Water accounting as a tool for tracing the industries responsible for the point-source loads into water bodies

Returning flows of water from the economy to the environment, particularly wastewaters, are highly important contributors to the quality of freshwater resources and the health of aquatic ecosystems. While the total loads of various harmful substances received by wastewater treatment facilities are often measured and reported, the origins of these loads are generally not allocated to specific industries. Instead, they pass from treatment facilities to the environment and are thus simply attributed to arising from the sewerage industry. In this study, we introduce a method for employing high-quality water accounting of the phosphorous and nitrogen loads and apply it to the Finnish economy. We also introduce a means for assessing the quality of the resulting accountancies and, for our Finnish case study, we show a close correspondence between independent top-down and bottom-up calculations, indicating the figures are highly reliable. We thus conclude, firstly, that the presented methodology can produce versatile and reliable data on different wastewater-related loads in the water; secondly, that such data can assist in developing appropriate mitigation strategies; and, thirdly, that the data may also be applied in further sustainability analyses, such as in environmentally extended input-output modelling.

Right-way fire in Australia's spinifex deserts: An approach for measuring management success when fire activity varies substantially through space and time

Indigenous Australians used fire in spinifex deserts for millennia. These practices mostly ceased following European colonisation, but many contemporary Indigenous groups seek to restore 'right-way fire' practices, to meet inter-related social, economic, cultural and biodiversity objectives. However, measuring and reporting on the fire pattern outcomes of management is challenging, because the spatio-temporal patterns of right-way fire are not clearly defined, and because spatio-temporal variability in rainfall makes fire occurrence highly variable in these desert environments. We present an approach for measuring and reporting on fire management outcomes to account for spatio-temporal rainfall variability. The purpose is to support Indigenous groups to assess performance against their management targets, and lay the groundwork for developing an accredited method for valuing combined social, cultural and biodiversity outcomes. We reviewed fire management plans of desert Indigenous groups to identify spatial fire pattern indicators for right-way fire in spinifex deserts. We integrated annual rainfall surfaces with time-since fire mapping (using Landsat imagery) to create a new spatial dataset of accumulated rainfall-since-last-fire, that better represents post-fire vegetation recovery as categorised by local Indigenous people. The fire pattern indicators were merged into a single score using an environmental accounting approach. To strengthen interpretation, we developed an approach for identifying a control area with matching vegetation and fire history, up to the point of management. We applied these methods to a 125,000 ha case study area: Durba Hills, managed by the Martu people of Western Australia. Using a 20-year time series, we show that since right-way fire management at Durba Hills was re-introduced (2009), the fire pattern indicators have improved compared to those in the matched control area, and the composite result is closer to the fine-scaled mosaic of right-way fire pattern targets. Our approach could be used by Indigenous groups to track performance, and inform annual fire management planning. As the indicators are standardised for rainfall variation, results from multiple sites can be aggregated to track changes in performance at larger scales. Finally, our approach could be adapted for other fire-prone areas, both in Australia and internationally with high spatio-temporal rainfall variability, to improve management planning and evaluation.

Challenges in modelling the sediment retention ecosystem service to inform an ecosystem account - Examples from the Mitchell catchment in northern Australia

A systems analysis perspective related to soil science is necessary to achieve many of the sustainability targets articulated by the United Nations Sustainable Development Goals (SDGs). The System of Environmental-Economic Accounting - Ecosystem Accounting (SEEA-EA) framework is the international statistical standard for quantifying both the contributions that ecosystems make to the economy, and the impacts of economic activity on ecosystems. However, due to the difficulty of obtaining empirical data on ecosystem service flows, in many cases such quantification is informed by ecosystem service models. Previous research on the Mitchell catchment, Queensland Australia provided a novel opportunity to quantify the implications of using a model of hillslope erosion and sediment delivery in isolation (as represented in one of the most frequently used ecosystem service models - InVEST), by comparing such estimates against multiple lines of local empirical data, and a more comprehensive representation of locally important erosion and deposition processes through a sediment budget model. Estimates of the magnitude of hillslope erosion modelled using an approach similar to InVEST and the calibrated sediment budget differed by an order of magnitude. If an uncalibrated InVEST-type model was used to inform the relative distribution of erosion magnitude, findings suggest the incorrect erosion process would be identified as the dominant contributor to suspended sediment loads. However, the sediment budget model could only be calibrated using data on sediment sources and sinks that had been collected through sustained research effort in the catchment. A comparable level of research investment may not be available to inform ecosystem service assessments elsewhere. Findings for the Mitchell catchment demonstrate that practitioners should exercise caution when using model-derived estimates of the sediment retention ecosystem service, which have not been calibrated and validated against locally collected empirical data, to inform an ecosystem account and progress towards achieving the SDGs.

Will environmental information disclosure affect bank credit decisions and corporate debt financing costs? Evidence from China's heavily polluting industries

In the context of green finance, whether listed companies in heavily polluting industries can convert the external pressure of environmental information disclosure into internal motivation is critical to achieving environmental governance goals. This paper selects 946 listed companies of 16 heavily polluting industries in the Shanghai and Shenzhen stock markets as samples to explore whether environmental information disclosure can help companies increase bank credit support and reduce debt financing costs to transform their external pressures into internal motivation. The empirical results show that there is a significant positive correlation between environmental information disclosure and bank credit decisions. From the perspective of financing scale, heavily polluting companies have the inherent motivation to disclose environmental information actively and proactively to obtain more credit support. There is no significant relationship between the corporate debt financing cost and environmental information disclosure. This paper puts forward some critical policy suggestions for government decision makers, heavily polluting enterprises, and financial institutions.

Identifying key sectors based on cascading effect along paths in the embodied CO2 emission flow network in Beijing-Tianjin-Hebei region, China

The emission of carbon dioxide (CO₂) is a serious environmental issue, especially in Beijing-Tianjin-Hebei region. Unlike previous studies that mainly consider the bilateral and direct connection between two sectors, this study identifies path-based key sectors by considering the cascading effect of a sector on other sectors on paths of the entire economic system. We first construct an embodied CO₂ emission flow network of Beijing-Tianjin-Hebei region, combining environmental input-output analysis and complex network theory. Then, the path-based key sectors are identified by traversing the path of each sector in the network based on cascading failure theory and hypothesis extraction method. On the one hand, the results show that a small number of sectors shoulder a large proportion of the embodied CO₂ emission flows from both path and sector perspectives. On the other hand, we identify some path-based key sectors that did not receive enough attention from the sector perspective. Additionally, the sum of the embodied CO₂ emission flows in about 30 steps accounts for 90% of the total embodied CO₂ emission flows on its supply chain path. To more effectively reduce carbon emission, sectors that connect these 30 steps should be concerned in some policy recommendations. The method proposed in this paper can complement existing methods and contribute to further reducing CO₂ emissions in the Beijing-Tianjin-Hebei region.

A multi-scale analysis of interregional sustainability: Applied to Israel's food supply

Promoting sustainability in today's world requires an understanding of the environmental burdens and social impacts of one region's consumption on other regions, both adjacent and remote. In recent years a growing body of research has quantified interregional flows of primary food crops and of embodied resources. However, most studies to date are limited to the national resolution, and mostly overlook sub- and supra-national divisions of space that emphasize varied socio-ecological circumstances. Very few recent studies have acknowledged the need to advance such interspatial analysis, and explore other relevant spatial scales, but they tend to focus on a single scale. Acknowledging the advantages and opportunities inherent in multiple scale analysis of the interactions between and within human and natural systems; this article proposes a method for a multi spatial scale analysis of the sustainability of interregional food systems, which unlike other currently available methods, enables a global and relatively complete analysis of an interregional food system. It then applies it to a case study of flows of crops and related croplands to Israel from different parts of the world, analyzed using multiple scales, such as: national, biome, ecoregion, river basin, and sub national administrative units. The findings are discussed with regards to Israel's remote environmental impact and dependency. They demonstrate how this approach can be used to provide an overview of a food system's interregional environmental interactions, identify otherwise hidden hotspots of environmental impact, and recognize interregional shared interests and trade-offs. These advantages make the method useful for national assessments of different countries' food security and food system sustainability.

Putting biodiversity into the national accounts: Creating a new paradigm for economic decisions

Economics has long taken precedence over the environment in both governmental and business decision making, with the System of National Accounts and the indicator GDP coming to represent much that is wrong with the current environmental conditions. Increasing recognition of the environmental damage human activity causes and that human well-being depends on biodiversity and ecosystems means that new systems to measure and sustainably manage the world are needed. Integrating the environment into national accounts has been suggested as a way to improve information but so far impact on decision making is limited. This outlook needs to change. Using examples from Australia and Botswana, we show how integrating information on biodiversity, resource use and the economy via accounting can help create a new decision-making paradigm and enable a new policy framing with spending on biodiversity conservation and sustainability seen as an investment, not a cost.

Emergy-based environmental accounting of one mining system

Metal production from mineral resources is crucial for economic development. However, most mining activities usually target short-term financial benefits, rather than long-term consideration on ecological sustainability. To better understand the impact of metal production, systematic evaluation methods should be applied to complement current economic accounting tools. Under such a circumstance, this study proposes an emergy-based metal production evaluation framework, taking a life cycle perspective from the formation of mineral deposit to the final production of metal. Ecosystem service loss, CO₂ emissions, and emissions' impact are quantified, evaluating the comprehensive performance of a lead and zinc production system in Yunnan Province of China. The results show that minerals contribute significantly to the formation of lead and zinc production; however, emergy received in terms of money substantially undervalues environmental work associated with production. Such a metal production system relies heavily on nonrenewable resources and put enormous pressures on local ecosystems. The beneficiation subsystem generates the highest negative impact per emergy output, followed by the smelting and refining subsystem and the underground mining subsystem. From climate change point of view, producing 1 ton of lead bullion leads to 1.79E+03 kg CO₂eq. Electricity use contributes a dominated share to the total CO₂ emission of all subsystems. In addition, lead recycling can greatly reduce the overall CO₂ emission, indicating that it is necessary to build up a regional lead collection and recycling system. Finally, several policy suggestions are raised by considering the local realities, aiming to promote sustainable development of this industry.

Capacity as "virtual stock" in ecosystem services accounting

Interest in ecosystem services accounting is growing exponentially. There are many un-solved issues that need to be addressed, the notion of capacity is among them. International guidelines suggest that capacity should constitute the link between the ecosystem assets accounts and the ecosystem services accounts. In order to address this issue, the authors use Supply and Use table for ecosystem services to show the relationship between (i) ecosystem assets and (ii) capacity, intended as "virtual stock" of individual ecosystem services. It is in fact important to distinguish ecosystem assets from capacity as "virtual stock": a comparison between asset accounts for natural resources and capacity is presented to clarify this difference. This novel approach is described together with its implications in order to feed further developments and discussion.

'Too-much-of-a-good-thing'? The role of advanced eco-learning and contingency factors on the relationship between corporate environmental and financial performance

Inspired by the natural-resource-based view (NRBV) theory, we attempt to shed light on a controversy which has been persistent over the last decade, concerning the relationship between corporate environmental performance (CEP) and corporate financial performance (CFP). Using the 'too-much-of-a-good-thing' (TMGT) concept, which suggests that "too much can be worse than too little," we link mixed results and consider the roles of advanced eco-learning and contingency factors in influencing the CEP-CFP relationship. Based on a sample composed of ISO 14001 certified companies in Indonesia, and analyzing the data using consistent Partial Least Squares (PLSc), we found that: the CEP-CFP relationship follows an inverted U-shape; advanced eco-learning is a significant predictor of the CEP-CFP relationship, meaning that organizations able to develop higher eco-learning capability will be better able to identify the ideal boundaries of investment in environmental performance without reducing their financial performance; and that contingency factors such as environmental strategy and firm size have a significant role in influencing the CEP-CFP relationship. The study's limitations, implications for practitioners and a future research agenda are also detailed.

The Emergy Perspective of Sustainable Trends in Puerto Rico from 1960 to 2013

Emergy analysis quantifies the direct and indirect contributions of nature to human systems providing a sustainability assessment framework, which couples economic growth within biophysical constraints. In this study, Puerto Rico's sustainability was assessed with emergy flow dynamics from 1960 to 2013. During this period, the island shifted from an agriculture-based economy to an industrial base of manufacture and services (1960-1970). The emergy analysis indicated an exponential decline in sustainability during this period. From 1975 to 1992, the island became more industrialized and imported more goods and services. Since 1998, although more renewable production such as forest regeneration occurred, the rapid industrialization heavily relied on imported fossil fuels, goods, and services, resulting in a system that has not been self-sufficient, nor sustainable. The latest economic crisis and the most recently passed financial rescue bill represent an opportunity to redirect Puerto Rico towards a sustainable path with policies that decrease the ratio of imported y to exported emergy, and strategies that encourage efficient use of resources and local production based on the utilization of renewable sources within this U.S. territory.

The UK waste input-output table: Linking waste generation to the UK economy

In order to achieve a circular economy, there must be a greater understanding of the links between economic activity and waste generation. This study introduces the first version of the UK waste input-output table that could be used to quantify both direct and indirect waste arisings across the supply chain. The proposed waste input-output table features 21 industrial sectors and 34 waste types and is for the 2010 time-period. Using the waste input-output table, the study results quantitatively confirm that sectors with a long supply chain (i.e. manufacturing and services sectors) have higher indirect waste generation rates compared with industrial primary sectors (e.g. mining and quarrying) and sectors with a shorter supply chain (e.g. construction). Results also reveal that the construction, mining and quarrying sectors have the highest waste generation rates, 742 and 694 tonne per £1m of final demand, respectively. Owing to the aggregated format of the first version of the waste input-output, the model does not address the relationship between waste generation and recycling activities. Therefore, an updated version of the waste input-output table is expected be developed considering this issue. Consequently, the expanded model would lead to a better understanding of waste and resource flows in the supply chain.

Environmental accounting for Arctic shipping - a framework building on ship tracking data from satellites

Arctic shipping is on the rise, leading to increased concern over the potential environmental impacts. To better understand the magnitude of influence to the Arctic environment, detailed modelling of emissions and environmental risks are essential. This paper describes a framework for environmental accounting. A cornerstone in the framework is the use of Automatic Identification System (AIS) ship tracking data from satellites. When merged with ship registers and other data sources, it enables unprecedented accuracy in modelling and geographical allocation of emissions and discharges. This paper presents results using two of the models in the framework; emissions of black carbon (BC) in the Arctic, which is of particular concern for climate change, and; bunker fuels and wet bulk carriage in the Arctic, of particular concern for oil spill to the environment. Using the framework, a detailed footprint from Arctic shipping with regards to operational emissions and potential discharges is established.

Multi-scale environmental accounting: methodological lessons from the application of NAMEA at sub-national levels

Extending the application of integrated environmental and economic accounts from the national to the local level of government serves several purposes. They can be used not only as an instrument for communicating on the state of the environment and reporting the results of policies, but also as an operational tool - for setting the objectives and designing policies - if made available to the local authorities who have responsibility over the administration of natural resources, land use and conservation policies. The aim of the paper is to test the feasibility of applying hybrid flow accounts at the intermediate and local government levels. As an illustration, NAMEA for air emissions and wastes is applied to a Region, a Province and a Municipality, thus covering the three nested levels of local government in Italy. The study identifies the main issues raised by multi-scale environmental accounting and provides an applied discussion of feasible solutions.

Comments on Ferreira and Moro (2011) 'Constructing genuine savings indicators for Ireland, 1995-2005'

Ferreira and Moro's article is an important attempt to improve and expand the 'rough' World Bank genuine savings estimates of Ireland, based upon available official statistical sources of Ireland. Their main findings are that Irish genuine savings estimates are smaller than the Bank's estimates and - this may come as a surprise - even negative for a number of years. These results are primarily driven by their much larger estimates of environmental degradation. Unfortunately, when going over their calculations, I have come to doubt the main outcomes of their study due to two issues: CO2 damage values are overestimated by a factor 13 as a mistake is made in converting damage costs expressed in dollars per ton carbon towards dollars per ton CO2. Second, the implied average SO2 damage values per ton that they use are much higher than found in the literature.