Proposal of Household EconomyEnvironment Accounts by Household Type
13th AIM International Workshop @ NIES, Japan
Feb 16-18, 2008

National Institute for Environmental Studies
Yuko Kanamori

Backgrounds and Objective
・The household sector is an important component of any investigation of futureenvironmental impacts because households are an end consumer and lifestylechanges have a major influence on society.

・In the household sector, however, concrete approaches including technicalimprovements and construction of environment-friendly systems are not so
effective because there are few practical restrictions motivating households totake immediate action even when targets are formulated.

・Under such circumstances, it is essential to quantitatively understand the impacts
that lifestyle changes have on the environment in order to select more effective
environment-friendly actions.

・We propose household economy-environment accounts as a tool for analyzing
lifestyles.

・These accounts make it possible to evaluate the environmental impact oflifestyle changes.

Outline of household economyenvironment accounts• Country and sector
Japan - household sector• Main items
Time use, Balance of income and expenditures,Consumption expenditure, Environmental load
• Units
physical terms, monetary terms• Year：２０００

Household economy-environment
accounts
1．Income andoutlay accountIncomesCompensation of employees
Social benefits…
Expenditures
Consumption expenditures
Taxes
Social contributions…

5．Environmental load treatment table
Treatment inside household
Domestic compost Segregation

No treatment

Total

Environmental load generation
Reuse as recycled goods inside household
Domestic disposal
Illegal dumping
Disposal outside of household

2．Household production input table
Commodity Durable
goods Total
stock
1 2
3

Sales of usedgoods and scrap

Labor outsideof household

Input goods
Goods 1
Goods 2
Goods 3

(Monetary and physical terms)

Input services
Service 1
Service 2
Service 3
Recycled input goods inside household
Containers and packaging materials
TotalTime input(Monetary terms)(Physical terms)

Blank(Monetary and physical terms)(Minutes)

4．Environmental load generation table
EnergyWater
consumption consumption

3．Durable goods stock table
1
Stock goods 1
Stock goods 2
Stock goods 3

Commodity
2
3

4

Total

(Monetary and physical terms)

Amount of generation
CO2

Input goods
Goods 1
Goods 2
Goods 3
Recycled input goods inside household
Containers and packaging materials
Total(Physical terms)

Waste

Income and outlay accountHousehold economy-environment accounts system
Account group
Allocation of primary
income accountPayments
Property income
Primary income balance

Receipts
Operating surplus or mixed income
Compensation of employees
Property income
Secondary distribution of Current taxes on income and wealth Primary income balanceSocial contributions
Social contributions (excluding social transfers in kind)income account
Other current transfers
Other current transfers
Disposable income
Disposable income
Redistribution of income Adjusted disposable income
in kind accountSocial transfers in kind
Final consumption expenditure
Disposable income
Use of income
Savings
Variation in pension funds and reserves
account• The unit of the table is monetary terms.
• The composition of the income and outlay account conforms withthat in the household sector of the national accounts• The income and outlay account is divided into four groups.
• Each group achieves a balance by a “balance item”

Household production input table
Household economy-environment accounts system
Commodity Durable
goods Total
stock
1
2
3

Sales of usedgoods and scrap

Labor outsideof household

Input goods
Goods 1
Goods 2
Goods 3

(Monetary and physical terms)

Input services
Service 1
Service 2
Service 3
Recycled input goods inside household
Containers and packaging materials
TotalTime input(Monetary terms)(Physical terms)

Blank(Monetary and physical terms)(Minutes)

・The table includes sales of used goods and scrap,
as well as labor outside of the household, and shows
the relationships between the commodities andinputs of goods, services, and time.
・The units of the table are both monetary andphysical terms.

[Sales of used goods andscrap] using a negative value[Labor outside of household]
The input is basically timespent on labor outside of thehousehold.
[Recycled input goods insidehousehold ] Recycled input
goods in a household are new
input goods to produce
commodities.
[Containers and packaging
materials] The increase inutility represented bycontainers and wrappings
accompanying purchased
goods is considered to beirrelevant to the production ofcommodities .

Durable goods stock table
Household economy-environment accounts system
1
Stock goods 1
Stock goods 2
Stock goods 3

4

Total

(Monetary and physical terms)

This is not the amount of stock
goods purchased but the amount ofstock required to produce
commodities.
Both monetary and physical terms
are used as units.

Commodity
2
3

The amount of stock is calculated
from a stock goods-specific remaining
rate function (goods remaining rate
when x years have elapsed sincepurchase)Classification of commodities
Classification

Details

ExamplesClothing (CLO)

Commodities for wearing clothes

Purchase of cloth, cleaning

Food (FOO)

Commodities for having meals

Preparation of meals, purchase of food goods

Housing (HOU)

Commodities for good dwelling environment

Securing and maintenance of house, purchase of air
conditioner

Education (EDU)

Commodities for education

School expenses, time for lessons and commuting

Other housework andcare (OHC)

Commodites for housework and care not included
Time for housework and care
under clothing, food, and housing

Health and personalcare (HPC)

Commodities for maintaining sound life

Time for personal care, purchase of cosmetics

Recreation (REC)Commodities for enjoying recreation

Time for sports and trips, cost of a tour

Sleeping (SLE)Commodities for sleeping

Time for sleeping, purchase of bedding

Communication (COM) Commodities for communication

Time for telephone calls

Environmental load
treatment in household(ETH)

Commodities for environmental load treatment inPurchase of compost appliance, time for segregation
household

Other (OTH)

Commodities not included above

OthersClassification of goods andservices (87 items)
Radio and TV sets
Cereals
Repair costs for furniture and floor coverings
CamerasMeats
TowelsDomestic durables and air conditioners
Personal computers
Fish and shellfish
Dairy products and eggs
Repair costs for domestic durables
Recording media
Oils and fats
Tableware and kitchen utensils
Repair costs for TV sets and PCs
FruitsTools and materials for repairs and maintenance Musical instruments
Vegetables and seaweeds
Domestic nondurable goods
Repair costs for musical instruments
Cakes and candies
Domestic services
Toys
Other foods
Medicines and medical supplies
Sports outfits
Medical appliances
Tea, coffee, and cocoa
Services for pets and garden plants
Other beverages
Medical and dental treatment services
Recreational and sports services
Alcoholic beverages
Hospitalization services
Cultural services
TobaccoNursing services
Gambling services
Automobiles
Cloth and thread
Books
Motrcycles
Clothing
Newspapers and magazines
Bicycles and other vehicles
smallclothes
Other reading
Services related to clothing
Automotive parts
Stationery
Footwear
Gasoline
Package tours
Repair costs for footwear
Automotive maintenance and repairs
Education
Rents for dwelling and land
Other automotive services
Eating-out services
Water and sewerage charges Rail passenger services
Hotel charges
Waste treatment
Bus and taxi services
Personal care services
Electricity
Flight passenger services
Goods and appliances for personal care
Gas
Water transportation services
Jewelry and watches
Liquid fuels
Other transportation services
Other personal effects
Solid fuels
Mail services
Life insurance
Thermal energy
Domestic telephone services
Non-life insurance
Furniture and decorations
International telephone services
Financing services
Floor coverings
Other communication services
Other services* Stock goods are indicated by boldface.

Environmental load generation table
Household economy-environment accounts system
Energy consumption

Water

Amount of generation

Energy 1 Energy 2 Use Consumption CO2 Waste 1 Waste 2
Input goods
Goods 1
Goods 2
Goods 3
Recycled input goods inside household
Containers and packaging materials
Total(Physical terms)

・The amount of environmental load generated after goods are
consumed is recorded in specific physical terms in this table.
・The targeted environmental loads include energy consumption, water
consumption, air pollutants, water pollutants, household waste, bulky
garbage, house construction waste, etc.
・The effect of stock in a household is to delay the generation of anenvironmental load from the stock goods.

Environmental load treatment table
Household economy-environment accounts system
Treatment inside household
Domestic compost Segregation

No treatment

Total

Environmental load generation
Reuse as recycled goods inside household
Domestic disposal
Illegal dumping
Disposal outside of household

・The environmental load treatment table presents the relationship between the amount ofenvironmental load generated and the treatment method used.
・From the viewpoint of the relationships between households and the environment, it ispossible to choose
whether or not the environmental load is treated inside the household
either of two possibilities (domestic compost and segregation) when treatment takes place
inside the household
・Final disposal methods

1) Reuse as recycled goods inside the household
2) Domestic disposal
3) Illegal dumping outside of the household4) Disposal outside of the household

Outline of estimation• We estimated the household economyenvironment accounts for 2000.
• An environmental load treatment table was notprepared for this estimation. This was not
because such a table was considered to be
unimportant, but because of the lack of relevant
information. It is necessary to complete this task
at the earliest possible opportunity.
• In consideration of the various types ofhouseholds, the accounts were prepared byfamily composition and by age group of thehousehold head.

Household Type• Households by family composition- Single-person household(HT1)- Married couple or married couple and- Unmarried children(HT2)- One parent and unmarried children(HT3)- others(HT4)• Households by age group of the household head
- Household head aged 65 years or more(HT5)- Household head aged 64 years or less(HT6)

Preparation ofincome and outlay account• We estimated incomes and outlays in 2000
according to household type, based on the
results of Hamada (2003) for 1999.
（K., Hamada: Estimation of the household sub-sector
accounts of SNA, Economic Analysis, No.167，2003）
IE i , j ,99 = iei , j ,99 ⋅ HN j ,99

IE i , j ,99 ：income and outlay i by household type j in 1999

IE i ,99 = ∑ IE i , j ,99

IE i ,99jri = IE i , 00 IE i ,99

IE i , j , 00 = IE i , j ,99 ⋅ ri

：income and outlay i in 1999

ie i , j ,99 ：income and outlay i by household type j perhousehold in 1999 (data from Hamada (2003))

HN j ,99 : number of households by household type j in

ri

1999
: ratio of income and outlay i in 2000 to that in1999

Preparation ofhousehold production input table
・Data：the family income andexpenditure survey, the national
survey of family income andexpenditure
・The “family income and expenditure
survey method” was applied for
calculation of the distribution.
・After preparing the consumption
expenditure data in monetary terms,
the amount of goods purchased inphysical terms was estimated.
Corrected consumption
expenditure in Japan
Comparison
Consumption expenditurein national accounts

Consumption expenditure
per household by household type
Survey precision error correction
Size of household correction
Corrected consumption expenditure
per household by household type
Number of households
Corrected consumption expenditurein Japan by household typeComparison coefficient
Final consumption expenditureby household type

How do goods correspond commodities?
• The majority of these goods and services
correspond to one commodity.
• However, some of the energy, water services,and transportation classifications correspond totwo or more commodities.
→ these goods and services are like intermediate
inputs.
Ex) Rail passenger services are used for
shopping or making a trip.
• Consumption expenditure was distributed toeach commodity according to final purpose.

Data on amount of stock goods• The amount of stock goods is estimatedfrom the amount of goods purchased.
S k ,t = ∑ X k ,t − x ⋅ f k ( x )x

S k ,t：amount of stock of goods k in year t

X k ,t − x ：amount of goods k purchased in year (t-x)
f k (x )：remaining rate function of goods k after x
years since purchase・A specific remaining rate function
was determined as follows foreach of the stock goods otherthan the housing stock.

Estimation of amount ofenvironmental load
• The amount of environmental load generated ineach year is the total of the amounts generated
from the flow goods and the stock goods.
• The amount of environmental load from flow
goods is estimated from the amount ofpurchased flow goods in the same year.
• The amount of environmental load from stock
goods is estimated from the amounts ofpurchased stock goods in past years andremaining rate function to consider time lag
between purchase and disposal.

Income and outlay accountResult 1

By age group of household head
Payments

Account group

Receipts
Average

HT5

HT6

Average

HT5

HT6

Allocation of primary

Property income

331

154

372

Operating surplus or mixed income

1631

1830

1500

income accountPrimary income balance

6942

3545

7796

Compensation of employees

5246

1117

6398

Property income

399

665

303

Primary income balance

6942

3545

7796

Social security benefits and social
assistance benefits in cash

953

2561

438

Gross disposable income

6366

5284

6530

Social transfers in kind

799

905

740

Gross disposable income

6366

5284

6530

Secondary distribution of Current taxes on income
income account

547

329

596

Compulsory actual social contributions

934

311

1107

Other current transfers

366

297

380

Gross disposable income

6366

5284

6530

7177

6186

7284

Redistribution of income Adjusted disposable income
in kind accountUse of income

Final consumption expenditure

5521

4912

5555

account

Savings

859

408

981

3

Unit: 10 yen

・The income from compensation of employees is large in HT6, while the income
from social security benefits and social assistance benefits in cash is large in HT5.
・With the aging of society, there is a possibility of major changes taking place in thesocial security system in the future. The balances in such a case can be consideredin this table.

Household production input table Result 2
Part of the household production input table per household (monetary terms, 2000)
CLO

FOO

HOU

EDU

OHC

HPC

REC

HT1

275042903320814995

21637

15265

197125381560HT24841811649792

159679221638457188

488963562554

HT33951891179257

121904011669949355

409573352450HT458769821725962338068

29440470333

601482591680HT539693613038071475980

89631

44994

444054412184

HT6

447661

1539251

1452719

19243345732

411871528582

SLE

COM

OTH

Labor

HT1

11494

215841

328692

HT2

32051

274539

HT3

20814

HT4

Unit: yen

159634

Capitalstock
2455483570153

6750632777925557946871093213067589005160264281374498608641159

3146698792912938276244628809670

HT5

28453

2057005360421665113256195429912

HT6

26272

2762296103662647525003806296249

Unit: yen

Total

・Differences in how consumption
expenditure is distributed among
commodities can be examinedaccording to the householdclassification.
・Expenditure on education isextremely small while
expenditures on recreation andcommunication are high in HT1.
This is because HT1 mainly
consists of single young people
and senior citizens who do nothave a family to feed.

Durable goods stock table

Result3

Per household
By family composition
HT1

HT2

HT3

By age group of household head
HT4

HT5

HT6

Average

1.00

3.06

2.41

4.67

2.43

2.74

2.67

Household appliances for housework

46

189

138

232

144

154

152

HVAC equipment

49

145

117

171

132

117

120

Equipment for recreation

54

93

45

106

47

91

81

Automobiles
Unit: kg/household

499

1909

851

2478

652

1789

1518

Size of household

Per person
By family composition
HT1

HT2

HT3

By age group of household head
HT4

HT5

HT6

AverageHousehold appliances for housework

46

62

57

50

59

56

57

HVAC equipment

49

48

48

37

54

43

45

Equipment for recreation

54

31

19

23

19

33

30

Automobiles
Unit: kg/person

499

624

353

531

268

653

569

・The larger the household size is, the smaller amount of durable goods stock per person is.
・The stock of household appliances for housework is smaller than the national average in HT1.
→Rather than doing housework themselves, people in this group tend to rely on housework services,andthe rate of households that do not possess such appliances is large.

Environmental load generation Result4
Per person / Household garbage

Paper (disposal)
Paper (other)
Plastic
TextilesRubber
Leather
Glass
Metal
PlantsWood
Pottery
Kitchen garbage
Other
Bulky waste
Transportation equipment
Unit: kg/person

HT1
21.0
2.4
5.2
18.5
2.5
1.5
0.5
4.7
5.0
2.7
1.2
127.7
18.3
40.7
62.3

By family composition
HT2
HT3
21.5
22.5
1.0
1.1
4.1
4.2
13.3
12.7
1.6
1.6
0.9
0.8
0.6
0.5
4.6
5.0
3.0
2.7
3.1
3.4
1.4
1.4
105.8
99.5
7.7
7.6
28.8
25.5
65.5
21.2

HT4
17.4
0.7
3.1
10.3
1.2
0.7
0.4
3.6
2.2
2.4
1.1
97.2
6.0
22.7
49.8

By age group of household head
HT5
HT6
20.8
20.5
1.1
1.1
4.2
3.9
13.4
13.0
1.3
1.7
1.1
0.9
0.5
0.5
4.6
4.3
2.7
3.0
2.9
2.9
1.3
1.3
124.7
100.2
6.8
8.8
30.4
27.7
26.2
67.1

Average
20.5
1.1
4.0
13.1
1.6
0.9
0.5
4.4
3.0
2.9
1.3
105.5
8.4
28.3
58.2

・The environmental load generated per person in HT1 is large while that in other household types issmall.
・Household garbage may continue to increase despite the population reduction if lifestyle patterns
related to purchasing, consumption, and disposal of goods continue, particularly with a conspicuous
increase in HT1 households.

Final remarks• I developed household economy-environment accounts
for Japan and have proposed a framework for theaccounts and made estimates for Japan in 2000 using
the presently available data.
• I believe that the most important application for theseaccounts is as a tool to propose eco-friendly lifestyles.
For the further advancement of this work, the following
tasks lie ahead:(1) Compilation of a complete set of accounts
including parts that have not yet been prepared.
(2) Remake of these tables using more available data
(3) Estimation of the impact of social changes on theenvironment in the medium or long term.