Mdia p3-06-land-150613

1. MULTI DIMENSION IMPACT ACCOUNTING
File: MDIA-p3-04-31-LAND-150613.odp Peter Burgess (c) All rights reserved
MDIA
LAND
A COMPONENT OF NATURAL CAPITAL

2. EXPLANATION
This slideset is A WORK-IN-PROGRESS. It will be
upgraded periodically. It is part of a series of more than
50 slidesets. Navigation to all of these is available here:
FEEDBACK is welcome. Please email to Peter Burgess …
peterbnyc@gmail.com … with a catchy phrase in the
subject line so that it gets attention, and please identify
the specific slideset(s) involved. This explanation is
version v150801. The most current text is available at:
MULTI DIMENSION IMPACT ACCOUNTING
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=txt00010199
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=N1-Slidesets-p3

3. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Nature (life)
Land
Water
Air pollution
Ecoservices
GHG emissions
About Land
Land
Land is a limiting
factor with many
competing uses.
Natural processes
and ecosystem
services require
land and so do
man built structures
and systems
EOP

4. LAND has been central to the idea
of wealth and power for ever.
MULTI DIMENSION IMPACT ACCOUNTING

5. Law about LAND has been crafted
to make statutory ownership more
important than any system of
traditional ownership.
MULTI DIMENSION IMPACT ACCOUNTING

6. The money value of land is based
on the money profit earning
potential of the land.
MULTI DIMENSION IMPACT ACCOUNTING

7. This value ignores the important
ecosystem services provided by
natural land use.
No metrics … no value!
MULTI DIMENSION IMPACT ACCOUNTING

8. Tropical rain forests have little
money value as is, but provide
incredibly important ecosystem
services.
● Carbon sequestration
● Habitat (biodiversity fauna and flora)
MULTI DIMENSION IMPACT ACCOUNTING

9. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
TROPICAL RAIN FOREST

10. To make money, degrade the rain
forest and ...
● Clearcut for mining; or
● Clearcut for palm oil plantations; or
● Exploit for old growth logging
MULTI DIMENSION IMPACT ACCOUNTING

11. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
MINING (in Peru)

12. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
CLEAR CUTTING FOR PALM OIL

13. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
CLEAR CUTTING FOR PALM OIL

14. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
OLD GROWTH LOGGING

15. Mangrove and wetlands are
essential to the good health and
survival of everything in the fish
and animal kingdoms.
MULTI DIMENSION IMPACT ACCOUNTING

16. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
LAND USE
MANGROVE

17. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
LAND USE
WETLANDS

18. In a money based world, land fill
for urban trash is a preferred use
for (money valueless) wetlands …
MULTI DIMENSION IMPACT ACCOUNTING

19. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
LAND USE
Meadowlands wetlands being used for landfill

20. Or warehouses …
MULTI DIMENSION IMPACT ACCOUNTING

21. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
LAND USE
Meadowlands wetlands being used for warehouses

22. Or a sports arena …
MULTI DIMENSION IMPACT ACCOUNTING

23. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
LAND USE
Meadowlands wetlands being used for sports arena

24. Or a shopping mall …
MULTI DIMENSION IMPACT ACCOUNTING

25. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
LAND USE
Meadowlands wetlands being used for shopping mall

26. … and of course urban housing
like this is an efficient land use.
Certainly in terms of money but
also likely in terms of people.
MULTI DIMENSION IMPACT ACCOUNTING

27. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
LAND USE
URBAN HIGHRISE

28. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
LAND USE
SUBURBAN HOUSING

29. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
LAND USE
SUBURBAN TRACT DEVELOPMENT

30. … but maybe not for single family
McMansions …
MULTI DIMENSION IMPACT ACCOUNTING

31. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
LAND USE
MCMANSIONS

32. The money value of mountains is
low … the ecosystem service
value is low … maybe it is only the
recreational dimension that gives
them any value at all!
MULTI DIMENSION IMPACT ACCOUNTING

33. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
LAND USE
MOUNTAINS

34. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
LAND USE
MOUNTAINS

35. Deserts are also low in both
money value and ecosystem
service value …
MULTI DIMENSION IMPACT ACCOUNTING

36. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
LAND USE
DESERTS

37. … unless, of course, there are oil
resources under the sand …
MULTI DIMENSION IMPACT ACCOUNTING

38. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
LAND USE
Meadowlands wetlands being used for shopping mall

39. Savanna … a mix of trees and
grasses … is not an optimum for
money profit use of land …
MULTI DIMENSION IMPACT ACCOUNTING

40. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
LAND USE
SAVANNA

41. Prairie is much better …
monoculture with heavy use of
fertilizer, pesticides, herbicides
and highly mechanized and energy
intensive ...
MULTI DIMENSION IMPACT ACCOUNTING

42. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
LAND USE
PRAIRIE

43. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
LAND USE
PRAIRIE

44. A parking lot has money value
associated with convenience and
economic use.
… but a parking lot degrades
natural storm water control.
MULTI DIMENSION IMPACT ACCOUNTING

45. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
LAND USE
PARKING LOTS

46. A shopping mall and parking lots
have money value associated with
business use.
The development degrades natural
storm water control.
MULTI DIMENSION IMPACT ACCOUNTING

47. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
LAND USE
SHOPPING MALLS

48. … and much the same applies for
airports …
MULTI DIMENSION IMPACT ACCOUNTING

49. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
LAND USE
AIRPORTS

50. The money value of land is
determined by the profit flows that
can be derived from using the land
for money profit activities.
MULTI DIMENSION IMPACT ACCOUNTING

51. The environmental value of land is
determined by the ecosystem
services that are provided by the
land.
MULTI DIMENSION IMPACT ACCOUNTING

52. MULTI DIMENSION IMPACT ACCOUNTING
Sun
LAND USE
Sustainable agriculture
Water purification
Intensive monoculture
Coastal mangrove
Urban infrastructure
Roads, Parking Lots
There is a limited amount of land and there are multiple possible uses.
Land is a factor in improving human capital, producing goods and
services, and locating MBC. Money value is a metric for this.
Land is also a factor in providing very critical ecosystem services.
A metric for this is needed, reflecting the ecosystem service potential.
Money Value
Suburban sprawl
Housing
Tropical forest
Habitat
Industrial operations
Sun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Medium
Zero
Medium
Zero
High
Medium
High
High
Zero
Zero
High
Medium
Medium
Low
High
Zero
Zero
Zero
Zero
High
High
Zero
Wetlands Zero High
Natural Value

53. Uses that make the most money
have the lowest ecosystem service
value …
Uses that have the highest
ecosystem service value have the
lowest money value …
MULTI DIMENSION IMPACT ACCOUNTING

54. The cost of the use of land appears
in the financial accounts ...
It may be on the balance sheet as an
asset owned by the entity, or …
It may be in the P&L as a rental or
lease payment.
MULTI DIMENSION IMPACT ACCOUNTING

55. The money value of the land at any
moment in time may well be
different from the amounts in the
financial accounts because this
value changes depending on market
perceptions.
MULTI DIMENSION IMPACT ACCOUNTING

56. The impact value of the land at any
moment in time has a different
behavior.
The impact value is the difference
between the ACTUAL land use and a
STANDARD land use.
MULTI DIMENSION IMPACT ACCOUNTING

57. REMINDER
This slideset is A WORK-IN-PROGRESS. It will be
upgraded periodically. It is part of a series of more than
50 slidesets. Navigation to all of these is available here:
FEEDBACK is welcome. Please email to Peter Burgess …
peterbnyc@gmail.com … with a catchy phrase in the
subject line so that it gets attention, and please identify
the specific slideset(s) involved. This explanation is
version v150801. The most current text is available at:
MULTI DIMENSION IMPACT ACCOUNTING
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=txt00010199
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=N1-Slidesets-p3

58. THANK YOU
Some links and contact information:
Peter Burgess … peterbnyc@gmail.com
Peter Burgess LinkedIn profile
https://www.linkedin.com/in/peterburgess1
Link to TrueValueMetrics.org website
http://www.truevaluemetrics.org/
Link to navigation to other slides in this series:
MULTI DIMENSION IMPACT ACCOUNTING
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=N1-Slidesets-p3