1. Energy Flow Accounts in Denmark - the whys and hows
Thomas Olsen, Statistics Denmark
Prepared for the 7th meeting of the Oslo Group on Energy Statistics
23 – 26 October 2012, Helsinki, Finland

2. Outline What is Energy Flow Accounts?
The whys – reasons for wanting energy accounts
The hows - compilation in practice
Quality control
Applications
Cooperation with Energy Agency
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3. What is Energy Flow Accounts?
Supply and use of energy organised within the System of National Accounts framework
Based on the same concepts, definitions and classifications as National Accounts
Described in SEEA – Energy
Supply and use of energy within the national economy (not the territory)
Described by ISIC/NACE industries
Transportation activities are also broken down by industries
This way of describing the flow of energy is fully consistent with the way economic activities are described
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4. Residence principle vs. territory principle
Residents
Non-residents
Territory
Abroad
Energy balance
Energy accounts
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5. The whys
Statistics Denmark has a long tradition for publishing energy statistics e.g.
Energy supply of Denmark 1900 – The Statistical Department, Copenhagen (1959)
Long tradition for compiling supply and use tables and IO-tables as part of the work with national accounts
First oil crisis – focus on energy and security of supply
Data needed for analysis of effects on the economy
Energy Agency founded in 1976
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6. The whys, cont.’ Improvement of the national accounts
Wanted to have a close link with physical flows
Improve fixed price calculations
Link to economy, input-output tables – enables analysis of the link between economy and use of energy
at the macro as well as the industry level
Allows for a series of quality checks that cannot be carried out if only either physical or monetary data are available
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7. The Danish Energy Flow Accounts
Supply and use of 40 types of energy broken down by 117 industries
The same types of energy as in the energy balance
Time series 1966 – 2010
Physical as well as monetary energy flow accounts
Monetary accounts part of the supply use tables of the National Accounts
Approx. 40 commodities out of a total of 2350 commodities
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8. The hows - compilation in practice
Compilation strategy
Product by product
First, supply and use in physical (specific) units and monetary values (basic prices) simultaneously
Secondly, uses in other price levels
Finally, common units and calculation of net use of energy
Specific units
Basic prices
Trade margins
Energy, CO2, SO2 taxes
VAT
Market prices
Common units
Net use of energy
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9. Compilation strategy and data sources
Step 1: What is available for economic activities?
Production + Imports – Exports – Changes in inventories
Step 2: What is used according to the data sources?
Data sources, e.g.
Basic energy statistics – energy balance
Census on the industrial companies’ use of energy
Administrative data. Reimbursement of energy taxes
Residual is broken down by data on employment
Step 3: Supply and use is balanced
Step 4: Rearrangement into a supply and use table
Please see spreadsheet for an example
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10. Trade margins Based on a percentage of the basic price
Wholesale trade margins
Retail trade margins
Trade margins include transportation costs
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11. Environmental taxes Energy taxes, CO2-tax, SO2-tax
Quantity * ‘specific energy product tax rate’
Balanced to the actual revenue recorded in the public finances account
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12. Value added tax (VAT) (Basic price +
wholesale margins + retail trade margins +
energy taxes + CO2-taxes + SO2-taxes) *
‘specific yearly VAT - rate’
The standard VAT-rate is adjusted in order to take into account the VAT-legislation
Basic prices + Trade margins + Taxes + VAT = Market prices
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13. Quality control Development in the time series
Development in the industry specific intensities
Use of energy compared to output at fixed prices
Internal checks:
Conversion losses
Input-output ratio in refineries
Contribution to Gross Value Added
Market unit prices in relation to observed prices
Value of energy input compared to total input
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14. The Danish Energy Flow Accounts
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15. Possible applications when organised in an integration framework like SEEA/SNA
Hybrid accounts
Links between energy, economy, employment etc. and other environmental domains
Energy intensities / energy productivity
Analysis of the relationship with the economy
Input-Output table based analysis
Input in extended macroeconomic models
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16. Hybrid Accounts: Link to the Economy
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17. Energy Intensities by industries
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18. Other applications: Modelling and compilation of air emissions accounts
Input-output analysis
Indirect flows
What are the drivers? Which types of final demand?
Consumption perspective rather than production perspective
Energy embodied in imports
The energy accounts are used as input in macro-economic models
Ministry of Climate, Energy and Building
Danish Economic Councils
Ministry of Finance
Business associations, banks, consultants etc.
Input in the compilation of air emissions accounts
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19. IO modelling results Use of energy by causing final demand
Can be broken down by industries
Direct and indirect. In Denmark and globally
Private consumption can be broken down by consumption categories – e.g. type of food or services
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20. Close cooperation with Energy Agency
Statistics Denmark
Energy Agency
September
November
Totals
Break downs
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21. Contact information
Thomas Olsen Senior Adviser Statistics Denmark National Accounts Division
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