ENVIRONMENTAL SECTOR _ COMPILATION GUIDE
DRAFT – VERSION 6
/ EUROPEAN COMMISSIONEUROSTAT
Directorate E: Agriculture and environment statistics; Statistical cooperation
Unit E3: Environment statistics /
Doc. ENV/EGSS/TF/01 (2008)
Original in EN
Point 7 of the agenda
Draft Compilation guide on environmental sector version 6
ICEDD for Eurostat – Unit E3
Task Force on Environmental sector – standard tables and compilation guide
of theWorking Group
"Environmental Expenditure Statistics"
Joint Eurostat/EFTA group
Meeting of 12 and 13 February 2008
DG ENV BU 05 – Room 0A
Bruxelles
This publication was drawn up under the responsibility of:
Gilles Decand,
Head of Eurostat Unit E3 – Environment
Editors
Nancy Steinbach, Eurostat
Ute Roewer, Eurostat
Consultants
Maria-Jose Lopez, Icedd asbl (Belgium)
Celine Martin, Icedd asbl (Belgium)
Marco Orsini, Icedd asbl (Belgium)
For further information, please contact Eurostat:
Ute Roewer, Eurostat
Tel: (352) 4301 – 37 893
E-mail:
The opinion expressed are those of the individual authors alone and do not necessarily reflect the position of the European Commission.
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Luxembourg: Office for Official Publications of the European Communities, 2008
ISBN
ISSN
© European Communities, 2008
TABLE of content
Preface
Preface
Glossary
Acronyms list
1.Introduction
1.1.Policy context
1.2.Purpose and scope
1.3.Structure and organisation of the compilation guide
2.The Environmental Goods and Services Sector
2.1.Definition of the Environmental Goods and Services Sector
2.1.1.“Environmental goods and services”
2.1.2.“Activities to measure, prevent, limit, minimise or correct environmental damage to water, air and soil, as well as problems related to waste, noise and eco-systems”
2.1.3.“This includes cleaner technologies, products and services that reduce environmental risk and minimise pollution and resource use”
2.2.Classification of environmental activities according to the environmental domains
2.2.1.Environmental protection activities
2.2.2.Resources management activities
3.The population falling under the environmental sector
3.1.Boundary of the chain of production
3.1.1.Dual use and Multiple-ends products
3.2.Identification of environmental goods and services actors
3.2.1.The industries
3.2.2.The General Government sector
3.3.Sources for identification of the population
4.A framework for data collection and analysis of environmental sector
4.1.Sources for data compilation
4.1.1.Estimating variables using existing statistics
4.1.2.Estimating variables using surveys
4.1.3.Cross-checking
4.2.Turnover of EGSS
4.2.1.Definition
4.2.2.The double-counting problem
4.2.3.Data collection methods
4.2.4.Industries
4.2.5.General Government
4.2.6.Special cases
4.2.7.Country cases
4.3.Value added of EGSS
4.3.1.Definition
4.3.2.Data collection methods
4.4.Employment of EGSS
4.4.1.Definition
4.4.2.Data collection methods
4.4.3.Industries
4.4.4.General Government
4.4.5.Country cases
4.5.Exports of EGSS
4.5.1.Definition
4.5.2.Data compilation methods
4.5.3.Potential to compile statistics on trade of services
4.5.4.Data sources to assess the international trade of EGSS
4.5.5.The WTO list of Environmental goods
4.5.6.Country cases
5.The standard tables
5.1.Organisation of the standard tables
5.2.Identification of activities by group of producer
5.2.1.Activities by the industrial environmental sector
5.2.2.Activities by the General Government sector
5.3.Cleaner/resource efficient technologies and products: examples
6.Presentation and interpretation of results
6.1.Analysis by individual sector
6.1.1.Industries
6.1.2.Government sector
6.2.Comparison of the different sectors
6.3.Comparison of the different environmental domains
6.4.Analysis by variable
6.4.1.Turnover
6.4.2.Value added
6.4.3.Employment
6.4.4.Exports
6.5.Analysis of time series
Annex 1. Details on the classification of environmental protection activities (CEPA 2000)
Annex 2. Correspondence tables between NACE rev. 1.1 and NACE 2007
Annex 3. Definition of business register activities
Annex 4. The questionnaire of Germany
Annex5. Definition of certain sustainable activities
Annex 6. The genesis of the WTO list of Environmental Goods and Services – The WTO list of environmental goods
Bibliography
LIST OF NOTES
Note 1: How to use the compilation guide
Note 2: The purpose criteria
Note 3: How to classify statistics between the environmental protection and resources management categories?
Note 4: Environmental pollution prevention activities and cleaner goods
Note 5: Identification of cleaner technologies for statistical purposes: a summary
Note 6: Environmental Preferable Products (EPPs)
Note 7: Identification of cleaner products for statistical purposes: a summary
Note 8: CEPA structure
Note 9; Recycling activities and recycled materials
Note 10: The CRUMA structure
Note 11: “Sustainable” activities
Note 12: The renewable energy production
Note 13: Natural risks management
Note 14: Definition of adapted and connected products
Note 15: The NACE 41
Note 16: HS classification and environmental sector: lists of environmental goods
Note 17: CN classification and environmental sector: the use of ex-outs
Note 18: PRODCOM classification and EGSS:the case in The Netherlands
Note 19: Use of products and services classifications
Note 20: How to identify and build EGSS population
Note 21: Strengths and weaknesses of demand-side data
Note 22: How to proceed to choose data compilation methods?
Note 23: How to use existing statistics?
Note 24: How to elaborate the questionnaire?
Note 25: Strength and weaknesses of surveys
Note 26: How to use data from trade or specialised producers associations?
Note 27: Turnover and sales
Note 28: Methods based on shares to estimate turnover
Note 29: Turnover and value added
Note 30: How to report data?
Note 31: How to fill up industrial environmental sector tables
Note 32: How to fill up General Government tables
Note 33: Industry or General Government?
LIST OF EXAMPLES
Example 1: Identification of EGSS population
Example 2: NACE classification and environmental sector
Example 3: National version of NACE classification: the case in Belgium and Netherlands
Example 4: CPA classification and environmental sector: the case in Belgium
Example 5: Identification of EGSS population in Germany
Example 6: Identification of EGSS population in Austria
Example 7: Identification of EGSS population in The Netherlands
Example 8: Identification of EGSS population in Sweden
Example 9: Example of adding questions to existing surveys in Hungary
Example 10: The EGSS questionnaire of Germany
Example 11: Input – output method for estimating employment: the case in Canada
Example 12: Estimating environmental sector employment: the case in France
Example 13: The case in The Netherlands: exports of “core” industries
Example 14: The case in Sweden: Renewable Energy Group
Example 15: The case in Sweden: The environmental sector from a product perspective
Example 16: The case in The Netherlands: PRODCOM Analysis
Example 17: The case in Sweden: estimation of exports by establishments
LIST OF TABLES
Table 1.1: Correspondence between policy questions and potential variables
Table 2.1: Links between policy relevance and environmental activities
Table 2.2: Correspondence between OECD/Eurostat and Compilation Guide environmental classifications for the EGSS
Table 3.1: Examples of chemical multi-ends products
Table 3.2: Classification of government units
Table 4.1: Main sources of data collection
Table 4.2:EGSS and intermediate consumption (IC)
Table 4.3: Different approaches for the environmental employment estimation
Table 4.4: Comparison between results according to the different Canadian methods
Table 4.5: Environmental services classification
Table 4.6: WTO list of categories and activities
Table 4.7: Trade Codes used for the Analysis of Environmental Technologies by ECOTEC, 2002
Table 5.1: Environmental industrial activities: some examples
Table 5.2: Examples of cleaner products
Table 6.1: Environmental related turnover, employment and value added per NACE-class of the non core sector in the Netherlands.
Table 6.2: Managerial activities of the Dutch public sector in 2003
Table 6.3: Value added for the Dutch eco-industry in 2003
Table 6.4: Environmental employment for the Dutch eco-industry in 2003
Table 6.5: Exports of the Dutch core industry in 2003
Table 6.6: Evolution of the Environmental employment (number of man years) in the private and public specialised producers group in the Netherlands
LIST OF FIGURES
Figure 2.1: Decision tree for the identification of the cleaner technologies
Figure 2.2: Decision tree for the identification of the cleaner products
Figure 2.3: The relationship between the SERIEE and the EGSS as it is defined in this Compilation Guide
Figure 3.1: Supply chain of EGSS
Figure 4.1: Supply versus demand side actors
Figure 4.2: Relationship between EGSS and SERIEE Accounts (Source: Istat, 2007, Internal note of the Task Force EGSS)
Figure 4.3: Estimation of turnover of ancillary activities from environmental expenditure statistics
Figure 4.4: Table B1 of EPEA (source: SERIEE Environmental protection Expenditure Accounts – Compilation Guide).
Figure 4.5: Distribution of all EGS in the WTO list according to ESCG categories
Figure 5.1: General scheme of the standard tables of EGSS.
Figure 5.2: Typical activities for the entirely environmental producers.
Figure 5.3: Extract of general government tables
Figure 6.1: Division to sectors of the Dutch environmental employment and value added
Figure 6.2: Division to environmental domains in the Dutch eco-industry
Preface
We are pleased to present this compilation guide on how to collect, interpret and present data on environmental goods and services sector. It has been elaborated because there is a need to produce and compile comparable statistics on environmental sector in order to respond to current policy interests and help to implement future policy measures directed towards the environmental sector.
As this data collection has to be harmonised and comparable, the solution was to develop standard tables for the collection of statistics and a compilation guide in order to explain how to fill in the tables and how to handle the data compilation.
The standard tables essentially aim at separately identifying employment, turnover, value added and exports by different sectors and activities of the environmental sector. These standard tables are the main means by which environmental sector statistics are reported from the Member States to Eurostat.
Briefly summarised, this compilation guide has its strength in providing an analysis of the concepts related to the environmental goods and services sector, supplemented by a definition and a classification of the sector, practical hands-on and methodological guidance. The compilation guide intends to be a complete reference tool for developing a new data collection system on environmental sector at national level. It is intended to provide a step-by-step recipe for those involved in compiling data on environmental sector and to ensure the comparability of methods for compiling, analysing and interpreting data on the environmental sector. Its purpose is to facilitate the development and production of harmonised data and to enable more rigorous and improved cross-country comparison of data. It provides users of the guide with recommendations. Full implementation of these recommendations should help to ensure that data compiled and maintained on a consistent basis in all Member States of the European Statistical System (ESS) improve in comparability and in quality.
Special thanks are due to members of the Working Group on Environmental Expenditures Statistics and of the Task Force on “Environmental Industry”, who have made this publication possible. Eurostat is particularly grateful for contributions by:
-Sacha Baud (Statistics Austria)
-Maja Cederlund, Mats Eberhardson and Nancy Steinbach(Statistics Sweden)
-Michel David (IFEN)
-Maria Luisa Egido (Statistics Spain)
-Federico Falcitelli (ISTAT)
-Viktoria Hajdu (Statistics Hungary)
-Rocky Harris and Dean Thomas (DEFRA and DTI UK)
-Sarah Nasser (Statistics Germany)
-Eila Salomaa (Statistics Finland)
-Maarten van Rossum and Sjoerd Schenau (Statistics Netherlands)
-Tone Smith (Statistics Norway)
Eurostat would also like to thank Directorate-General Environment, Directorate-General Enterprise, the Environmental Accounts team and M. Ulf Johansson from Eurostat for their extensive help and expert knowledge.
Gilles Decand
Head of Unit, E3 Environment Statistics, Eurostat
Glossary
Activities: What take place when resources such as equipment, labour, manufacturing techniques, information networks or products are combined, leading to the creation of specific goods or services.
Analysis by sector: Analysis by sector is a type of economic analysis using data from statistical units, aggregated according to an activity classification. Economic activities are classified within the European Union using NACE rev. 1.1. The United Nations uses ISIC Rev. 3 (International Standard Industrial Classification of all economic activities).
Ancillary activity: Principal and secondary activities are generally carried out with the support of a number of ancillary activities, such as accounting, transportation, storage, purchasing, sales promotion, repair and maintenance, etc. Products other than capital formation which are retained for use in the same unit are referred to as ancillary activity. Thus, ancillary activities are those that exist solely to support the main productive activities of an entity by providing non-durable goods or services for the use of that entity.
Central government: It includes all administrative departments of the central state and other central agencies whose competence extends over the entire economic territory, except for the administration of social security fund.
Competitiveness: The ability of companies, industries, regions or supranational regions to generate, while being and remaining exposed to international competition, relatively high factor income and factor employment levels on a sustainable basis.
Durable Consumers: Durable consumers are durable goods acquired by households for final consumption (i.e. those that are not used by households as stores of value or by unincorporated enterprises owned by households for purposes of production); they may be used for purposes of consumption repeatedly or continuously over a period of a year or more.
Durable good: A durable good is one that may be used repeatedly or continuously over a period of more than a year, assuming a normal or average rate of physical usage.
Environmental protection activities: Activities (involving the use of equipment, labour, manufacturing techniques and practices, information networks or products) where the main purpose is to collect, treat, reduce, prevent or eliminate pollutants and pollution or any other degradation of the environment due to the pressure of the human activities.
Environmental Protection Expenditure Account (EPEA): Satellite account aiming at the description of the measures and the related expenditures carried out to protect the environment from a qualitative perspective, i.e. against pollution and degradation phenomenon.
European Statistical System: A system of agreed standards, organisational methods and structures for producing statistics for and on the European Economic Area. The system is based on the principles of subsidiarity and on a high level of co-operation amongst organisations involved in European statistics.
European System of Accounts (ESA 95): European standard used to establish the national accounts and that permits to provide comparable macroeconomic data by countries. It permits to provide also data by institutional sector (general government, corporations, households, rest of the world, etc.). The ESA 95 is broadly consistent with the System of National Accounts of the United Nations (1993 SNA) as regards the definitions, accounting rules and classifications.
General Government: All institutional units which produce services delivered free or at a non-economically significant price for individual or collective consumption AND which are mainly financed by compulsory payments made by units belonging to other sectors AND do not enjoy autonomy of decision. It corresponds to the code S13 of ESA 95, comprising entities that are engaged primarily in the production of non-market goods and services intended for individual and collective consumption and/or in the redistribution of national income and wealth. The General Government is divided into four sub-sectors, i.e. central, state, local government and also social security funds. Excluded are government-owned entities that conduct commercial operations, such as public enterprises.
Goods: The System of National Accounts (SNA) defines goods as being physical objects for which a demand exists, over which ownership rights can be established and whose ownership can be transferred from one institutional unit to another by engaging in transactions on markets. They are in demand because they may be used to satisfy the needs or wants of households or the community or used to produce other goods or services. The production and exchange of goods are quite separate activities. Some goods may never be exchanged while others may be bought and sold numerous times. The separation of the production of a good from its subsequent sale or resale is an economically significant characteristic of a good that is not shared by a service.
Innovation: Innovations can comprise implemented technologically new products and processes and significant technological improvements in products and processes. A technological product and process (TPP) innovation has been implemented if it has been introduced on the market (product innovation) or used within a production process (process innovation). TPP innovations involve a series of scientific, technological, organisational, financial and commercial activities. The TPP innovating firm is one that has implemented technologically new or significantly technologically improved products or processes during the period under review.
Input-output table: An input-output table is a means of presenting a detailed analysis of the process of production and the use of goods and services (products) and the income generated in that production.; they can be either in the form of (a) supply and use tables or (b) symmetric input-output tables.
Local government: This sector comprises, as defined in the ESA 95, public authorities and/or bodies, excluding social security funds’ local agencies, whose competences extend only to a local area of the country’s economic territory.
Local kind of activity unit: Enterprise, or a part of an enterprise, corresponding to a local unit, which engages in only one kind of (non-ancillary) productive activity or in which the principal productive activity accounts for most of the value added. These types of units do not have autonomy of decision.
Market establishments: Market establishments produce mostly goods and services for sale at prices, which are economically significant.
Market products: Products which are sold at a price which is economically significant, so the sale covers more than 50 percent of the production costs. The price considered is the price not including VAT or other taxes or subsidies.