Thursday, June 17, 2004 9:59 AM.. 03("/*4"5*0/ '03 &$0/0.*$ $0 01&3"5*0/. "/% %&7& 1 VSTVBOU UP "SUJDMF PG UIF $POWFOUJPO TJHOFE JO 1 BSJT PO UI %FDFNCFS BOE XIJDI DBNF.)))

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5 Indeed the definitions and analysis offered in that Report still enjoy wide acceptance. Members of the OECD agree that Sustainable Development stands on three pillars: economic, social and environmental. And, in fact, the aims of the OECD, as set forth in its Convention drafted some 44 years ago, targeted Sustainable Development . The first part of Article I reads: to achieve the highest Sustainable economic growth and employment and a rising standard of living in Member countries, while maintaining financial stability, and thus to contribute to the Development of the world economy;. This squarely addresses the economic and social dimensions of Sustainable Development . The OECD has pursued those aspects of Sustainable Development with determination since that time, and the spectacular growth of OECD economies, complemented by social safety nets, public health, education and so on, bears testimony to the success of the OECD in implementing Sustainable Development within the framework of the two pillars.

6 But what of the third pillar, the environment? It was not mentioned in the Convention and this should not be a surprise because 44 years ago, it was not on the public agenda. We hardly spoke of the environment until Rachel Carson woke us up in 1962 with her seminal work Silent Spring ! Once again, the OECD was out in front when in 1970. Secretary-General Emil Van Lennep established the Environmental Directorate and the very first intergovernmental committee dealing with the environment. In fact, Gro Harlem Brundtland chaired the first OECD Ministerial meeting on the environment in 1974. So it was in the early 1970s that the OECD began to address all three pillars of Sustainable Development , some 19 years before the Brundtland Commission Report. Does this mean that nothing has changed and that for the OECD it is business as usual? Not at all. The broad interdisciplinary reach of the OECD enables it to address, in an informed and thoughtful way, the trade-offs that arise when the policies supporting the different pillars inevitably clash.

7 For years the OECD examined the trade-offs between economic growth and the social dimension of Sustainable Development . However, the trade-offs between environmental policies and the other two pillars have not been as evident, except perhaps in specific sectors such as fisheries. In order to give decision- makers a rational basis for choices across the full range of economic, social and environmental policies, we need a clear framework to identify and, where possible, measure the trade-offs. Otherwise the whole exercise on Sustainable Development would be of little value. This volume contains a wide range of papers that can help policy makers and statisticians to understand how to address the measurement of Sustainable Development Measuring Sustainable Development : INTEGRATED ECONOMIC, ENVIRONMENTAL AND SOCIAL FRAMEWORKS ISBN-92-64-02012-8 OECD 2004. 4 FOREWORD. and develop useful tools to support forward-looking decisions. We are still a long way from having internationally comparable statistical tools for Sustainable Development , but with the analysis and the comparison of good national and international practices, the OECD aims to shorten this process, according to its original mandate.

8 Donald Johnston Secretary-General OECD. Measuring Sustainable Development : INTEGRATED ECONOMIC, ENVIRONMENTAL AND SOCIAL FRAMEWORKS ISBN-92-64-02012-8 OECD 2004. TABLE OF CONTENTS 5. Table of Contents FOREWARD ..3. ACCOUNTING FRAMEWORKS FOR Sustainable Development : WHAT HAVE WE. LEARNT? Enrico. Giovannini ..7. OPENING REMARKS THE ROLE OF THE OECD Berglind sgeirsd ttir ..15. THE ROLE OF INSTITUTIONS IN BUILDING FRAMEWORKS TO MEASURE Sustainable . Development : THE CANADIAN EXPERIENCE Robert ACCOUNTING FOR SUSTAINABILITY Kirk Hamilton ..29. Sustainable NATIONAL INCOME AND MULTIPLE INDICATORS FOR Sustainable . Development Bart de Boer and Roefie ACCOUNTING FOR Sustainable Development : COMPLEMENTARY MONETARY. AND BIOPHYSICAL APPROACHES Kirk Hamilton, Jonathan Loh, Jerome Sayre, Thierry Thouveno, and Mathis Wackernagel ..53. A FEW REMARKS ON METHODOLOGICAL ASPECTS RELATED TO Sustainable . Development Isabella Pierantoni ..63. ASPECTS OF SUSTAINABILITY: THE AUSTRALIAN EXPERIENCE Barbara Dunlop.

9 91. A CAPITAL-BASED SUSTAINABILITY ACCOUNTING FRAMEWORK FOR CANADA. Robert Smith ..111. A FRAMEWORK FOR ESTIMATING CARBON DIOXIDE EMISSIONS EMBODIED IN. INTERNATIONAL TRADE OF GOODS Nadim Ahmad ..129. RESULTS FROM THE NORWEGIAN ENVIRONMENTAL AND ECONOMIC ACCOUNTS AND. ISSUES ARISING FROM COMPARISONS TO OTHER NORDIC NAMEA AIR EMISSION. SYSTEMS Julie Hass ..155. ACCOUNTING FOR Sustainable Development : THE NAMEA-BASED APPROACH. Mark De Haan and Peter Kee ..183. THE NEW ZEALAND EXPERIENCE WITH ENVIRONMENTAL ACCOUNTING. FRAMEWORKS IN Measuring INTER-RELATIONSHIPS BETWEEN THE ECONOMY, SOCIETY AND THE ENVIRONMENT Chase O'Brien ..199. Measuring Sustainable Development : INTEGRATED ECONOMIC, ENVIRONMENTAL AND SOCIAL FRAMEWORKS ISBN-92-64-02012-8 OECD 2004. 6 TABLE OF CONTENTS. INTEGRATED ENVIRONMENTAL AND ECONOMIC ACCOUNTING IN ITALY. Cesare Costantino, Frederico Falcitelli, Aldo Femia and Angelica Tudini ..209. THE DANISH ENVIRONMENTAL ACCOUNTS WITH EXAMPLES OF ITS USE.

10 Ole Gravgaard MATERIAL FLOW ACCOUNTS AND BALANCES TO DERIVE A SET OF SUSTAINABILITY. INDICATORS Luisa Bailon Chico and F lix Alonso Luengo ..247. THE ROLE OF THE NATIONAL ACCOUNTS AND ITS SATELLITE SYSTEMS FOR THE. GERMAN NATIONAL STRATEGY FOR Sustainable Development Karl THE Development OF ENVIRONMENTAL ACCOUNTING FRAMEWORKS AND. INDICATORS FOR Measuring SUSTAINABILITY IN JAPAN Noritoshi Ariyoshi and Yuichi Moriguchi ..287. Sustainable Development INDICATORS FOR SWEDEN: CONCEPTS AND. FRAMEWORK Madeleine Nyman ..305. SOCIAL ACCOUNTING MATRICES AND EXTENDED INPUT-OUTPUT TABLES. Carl Stahmer ..313. ON SAMS ACCORDING TO ESA95 Hubertus A PILOT SAM FOR ITALY: METHODOLOGY AND RESULTS Federica Battellini, Alessandra Coli and Francesca USING ENVIRONMENTAL ACCOUNTS TO PROMOTE Sustainable Development : EXPERIENCES IN SOUTHERN AFRICA Alessandra Alfieri, Rashid Hassan, and Glenn Marie Lange ..405. Measuring Sustainable Development : INTEGRATED ECONOMIC, ENVIRONMENTAL AND SOCIAL FRAMEWORKS ISBN-92-64-02012-8 OECD 2004.