Improving data quality, applicability and transparency of national water accounts – A case study for Finland

Abstract

This paper introduces a novel procedure for the compilation of highly disaggregated water accounts by using Finland as a case example. The procedure is based on combining the use of existing standard economic statistics and other registers and databases with a dataset on water supply and use collected in the present study. As an outcome, water supply and use accounts are presented for 195 industries in the Finnish economy in 2010. The water accounts presented are based primarily on actual water supply and use rates and distinguish between various raw water sources and uses: groundwater, fresh surface, brackish water self-abstracted for own use, and mains-water supply and use. Separate accounts for cooling water are presented. The paper covers flow accounts from the environment to the economy and within the economy excluding all return flows. Data coverage issues and potential sources of error are reported in detail and discussed together with the applicability of the procedure in other countries. Implications for the System of Economic-Environmental Accounting for Water (SEEA-Water) framework are assessed.

Arctic Freshwater Natural Capital in the Nordic Countries

“…Finland is a country with abundant freshwater resources. According to the most recent national water accounting, the volume of abstracted groundwater and fresh surface water are 0.3 and 2.7 billion cubic meters annually, respectively, where artificial recharge is included in the figure for groundwater (Salminen et al 2018). Surface freshwater abstraction makes up 1.4% of the estimated total asset i.e.…”

“…These industries -freshwater aquaculture, mining, manufacturing of pulp and paper, manufacturing of basic iron, steel and ferro-alloys, manufacturing of motor vehicles, tourism (accommodation and skiing centres) -are particularly well represented in this area in comparison with the national economy and together they also make a significant contribution to the regions' economy ( Figure 5). Overall, the majority of the industries that are strong in Lapland compared to their national total output value are highly water intensive (Salminen et al 2018). Subsequently, this may also entail significant pressures on water quality in the region, both directly and indirectly.…”

“…According to our interview with an official in Statistics Finland, water accounting has been studied and piloted in Finland since the beginning of 2000s. A comprehensive study is being conducted on water flow accounts for the year 2010, including detailed data on water use (Salminen et al 2018) and data on water emissions (forthcoming). The Finnish Environment Institute (SYKE) is currently responsible for providing information about the status of the country's freshwater capital.…”

“…Water accounting is a tool to connect water resources, their use and pollution to various economic activities. In this report, the recent case study for Finland (Salminen et al 2018) elaborated in the CAPITAL project is used as an example to demonstrate how water accounts can be compiled and how the data therein can be further applied to answer multiple questions related to the interaction between water and the economy. In water accounting, the flows of water from the environment to the economy, within the economy, and back to the environment are documented.…”

“…Water flow accounts from the environment to the economy and within the economy were recently compiled for the first time for Finland. These accounts document annual water abstraction rates from the environment and mains (drinking) water use rates to the 195 industries in the Finnish economy (Salminen et al 2018). The data distinguishes groundwater, fresh surface water, brackish water, and mains water and separates cooling water use from other uses.…”