Table 1.
Uses of NCA for policy.
Source Bass et al. (2017)
| Policy use | Decision-makers’ questions | Information system (data, accounts and analytical tools) | Types of answer provided by NCA |
|---|---|---|---|
| Identification of issues | -How are we doing? What has changed, and how does that link to changes in the economy and other factors? -Given assumptions about domestic and international development, how will we fare in the future? |
-Accounts data and derived indicators, simple projections, -Input–output analysis, environmental-economic models, scenario modelling, spatial analysis, footprint analysis |
-Interpretations from the data on past and present state of natural capital -Scenarios for future development of economy and environment |
| Policy response | -If we want to change the current state or projected future state, what can we do? -Who benefits from changes in policy? -Who bears the costs of benefits in policy? |
-Accounts data and derived indicators, Input–output analysis, Computable General Equilibrium Modelling, environmental–economic models, scenario modelling, cost–benefit analysis, integrated assessment | -Economic and environment effects of restrictions on scenarios to achieve policy targets -Ex ante assessment of the effects of policies on the economy and environment |
| Policy implementation | -How can we target the policy response to get the most improvement for least cost? -Which activities should be done first? -What price should be put on natural resources? |
-Accounts data, derived indicators, environmental-economic modelling, spatial analysis, industry analysis, cost–benefit analysis, business case | -Detailed assessment of all pros and cons of the policy interventions |
| Policy monitoring | -Are the policies making progress towards goals and targets? | -Accounts data and derived indicators | -Ex durante assessment of policy progress and evaluation of the need to adjust policy instruments |
| Policy review | -How can we make the existing policy more effective to achieve the goals and targets? -Are there any unintended consequences of the policy response? -Do we need different policy responses? |
-Accounts data and derived indicators, econometric modelling | -Ex post policy evaluation of effectiveness and efficiency of policy instruments |