Rising population and industrial growth strain a variety of material and energy
resources and the global environment. Understanding how to make the most economically
and environmentally efficient use of materials requires an understanding of
the flow of materials from the time a material is extracted, through processing,
manufacturing and use, to its ultimate destination as waste or a reusable resource.
It also requires knowledge of the environmental and societal impacts of the
flows.
So-called material-flows data have informed national security, industrial and
public policy decision-makers for decades. The United States currently imports
more than half its use of dozens of commodities; many of the materials are strategic
for economic growth and the security of the nation, and often the primary sources
of the materials are in regions of political instability. The most obvious example
is the U.S. dependence on foreign oil.
While the need to collect material-flows information to support national security
decisions may be self- evident, other uses of such information are also important.
Analyses of material-flows data have led to surprising and counterintuitive
insights into, for example, environmental pollutants. One such material-flows
study identified dental facilities, not heavy industry, as the largest source
of mercury releases into New York Harbor. Another study revealed that the widespread
use of pressure-treated lumber over the past 30 years has created large stocks
of arsenic in building materials that are now nearing the end of their useful
life.
Read the National Research Council report, Materials Count: The Case for Material Flows Analysis, online at www.nap.edu. |
Recognizing these past successes, the Department of Energy (DOE), Environmental
Protection Agency (EPA), National Science Foundation, and U.S. Geological Survey
(USGS) commissioned the National Research Council (NRC) to establish a committee
to study material-flows accounting and issues, for which I served as chair.
The committees recently published report, Materials
Count: The Case for Material Flows Analysis, presents several recommendations
and underscores the importance of material-flows accounting.
Organized material-flows accounts are in some senses similar to financial accounts
a routine part of the business of corporations, governments and organizations
of all kinds. Financial accounts include such information as the balance between
revenue and expenses, cash flow, reserves and competitive financial position.
National and international agreements define the terms used in financial reports,
the procedures for reporting, provisions for auditing and so forth. Decision-makers
rely on this information so heavily that our modern world is essentially unthinkable
without it. As with financial accounts, material-flows accounts include inputs,
outputs, and accumulations in stocks, and could, if implemented, become critical
for planning and decision-making.
However, the NRC committee concluded that although material-flows data have
proven useful to both U.S. government agencies and private organizations, such
data need a consistent framework, with a standardized structure and specific
principles, in order to efficiently collect, analyze and distribute the information
routinely, and to link other data at various levels. Only with such a framework,
which can accept and integrate existing and future data, can material-flows
accounts improve public policy making.
And while some good sources of data provide information relevant to material-flows,
the sources are not yet adequate to populate formal material-flows accounts,
the committee concluded. These inadequacies impede the development of sound
public policy and business decisions. While not suggesting an expansive new
data collection program, the committee recommended that a national-level effort
be initiated to identify and fill significant data gaps that presently impede
the development of effective material-flows accounts.
The development of material-flows accounts will raise important issues concerning
the scope of the accounts, the data in them, and the tools and analytical approaches
to studying stocks and flows. And many potential areas of utility have yet to
be fully explored. The committee concluded that a comprehensive material-flows
accounting program requires a research component that explores new approaches
to studying stocks and flows that vary over space and time, and that studies
the complexities and benefits of cycles linked by nature, by technology, or
by a combination of the two. Relevant government agencies should support such
research.
Also essential to developing structured material-flows accounts is that the
present level of data collection and analysis be maintained. Thus, the committee
recommended that the present material-flows data activities of the federal government,
including those in USGS, EPA, and the departments of Commerce and Agriculture,
be maintained at least at their current levels of activity.
It is crucial that material-flows accounting activities be highly participatory
and collaborative among parties with appropriate expertise, relevant process
knowledge and familiarity with the appropriate datasets. A partnership approach
is critical to developing and maintaining such accounts. The committee recommended
the system be designed to allow for the inclusion of proprietary data, while
protecting business confidentiality.
Having examined several options, the committee also concluded that an independent
organization is most likely to ensure success of material-flows accounting in
the United States. The partnership process will be stronger if the organization
is separate from existing data providers. Accordingly, the committee recommended
a formal process to create andfund an independent organization similar to the
Energy Information Administration at DOE, composed of interdisciplinary experts.
The conclusions and recommendations of the committee will help in the establishment
of material-flows accounts. That, in turn, will improve public policy-making.
Ultimately, material-flows analyses will couple with other economic, quality
of life and environmental information to lead to the type of holistic public
policy-making that a progressively more complex society demands.
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