the istat classification of resource use and management activities and expenditure (cruma) reference...

The Istat Classification of Resource Use and Management Activities and expenditure (CRUMA)reference document: C. Ardi – F. Falcitelli “The Classification of Resource Use and Management Activities and expenditure – CRUMA”, Istat, Rome, 2 August 2007 http://circa.europa.eu/Public/irc/dsis/envirmeet/library?l=/environment_02102007&vm=detailed&sb=Title

Task Force on Environmental sector – standard tables and compilation guide of the Working Group "Environmental Expenditure Statistics"

Federico FalcitelliHead, Economic accounts for the environment

Eurostat, 2 October 2007, Luxembourg

http://circa.europa.eu/Public/irc/dsis/envirmeet/library?l=/environment_02102007&vm=detailed&sb=Title


Summary

• CRUMA Why has been developed How has been developed

Reference points Rationale

Content What it includes What it excludes

CRUMA versus other classification criteria

The Istat Classification of Resource Use and

Management Activities and expenditure

(CRUMA)


Why

• for the natural resource management field there is no an international agreed accounting system and classification, while for the environmental protection field EPEA and CEPA exist

• the attempts made so far (e.g. OECD/Eurostat 1999, SEEA2003) in order to fill this gap have led to heterogeneous solutions: CEPA for the environmental protection domain and classifications based on different structure and principles for the resource management domain

• in Italy there is a great demand of information on environmental expenditure concerning both domains (environmental protection and resource management) especially from Central and Local Government



(CRUMA)


How, Reference points (1/3)

• Main reference points… SERIEE 1994, Ch. X SEEA 2003, Ch. 5 OECD/Eurostat 1999 manual on

environmental industries

• … for Defining the scope of the natural

resource management sector in terms of: Definition of natural resources Identification of the kinds of resource

management activities



(CRUMA)


How, Reference points (2/3), Scope

• Natural resources (SERIEE 1994 §§ 10043-10045) According to the generally accepted definition, natural assets correspond to non-

produced assets: water (marine and inland), air, land (soil, ecosystems, etc.), wild flora and fauna, sub-soil assets, as well as living assets produced by human activities (livestock, plants).

Restrictions: 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.).

• Management activities (SERIEE §§ 10046-10048) For the purpose of the account, management activities designate:

research for new resources, withdrawals from existing resources, activities aimed at reducing withdrawals (recovery, recycling, policies for saving

or substitutes resources), development and regulatory activities for certain resources (e.g. inland waters).

Activities which consist in the transformation of natural resources, i.e. corresponding to their use as input for the production of another product are not described in the account; however activities aimed at lowering their consumption, whether directly or indirectly are considered.

Defining the scope



(CRUMA)


How, Reference points (3/3), List of Natural resources and Kinds of activities

• SERIEE 1994

• SEEA 2003



(CRUMA)


How, Rationale (1/3), Consistency with CEPA

• To set up a classification fully consistent with CEPA in terms of: Classification principles:

main purpose criterion and the technical nature of the activity

The twofold classification criteria of the activities:

by environmental domain and by kind of activity

The method for building the classification: first: to set up a classification matrix, i.e. a [type

of activity] by [environmental domain] matrix second: to fill in the matrix



(CRUMA)


How, Rationale (2/3), CEPA2000 classification matrix: [type of activity] by [environmental domain]

Environmental domain: type of environmental media or pollution-nuisance-degradation

Type of activity Air pollution

(and related climatic risks)

Surface water

pollution

Waste Soil and ground water

pollution, erosion and

other physical

degradation of soil

Noise and

vibration

Degradation of

biodiversity and

landscape

Radiation

Pollution/degradation prevention activities

Pollution/degradation reduction activities

- reduction of emissions and discharges

- reduction of pollution levels and degradation of environmental media

Measurement and control activities

Research and development activities

Teaching and training activities

Administrative activities



(CRUMA)


How, Rationale (3/3), CRUMA classification matrix: [type of activity] by [natural resource



(CRUMA)

Natural resources

Type of activity Inland waters

Natural forest

resources

Wild flora and fauna

Fossil energy

Raw materials

Reduction of the intake of natural resources through preventive in-process modifications

Use of alternative resources

Reduction of losses, leaks and scraps

Reduction of the intake of natural resources indirectly through the reduction of the consumption of natural resource-related products (energy savings, water savings, etc.)

Reuse, recycling

Increase/recharge of natural resource stocks

Direct management of natural resource stocks (mobilization/exploitation, exploration, extraction, treatment, distribution, etc.)

Measurement and control activities

Research and development activities

Teaching and training activities

Administrative activities


Content, What it includes, CRUMA list 1/2

10 Use and management of inland waters10.1 Reduction of the intake 10.2 Reduction of water losses and leaks, water

reuse and savings10.3 Replenishment of water stocks10.4 Direct management of water stocks10.5 Measurement, control, laboratories and the like10.6 Other activities

11 Use and management of natural forest resources

11.1 Reduction of the intake11.2 Reduction of the consumption of forest (wood

and non wood)-related products 11.3 Reforestation and afforestation11.4 Forest fires11.5 Direct management of forest areas (as a

resource and not as a habitat)11.6 Measurement, control, laboratories and the like11.7 Other activities

12 Use and management of wild flora and fauna12.1 Reduction of the intake12.2 Replenishment of wild flora and fauna stocks12.3 Direct management of wild flora and fauna stocks12.4 Measurement, control, laboratories and the like12.5 Other activities

13 Use and management of fossil energy13.1 Reduction of the intake13.2 Reduction of heat and energy losses, and energy

savings13.3 Direct management of the stocks of non-

renewable energy sources13.4 Measurement, control, laboratories and the like13.5 Other activities



(CRUMA)


Content, What it includes, CRUMA list 2/2

14 Use and management of raw materials 14.1 Reduction of the intake14.2 Reduction of raw materials use through the

reduction of scraps and the production and consumption of recycled materials and products

14.3 Direct management of raw material stocks 14.4 Measurement, control, laboratories and the like14.5 Other activities

15 Research and development activities for natural resource use and management

15.1 Inland waters15.2 Natural forest resources15.3 Wild flora and fauna15.4 Fossil energy15.5 Raw materials15.6 Other R&D activities for natural resource use

and management

16. Other natural resource use and management activities

16.1 General administration of natural resources16.1.1 General administration, regulation and

the like16.1.2 Environmental management16.2 Education, training and information16.3 Activities leading to indivisible expenditure16.4 Activities not elsewhere classified

Remarks on 16.1 and 16.2 categories:

If the general administration activities and general education, training and information activities concern both environmental protection and use and management of natural resources, they should be broken down between positions 16.1 and 16.2 and the corresponding CEPA categories ( CEPA 9.1 and 9.2). If this is impossible, they should be classified alternatively in CRUMA categories or in the CEPA ones according to the “main purpose” criterion; if this is impossible as well, they should be classified within the corresponding CEPA categories ( CEPA 9.1 and 9.2)



(CRUMA)


Content, What it excludes



(CRUMA)

Natural Hazards(list from SEEA2003, 5.60)

CEPA CRUMA

Forest fires Yes, Class 6 Yes, Class 11

Floods no Yes, Class 10

Avalanches no no

Landslides Yes, Class 4 no

Storms no no

Droughts no no

Earthquakes no no

Volcanic eruptions no no

CRUMA and CEPA exclude Natural risk management activities, with a few exceptions


CRUMA versus other classification criteria (1/2)The Istat Classification of

Resource Use and Management Activities

and expenditure (CRUMA)

Sustainable economic activities(list from OECD/Eurostat 1999)

CEPA CRUMA

Sustainable agriculture Yes, Classes 4, 6 Yes, Class 10

Sustainable fisheries no Yes, Class 12

Sustainable forestry Yes, Classes 4, 6 Yes, Class 11

Sustainable transport Yes, Classes 1, 5 Yes Class 13

Eco-tourism Yes, Several classes (1, 2, 3, 6, 9, …)

Yes, Several classes (10, 13, 16, …)

Env. activities classified by economic activity

Env. activities classified by env. domain or nat. res.

To classify env. activities by env. domain (CEPA) or natural res. (CRUMA) does not always allow at the same time to classify env. activities by economic activity possible solution: extra-codes / flags


CRUMA versus other classification criteria (2/2)

To classify env. activities by env. domain (CEPA) or natural res. (CRUMA) does not allow at the same time to group all together the activities related to the production of renewable energy, because these activities can be carried out for different purposes (reduction of air pollution versus savings of fossil energy sources) and in different ways (e.g. by using and managing another natural resource like water) possible solution: to add 3-digits categories “of which production of energy from renewable sources” within CEPA 1.1 and CRUMA 10.4, 13.1

CEPA CRUMA

Production of energy from renewable sources

Yes, Category 1.1 Yes, Categories 10.4, 13.1



(CRUMA)

the istat classification of resource use and management activities and expenditure (cruma) reference...

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