Question

Please prepare a research project for the Ecosystem accounting. The research of the topic must be minimum three pages (excluding figures and graphs).

Answer 1

Answer

Ecosystem accounting is a coherent and integrated approach to the assessment of the environment through the measurement of ecosystems, and measurement of the flows of services from ecosystems into economic and other human activity.

The scale of ecosystem accounting may vary according to land cover types such as forests, or based on larger integrated areas such as river basins. Ecosystem accounting also covers areas that may be considered relatively natural like those that may have been heavily influenced by human activity, such as agricultural sites.

Ecosystem accounting takes into account both concrete and intangible benefits derived from ecosystems. By accounting for the value nature provides for us, we can manage these resources more sustainably and leave a healthier planet for future generations.

How it works

Ecosystem accounting takes a spatial approach and ecosystem assets are delineated as spatial areas containing a combination of biotic and abiotic components and other characteristics that function together. These ecosystem assets provide ecosystem services, which are the contributions and benefits of ecosystems to economic and other human activity. The SEEA Experimental Ecosystem Accounting has a system of accounts that present a coherent and comprehensive view of ecosystems:

1. Ecosystem extent account: This account serves as a common starting point for ecosystem accounting. It organizes information on the extent of different ecosystem types within a country in terms of area.
2. Ecosystem condition account: This account measures the overall quality of an ecosystem asset and captures, in a set of key indicators, the state or functioning of the ecosystem in relation to both its naturalness and its potential to supply ecosystem services.
3. Ecosystem services accounts: This set of ecosystem accounts measures the supply of ecosystem services as well as their corresponding beneficiaries, classified by broad national accounting categories or other groupings of economic units.
4. Monetary asset account: This account records the monetary value of opening and closing stocks of all ecosystem assets within an ecosystem accounting area and additions and reduction to those stock.  
5. Thematic accounts: This set of accounts, which cover accounts for land, water, carbon and biodiversity, are standalone accounts on topics of their own right and are also of direct relevance in the measurement of ecosystems and in assessing policy response.

Why Ecosystem accounting?

Ecosystem accounting serves as a tool for compiling information on environmental changes, linked to economic and other human activities, and generating understanding of how these changes could lead to environmental degradation. Consequently, there is a reduced capacity for ecosystems to continue to provide the services on which economic and other human activity depends.

Concepts of Ecosystem Accounting

In the SEEA-EEA Technical Recommendations, ecosystem accounting complements, and builds on, the accounting for environmental assets as described in the SEEA Central Framework. In this framework, environmental assets are accounted for as individual resources such as minerals, timber, soil resources, and water resources. In ecosystem accounting based on the SEEA-EEA framework, the accounting approach recognizes the fact that these individual resources function together within a broader system.

The SEEA-EEA shows that a prime motivation underlying ecosystem accounting is that a separate analysis of ecosystems and the economy does not adequately reflect the fundamental relationship between humans and the environment. In this context, the SEEA-EEA provides a platform for the integration of relevant information on ecosystem extent, ecosystem condition, ecosystem services and ecosystem capacity, with information on the associated beneficiaries (households, businesses, and governments).

Consideration in Compiling Ecosystem Accounts

1. It is a set of accounts, each of which contains specific information applicable to one part of the ecosystem accounting model. There is not one single “ecosystem account”.
2. The accounts are designed to link together such that information can be readily compared across accounts.
3. A specific design feature of the ecosystem accounts is that ultimately the information should be integrated with the standard national accounts that record economic activity.
4. The accounting structures presented should not be considered unchangeable with regard to the level of detail they contain
5. The accounts present information corresponding to one accounting period, usually one year. The length of the accounting period determines the points chosen to measure the opening and closing stocks. Flows are measured in terms of observed changes between the opening and closing of the accounting period.
6. The structure of accounts generally represents a level of detail suitable for presentation and analysis of outputs from accounting. It represents a level of detail at which accounting relationships (e.g., supply and use, balancing end of period stocks and changes in stocks) are applied. However, it will generally be necessary for underlying information to be compiled at different, usually lower, levels of aggregation before entry into the account.

Conclusion

Accounting for the human benefits obtained from nature.

Ecosystems can exist without humans in them, but humans cannot survive without ecosystems. Throughout history, humanity has made use of nature for food, shelter, protection and engaging in cultural activities.