Question

Briefly explain the types of SEEA-Energy accounts.

Answer 1

SEEA-Energy stands for System of Environmental-Economic Accounting for Energy. There are three main types of SEEA -Energy accounts. They are as follows.

1. Physical flow accounts,

2. Monetary flow accounts for energy-related transactions and

3. Asset accounts in physical and monetary terms.

1. Physical Flow Accounts

Here, the physical flow of energy is recorded in this account. The flow refers to energy flow from environment to the economy, from economy to the environment and within the economy.

From economy to the environment--This would include international energy flows, that may comprise of international transport and export or import. In case of international transport, the consumption of fuel and emissions are recorded. A tourist's activity's physical energy flow is recorded according to the residence principle. ie, the country of residence of the tourist. The purpose of visit is also considered. Be it a student visit, business or tourist purpose. The fuel used by the tourist in a different country is recorded. The imports and exports of energy products are also recorded in the physical flow of energy. The country of residence of person purchasing the product is important here.

From environment to the economy--This includes timber, mineral and energy resources, jointly owned assets etc. These are the products of a country's natural resources and the ownership is attributed to the residents of that country. Otherwise, in case of jointly owned assets of oil fields, owned by two or more countries, there must be an agreement between the countries regarding how the flow should be assigned.

From within the economy--This mainly involves monetary flow accounts.

2. Monetary flow accounts for energy-related transactions

Here, the flows related to supply and use of energy products are recorded in monetary terms.This flow is recorded within the economy and between the environment and the economy. Taxes and subsidiaries are also included in this. Also, extraction and exploration activities fall into this subdivision.

3. Asset accounts in physical and monetary terms.

The assets of quantity of minerals and energy resources are recorded in monetary terms. This gives a valid information regarding the assets of a country. This also refers to the changes in quantity over time. ie, depletion of resources over time can also be well-studied using this record. The assets are valuated referring to the market prices.