Environmental sector – COMPILATION GUIDE

Draft – Version 5.1

EUROPEAN COMMISSION
EUROSTAT
Directorate E: Agriculture and environment statistics; Statistical cooperation
Unit E3: Environment statistics
Doc. ENV/IND/TF/ (2007)
Original in EN
Point 6 of the agenda
Draft Compilation guide on environmental sector version 5.1
ICEDD for Eurostat – Unit E3
Task Force on Environmental sector – standard tables and compilation guide
of the Working Group
"Environmental Expenditure Statistics"
Joint Eurostat/EFTA group
Meeting of 2 October 2008
BECH Building – Room B2/464


This publication was drawn up under the responsibility of:

Rainer Muthmann,

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 12

Glossary 13

Acronyms list 15

1. Introduction 17

1.1. Policy context 17

1.2. Purpose, scope and organisation 21

1.3. Structure of the compilation guide 23

2. The Environmental goods and services sector 27

2.1. Definition of the Environmental goods and services sector 27

2.2. Classification of environmental activities according to the environmental domains 33

2.2.1. Environmental protection activities 33

2.2.2. Resources management activities 37

2.3. Practical issues (I) 43

2.3.1. Cleaner/resource efficient technologies and products 43

2.3.2. Dual use and Multiple-ends products 53

3. The population falling under the environmental sector 56

3.1. Identification of Environmental Goods and Services actors 56

3.1.1. The core industries 57

3.1.2. Non-core environmental sector 58

3.1.3. General Government sector 60

3.2. Practical issues (II) 62

3.2.1. Sources of information 62

3.2.2. Boundary of the chain of production 72

3.2.3. How to proceed to build the population? 72

4. A framework for data collection and analysis of environmental sector 77

4.1. Sources for data compilation 81

4.1.1. Estimating variables using existing statistics 81

4.1.2. Estimating variables using surveys 86

4.1.3. Cross-checking 92

4.2. Turnover and Value added of EGSS 93

4.2.1. Data collection methods 94

4.2.2. Core-industries 94

4.2.3. Non-core sector 95

4.2.4. General Government 97

4.2.5. Special cases 97

4.2.6. Estimating value added of EGSS 97

4.2.7. Country cases 98

4.3. Employment of EGSS 103

4.3.1. Data collection methods 104

4.3.2. Core-industries 111

4.3.3. Non-core sector 111

4.3.4. General Government 112

4.3.5. Country cases 113

4.4. Exports of EGSS 118

4.4.1. Core industries 120

4.4.2. Non-core industries 120

4.4.3. Potential to compile statistics on trade of services 123

4.4.4. Recommendations on best sources of data to assess the international trade of EGSS 125

4.4.5. The WTO list of Environmental goods 126

4.4.6. Recommendations on the use of the WTO list 132

4.4.7. Country cases 133

5. The standard tables 138

5.1. Organisation of the standard tables 138

5.2. Identification of activities by group of producer 139

5.2.1. Activities by the core environmental sector 139

5.2.2. Activities by the non-core environmental sector 141

5.2.3. Activities by the General Government sector 145

6. Presentation and interpretation of results 147

6.1. Analysis by individual sector 147

6.1.1. Core environmental sector 147

6.1.2. Non-core environmental sector 147

6.1.3. Government sector 148

6.2. Comparison of the different sectors 149

6.3. Comparison of the different environmental domains 149

6.4. Analysis by variable 150

6.4.1. Turnover 150

6.4.2. Value added 150

6.4.3. Employment 151

6.4.4. Exports 152

6.5. Analysis of time series 153

Annex 1. Standard tables of EGSS 154

Annex 2. Details on the classification of environmental activities (CEPA 2000) 161

Annex 3. Correspondence tables between NACE rev. 1.1 and NACE 2007 174

Annex 4. Definition of business register activities 176

Annex 5. The genesis of the WTO list of Environmental Goods and Services – The WTO list of environmental goods 179

Bibliography 186


LIST OF BOXES

Box 1.1: How to use the compilation guide 25

Box 2.1: Identification of environmental goods and services 30

Box 2.2: Environmental pollution prevention activities 31

Box 2.3: How to classify statistics between the environmental protection and resources management categories? 32

Box 2.4: How to classify statistics between the environmental protection and resources management categories? 32

Box 2.5: An example of data classification according to the environmental domains and the categories of goods and services 33

Box 2.6: CEPA structure 34

Box 2.7: Sustainable Agriculture 36

Box 2.8: CRUMA structure 38

Box 2.9: Remarks on CRUMA structure 40

Box 2.10: List of biomass in the context of the “Emissions Trading” Directive 41

Box 2.11: Definition of renewable energy: The International Energy Agency and Germany 43

Box 2.12 : Identification of cleaner technologies for statistical purposes: a summary 46

Box 2.13: Environmental Preferable Products (EPPs) 49

Box 2.14: Identification of cleaner products for statistical purposes: a summary 50

Box 3.1: Note on NACE 41 57

Box 3.2: Core industry or General Government? 58

Box 3.3: NACE sections where to find non-core environmental sector 59

Box 3.4: ESA 95 definition of the different levels of government 61

Box 3.5: Identification of EGSS population in Germany 63

Box 3.6: Identification of EGSS population in Austria 63

Box 3.7: NACE classification and environmental sector: some examples 64

Box 3.8: National version of NACE classification: the case in Belgium and Netherlands 65

Box 3.9: CPA classification and environmental sector: the case in Belgium 68

Box 3.10: HS classification and environmental sector: lists of environmental goods 68

Box 3.11: CN classification and environmental sector: the use of ex-outs 70

Box 3.12: PRODCOM classification and EGSS 71

Box 3.13: Recommendation when using products and services classifications 71

Box 3.14: Recommendations to identify and build EGSS population 73

Box 3.15: Identification of EGSS population in The Netherlands 74

Box 3.16: Identification of EGSS population in Sweden 75

Box 4.1: Strengths and weaknesses of estimating variables from environmental expenditure data 79

Box 4.2: How to proceed to chose data compilation methods? 80

Box 4.3: How to use existing statistics? 85

Box 4.4: Example of adding questions to existing surveys in Hungary 87

Box 4.5: How to elaborate the questionnaire? 89

Box 4.6: The EGSS questionnaire of Germany 90

Box 4.7: Strength and weaknesses of surveys 92

Box 4.8: How to use data from trade or specialised producers associations? 93

Box 4.9: Note on turnover and sales 93

Box 4.10: Note on turnover and value added 94

Box 4.11: Methods based on shares to estimate turnover of the non-core sector. 95

Box 4.12: Input – output method for estimating employment: the case in Canada 109

Box 4.13: Estimating environmental sector employment: the case in France 110

Box 4.14: Note on the method relevant for the export variable 119

Box 4.15: Exports of core industries: the case in The Netherlands 120

Box 4.16: Exports of non-core industries: industrial classification activities at 5-digit level 120

Box 4.17: Exports of non-core industries: the share of environmental exports on total exports 120

Box 4.18: The environmental sector from a product perspective: the case in Sweden and in The Netherlands 121

Box 4.19: Exports of primary and secondary producers: the case in Sweden 122

Box 4.20: Estimation of exports by establishments: the case in Sweden 122

Box 5.1: How to report data? 139

Box 5.2: How to fill up core environmental sector tables 140

Box 5.3: How to fill up non-core environmental sector tables 144

Box 5.4: Main governmental environmental activities 145

Box 5.5: How to fill up General Government tables 146


LIST of TABLES

Table 1.1: Correspondence between policy questions and potential variables 22

Table 2.1: Examples of cleaner products 52

Table 2.2: Examples of chemical multi-ends products 54

Table 3.1.- Classification of government units 60

Table 3.2.- Link between the European classification NACE Rev. 1 and the international classification ISIC Rev. 3 of the United Nations. 63

Table 4.1: Different approaches for the environmental employment estimation 104

Table 4.2: Comparison between results according to the different Canadian methods 106

Table 4.3: Environmental services classification 124

Table 4.4: Goods not considered as environmental goods 128

Table 4.5: Trade codes used for the analysis of the environmental technologies by ECOTEC, 2002 136

Table 5.1: Non-core environmental activities: some examples 142

Table 6.1 - Environmental related turnover, employment and value added per NACE-class of the non core sector in the Netherlands. 148

Table 6.2.- Managerial activities of the Dutch public sector in 2003 148

Table 6.3- Value added for the Dutch eco-industry in 2003 151

Table 6.4 - Environmental employment for the Dutch eco-industry in 2003 152

Table 6.5 - Exports of the Dutch core industry in 2003 153

Table 6.6- Evolution of the Environmental employment (number of man years) in the private and public specialised producers group in the Netherlands 153

LIST of FIGURES

Figure 2.1.- Decision tree for the identification of the cleaner technologies 45

Figure 2.2.- Decision tree for the identification of the cleaner products 49

Figure 4.1: Supply versus demand side actors 77

Figure 4.2: Relationship between EGSS and SERIEE Accounts (Source: Istat, 2007, Internal note of the Task Force EGSS) 84

Figure 4.3.- Estimation of turnover of ancillary activities from environmental expenditure statistics 96

Figure 4.4: Distribution of EGS according to WTO categories (2) 127

Figure 4.5: CT/P, EPP, HEP distribution according to the ESCG categories 130

Figure 5.1.- General scheme of the standard tables of EGSS. 138

Figure 5.2. - Standard table for the core environmental sector. 140

Figure 5.3.- Extract of non core environmental sector tables. 143

Figure 5.4.- Extract of general government tables. 145

Figure 6.1.- Division to sectors of the Dutch environmental employment and value added 149

Figure 6.2.- Division to environmental domains in the Dutch eco-industry 150

LIST OF QUESTIONS TO THE TASK FORCE

Questions to the Task Force - Classification of activities by environmental domain 31

Questions to the Task Force - CRUMA 40

Questions to the Task Force – Cleaner technologies 46

Questions to the Task Force – Multiple-ends products 53

Questions to the Task Force - NACE 45.32 56

Question to the Task Force: NACE 41 57

Questions to the Task Force – Boundary of chain of production 71

Questions to the Task Force – Sustainable transport 131

11/11 ICEDD

Environmental sector – COMPILATION GUIDE

Draft – Version 5.1

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)

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.

Rainer Muthmann

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. The United Nations uses ISIC Rev. 3 (International Standard Industrial Classification of all economic activities).