RUMEA framework and examples
“Homework” for the RUMEA TF
for
Eurostat
Institut de Conseil et d'Etudes en Développement Durable asbl
(ancien nom Institut Wallon de développement économique et social et d'aménagement du territoire asbl)
Boulevard Frère Orban, 4 à 5000 NAMUR
Tél : +32.81.25.04.80 - Fax : +32.81.25.04.90 - E-mail :
This document was prepared by: Marco Orsini and Federico Falcitelli
This document was revised by Pepa Lopez, Céline Martin and Marie Pairon
21/04/2010 2/68 ICEDD asbl - MO
TABLE OF Contents
0. Introduction 7
1. The Resource Use and Management Expenditure Account (RUMEA) framework 8
1.1. Main objectives 8
1.2. Definition and scope of resource use and management 9
1.3. Key concepts in the RUMEA framework 10
1.3.1. Characteristic activities 10
1.3.1.1. Classification of activities 11
1.3.1.2. Principal, secondary and ancillary activities 12
1.3.1.3. Connected products and adapted products 13
1.3.1.4. Specific transfers 14
1.4. Definition and scope of the aggregate national resource use and management expenditure 15
1.5. The RUMEA tables 15
2. Example - CRUMA 10: Use and management of water resources 17
2.1. Description of CRUMA 10: 17
2.2. Purpose of CRUMA 10 account 17
2.3. Resource domain 17
2.4. Description of the domain 17
2.5. Overview of the water resource use and management (in your country) 17
2.6. CRUMA 10: Characteristic activities (description) 22
2.7. CRUMA 10 Characteristic producers 23
2.7.1. Specialised and secondary producers (output sold on the market) 23
2.7.2. Ancillary producers (output for own use) 24
2.8. Adapted and connected products 24
2.9. Data sources 25
3. CRUMA 10: Use and management of water resources 26
3.1. Description of CRUMA 10: 26
3.2. Purpose of CRUMA 10 account 26
3.3. Resource domain 26
3.4. Description of the domain 26
3.5. Overview of the water resource use and management (in your country) 26
3.6. CRUMA 10: Characteristic activities (description) 28
3.7. CRUMA 10 Characteristic producers 29
3.7.1. Specialised and secondary producers (output sold on the market) 29
3.7.2. Ancillary producers (output for own use) 30
3.8. Adapted and connected products 30
3.9. Data sources 31
4. CRUMA 11: Use and management of natural forest resources 32
4.1. Description of CRUMA 11: 32
4.2. Purpose of CRUMA 11 account 32
4.3. Resource domain 32
4.4. Description of the domain 32
4.5. Overview of the natural forest resource use and management (in your country) 32
4.6. CRUMA 11: Characteristic activities (description) 34
4.7. CRUMA 11 Characteristic producers 35
4.7.1. Specialised and secondary producers (output sold on the market) 35
4.7.2. Ancillary producers (output for own use) 36
4.8. Adapted and connected products 36
4.9. Data sources 37
5. CRUMA 12: Use and management of wild flora and fauna 38
5.1. Description of CRUMA 12: 38
5.2. Purpose of CRUMA 12 account 38
5.3. Resource domain 38
5.4. Description of the domain 38
5.5. Overview of the wild flora and fauna resource use and management (in your country) 38
5.6. CRUMA 12: Characteristic activities (description) 40
5.7. CRUMA 12 Characteristic producers 41
5.7.1. Specialised and secondary producers (output sold on the market) 41
5.7.2. Ancillary producers (output for own use) 42
5.8. Adapted and connected products 42
5.9. Data sources 43
6. CRUMA 13: Use and management of fossil energy 44
6.1. Description of CRUMA 13: 44
6.2. Purpose of CRUMA 13 account 44
6.3. Resource domain 44
6.4. Description of the domain 44
6.5. Overview of the fossil energy resource use and management (in your country) 44
6.6. CRUMA 13: Characteristic activities (description) 46
6.7. CRUMA 13 Characteristic producers 47
6.7.1. Specialised and secondary producers (output sold on the market) 47
6.7.2. Ancillary producers (output for own use) 48
6.8. Adapted and connected products 48
6.9. Data sources 49
7. CRUMA 14: Use and management of minerals 50
7.1. Description of CRUMA 14: 50
7.2. Purpose of CRUMA 14 account 50
7.3. Resource domain 50
7.4. Description of the domain 50
7.5. Overview of the mineral resource use and management (in your country) 50
7.6. CRUMA 14: Characteristic activities (description) 52
7.7. CRUMA 14 Characteristic producers 53
7.7.1. Specialised and secondary producers (output sold on the market) 53
7.7.2. Ancillary producers (output for own use) 54
7.8. Adapted and connected products 54
7.9. Data sources 55
8. CRUMA 15: Research and development activities for natural resource use and management 56
8.1. Description of CRUMA 15: 56
8.2. Purpose of CRUMA 15 account 56
8.3. Resource domain 56
8.4. Description of the domain 56
8.5. Overview of the water resource use and management (in your country) 56
8.6. CRUMA 15: Characteristic activities (description) 58
8.7. CRUMA 15 Characteristic producers 59
8.7.1. Specialised and secondary producers (output sold on the market) 59
8.7.2. Ancillary producers (output for own use) 60
8.8. Adapted and connected products 60
8.9. Data sources 61
9. CRUMA 16: Other natural resource use and management activities 62
9.1. Description of CRUMA 16: 62
9.2. Purpose of CRUMA 16 account 62
9.3. Resource domain 62
9.4. Description of the domain 62
9.5. Overview of the other resource use and management activities (in your country) 62
9.6. CRUMA 16: Characteristic activities (description) 64
9.7. CRUMA 16 Characteristic producers 65
9.7.1. Specialised and secondary producers (output sold on the market) 65
9.7.2. Ancillary producers (output for own use) 66
9.8. Adapted and connected products 66
9.9. Data sources 67
RUMEA framework and examples
Example - CRUMA 10: Use and management of water resources
0. Introduction
This document is intended to help the TF to reflect on and provide some examples on CRUMA activities in order to develop a coherent methodological framework for the Resource Use and Management expenditure account.
The document is in three parts.
Part 1 (Chapter 1) -The Resource Use and Management Expenditure Account (RUMEA) framework
Presents the main concepts of the RUMEA framework.
Part 2 (Chapter 2)- Example - CRUMA 10: Use and management of water resources
Illustrate some examples of activities, products, etc. which are of interest for the Use and management of water resources (CRUMA 10). This template is for illustrating how you should fill in the different example sheets.
Part 3 (Chapters 3 - 9)
Contains the CRUMA example sheets that you are suppose to fill in.
Please provide comments on the methodological framework and try to fill in with as much examples as possible (one or more of the examples sheets from chapters 3-9).
For any questions do not hesitate to contact: Marco Orsini, .
1. The Resource Use and Management Expenditure Account (RUMEA) framework
According to SNA 2008[1] the aim of environmental accounts is to reflect within a close connection with the national accounts:
- the impacts of using (or using up) natural resource;
- the generation of residuals that pollute the air, water, etc;
- specific activities undertaken to prevent or combat the environmental impacts of human activity.
When talking about accounting for economic activities and products related to the environment, from a statistical point of view this is continuously evolving. But at this point in time the SEEA makes reference to the following:
- environmental protection activities
- natural resource use and management
- environmentally beneficial activities
- minimization of natural hazards.
As far as the accounting of environmental protection activities and products is concerned, these falls under EPEA framework which is detailed in the SERIEE 1994 manual as well as the SERIEE Compilation Guide 2002. Therefore, as natural resource use and management activities complements the picture of environmental activities, the aim, concepts, definitions, etc of RUMEA presented below will follow the methodology described in SERIEE.
1.1. Main objectives[2]
The main objective of the RUMEA is to assess the actual expenditure for natural resource use and management made by the total economy. This includes the economic resources actually used in order to prevent depletion of natural resources as well as the economic resources devoted for providing the economy with the natural resources needed for production or consumption stages.
This expenditure is presented by sectors of the economy and by type of natural resource. Such information provides the following main kinds of indicators:
· indicators of the response of society to reduce natural resources depletion;
· indicators of the economic resources spent for providing the economy with natural resources.
The first kind of indicators, together with those provided by the EPEA – i.e. indicators of the response of society to protect the environment against pollution and degradation phenomena – give a complete picture of the measures carried out by the socio-economic system in order to defend the natural assets from both a quantitative (depletion) and qualitative perspective (pollution and degradation).
The second kind of indicators provide information on economic activities and expenditures carried out by the socio-economic system for using natural resources; such information can be properly linked to physical data on flows of natural resource inputs in the context of comprehensive systems of integrated environmental and economic accounting like the SEEA.
As a matter of fact the RUMEA is a satellite account to the national accounts, designed to describe in a way consistent with the national accounts the transactions related to natural resource use and management and to allow links with physical data.
The RUMEA uses the national accounts concepts because the national accounts system makes sure that aggregate expenditure indicators are compiled in a consistent way, are complete and free of double counting. Simply adding up raw data would not achieve this purpose because of gaps in the coverage of primary data sources, overlaps in the expenditure recorded by different sources and differences in the price concepts used.
Furthermore the RUMEA makes the following additional information available: who finance the expenditure, what are the consequences on production and employment, what is the net cost burden for different industries? (e.g.: the demand for water management and all the activities for the use of water lead to investments, intermediate consumption, employment, etc). This information can also be used to analyse the consequences of a given policy on the level of different activities, the costs of production, employment, etc.
1.2. Definition and scope of resource use and management[3]
The “resource use and management” includes all actions and activities which aim at:
· Providing the socio-economic system with the natural resource inputs to be used for production and consumption purposes (“resource use”)
· Preserving and maintaining the stocks of natural resources against depletion phenomena (“resource management”).
The “resource use” comprises all actions and activities relating to research, exploration and withdrawals of natural resources, as well as the distribution of water resources.
Distribution activities are included only for water resources, while are excluded for the other natural resources. As a matter of fact distribution activities for natural resources other than water correspond indeed to the distribution of raw materials and final goods that are obtained after the transformation of the natural resource inputs (e.g. electricity which is obtained by combustion of fossil energy sources).
The “resource management” groups together all actions and activities aiming at reducing the withdrawals of natural resources (recovery, reuse, recycling, savings, substitution of natural resources) and restoring natural resource stocks (increases/ recharges of natural resource stocks), including instrumental activities like monitoring and control, administration and regulation, training information and communication, R&D activities.
This definition implies that to be included under resource use and management, actions and activities, or parts thereof, must satisfy the primary purpose criterion (causa finalis), i.e. that resource use or resource management is their prime objective.
The scope of “resource use and management” includes actions and activities dealing only with natural resources which correspond to non-cultivated/non-produced assets according to SNA/ESA concepts: “Only those natural resources corresponding to non-produced natural assets whose use takes the form of goods, are dealt with in the natural resource use and management account. Hence, produced natural resources (livestock, plants) are excluded as well as those environmental services which result from uses of certain functions of natural assets (assimilation of pollutants, aesthetic value, etc.)”[4].
1.3. Key concepts in the RUMEA framework[5]
Given the general nature of the criteria described in point 1.2, to define the scope of resource use and management requires identifying:
· the activities characteristic for the field of resource use and resource management. These are activities whose main purpose is resource use or resource management. They are called characteristic activities. Their output consists of goods and services, referred to as characteristic products. Differently from the environmental protection characteristic activities (accounted for within the EPEA) a number of resource use and management characteristic activities generate goods that are then referred to as characteristics goods (this is the case of many resource use activities and some resource management activities like e.g. production of renewable energy, production of recycled raw materials, etc; see below the classification of activities).
· products, although not characteristic, whose use contributes to resource use and management. These are connected products and adapted goods.
· The overall grouping of characteristic products, adapted and connected products is designated by the term specific products.
· transfers (subsidies, investment grants, specific taxes, etc.) in favour of resource use and management. They are called specific transfers.
This forms the conceptual basis necessary from an accounting perspective to be able to answer the questions: what? who? and for what?, necessary to compile the aggregates for building up the RUMEA.
1.3.1. Characteristic activities[6]
Characteristic activities are activities whose main purpose is resource use or resource management.
To establish a list of characteristic activities, we can rely neither on the classification of activities of national accounts (even though certain activities defined in the Statistical Classification of Economic Activities in the European Communities, hereafter referred to as NACE Rev. 2, do constitute resource use and management activities), nor on existing functional classifications like the classification of functions of government (COFOG) or the classification of individual consumption by purpose. Therefore it is necessary to draw up such a list by defining activities.