System of Environmental and Economic Accounting for Water
Encyclopedia
Water accounting is a recently created discipline that seeks to provide relevant information for water policy design and evaluation. Based on the experience of more than fifty years of national accounts, the discipline that provides the elements to calculate the Gross Domestic Product
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....

 (GDP), the United Nations Statistics Division (UNSD) developed the System of Environmental and Economic Accounting for Water (SEEA-W or SEEA-Water), which has been adopted by the United Nations Statistical Commission
United Nations Statistical Commission
The United Nations Statistical Commission oversees the work of the United Nations Statistics Division or UNSD, and is a Functional Commission of the UN Economic and Social Council...

 (UNSC) as a statistical interim standard in 2007.

The SEEA-Water is a conceptual framework for the organization of physical and economic information related to water using concepts, definitions and classifications consistent to those of the System of National Accounts 1993 (1993 SNA). The SEEA-Water framework is an elaboration of the handbook on Integrated Environmental and Economic Accounting 2003 (SEEA 2003) which describes the interaction between the economy and the environment and covers the whole spectrum of natural resources and the environment.

To support the implementation of SEEA-Water the United Nations Statistics Division (UNSD) developed the International Recommendations on Water Statistics
International Recommendations on Water Statistics
The International Recommendations for Water Statistics is a statistical intermediate output framework developed by the United Nations Statistics Division and approved by the United Nations Statistical Commission that was designed for guiding countries in the development of their water...

 (IRWS), which has also been approved by the UNSC. The IRWS consolidates the experiences and practices of countries and international organizations.

Today more than fifty countries around the world are implementing of planning to implement water accounts.

Background

Water problems around the world are increasing; however, information useful for decision makers within the water sector and related to the water sector seems to be decreasing. Solving water problems requires information from many disciplines. The information has to be coherent and harmonized in order to provide an integrated picture useful for the assessment of the problems.

The SEEA-Water was designed specially to provide this much needed framework. This framework is fully compatible with the framework used in the analysis of macro-economic variables throughout the world, which is the System of National Accounts (SNA), which allows to combine hydrologic and water use information with economic information.

The SEEA-Water has been adopted as an interim international standard. It will become a standard once it is reviewed in the light of the new version of the System of Integrated Environmental and Economic Accounting
System of Integrated Environmental and Economic Accounting
System of Integrated Environmental and Economic Accounting is a framework to compile statistics linking environmental statistics to economic statistics. SEEA is described as a satellite system to the United Nations System of National Accounts . This means that the definitions, guidelines and...

 (SEEA), which is expected to be adopted in 2012.

Main features of the SEEA-Water

The SEEA-Water covers all of the stocks and flows associated with water, which are organized in two main systems, the Inland Water Resources System and the Water Use System or Economy.

The Inland Water Resources System includes all the elements of the natural hydrologic cycle: precipitation, evapotranspiration, surface water, groundwater, etc. The Economy covers all the economic units that use water, including agriculture, electricity production, all the different types of services, etc, as specified in the International Standard Industrial Classification
International Standard Industrial Classification
The International Standard Industrial Classification of All Economic Activities is a United Nations system for classifying economic data. The United Nations Statistics Division describes it in the following terms:...

 of All Economic Activities (ISIC), and households.

All these elements are designated with a harmonized terminology and set up in standard tables. This allows for the construction of comparable indicators relevant for water policy making throughout the world. The International Recommendations for Water Statistics (IRWS) provide further elements regarding terminology, definitions and data sources.

The integration of the water accounts in countries requires the combined efforts of different agencies and experts from different disciplines, which often requires special institutional arrangements.
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