Integrated Environmental And Economic Accounting Of Petroleum Development In The Yellow River Delta

United Nations Statistics Division (UNSD) proposed The System ofEnvironmental and Economic Accounting (SEEA) in1993that was regarded as themost level of environmental and economic accounting all over the world. Besides, theimproved version of this handbook was also proposed by UNSD in2003, whichprovided many countries and regions with thoughts and framework of environmentaland economic accounting. In this paper, taking petroleum resources development inthe Yellow River Delta as an example, we designed integrated environmental andeconomic framework and account based on theories of SEEA. According to thisframework and integrated account, each sub-account was compiled and established.Finally, integrated account was obtained from each sub-account and then we analyzedintegrated account and made conclusions as follows:(1) Domestic and oversea development situation of environmental and economicaccounting, the framework and establishment steps of SEEA are all explained indetails. Also, the study region, the Yellow River Delta, is introduced specifically,which is involved with physical geography, social economy and situation ofpetroleum resources development. Petroleum resources development in the YellowRiver Delta is an important economic activity in the coastal region of Shandongprovince, which mostly depends on Shengli petroleum field. It is also a drive forcebehind economic development in this region. Recently, petroleum exploitationamount is reaching more than26million ton per year, and increasing by0.98%averagely. Hence, huge exploitation amount drives added value to keep about5%ingrowth rate from2003to2008. In particular, added value in petroleum industry from2003to2008all accounted for around50%of regional GDP. However, these caseswould not take environmental cost caused by petroleum resources depletion intoconsideration, which cannot reveal real economic situation.(2) Taking petroleum resources development in the Yellow River Delta as a case study, we compiled supply and use table based on input-output table, account ofactual expenditure of environmental protect, petroleum resources accounts includingphysical and monetary and pollutants emission accounts including physical andmonetary. Then integrated account is compiled when all the information are collectedin accounts above.(3) Petroleum resources development (including petroleum exploitation industryand petroleum refining industry) plays an important role in the Yellow River Delta.Nonetheless, petroleum value depletion and environmental degradation caused byprocess of petroleum development would not be conducted in System of NationalAccounting (SNA). Specifically, value depletion of exploitation estimated by usercost approach are15.40billion yuan,11.13billion yuan,12.16billion yuan,10.49billion yuan,10.60billion yuan,8.30billion yuan from2003to2008, respectively.Environmental degradation are98.14million yuan,98.31million yuan,92.00millionyuan,57.85million yuan,53.93million yuan,33.64million yuan during the sameperiod, respectively.(4) Environmentally-adjusted added value account for80%of non-adjustedamount averagely from2003to2008, and loss percentages of industry and GDPcaused by environmental cost tended to decline during the same period, from32.2%to5.8%and18.7%to4.7%, respectively. Green GDP and industry economy aredefinitely lower than previous economic situation, which has presented real economicchanges. Besides, decreasing loss percentage also has revealed stronger sustainabilityin economic growth.(5) Finally, on the basis of results and conclusions above, specific and directedsuggestions are proposed so that environment of petroleum resources development inthe Yellow River Delta and economy could be developed coherently: levyingecological compensation tax, strengthening investment in environment protection,improving accounting system of environmental management and developing circulareconomy of petroleum industries.