JQ on EPER - introduction and main differences to EPEA EUROPEAN STATISTICAL TRAINING PROGRAMME (ESTP) Course on “Environmental Protection Expenditure statistics and accounts and related topics” Eva Milota Directorate Spatial Statistics Vienna 26 – 28 March 2014 JQ on EPER - introduction and main differences to EPEA

What is the JQ on EPER? The Joint OECD/Eurostat Questionnaire on Environmental Protection Expenditure and Revenue (JQ EPER) is the main tool for international data collection on environmental protection expenditure. The scope of EP is identical to that of EPEA and the classification adopted is CEPA 2000 (even though with a different break down). After several revisions it is now based on an accounting structure rather close to that of the EPEA. It distinguishes two expenditure concepts evaluated according to two different principles: expenditure I (EXP I) according to the ‘abater principle’ expenditure II (EXP II) according to the ‘financing principle The JQ only records actual outlays and excludes national accounts “imputed” transactions such as the consumption of fixed capital

Scope of EP: EPEA vs. JQ CEPA used in EPEA Protection of ambient air and climate Wastewater management Waste management Protection and remediation of soil, groundwater and surface water Noise and vibration abatement Protection of biodiversity and landscapes Protection against radiation Research and development Other environmental protection activities CEPA used in JQ Other

EPE aggregates: EPEA vs JQ EXP I According to the abater principle, for a given sector or economic unit, expenditure comprises all expenditure (either capital or current) on environmental protection it undertakes EXP I = investment expenditure + internal current expenditure – receipts of by-products It includes only actual outlays It excludes national accounts “imputed” transactions (e.g. CFC), any economic benefits directly linked with the EP activities (to be deducted). EXP II According to the financing principle, for a given sector or economic unit, expenditure corresponds to what they contribute to overall environmental protection activities, independently of the unit that executes them EXP II = EXP I + EP services purchased from another unit – revenues from sales of EP services to other units + transfers paid – transfers received. It includes earmarked environmental taxes, recorded as transfers It excludes env. taxes not earmarked and IMP /EXP of EP services (even though transfers with the ROW are included)

JQ aggregates (II) Investment expenditure Purchases of capital expenditure (end-of-pipe and integrated investments) and land acquisition + Internal current expenditure Intermediate consumption and compensation of employees for EP activities - Receipts from by-products Economic benefits linked to EP activities = EXP I Expenditure according to the abater principle + (-) Transfers paid (received) Transfers related to EP activities, included earmarked taxes + Fees and payments for EP services Environmental protection services purchased from other units/sectors - Revenues from EP services Sales of environmental protection services to other sectors/units = EXP II Expenditure according to the financing principle

Scope of EP: EPEA vs. JQ Whereas in the EPEA the expenditure of the general government as consumer (in the expenditure table) corresponds only to the value of non-market services, in the JQ expenditure of the public sector also includes investments for the production of non-market EP services. (Table 1) JQ includes only actual expenditures: only intermediate cons. + compensation of employees

Classification of producers: EPEA vs JQ Specialised Producers: - General Government: Non-market Market without autonomy of decision - Other market producers Public firms and similar Private Non-Specialised Producers: - With secondary EP output - With ancillary EP output - Without ancillary or secondary EP output JQ Public sector (Table 1) Public Specialised Producers (Table 4A) Private Specialised Producers (Table 4B) Public or Private Specialised Producers (4A/4B) Business sector (Table 2)

JQ accounting framework * Note the equilibrium will not hold when e.g. transfers are received from or are given to the rest of the world or in the case of EP services imported/exported or because of reporting of VAT, see below.

Accounting framework: EPEA vs JQ In the JQ, public sector producers only refer to non-market producers (Table 1), whereas in the EPEA the GG spec. prod. may include those market producers which depend upon an institutional unit classified in the general government sector. In the EPEA, specialised producers are strictly those which carry out EP activity as their main activity and therefore they exclude secondary producers, whereas in the JQ these secondary producers are classified as specialised producers (Table 4). In the EPEA all GG producers are classified as specialised (2002 compilation Guide)

Reporting to future legal module The JQ and the reporting tables for the future legal module need the same basic data. It is useful to have the SERIEE tables (best every table for each producer/consumer) to fill in both the new reporting tables and the JQ. The new reporting tables cannot always be directly derived from the JQ.

Reporting to future legal module The lines highlighted in yellow can be taken 1:1 from the JQ, all other information has to be taken from the basic accounts, such as the SERIEE tables. And it is useful to do the voluntary exercise and then complete the mandatory tables.