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Ecosystem accounting is a systematic approach that combines environmental and economic data to track the full physical and monetary value of natural capital and can be applied at various spatial scales and for a range of purposes. Our main objective is to identify where and how ecosystem accounting has been applied in the specific context of forest resource management. We selected the System of Economic Ecosystem Accounting (SEEA) Ecosystem Accounting (EA) which is aligned with national accounting for our analysis. Our systematic literature review was conducted on publications between 2012 and 2023 that apply SEEA EA consistent methodology for forest ecosystems globally. We find the use of SEEA EA consistent ecosystem accounts in forestry have been limited and tends to occur where governmental and institutional support is available. Detailed analysis of forestry case studies identified gaps and challenges including the variation in which SEEA EA had been applied, limited number of ecosystem services reported, issues related to valuation, and a lack of industry adoption. The results of this review highlight the urgent need to make ecosystem accounting more achievable and accessible in the forest sector to ensure that quantifying forest natural capital is mainstreamed for decision and policy processes. • Forest management can benefit from ecosystem accounting. • A limited number of SEEA EA consistent applications exist in forestry management. • Variation in SEEA EA compatible ecosystem accounts in forestry is observed. • Limited number and type of forest ecosystem services reported across case studies. [ABSTRACT FROM AUTHOR]

Abstract With the introduction of the Roadmap to a Resource Efficient Europe (2011) and the more recent commitment of The Action Plan towards the Circular Economy (2015), the European Commission (EC) has expressed its fundamental interest to substantially improve the resource efficiency of the European economy and enable the transition towards the Circular Economy (CE). This policy push has meanwhile been complemented by some quite ambitious national programmes for RE and CE and institutional advances but it is not yet bound to targets or mandatory reporting. Against this background, the objective of this paper is to give a comprehensive overview of the current policy frameworks at EU and a selection of MSs and provide insights into the elements shaping policy processes. The analytical framework relies on three essential interconnected components: the policy framework, the economic incentive system and economic side policies which are relevant in the context of RE and CE and actor constellations. The paper does this looking at the interface between EU-MSs. The analysis is based on different empirical surveys in which the policy development is observed and discussed (EEA 2011, 2016a, 2016b, EIO 2013, 2014, 2016) and a comprehensive review of legislative and policy frameworks at the EU and selected MSs, undertaken as part of the project POLFREE (Policy option for a Resource-Efficient Economy) (Domenech et al., 2014, Bahn-Walkowiak et al., 2014). The analysis reveals that policy frameworks for RE/CE are complex and fragmented as competing goals and visions reduce effectiveness of measures. The paper makes recommendations as to how EU and MS policies could improve RE in a coordinated way, but recognizes that achieving such coordination will be challenging in the current political context. [ABSTRACT FROM AUTHOR]

Stable food production is vital for food security. Stability of farm income is also necessary to ensure the sustainability of food production and to protect livelihoods, in a changing climate. We analyse the relative effects of climate variability, subsidies and farming practices on the stability of food production and farm income. We examine farms in England and Wales between 2005 and 2017, and link farms to climate data at a sub-regional scale. Our results show that variability in temperature and rainfall reduces the stability of farm income and food production. While variability in climate can be largely outside of the farmers control our findings indicate that, under current conditions, farm management can have a larger effect on stability than climate. We identified three key aspects of farm management and policy that improve stability: i) increasing agricultural diversity, ii) increasing the efficiency of agrochemical use and iii) agri-environmental management. These management practices have previously been associated with benefits to natural ecosystems and may therefore increase the stability of agriculture whilst reducing negative impacts of farming on the environment. We also found differences in effect size of climate impacts and adaptation options between farm types, emphasising the need for flexible agricultural policies. • We link 13 years of farm-level yield and economic data to sub-regional climate data. • Considering farming practices and climate is important when examining farm stability. • Agricultural diversity has multiple benefits and improves stability of farm performance. • Precise agrochemical application is important to improve stability of farm profits • Flexible policy, targeting stability, is needed to benefit different farm types. [ABSTRACT FROM AUTHOR]

The European Green Deal aims to put the EU on track towards climate neutrality by 2050. One of the key elements is a more stringent greenhouse gas emission reduction target of 55% below 1990 levels by 2030. We analyse the socio-economic consequences of alternative policy pathways to reach that target, either relying more on regulatory standards, on carbon pricing, or a mix of both. We develop a modelling framework that captures macro-economic and sectoral impacts and closely aligns economic and energy system modelling. We further decompose aggregate labour market outcomes into skill and occupation types, and downscale representative household results to micro-level household data to evaluate the distributional effects across income groups with heterogeneous expenditure patterns. By combining models and datasets, our framework enables incorporating a high degree of technological detail while revealing socio-economic aspects of the transition that may go unnoticed in coarse, aggregate assessments. In particular, our results highlight the heterogeneous impacts of climate policy across sectors, worker skill types and income groups, which may require particular attention in climate policy design and corresponding complementary measures to ensure a fair transition to a low-carbon economy. • We assess different policy packages to achieve stricter EU 2030 climate targets. • A framework for climate policy assessment needs to be both broad and detailed. • We develop such a framework by linking energy models with economic models and data. • We downscale aggregate results for labour markets and household consumption. • Results illustrate model uncertainty and policy design potential to alter outcomes. [ABSTRACT FROM AUTHOR]

This paper analyses the economic performances of the rural system and the level of land sensitivity to degradation in Italy. Three indicators (district value added, share of agriculture on total product, and a composite index of land sensitivity) were used to classify 784 Italian local districts into eight performance classes. Four classes share a combination of high environmental quality (in terms of land degradation), high (or low) economic performances, and high (or low) productivity of the primary sector. The remaining four are characterised by a combination of low (and declining) environmental quality, high (or low) economic performances, and high (or low) productivity of the primary sector. The eight classes were grouped into four ‘environmental quality’ types and four ‘target performance’ categories to discriminate among high- and low-performance districts by considering twelve additional variables within a Discriminant Function Analysis (DFA). 148 high environmental performance districts (18% of total) were identified mainly across the Alps and Apennine while 314 districts (41%) were classified in the lowest performance class and concentrated in flat areas of southern Italy. The districts with high environmental performances were characterised, on average, by medium to low district value added, moderately low economic weight of the primary sector, and tourism specialisation. Districts with high economic performances and low environmental performances were characterised by high sensitivity to LD, low district value added, high share of agriculture in total product, and the lowest productivity of labour in all economic sectors. In these districts the risk of entering a downward spiral of rural poverty and environmental degradation is potentially high. [Copyright &y& Elsevier]

The problem of low-probability, catastrophic risk is increasingly central to discussion of climate science and policy. But the integrated assessment models (IAMs) of climate economics rarely incorporate this possibility. What modifications are needed to analyze catastrophic economic risks in an IAM? We explore this question using DICE, a well-known IAM. We examine the implications of a fat-tailed probability distribution for the climate sensitivity parameter, a focus of recent work by Martin Weitzman, and the shape of the damage function, one of the issues raised by the Stern Review. Forecasts of disastrous economic outcomes in DICE can result from the interaction of these two innovations, but not from either one alone. [Copyright &y& Elsevier]

National government-funded payments for environmental services (PES) programs often lack sustainable financing and fail to target payments to providers of important environmental services. In principle, these problems can be mitigated by supplementing government financing with contributions from leading environmental service users. We use original survey data and official statistics to analyze user financing in Costa Rica's renowned national PES program, focusing on the amounts and sources of user financing, the drivers of contributions, and contributors' perceptions of the PES program. We find that user financing has supported less than 3% of the acres enrolled in the program and that hydroelectric plants are the largest private sector contributors. Large hydroelectric plants tend to contribute while small ones do not. The weight of evidence suggests that in addition to ensuring the provision of forest environmental services, hydroelectric plants' motives for contributing to the PES program include improving relations with local communities and government regulators—common drivers of participation in all manner of voluntary environmental programs. These findings raise questions about the potential of user financing to improve the efficiency and financial sustainability of national PES programs. [Copyright &y& Elsevier]

When dealing with sustainability, we are concerned with the biophysical and the monetary aspects of economic and ecological interactions. This multidimensional approach requires that special attention is paid to dimensional issues. However, many studies in economics, as well as in ecological economics, apply dimensional numbers to exponential or logarithmic functions. We show first that it is an analytical error to put a dimensional number x into exponential functions (a x ) and logarithmic functions (log a x). We introduce several examples of this analytical error both in ecological economics and conventional economics. These observations are presented with the hope that they will orient future quantitative analyses toward more constructive ends. Since the empirical and theoretical studies in economics often adopt the logarithmic specification of the production and cost function, we derive a procedure or an algorithm, concerned with the given data set, by which we can examine whether or not a particular logarithmic specification is superior to the usual regression specification in terms of the least square norm. [Copyright &y& Elsevier]

We introduce decay in produced capital and exogenous technical progress to the recent “Solow Model” of Asheim et al. with population growth and observe the possible collapse of the economy given too high a rate of decay. “Enough” technical progress can restore sustainable per capita consumption. [Copyright &y& Elsevier]

Based on a large sample for the German commercial and services sector, this paper econometrically assesses the relevance of various types of barriers to energy efficiency at the sectoral level and across fifteen sub-sectors. The results at the level of entire sectors suggest that the lack of information about energy consumption patterns and about energy efficiency measures, lack of staff time, priority setting within organizations, and – in particular – the investor/user dilemma are all relevant barriers. Allowing for sector-specific differences in the relevance of these individual barriers yields a more heterogeneous picture. The numbers and types of relevant barriers vary across sub-sectors, and the majority of sub-sectors are subject to relatively few barriers. The statistically most significant barriers are found for the sub-sector of public administrations. These findings are robust, independent of whether the definition of an organization's energy efficiency performance includes only measures that have actually been realized or also those that are being planned. For planned projects, however, organizations appear to underestimate internal priority setting as a barrier to energy efficiency. [Copyright &y& Elsevier]

Abstract: The preparation of the System of Environmental and Economic Accounts 2003 marks an important milestone in the world of official statistics. Just as the development of the original guidelines for national accounting in the 1950s was the first step toward today''s robust, internationally comparable economic statistics, the System of Environmental and Economic Accounts 2003 offers hope to bring order and comparability to environmental statistics. How the system came to be and why it is an important achievement are outlined. This is followed by an overview of its accounting structure. A discussion of the implementation of the SEEA 2003, both in ideal terms and as actually practiced in statistical offices, concludes. [Copyright &y& Elsevier]

Abstract: This paper offers a detailed review of recently described single- and multi-region input–output models used to assess environmental impacts of internationally traded goods and services. It is the second part of a two-part contribution. In Part 1 [Turner, K., Lenzen, M., Wiedmann, T. and Barrett, J. in press. Examining the Global Environmental Impact of Regional Consumption Activities — Part 1: A Technical Note on Combining Input–Output and Ecological Footprint Analysis; Ecological Economics.] we describe how to enumerate the resource and pollution content of inter-regional and inter-national trade flows with the aim to illustrate an ideal accounting and modelling framework for the estimation of Ecological Footprints. A large number of such environment-economic models have been described but only in the last few years models have emerged that use a more sophisticated multi-region, multi-sector input–output framework. This has been made possible through improvements in data availability and quality as well as computability. We identify six major models that employ multi-sector, multi-region input–output analysis in order to calculate environmental impacts embodied in international trade. Results from the reviewed studies demonstrate that it is important to explicitly consider the production recipe, land and energy use as well as emissions in a multi-region, multi-sector and multi-directional trade model with global coverage and detailed sector disaggregation. Only then reliable figures for indicators of impacts embodied in trade, such as the Ecological Footprint, can be derived. [Copyright &y& Elsevier]