trends and future of sustainable development - TransEco

In FIN-MFA accounting system domestic flow accounts are divided by sectors and they contain boththe direct as well as hidden flows. Domestic hidden flows are either compiled from existing statistics(e.g. mining) or produced by using relevant multipliers (earth materials, forest and forest by-products,agriculture). By volume these domestic flows are by the far the most important part of FIN-MFA. Themost work however, has been done in collecting material flows of external trade. As Finland is typicallydepended on large-scale external trade, especially on exporting natural resource intensive commodities,are these accounts important part of FIN-MFA workbook. Imported and exported hidden flows aresolely produced by using relevant multipliers. In FIN-MFA accounting system the economy-wide MFAmain aggregates are calculated automatically by using the above mentioned different material flows.These indicators describe different environmental impacts and they are needed in the subsequent MFAanalysis and for policy making.3. Economy-wide MFA aggregate indicatorsMFA aggregate indicators can be used as proxies of environmental effects of economic activities orhuman-caused environmental burden. However, material flow indicators do not directly tell about theactual environmental impacts that are caused to earth. As MFA-approach does not classify theharmfulness of specific material flows, they can not the scope of the wide variety of environmentaleffects caused by different material flows. Thus, small material flows that have large environmentaleffects can easily be neglected in these weight-based indicators. The focus on reduction of aggregatedresource use is thus necessary, but not sufficient, precondition for achieving environmentalsustainability. (Giljum et al. 2006.)Economy-wide MFA indicators indicate the overall the metabolic performance of national economiesthey sum all materials required by an economy in metric tonnes. They developments of certainimportant trends related to economic activities and the environment. Direct Material Input (DMI),which is the aggregated measure of the natural resource commodities that enter an industrial economyfor further processing. The DMI includes all materials used for production; the natural resources neededfor energy production, auxiliary material production, infrastructures, transportation, factories, etc., in aproduct line. From environmental policy point of view DMI represents the proxy of potentialenvironmental pressures caused the welfare creation processes of a society. Direct MaterialConsumption (DMC) accounts for all materials used up by a country. Thus, in calculation of DMCexports subtracted from DMI indicator. DMC is most comparable MFA indicator to GDP. Fromenvironmental perspective DMC can be regarded as a proxy of potential environmental pressuresassociated to the disposal of residual materials to the domestic environment.Total Material Requirement (TMR) counts all material inputs required by a national economy.Beside direct flows TMR also includes the hidden or indirect material flows (or ecological rucksacks ofdirect flows). These hidden flows (HF) are material flows or relocations of materials which are caused bythe utilisation of Direct Material Inputs but which never enter the economy. (Hinterberger et al 1997, 10;Adriaanse et al. 1997, 7-8). Thus TMR measures the total use of natural resources that a nationaleconomic activity requires. From economic perspective TMR is a measure of the physical basis of theeconomy, or the total primary resource requirements of all production activities of a national economy.TMR is a proxy for potential environmental pressures caused by resource extractions. Total Material79