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The overall purpose of this study is to assess priorities for new environmental accounts in Indonesia. We use environmental costs related to air pollution and resource extraction in Indonesia as a measure for priority. This study uses the damage costs approach to estimate the environmental degradation costs value and the Net Present Value (NPV) approach to obtain the environmental cost of natural resources depletion of several natural resources that are most important for the Indonesian economy. Our estimate of the total environmental costs amounts to around 13% of GDP in 2010. Environmental costs are mostly due to depletion of energy and mineral resources, followed by environmental degradation cost from air pollution, and the use of forestry resources and related depletion of ecosystems. The Indonesian Central Bureau of Statistics (BPS) has already published damage costs data related to resource depletion, which we find is a priority. However, the BPS should consider completing its data with additional information on the depletion costs of ecosystem services related to forestry. Moreover, the BPS could expand Indonesia’s economic-environmental accounts by including environmental degradation costs due to air pollution. We found that from a substance perspective, the priorities are SOx, NOx, CO2, CH4, and particulate matter. At the same time, from a sector perspective, the priorities are electricity, manufacture of basic iron and steel and of ferro-alloys and first products thereof, mining of coal and lignite, and extraction of peat, because if the national accounts included the external costs of air pollution and the depletion of natural resources, these sectors would create a negative value-added.
Viktor Pirmana; Armida Salsiah Alisjahbana; Arief Anshory Yusuf; Rutger Hoekstra; Arnold Tukker. Environmental costs assessment for improved environmental-economic account for Indonesia. Journal of Cleaner Production 2020, 280, 124521 .
AMA StyleViktor Pirmana, Armida Salsiah Alisjahbana, Arief Anshory Yusuf, Rutger Hoekstra, Arnold Tukker. Environmental costs assessment for improved environmental-economic account for Indonesia. Journal of Cleaner Production. 2020; 280 ():124521.
Chicago/Turabian StyleViktor Pirmana; Armida Salsiah Alisjahbana; Arief Anshory Yusuf; Rutger Hoekstra; Arnold Tukker. 2020. "Environmental costs assessment for improved environmental-economic account for Indonesia." Journal of Cleaner Production 280, no. : 124521.
The desire to include environmental information in national accounts has resulted in the construction of a system of environmental-economic accounting (SEEA). As the international statistical standard for environmental-economic accounting, the SEEA can provide valuable support for monitoring Sustainable Development Goals (SDGs). This study assesses the potential use of the SEEA for monitoring SDGs. This paper shows that, in theory, the potential for this system is significant. However, based on a literature review and survey of SEEA experts, practical problems in implementing the SEEA are significant, especially in developing countries. Such issues include data availability and quality, as well as the availability of funding and human resources. Capacity development is key to establishing successful implementation of the SEEA in developing countries. For example, the World Bank’s WAVES program (Wealth Accounting and Valuation of Ecosystem Services) has been instrumental in capacity building in developing countries, which, however, still show great variation in how they implement SEEA.
Viktor Pirmana; Armida Salsiah Alisjahbana; Rutger Hoekstra; Arnold Tukker. Implementation Barriers for a System of Environmental-Economic Accounting in Developing Countries and Its Implications for Monitoring Sustainable Development Goals. Sustainability 2019, 11, 6417 .
AMA StyleViktor Pirmana, Armida Salsiah Alisjahbana, Rutger Hoekstra, Arnold Tukker. Implementation Barriers for a System of Environmental-Economic Accounting in Developing Countries and Its Implications for Monitoring Sustainable Development Goals. Sustainability. 2019; 11 (22):6417.
Chicago/Turabian StyleViktor Pirmana; Armida Salsiah Alisjahbana; Rutger Hoekstra; Arnold Tukker. 2019. "Implementation Barriers for a System of Environmental-Economic Accounting in Developing Countries and Its Implications for Monitoring Sustainable Development Goals." Sustainability 11, no. 22: 6417.