Maja Cederlund Statistics Sweden TF Environmental transfers 2010-10-14 A little presentation about Sweden – environmentally motivated subsidies Maja Cederlund Statistics Sweden TF Environmental transfers 2010-10-14

We were asked to present: 1) Examples of transfers which could be environmentally related (and where to find them in the national accounts). Also problems/difficulities. 2) Situation regarding potentially environmentally damaging subsidies: chosen method and opinion.  Will include this in my presentation – but also discuss the Swedish method behind environmentally motivated subsidies

In my presentation today Situation today in Sweden Background to our work Swedish method in short ...... ....and more in detail Difficulties and solutions Why we do not use the national accounts as data source Potentially environmentally damaging subsidies The way forward Questions for you!

Situation today in Sweden Environmentally motivated subsidies are official statistics (also environmentally related taxes) Table updated every spring on our website Included in Statistical yearbook Have been distributed on industries (this summer), will be published in report in December. Potential environmentally damaging subsidies, project right now. Also included in coming report. More analyses of different kinds of economic instruments together in EA (tax, subsidies and permits) carried out. Involved in London group and revision of SEEA

Background Before 2005: Statistics on subsidies (since 2003) Several sources (NA + several authorities) Since 2005 (one source, detailed data) The Swedish National Financial Management Authority (ESV) Also source of National Accounts. Sweden uses the Result of central budget, and how budget lines have been payed out.  A need to describe this approach also in the manual, a larger perspective than NA.  Illustrating that different sources are possible to find data.

Swedish method in 5 steps 1. Data from Result of the central state budget (budget lines) 2. Take out ”given support” to different receivers (our ”subsidy”) (and see how labelled in the NA) 3. Take out the environmentally motivated ”subsidies” (in future also the damaging in this step) 4. Classify in environmental domains 5. Distribution on industries

Step 1: Result of the central government budget Sweden uses Result of budget analysis, follow budget lines. The Swedish National Financial Management Authority (ESV) is responsible, uses the central government accounting system, Hermes. We get data in the form of a pivottable – can follow budget lines and how they are used Possible to extract from the datamaterial: Investments Consumption Interests Transfers (given and received support) Other financial

Step 2: Take out ”given support” to different receivers Given support for: In the production (used in the business) Investment (used to create a new asset) Given support to: Government-owned enterprises Municipal companies Private companies and private economic associations State companies Individuals Organisations and non-profit making association (divided on state sector, municipal sector or other) Municipalities County councils International activities Activities in EU institutions EU countries

Step 3: Take out the environmentally motivated Example of budget lines and if uses a share Support for climate investments (all) Support to windpower (all) Aid (Environmental aid = 12 %) Subsidy to preserve the fish (all) Research for environment and agriculture (50%) Environmental supports in agriculture (about 85% of the total budget line) Support to sanitation of polluted areas (all) Transport related research (part of larger budget line, however can track by using so called ”posts” under each budget line)

Step 4: Classify in environmental domains We use almost same as for taxes - Energy related - Resource related - Transport related - Climate related (not the same) Results Resource: more like ”other”, including also aid and general environmental research. Climate, included in many. Direct climate subsidies

Step 5: Distribute on industries Need to distribute private companies, state companies, municipal companies and government owned enterprises to industry How? NA (for their subsidies), direct contact, state budget, other

Step 5: Example of result From recent study, environmentally motivated subsidies by industries. 2000-2009.

Difficulities in Sweden, need guidance! Classify as environmental motivated Env support in agriculture. How calculate share? Energy research. All or part of? Examples. Env aid. How calculate share? Classify by domain How distribute env aid, env research? Examples. By industries How much detail? (on budget line to one sector or more in detail?) Give guidance on which method can use, if possible

Why we do not use N A? We can find D3 – Subsidies, with information about budget lines and receiving industry However, more difficult to find D7 and D9 with relevant information Want to make sure that we include all from the budget!

Potential environmentally damaging subsidies Current project, testing methodology on Swedish budget data for 2007. (before state budget) Uses both as a start (intensities and tax base list)  ”Subsidies” are not distributed on industries initially so intensity is more of guidance than criteria Hopefully will give same result! Important to stick to tax base list in some form!

Potential environmentally damaging subsidies New ideas will come up as we in the TF actually try to use the method. Maybe 2 steps as? 1 – tax base list  Damaging? 2 – All support to ”over average” industries (and which are not motivated or damaging)  (maybe) potentially damaging? Also need to test? As EEA suggested in last TF ”average for each economic sector” and not just country average?

Moving forward! Focus on definition of ”subsidies” and EM/PEDS rather that how to classify in domains and such for now Use examples in manual Need a division similar to on-budget and off-budget (and let us know about tax exceptions) Include budget analysis as datasource Clear examples (”rules”) will make additional extra groupings unneccesary (ex main purpose and multiple purpose)  Keep it (as) simple (as possible) Think about the use of this statistics!

At last…… Source of data in your country: Do you find enough in National Accounts in order to Distribute on industries Classify according to environmental domains Can you still see budget lines? Homework? Between meetings? (january?) Can we be sure that different methods (NA compared to budget) will give same results? Maybe a country that uses NA as a source today could test also budget? Test different PED-methods?