Environmental Protection Expenditure Account - Pilot study of Poland Central Statistical Office in Warsaw - CSO CSO – Coordinator of work Foundation of Environmental and Resources Economists in Bialystok - FERE FERE – Project manager CSO FERE

TWO PARTS OF PILOT PROJECT Elaboration of Environmental Protection Expenditure Account for Poland for the reporting year 2002 Assessment of the Index of Sustainable Economic Welfare (ISEW) for Poland for 1990-2003 CSO FERE

GENERAL OBJECTIVES OF EPEA estimation of total expenditures borne by national economy on the protection of the environment, defining how the above expenditures are distributed between institutional sectors of the economy. CSO FERE

OBJECTIVES OF THE PROJECT preparation of EPEA account tables (A - Use of environmental protection services; B – Supply of environmental protection services; C – Financing), integration of the available data on environmental protection expenditure with national accounts resulting in the creation of the environment expenditure account system, creation of expertise and procedures necessary for the systematic preparation of environmental protection expenditure accounts, Stage I – April 2005 Stage II – September 2005 Stage III – December 2005 CSO FERE

Stage I Analysis of publications on environmental protection expenditure account FERE Analysis of the approach of environmental protection expenditure account Identification of the scope of information in EPEA Identification of information gaps FERE, CSO Preparation of survey methodology and questionnaire CSO FERE

Analysis of publications on environmental protection expenditure account Environmental Protection Expenditure Account – Results of pilot applications, Eurostat, 2002. Environmental Accounts 2003. Present state and future developments, Eurostat, September 2003. Johansson U.; Joint Questionnaire and Expenditure Accounts conversion guidelines, Eurostat, March 2003. The European Strategy for Environmental Accounting. Report to the Statistical Programme Committee, Eurostat, September 2003. CSO FERE

Analysis of the approach of EPEA SERIEE Environmental Protection Expenditure Accounts Compilation Guide, Eurostat, 2002. OECD/Eurostat Environmental Protection Expenditures and Revenue Joint Questionnaire/ SERIEE Environmental Protection Expenditure Account. Conversion Guidelines. Draft. Eurostat, October 2003. CSO FERE

Identification of the scope of information in EPEA Main sources of information: national accounts, budget analyses, industry statistics, results of surveys of environmental protection expenditure in Poland – in business sector, public sector, specialized producers and households. CSO FERE

Available data TABLE B TABLES B1, A, C, C1 results of surveys Intermediate Consumption Compensation of employees Consumption of fixed capital Revenues Output EP services GFCF IC characteristic services Current transfers Capital transfers results of surveys of environmental protection expenditure in Poland national accounts and industry statistics TABLES B1, A, C, C1 VAT, balance of transfers to the rest of the world, other taxes on production etc. CSO FERE

Identification of information gaps not putting classification of functions of the governments (COFOG) into effect – it is planned that such a classification will be putting into practice in 2006, lack of division of national accounts between waste (90.02 NACE) and wastewater (90.01NACE), lack of distinction in statistics of the environmental protection category – adapted and collected products, environmental services, etc., lack of information on the values of gross fixed capital formation in environment protection and compensation of emloyees in this domain CSO FERE

Stage II Collection of the available statistical information surveys CSO FERE Elaboration of preliminary report – working tables FERE, CSO CSO FERE

Survey methodology and questionnaire Coverage: enterprises with 10 and more employees, specialized producers of 90 NACE (1024 units), and about 10 thousand units of 15-36, 40-41 NACE –– The Programme of Statistical Surveys of Official Statistics 2004. CSO FERE

Questionnaire - current expenditure CSO FERE

Questionnaire - sources for financing current expenditure CSO FERE

Questionnaire – revenues from by-product CSO FERE

Table B - production of environmental services, Table B1- supply and use of EP services main source of information – data on environmental protection expenditure in Poland, consumption of fixed capital = depreciation, lack of data about connected and adapted products, environmental charges = taxes on production, VAT - 7% for EP services. CSO FERE

Table B - production of environmental services TRANSACTIONS Categories of producers Total Specialised producers Non-specialised producers GG & NPISHs Other secondary output ancillary output NACE 37 NACE 40,41   1. Intermediate consumption 1578,2 571,2 nr 3242,2 5391,6 1.1. of which characteristic services 504,9 181,8 686,7 + 2. Compensation of employees 373,0 146,5 445,4 964,9 3. Other taxes on production 0,0 - 4. Other subsidies on production 5. Consumption of fixed capital 229,0 65,3 504,7 799,0 6. Net operating surplus -100,1 252,7 152,6 = 7. Output 2080,1 1035,8 63,0 1818,8 4192,3 9190,0 7.1 Non-environmental output 51,9 9,9 528,8 590,6 7.2 Environmental protection output 2028,2 1025,9 3663,5 8599,4 7.2.1 non-market 942,2 118,7 1060,9 7.2.2 market 1086,9 907,2 3875,9 7.2.3 ancillary  - -  8. Current environmental protection resources 2911,9  907,6  5701,3 8.1. Market output 1086,9   907,2 63,0   1818,8 8.2. Current transfers 1825,0 0,4 1825,4 CSO FERE

Table B - production of environmental services TRANSACTIONS Categories of producers Total Specialised producers Non-specialised producers GG & NPISHs Other secondary output ancillary output NACE 37 NACE 40,41 + 9. Capital transactions 2136,9 169,7 nr 823,5 3130,1   9.1. Gross fixed capital formation 2623,6 206,3 911,8 3741,7 - 9.2. Investment grants 486,7 36,6 88,3 611,6 = 10. Financing by producers 1305,1 297,9 5015,8 6618,8 CSO FERE

Table B1 – use-supply TRANSACTIONS Non-market Market Ancillary TOTAL   Final consumption 912,8 4407,2 - 5320,0 + Intermediate consumption 1169,5 3663,5 4833,0 of which by specialized producers 686,7 nr of which by non-specialized producers 482,8 4146,3 Gross capital formation (land improvement) 31,6 2,2 33,6 Exports 0,0 = Uses of resident units (purchasers' prices) 944,4 5578,7 10186,7 SUPPLY Output (basic prices) 5270,2 9878,2 Imports (customs price) Non-deductible VAT 308,5 Other taxes on products (if any) Subsidies on products (if any) Total supply (purchasers' prices) CSO FERE

Table A – National expenditure for EP TRANSACTIONS Users/beneficiaries TOTAL Producers Consumers Rest of the world specialised other General government House-holds GG Non-specialised Non-characteristic 1. Consumption of specific products - 3663,5 482,8 912,8 10712,8   15772,0 1.1. Final consumption of characteristic services 4407,2 5320,0  1. 2. Intermediate consumption of characteristic services nr  4146,3 1.3. Final consumption of connected and adapted products 6305,6 6305,6   1.4. Intermediate consumption of connected and adapted products 2. Gross capital formation for characteristic activities 2623,6 206,3 911,8 3741,7 3. Gross capital formation in specific products 2,0 31,6 33,6 4. Specific transfers 572,2  0,4  572,6  5. Total uses of resident units 5149,5 483,2 944,4 20119,9 6. Financed by the rest of the world 156,3 0,5 24,1 78,5 13,0 64,7 337,1 7. National Expenditure for environmental protection 2467,3 205,8 5125,4 404,7 931,4 10648,1 0,0 19782,8 CSO FERE

Table C – Financing of national expenditure Sectors of financing Users/beneficiaries TOTAL Current expenditure Producers Consumers Rest of the world specialised other General government House-holds GG Non-specialised Non-characteristic + 2136,9   944,4 3081,3 912,8 NPISHs Corporations 486,7 206,3 5149,5 483,2 6325,7 4718,9 Specialised producers 169,7 0,0 Other producers 36,6 6156,0 Households 10712,8 = Uses of resident units 26223,6 20119,9 16344,6 - 156,3 0,5 24,1 78,5 13,0 64,7 337,1 77,7 National expenditure 2467,3 205,8 5125,4 404,7 931,4 10648,1 19782,8 16266,9 CSO FERE

Results National expenditures on environment protection (Table A) in Poland in 2002 - 19 782,8 mln PLN CSO FERE

Results Financing national expenditures on environment protection CSO FERE

Lack of data Investment grants broken down by environmental protection division and types of economic activity (Table B and C), Interest of fixed capital (Table C1), Information about NPISHs, CSO FERE

Doubts What are environmental charges in Poland: taxes on production, current transfers, or environmental taxes? (Table B and C1), VAT only for waste and wastewater (Table B1 and C1), government sector includes also corporations, which belong to central or local governments. CSO FERE

Publication of Environmental protection expenditure account in Poland Stage III Publication of Environmental protection expenditure account in Poland FERE, CSO CSO FERE

Thank you for your attention CSO FERE