Green Accounting The Forestry Sector Contribution to the National Economic Accounts in Sri Lanka
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1 Green Accounting The Forestry Sector Contribution to the National Economic Accounts in Sri Lanka D. Amarasinghe Consultant, Ministry of Environment Former Director of National Accounts Division of Department of Census and Statistics Dr. Prasanthi Gunawardena Senior Lecturer, University of Sri Jayawardenapura Consultant, Ministry of Environment Outline Contribution within the framework of UN System of National Accounts1993 (UN SNA93) to Gross Domestic Product (GDP), New and revised estimates. Contribution within the framework of UN System of Environmental Economic Accounting (UN SEEA 2003), Fourteen new estimates. Adjusted value added of sub sectors of Forestry sector; Six tables. Green GDP, Six tables. 1
2 Forestry sector contribution under Conventional estimates (UN SNA 93) to GDP This consists of eleven en output t tables/estimates. These are Flow Accounts; This is with a review of the existing conventional forestry sector of GDP. As a result of this review, this included new and revised estimates. Coverage; Two revised tables; Firewood and logging Fruits Five new tables; Recreation Reforestation; Non Timber forest product (NTFP) dry zone NTFP wet zone Compensation 2
3 Figure 1 Forestry sector Contribution under Conventional estimates at Current Producers' Prices Value added in Rupees Mn. 70,000 65,384 68,057 60,000 59,471 53,583 50, , ,000 30,000 29,952 32,725 35,873 40,107 26,655 31,022 35,861 33,720 20,000 16,235 20,663 10,000 10, ,758 11,724 - year Forestry Sector Contribution before revised estimates Forestry Sector Contribution after revised and new estimates Forestry sector contribution under EE Accounting (UN SEEA 2003) to GDP This sector consists of Fourteen output tables/estimates. Flow Accounts; ; This consists of thirteen flow accounts; all new estimates. Stock Accounts; One balance sheet; estimate for natural forest and forest plantation. 3
4 Selected benefits for integration Value type Consumptive use values Recreational values Consumer surplus estimates Option values Indirect use values Non use values (Local) Examples Non timber forest products from dry and wet zone home gardens and natural forests, value of fodder for livestock Nine National Parks, Two Botanical gardens Two Waterfalls, Sri Pada trekking, Cave recreation, Wetland recreation, Elephant viewing, Leopard viewing Pharmaceutical prospecting values of Forests of south west of Sri Lanka Carbon storage and Watershed protection of forests, Pollination of agricultural crops, value of mangroves for fishery production, Erosion control and storm control value of mangroves Sinharaja rain forest reserve, Yala protected area complex, Dry zone forests, Mangroves, Leopards of Sri Lanka, Elephants of Sri Lanka Coverage, all new estimates of EEA; Deforestation cost for Timber; Carbon Value; Mangroves to fish breeding; Mangroves for existence, bequest, erosion control benefits and buffer against damage; Recreational visitation (Consumer Surplus value); Willingness to pay (WTP) for existence of sinharaja forest, Elephants, Leopards; WTP for Southern region forest for pharmaceuticals; Watershed value for wet zone forest; Deforestation cost by acquiring forest land for projects; Economic value of pollination; Value for natural grazing-cattle. 4
5 Figure 2 % Share of Forestry sector Contribution under EE Accounting to Agriculture, livestock, Forestry and fisheries 2002 to Percentage Year % Share of Forestry Sector Total Contribution from estimates under EE Accounting % Share of Forestry Sector Contribution from EE Accounts after deduction made for duplication % Share of duplicated EE Accounting values in conventional Agriculture.. Figure 3 Forestry sector Contribution from estimates under Conventional and EE Accounting at Current Producers' Prices/ Values in Rs. Mn. 185, , , , , , , ,000 85,000 60,000 35, , , ,716 98,492 95,301 74,250 60,324 62,744 64,544 67,562 40,172 40,832 41,509 34,977 35,747 88,593 51, ,151 70, ,331 60, ,784 69,572 10, (15,000) Total Contribution from Forestry Sector EE Accounting year Net EEA values (unduplicated) ; EEA Tables-B1, B2.2, B4.1, B6, B8 and B11 Already existed values of EEA estimets in Conventional GDP ; EEA Tables-B3.1, B3.2, B5, B7, B9 and B10 5
6 Figure 4 Adjusted Gross Domestic Product (GDP) with EE Accounts at Current Producers' Prices Rupees. Mn. Activities 2002 Values 2009 Values 2010 Values 1 Gross Domestic Product (GDP) Conventional 1,636,037 4,835,293 5,604,104 2 (Old) GrossValue Added of Firewood and Forestry 10, ,861 33,720 (Logging) 2a % Share of (Old) Gross Value Added of Firewood and Forestry (Logging) to GDP 3 Forestry Sector Contribution (Revised and New) 29,952 65,384 68,057 3a % Share of Forestry Sector Contribution to GDP (Total contributions due to Revisions and New estimates) Unduplicated EE Account values in GDP; 60, , ,784 4a % Share of Forestry Sector Contribution from EE Accounting estimates to GDP 5 Adjusted GDP with EE Accounts for Forestry Sector 1,716,155 4,975,148 5,752,225 5a % Share of Forestry Sector total Contribution to GDP (Conventional and EE Accounts)
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