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Material flow accounts (env_ac_mfa)

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National Reference Metadata in Single Integrated Metadata Structure (SIMS)

Compiling agency: INE - Statistics Portugal

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The Material Flow Account (MFA) shows the physical inputs of materials entering the national economic system and the results for other economies or the natural environment in physical units (tons). This account enables the collection of aggregate indicators of natural resource use, from which resource productivity (eco-efficiency) indicators relative to GDP and other economic and employment indicators, as well as indicators of material lifestyle, considering population size and other demographic indicators.

The material flow account provides data on national extraction and import and export of materials.

9 January 2025

Conceptually economy-wide material flow accounts (EW-MFA) belong to the international system of environmental economic accounting (SEEA-Central Framework). Furthermore, EW-MFA is one of several physical modules of Eurostat's programme on European environmental economic accounts. It is covered by Regulation (EU) No. 691/2011 on European environmental economic accounts.

EW-MFA are closely related to concepts and definitions of national accounts. Most notably they follow the residence principle, i.e. they record material flows related to resident unit's activities, regardless where those occur geographically.

Further methodological guidelines are provided in various publications by Eurostat (see Eurostat website > Environment > Methodology, heading: 'Material flows and resource productivity').

Concepts

- Unused Domestic Extraction

Unused domestic extraction consists of materials extracted or removed within the territory of a country due to technical requirements that are not suitable or not intended for any use. For example: Soil and rocks excavated during construction, dredged sediment in ports, debris from mines and quarries (if not reused), and unused harvest biomass. Eroded farmland does not move on purpose, but may be included as an optional information item.

- Domestic Extraction (used)

Domestic extraction includes the annual amount of solid, liquid and gaseous materials (excluding air and water) extracted from the natural environment to be used as inputs in the economy.

- Material flows

Material flows reflect the physical inputs of materials entering the national economic system and the results for other economies or the natural environment. Flows come in physical units (tons) and describe the extraction, transformation, consumption and final disposal of chemical elements, raw materials or products.

- Import and export of materials

Physical imports and exports comprise all imported or exported goods, in units of mass. Exchanged goods include goods at all stages of processing, from basic products to finished products.

- Direct Material Inputs (Used)

They are defined as all solid, liquid and gaseous materials (excluding water and air) that enter the economy for later use in production or consumption processes. The two main categories are raw materials extracted in the country and imports. The sum of these two categories is one of the indicators derived from the accounts, the Direct Materials Input (DMI). The export deduction of this indicator is obtained in the domestic material consumption.

- Outputs to the environment

Material flows that enter nature during and after production or consumption processes. Such outlets include emissions to air or water, waste disposal, as well as materials that cause diffuse contamination (eg fertilizers or defrosting substances). Products also include dumping of unused national extraction.

- Local economic activity unit

The local economic activity unit is understood as the part of a company that carries out a particular activity in a specific geographic location.

- Institutional Unit

An elementary center of economic decision, characterized by a uniformity of behavior and autonomy of decision in the exercise of its main function and grouped in institutional sectors. They can be, for example, a home, a company or a unit of general government.

In the case of satellite accounts, the same units are used as in National Accounts, ie those included in the European System of Accounts (ESA).

Environmental accounts combine data from several different statistical sources. The concept of statistical population cannot be rigorously applied in this context.

EW-MFA refer to the entire national economy of the reporting country (see also 3.3 'Coverage - sector')).

EW-MFA include all materials (excluding water and air) crossing the system boundary (between the environment and the economy) on the input side or on the output side. The economy is demarcated by the conventions of the national accounting system (resident units).

Material inputs to the economy cover extractions of natural resources (excluding water and air) from the natural environment and imports of material products (goods) from the rest of the world economy (ROW).

Material outputs are disposals of materials to the natural environment and exports of material products and waste to the ROW. Information on natural resources extracted and traded products is provided by different statistical units.

Environmental accounts cover the entire Portuguese territory.

Material flow accounts should be consistent with national economic accounts. National Accounts define the national economy as the set of activities and operations of resident economic agents that have a center of interest in the national economic territory. Some operations of these units are performed outside the national economic territory and other transactions in this territory are performed by non-resident units. Therefore, in material flow accounts it is necessary, as in national accounts, to apply the residence principle. According to this principle, materials used by units residing outside the national territory should be considered as inputs of the national economy and materials used by units not residing in the national economic territory should be excluded from the accounting structure.

Accounting period is calendar year.

Direct measurement of accuracy in this case is not considered possible.

Please use Annex 3 for providing an assessment of the overall quality of the reported data. 

Annexes:
EW-MFA_Annex_3

The unit of measure is thousand tonnes.

The data compilation process used follows the guidelines in Eurostat's Economy-wide material flow accounts Handbook 2018.

The elaboration process can be structured in several phases:

1. Basic Information Update: Data Collection Available

2. Treatment of basic information: performs a series of treatments, consisting of identifying outliers, debugging errors and adapting to the terms of the Environmental Accounts.

3. Preparation of the general structure file. With the new information available, the working file is completed to the level of breakdown required by the European Accounts Regulation. For each type of material, and for the purpose of obtaining more accurate estimates, auxiliary files are used to work with the highest possible degree of disaggregation of the different identifiable components.

4. Process of analysis and revision of estimates. Time series of results are analyzed for each product and operation to detect possible inconsistencies.

5. Preparation of final results files in the different formats required: format for submission to EUROSTAT and files for dissemination in the Statistics Portugal Portal (Results, Methodology, Press release).

Data sources used to produce economy-wide material flow accounts are described in the sub-concepts 18.1.1 and 18.1.2

The frequency of data dissemination is annual.

The data was available on the Statistics Portugal website on 20 December 2024.

EU member countries use the same methodology in preparing estimates, which makes it possible to compare estimates of material flow accounts between them.

The basic methodology for preparing estimates has not changed much since the first estimates of material flow accounts as a pilot study. However, in addition to the need to adapt the new accounting series to the new National Accounting 2016 base, adjustments have been made to the air emissions and extractive industry data series.

Please see the table in 15.2.1.1 for reporting an assessment of comparability over time.