A SYSTEM of accounting to determine the value of natural resources helps countries arrive at sound investment decisions and aids in determining liability in the event of environmental damage, a natural resource economics pro-fessor said at an Asian Development Bank forum.
鈥淭he measurement of ecosystem services values will support investment decisions, improve decision-making, and enhance well-being,鈥 Vic Adamowicz, Vice-Dean of Agricultural, Life and Environmental Science at the University of Al-berta, told the forum.
Natural capital accounting refers to a system of measuring the stocks and flows of environmental assets and natural resources.
Mr. Adamowicz noted that people often make labor decisions based on health or air quality conditions. 鈥淚n a lot of cases, it informs regulatory analysis. If we have a particular regulation that we鈥檙e trying to put in place for pollu-tion control or for some other transportation decision, maybe the environment needs to play a role.鈥
He also said that natural capital accounting could serve as a basis for penalizing individuals or groups liable for environmental damage.
鈥淚t鈥檚 actually a signal to entities of various kinds that if you do harm to the environment, there could be a penalty鈥 fines and penalties can be determined through environmental valuation if there鈥檚 damage to the environment,鈥 he said.
Philippine Statistics Authority (PSA) Chief Statistical Specialist Virginia M. Bathan cited the need to pass a law that would establish a natural capital accounting framework.
The proposed Philippine Ecosystem and Natural Capital Accounting System Act is currently awaiting President Ferdinand R. Marcos, Jr.鈥檚 signature.
Rory Jay S. Dacumos, assistant director of the National Economic and Development Authority鈥檚 agriculture, natural resources, and environment division, said the Philippines has 鈥渦ndervalued ecosystem services and natu-ral capital.鈥
鈥淎 case in point is in the way we compute for the economic cost-benefit analysis of big-ticket projects like infrastructure projects. Typically, the environment aspect is treated just as an externality,鈥 he told the forum.
He cited last year鈥檚 oil spill in Oriental Mindoro, where the company responsible only paid for the cleanup and livelihood assistance, but not for the damage done to the ecosystem.
Natural capital accounting could also help vulnerable countries like the Philippines in the adaption and mitigation of climate shocks, Mr. Adamowicz said on the sidelines of the forum.
鈥淪ome of that will be designing new projects that protect from storms, coastal tidal impacts鈥 natural capital accounting can help there.鈥 鈥 Beatriz Marie D. Cruz
