Download Classification of natural assets: implication of the update of the 1993

Classification of natural assets: implication of the update of the 1993 SNA and possible issues to address Alessandra Alfieri and Ivo Havinga London Group (New York, 19 - 21 June 2006)

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Overview • Background • Definition of assets in 1993 SNA and SEEA • Changes in the 1993 SNA Rev.1 asset classification and impacts in the SEEA-2003 • Proposal for aligning the classification of natural resources in the 1993 SNA Rev.1 with SEEA2003 • Terminology issues • Presentation issues 2

Background • 1993 SNA update considered the issue of classification of assets • AEG recommended that 1993 SNA and SEEA-2003 be aligned, in particular for classification of natural resources • Requested the editor and UNSD to do it

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Main changes in the 1993 SNA Rev.1 asset classification • Replace “tangible non-produced assets” with “natural resources” • Replace “intangible non-produced asset” and split it in “contracts, leases and licenses” and “goodwill and marketing assets” • Record “Land improvements” as GFCF of buildings and structures and not under land • Align terminology of natural resources with SEEA-2003 4

Differences in terminology between 1993 SNA Rev.1 and SEEA-2003 • “Natural resources” • SNA – includes including land • SEEA – both cultivated assets and “tangible non-produced assets”, no land identified separately

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Differences – Mineral and energy • Terminology • SNA: “Subsoil”, • SEEA: “Mineral and energy” • SNA: “Coal, oil, mineral gas” • SEEA: “Fossil fuels” • Definition of reserves • Suggest to expand asset boundary to probable and possible? • Expansion of asset boundary to non-renewable resources? 6

Non-cultivated biological resources • Terminology • SNA: Natural forests • SEEA: Timber • SNA: Wild stocks of fish and aquatic mammals • SEEA: Aquatic resources • Conceptual • Fish stocks outside the EEZ • High seas, if country has access rights 7

Water resources • SNA Rev.1: Expansion of asset boundary • Terminology • SNA: “Aquifers” , “Other” • SEEA: “Surface water”, “Ground water”

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Other natural resources • Terminology • SNA: Radio spectra + other resources • SEEA: Atmospheric ecosystem • Ecosystems • Should the SNA mention that natural resources can be classified twice (according to whether they provide goods “natural resources” or services “ecosystems”)? 9

Differences in presentation • Order in presentation of natural resources • SNA: land, subsoil, non-cultivated biological resources, water, other • SEEA: Mineral and energy, soil, water, biological resources, LAND (separate from natural resources), Ecosystems

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Differences in presentation (2) • Grouping of produced and non-produced assets 1993 SNA Rev.1

SEEA-2003

Inventories Work in progress Work in progress on cultivated assets Plantations Non-cultivated Natural forests

Biological resources Timber resources Cultivated Non-cultivated

• The SEEA-2003 does not make explicit the distinction between fixed asset and inventory

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Why differences in presentation? • Perspective • SNA groups the items according to how to value them • SEEA groups them according to the resource Should SNA and SEEA have the same presentation in the asset classification? 12

Questions to the LG? Do you agree with: 1. Would you like to see an Annex in the SNA explaining the difference between SNA and SEEA asset classification? 2. Dropping the item “recreational land” from both the SNA and SEEA? 3. Mentioning in the SNA the category ecosystems, although not in the classification? 13

Questions to the LG? (2) 4. Should the SEEA align its classification with the SNA? a. In terms of order (land, mineral and energy, etc. or mineral and energy, land, etc.)? b. In terms of grouping (by produced, non-produced, or by type of resource)? 14