1. Environmental Protection Expenditure Accounts (EPEA) European Statistical Training Programme (ESTP)
Eva Milota – Statistics Austria
Vienna, 03 – 05 September 2018
THE CONTRACTOR IS ACTING UNDER A FRAMEWORK CONTRACT CONCLUDED WITH THE COMMISSION

2. EPEA Overview

3. What is environmental protection expenditure?
Environmental protection activities are defined according to SEEA-CF (§ 4.12) as all activities and actions which have as their main purpose the prevention, reduction and elimination of pollution and of any other degradation of the environment. Those activities and actions include all measures taken in order to restore the environment after it has been degraded. Activities such as energy and material saving are only included to the extent that they mainly aim at environmental protection. An important example is recycling, which is included only to the extent that it constitutes a substitute for waste management.

4. What is EPEA? EPEA = Environmental Protection Expenditure Account
The EPEA is as a functionally oriented satellite account to the national accounts.
As a satellite account, it follows closely the principles of National Accounts as concerns the classification of units, valuation and categorisation of transactions.
It allows for links between economic and physical accounts.
In the DPSIR model’s perspective the EPEA describes responses of society to environmental problems

5. Why EPEA?
To answer questions on economic efforts made by a country for EP
How much does a country spend for protecting the environment? (use side)
Which is the size of the sector of the economy which carries out EP activities? (supply side)
Who finances the national expenditure for EP? (financing perspective)
Who pays for EP? (cost born by each sector of the economy)

6. What is covered by EPEA in practice?
In order to address environmental protection in the most comprehensive way, EPEA covers the following: a) Expenditure on environmental protection products by resident units: the environmental protection products considered here are those products that prevent, reduce or eliminate environmental pressures. Experience shows that most of these products are services b) Expenditure related to the production of environmental protection products, including the gross capital formation c) Transactions related to the financing of environmental protection expenditure

7. EPEA aggregates (1)
How much does a country spend for protecting the environment? (use side)
NATIONAL EXPENDITURE FOR EP (by resident units)
Domestic uses of EP products: either EP services (including in-house produced) or connected and adapted products
final uses (by GG, Corporations and Households)
intermediate consumption (Corporations)
Domestic gross capital formation for EP, including net acquisition of land (by GG and Corporations)
Transfers for EP (either current or capital): those that are not already reflected in the above categories of expenditure (by all institutional sectors)

8. EPEA aggregates (2)
Which is the size of the sector of the economy which carries out EP activities? (supply side)
PRODUCTION OF EP SERVICES (output of EP services and other aggregates related to the supply of EP services)
Output of EP services (principal, secondary, ancillary)
Labour input for the production of EP output
Investments for the production of EP output (accounted for also in the National expenditure for EP)
Stock of capital

9. EPEA aggregates: attention!
How use and supply side are linked?
Final consumption + Capital formation + Intermediate consumption = Output + Imports – Exports + VAT plus taxes less subsidies on products
USES = SUPPLY

10. EPEA aggregates (4) Who pays for EP? (cost born for EP) NET COST OF EP
(FINANCIAL BURDEN OF EP, cost of EP actually born by each institutional sector)
Includes any other cost deriving from EP (e.g. interest on fixed capital used for EP production)
Excludes any economic advantage deriving from EP expenditures (e.g. profits for EP producers, EP taxes for General Government)

11. Main characteristics of EPEA aggregates
Consistency with national accounts aggregates and their breakdown (institutional sector and NACE)
this allows to calculate ratios to appropriate national accounts aggregates like e.g. GDP, Output, Gross Capital Formation, Employment, …
all transactions that are components of core national accounts aggregates should be accounted for by applying same criteria (same accounting treatment, same price system, ...)
Further breakdown typical of functional satellite accounts
Breakdown according to the roles played in environmental protection by the different economic units, i.e. producers (characteristic, specialised, non-specialised), users, financers
Breakdown by environmental domain (according to CEPA)

12. EPEA main concepts (1)
EPEA adopts a number of concepts typical of functionally oriented satellite accounts:
Characteristic activities and products
Characteristic and non-characteristic producers
Specific products
Specific transfers
In order to be consistent with the core system of national accounts, EPEA adopts its fundamental concepts:
Economic activity
Market vs non-market output

13. EPEA main concepts (2)
Characteristic environmental activities and products
Characteristic activities are economic activities whose purpose is environmental protection
They are classified according to CEPA 2000
Output of characteristic activities are EP services (characteristic products)
Characteristic environmental producers
Characteristic producers : producer units of the national economy which execute characteristic activities; the following characteristic producers are distinguished:
specialised producers, which execute a characteristic activity as their principal activity; specialised producers belonging to the institutional sectors GG and NPISHs are considered as a whole and distinguished from specialised producers belonging to other sectors
non-specialised characteristic producers, which execute a characteristic activity as a secondary activity or as an activity which is ancillary to a principal non-characteristic activity; these producers are grouped according to their principal non-characteristic activity

14. EPEA main concepts (2a) non-characteristic environmental producers
Activities which do not directly serve an environmental protection purpose but which produce specifically designed products whose use services an environmental protection purpose are called non-characteristic EP activities. Some environmental accounts, like the Environmental Goods and Services Sector accounts (EGSS), cover also the production of non-characteristic activities, but EPEA does not.

15. EPEA main concepts (3)
Specific products: all products whose use contributes to EP
Specific transfers: Unrequited payments received by resident or non-resident units which contribute to the financing of characteristic activities and uses of specific products or constitute a compensation for income or capital losses related to environmental protection. Current and capital transfers are distinguished.
Specific taxes constitute specific transfers when their revenues are earmarked for environmental protection

16. EPEA main concepts (5)
National accounts fundamental concepts adopted by EPEA (1):
Economic activity
An economic activity takes place when resources such as capital goods, labour, manufacturing techniques or intermediary products are combined to produce goods or services. Thus, an economic activity is characterised by an input of resources, a production process and an output of products (goods or services).
Activity is a principal activity if it represents the largest part of the Gross Value Added of the producers. It is secondary when it is not principal and at the same time provides output sold on the market. It is ancillary when the output is for own use
Market vs non-market output
market output is output sold at economically significant prices. A price is an economically significant price when it covers at least 50% of the cost of production of a product. The corresponding producer units are market producers
non-market output is output provided free or at prices that are not economically significant. The corresponding producer units are non-market producers. In the case of non-market producers revenues from non-market output may appear when output is sold at prices that are not economically significant. Such revenues are called partial payments

17. Main components of national EP expenditure
Main components of national EP expenditure: kind of use (rows of Table A)
uses of EP services by resident units (except specialised producers to avoid double counting),
gross capital formation for environmental protection (including net acquisition of land),
uses of connected and adapted products by resident units (except specialised producers),
specific transfers for environmental protection (those transfers not already captured above).
financing by the rest of the world is deducted in order to obtain a national aggregate

18. The EPEA module (1)
The full EPEA framework is quite expensive in terms of resources to be set up,
The EPEA module under Regulation 691/2011 significantly simplifies the full framework
But it still allows compiling a measure of environmental protection expenditure for the whole economy comparable with national accounts aggregates!

19. The EPEA module (2) 7 tables: (1) General government and NPISH,
(2) Corporations as secondary and specialist producers of market EP services,
(3) Corporations other (also covering the production of ancillary EP services),
(4) Total supply of environmental protection services,
(5) Households,
(6) Environmental protection transfers and
(7) Total economy.

20. The EPEA module: calculation of NEEP

21. Classification of Environmental Protection Activities and Expenditure - CEPA 2000

22. What’s CEPA?
CEPA is the Classification of Environmental Protection Activities and expenditures
The last version – CEPA 2000 – is published in 2002 EPEA compilation guide (Remark: 1994 SERIEE manual includes a old version of CEPA)
CEPA 2000 is a generic, multi-purpose, functional classification for environmental protection. It is used for classifying activities but also products, actual outlays (expenditure) and other transactions (not only activities)
CEPA is designed to classify transactions and activities whose primary purpose is environmental protection (main purpose)
Classification structure: The level 1 structure of CEPA (1-digits) are the CEPA classes. CEPA classes 1 to 7 are also called (environmental) domains. The main function of most 2-digits and 3-digits in CEPA is to guide classification into the classes. Selected 2-digits and 3-digits may also be used for data collection and coding as well as for publication purposes

23. General classification principles
Classification should be made according to the main purpose taking into account the technical nature as well as the policy purpose of an action or activity. Multi-purpose actions, activities and expenditure that address several CEPA classes should be divided by these classes. Classification under the heading ‘indivisible expenditure and activities’ should only be made as a last resort.
Classification of individual items cannot be based solely on the technical nature of the items. For example, the purchase of double- glazed windows in warm countries will typically relate to issues of noise protection, whereas in colder countries they will be a standard energy saving device. Measures against forest fires will be unimportant or purely serve economic purposes (and thus fall outside of CEPA) in some countries whereas in others the main aspect of forest fires will be an environmental one related to landscape and habitat preservation rather than protection of a natural resource.

24. Classification of transversal activities and expenditure
Transversal activities are R&D, administration and management as well as education, training and information. All R&D should be allocated to CEPA 8. Administration and management as well as education, training and information should, to the extent possible, be allocated to the ‘Other’ positions in CEPA 1-7. Ideally, transversal activities would be identified separately, as well as by CEPA class but primary data sources related to CEPA 1-7 often do not allow this. R&D, education and training or administration and management are often either not separable from other actions relating to another class (administration or training as part of waste management, for example) or cannot be split by class (R&D data collected by industry expenditure surveys, for example). If such identification problems are considered substantial, data on R&D, administration and management and on education, training and information should not be published at the 2-digit level.

25. CEPA2000 classification matrix: [type of activity] by [environmental domain]

26. CEPA 2000 items (1)

27. CEPA 2000 items (2)

28. A few operational remarks on CEPA
Main purpose
CEPA provides the information on major environmental activities/purposes
‘Other activities’ (2-digit category of each class 1-7)
It does not include things that ‘I don’t know where to classify’; it includes administration, information, education and training activities referring only or mainly to the domain of the class
Other environmental activities (CEPA 9)
It refers to all environmental protection activities which take the form of general environmental administration and management activities or training or teaching activities specifically oriented towards environmental protection or which consist of public information, when they are not classified elsewhere in CEPA.
It does not refer to statistical units that at the basic data level are ‘too much aggregated for me to easily compile the account’!
Activities n.e.c. (9.4. category)
It refers to activities which cannot be classified in any other position because they do not concern environmental domains 1-7!
It also includes activities and actions which have at the same time different purposes and which cannot be split or classified according to only one main purpose (e.g. prevention of risk of industrial accidents – Seveso directive, ...)

29. EPEA questionnaire tables 1,2,3 – production of characteristic services

30. Cross-categorisation of producers
secondary output of EP services should be included in EPEA tables 1 and 2

31. Main categories of producers
NACE Rev. 2
EP services/domain
37 Sewerage
Wastewater management
(specialised producers)
38.1 Waste collection
38.2 Waste treatment and disposal
waste management
39.00 Remediation activities and other waste management activities
Soil decontamination, cleaning up of soil (specialised producers)
38.3 Materials recovery
(secondary producers)
36.00 Water collection treatment and supply
waste water treatment services
46.77 Wholesale of waste and scrap
71 Architectural and engineering activities; technical testing and analysis
Environmental consultancy, environmental testing and analysis
(specialised and secondary producers)
72 Scientific research and development
R&D for EP

32. Main methods for calculation of EP output
Mains sources
Producers
Output as given by existing sources
National accounts
Production statistics
Industrial survey
Specialised (including GG) and secondary producers
Output calculated via cost of production
Analysis of finance statistics or of accounts of GG
Specific surveys on EPE
GG producers (including specialised producers)
Ancillary producers
Other methods, especially “price times quantity”
Physical and price data
Mainly (but not only) for producers of waste and wastewater management
By using production statistics and industrial surveys for output data, it has to be taken into account, that data on turnover has to be adjusted, as it is not fully in line with ESA ‘output’

33. Table 1 General government and NPISH
Table 1 should cover the expenditure for environmental protection of all units classified in the government sector (S.13) and NPISH sector (S.15) in the national accounts
The institutional units classified in S.13 are non-market producers. However, they may have some secondary market output of EP services which is also to be reported in table 1.

34. Table 1 General government and NPISH
General government vs Corporations as secondary and specialist producers:
In countries where the national accounts data by industries and the supply and use tables are not based on institutional units but on the more detailed local kind-of-activity units (KAUs), it is possible that some units (local KAUs) belonging to the general government institutional sector engaged in environmental protection activities are classified in NACE Rev. 2 divisions 37, 38 or 39.

35. Table 1 General government and NPISH
Transactions as producers of EP services
( P1.1 ) EP output ((P13.1) + (P11.1))
( P11.1 ) EP market output (Includes P.11 (market output) of general government and NPISH local KAUs that are market producers)
( P13.1 ) EP non-market output (Includes P.131 (payments for non-market output))
( P51G_NP.1 ) Gross fixed capital formation and acquisition less disposals of non-financial, non-produced assets
Transactions as users of EP services
( P3_EPS.1 ) Final consumption of EP services ((P13.1) less P.131 (payments for non-market output))

36. Table 1 General government and NPISH
A general government unit may recover part of its cost of production for output provided to other units through fees and charges.
If the recovered part is less than 50% of the cost of production, the unit will be classified as a non-market producer. The ESA 2010 transaction ‘Payments for non- market output’ (P.131) consists of those fees and charges that partly recover the production costs for non- market output. In line with ESA 2010 the EPEA Table 1 includes P.131 under the heading “non-market output”. However, P.131 is not part of the final consumption of EP services by the general government.

37. Table 1 General government and NPISH
All the mandatory variables should be filled in for :
CEPA 2, 3, 6, sum of CEPA 1, 4, 5 & 7 and sum of CEPA 8 & 9.
Relationship with COFOG

38. Table 1 General government and NPISH
Sources of data for Table 1:
national accounts – general government expenditure by function (COFOG) (Table 11 of the ESA transmission program) and in particular items classified in COFOG 5.
Analysis of financial budgets and accounts analysis is useful for detailing EP expenditure activities already recorded in a more aggregated way under COFOG statistics (e.g. to split up COFOG 5.3).
The calculation of more detailed data for the voluntary part may require appropriate estimation techniques, for example in the case of consumption of fixed capital which could be estimated from data on investments or from available data national accounts using appropriate ratios.

39. Table 2 Corporations as specialist and secondary producers of market EP services
Specialist producers of the corporations sector include:
privately and publicly owned corporations
and quasi-corporations.
Quasi-corporations could for example be waste departments of large municipalities which charge economically significant prices and are considered to have autonomy of decision and where the municipalities' book- keeping systems allow having a full set of accounts for these units. Specialist producers can be found in particular in NACE Rev. 2 divisions 37, 38 and 39.

40. Table 2 Corporations as specialist and secondary producers of market EP services
Transactions as producers of EP services
( P11.2 ) EP market output
( P2_EPS_SP.2 ) Intermediate consumption of EP services by corporations as specialist producers
( P51G_NP.2 ) Gross fixed capital formation and acquisition less disposals of non-financial, non-produced assets

41. Table 2 Corporations as specialist and secondary producers of market EP services
The secondary output of EP services by corporations is included in Table 2. For example, in some countries an important part of market wastewater management services are produced by NACE Rev. 2 division 36 (water supply companies which e.g. also collect and treat wastewater) or division 35 (electricity, gas and steam supply companies which e.g. also treat waste).

42. Table 2 Corporations as specialist and secondary producers of market EP services
All the mandatory variables should be filled in for CEPA 2, 3 and 4.

43. Table 2 Corporations as specialist and secondary producers of market EP services
Main data sources for Table 2 are:
national accounts - production and generation of income accounts (Table 3 of the ESA transmission programme)
supply and use tables (Tables 15 and 16 of the ESA transmission programme).
When information from supply and use tables is used, care is needed to establish which statistical units are the basis for compiling the supply and use tables.

44. Table 3(x) Corporations: other (also covering producers of ancillary EP services)
An ancillary activity is a supporting activity undertaken within an enterprise in order to create the conditions within which the principal or secondary activities can be carried out. Any production of environmental protection services for internal use (an ancillary environmental protection activity) should be recorded under the industry (NACE) where the unit undertaking the EP ancillary activity is classified.

45. Table 3(x) Corporations: other (also covering producers of ancillary EP services)
Additional sub-tables for ancillary production of EP services (Tables 3a to 3e) allow for detailing the ancillary production of EP services by NACE sections and divisions according to the main activity of the unit.
Mandatory sections and divisions are:
mining and quarrying (3a),
total manufacturing (3b),
detailed manufacturing industries (3b_Add),
electricity, gas and steam supply (3c)
and water supply (3d).
The rest of NACE divisions are grouped under table 3e “Other NACE divisions”, which is to be filled in only voluntarily.

46. Table 3(x) Corporations: other (also covering producers of ancillary EP services)
The output of an ancillary activity is not intended for use outside the enterprise. Ancillary output is generally calculated summing up the costs of production.
In order to reduce the response burden, for the calculation of ancillary output the inclusion of consumption of fixed capital and of taxes less subsidies on production is not mandatory.

47. Table 3(x) Corporations: other (also covering producers of ancillary EP services)
All the mandatory variables should be filled in for CEPA 1, 2, 3, and the sum of CEPA 4 to 9.

48. Table 3(x) Corporations: other (also covering producers of ancillary EP services)
Main data source for Tables 3 is:
the Structural Business Statistics (SBS).
The mining & quarrying, manufacturing, electricity, gas & water supply industries in their role as ancillary producers are covered by this legal framework. As the frequency of the reporting depends on the variable, some estimation could be necessary in the intervening years. The calculation of more detailed data for the voluntary part will require appropriate estimation techniques, for example in the case of consumption of fixed capital which could be estimated based on data on investments or from national accounts data using appropriate ratios.

49. EPEA questionnaire tables 4 – total supply of EP services and 5 - households

50. Table 4 Total supply of EP services
Table 4 summarises the output of EP services, intermediate consumption of EP services by specialist producers, imports and exports of EP services, VAT and other taxes less subsidies on EP services.
EP output is calculated automatically. The header "Intermediate consumption of EP services by specialist producers" is the sum of "intermediate consumption of EP services by corporations as specialist producer" (to be reported in Table 2) and "market producers of the general government sector" (to be reported in Table 1). Import, exports and VAT and other taxes less subsidies on EP services should be filled in for CEPA 2, 3 and 4. This means that for P.7, P.6 and VAT and other taxes less subsidies on EP services in the obligatory table in column « Sum of CEPA » only CEPA 4 should be reported.
These variables allow calculating the component of the national expenditure that corresponds to the domestic uses of environmental protection services.

51. Table 4 Total supply of EP services
The main data sources for Table 4 are:
national accounts - production and generation of income accounts (Table 3 of ESA transmission programme)
and national accounts - supply and use tables (Tables 15 and 16 of ESA transmission programme).
Where no direct data on imports and exports are available from these sources, physical data could be used (e.g. the imports and exports of waste are recorded).
In general, available data do not allow identifying imports and exports of EP services. However, most EP services are not internationally traded and imports and exports can be assumed to be zero. The main traded EP service is waste management (e.g. payments for waste treated in other countries). There are physical data available under the Basel convention for all countries concerning dangerous waste. Some countries also have data on cross-border flows of mixed household waste. There are no data for inert wastes but it can be assumed that the monetary values involved are very small given the low prices for the treatment of such waste and the high transport costs.

52. Table 5 Households
In principle, the household sector consists of the institutional sector of households in the national accounts, considered in their capacity as final consumers.

53. Table 5 Households
Final consumption of EP services by households is households’ expenditure on EP services that are used for the direct satisfaction of individual needs (individual consumption).

54. Table 5 Households
Household expenditure includes all payments and fees for EP services purchased from the general government sector (e.g. municipalities) or corporations as specialist or secondary producers of EP services. These include mainly payments for the collection and treatment of waste and payments for the collection and treatment of wastewater. Payments for non-market output (P.131) are part of household final consumption expenditure for that part paid by households. Household expenditure include all payments and fees for EP services purchased from the public sector (e.g. municipalities) or public and private specialist producers of EP services. These include mainly: payments for the collection and treatment of waste and payments for the collection and treatment of wastewater.

55. Table 5 Households
In the mandatory part of Table 5 household final consumption of EP services should be filled in for CEPA 2 and 3.

56. Table 5 Households
Main data sources for Table 5 are supply and use tables which may provide final consumption expenditure of households for the most important EP services identified through CPA codes and household expenditure surveys. Depending on the country, items relating to the use of EP services may be separately provided by the source data or may be included in wider expenditure categories. For example, wastewater removal may be included in the water bills.

57. EPEA questionnaire table 6 – transfers

58. Tables 6 Transfers
Environmental protection transfers are all current or capital transfers that are intended to support activities which protect the environment. They cover transfers in favour of the production and use of environmental protection services as well as transfers in favour of the production and use of cleaner (adapted) and specific (connected) products for environmental protection. Transactions classified as current (D.3 Subsidies and D.7 Other current transfers) or capital transfers (D.92 Investment grants and D.99 Other capital transfers) according to the ESA 2010 are included in this table as well as earmarked taxes. Tax abatements, interest reliefs, guarantees are excluded.

59. Tables 6 Transfers
The table asks in its mandatory part for transfers paid and received by the general government and the rest of the world sectors. For households and corporations only received transfers are asked for.

60. Tables 6 Transfers
Transfers should be filled in for CEPA 2, 3, 6, sum of CEPA 1, 4, 5 & 7 and sum of CEPA 8 & 9, i.e. for the breakdown as foreseen in COFOG.

61. Tables 6 Transfers
Main source of data for transfers are COFOG 05 figures included under national accounts – general government expenditure by function (COFOG) (Table 11 of ESA transmission programme).

62. EPEA questionnaire tables 7.1 & 7.2 – total economy

63. Tables 7 Total economy
Table 7 sums up the data filled in the mandatory part of the previous tables. It is automatically filled in.
Two versions of table 7 are available:
table 7.1 sums up total economy by CEPA (2,3 sum of CEPA 1 & 4 to 9) and
table 7.2 sums up total economy, total CEPA by institutional sectors.

64. Tables 7 Total economy ( P1.7 ) EP output (P11.7 + P1_ANC.7 + P13.7)
( P11.7 ) EP market output
( P1_ANC.7 ) EP ancillary output
( P13.7 ) EP non-market output
( P2_EPS_SP.7 ) Intermediate consumption of EP services by specialist producers
( P7.7 ) Imports of EP services
( P6.7 ) Exports of EP services
( D21-D31.7 ) VAT and other taxes less subsidies on EP services
( SUP_NU.7 ) EP supply at purchasers' prices available for national uses (= P P2_EPS_SP.7 + P7.7 - P6.7 + D21-D31.7)
( P51G_NP.7 ) Gross fixed capital formation and acquisition less disposals of non-financial, non-produced assets
( P3_EPS.7 ) Final consumption of EP service
( D3_D7_D92_D99_PAY.7 ) Current and capital transfers paid
( D3_D7_D92_D99_REC.7 ) Current and capital transfers received

65. Calculation of NEEP - EPEA questionnaire table 7.3

66. Calculation of NEEP (1)
Regulation (EU) No 691/2011, Annex IV, section 1, defines "national expenditure for environmental protection" (NEEP) as:
The sum of uses of environmental protection services (EPS) by resident units;
Plus gross fixed capital formation (GFCF) for environmental protection activities;
Plus transfers for environmental protection which are not a counterpart of previous items;
Less transfers from the rest of the world.
Have a look at: Eurostat, EPEA - calculation of national expenditure for environmental protection, 2016

67. Calculation of NEEP (2)

68. Calculation of NEEP (3)

69. Calculation of NEEP (3)

70. EPEA questionnaire: Mandatory and voluntary parts

71. EPEA questionnaire: Checks and transmission of data

72. EPEA questionnaire: Checks and transmission of data
Present the questionnaire’s check via excel

73. Data sources

74. Data sources: overview
National Accounts
PRODCOM, STS
COFOG
EGSS
Budget analysis
Specific surveys
Structural Business Statistics
Other data sources

75. Figures that can possibly be taken from National Accounts

76. COFOG (1)
In National Accounts the transactions of general government are classified by functions. One of these main functions is dedicated to environment. Most output of EP services of GG could be covered.

77. COFOG (2)
Transactions are allocated based on the purpose. Environmental protection expenditure or multi-purpose activities can be classified under a different main function. Therefore other COFOG positions could also be relevant, e.g.
Overall planning and statistical services
Agriculture
Multi-purpose development projects
It could also be the case that COFOG is not detailed enough.
In both cases it is necessary to carry out a specific analysis of the national accounts data.
In any case a cooperation with national accounts experts is appreciated because they can provide necessary data in an adequate structure.

78. Budget Analysis
An alternative to national accounts data which some disadvantages. Applying budget analysis implies the investigation of each budget line of the budgets of all government units (ministries, provinces, municipalities). But the classification of budget lines may differ from National Accounts classification, often information about the purpose of transactions in not (sufficiently) available, budget lines can have several purposes (a split is necessary). So this work is quite difficult and time intensive and it is doubtful whether environmental protection expenditure of General Government can be compiled in a way which is fully compatible with National Accounts.

79. Structural Business Statistics (SBS) (1)
Based on surveys SBS provides data for the enterprises of the manufacturing and service industries (NACE rev. 2, sections B to N; excluding “Public administration, compulsory social security“, “Education”, “Human health and social work activities”, “Arts, entertainment and recreation” and “Other service activities”).
Main variables are:
Demographic variables: Number of enterprises
Input variables: persons employed, number of employees, personnel expenditure, investment
Output variables: Revenues and income, turnover, production value, value added at factor costs, gross operating surplus

80. Structural Business Statistics (SBS) (2)
Important for EPEA:
Investment in equipment and plant for pollution control and special anti-pollution accessories (mainly 'end-of-pipe' equipment)
Investment in equipment and plant linked to cleaner technologies (”integrated technology”)
Total current expenditure on environmental protection
Each is broken down into protection of ambient air and climate, wastewater management, waste management and other environmental protection activities, but only for manufacturing industry.
Output data for specialised producers of NACE 37 to 39 and non- specialised producers (estimation bases on shares)
Legal base for SBS is up to now Regulation (EC) No. 295/2008 of the European Parliament and of the Council concerning structural business statistics, amended by Regulations (EC) No. 250/2009 and 251/ But this regulation will be changed when FRIBS will be implemented!

81. Industry commodity statistics (PRODCOM) – Short term statistics (STS)
Industry commodity classification PRODCOM allows for the identification of the production of environmental goods. This information is at least in Austria surveyed via the short term statistics surveys in industry and construction (NACE rev. 2, sections B to F).
These results are used in Austria to estimate household environmental expenditure (among other statistical data sources) via purchase of environmental goods.

82. Specific surveys
In addition to the already mentioned data sources it is possible and sometimes necessary to carry out specific surveys.
Voluntary Austrian surveys:
Survey on environmental protection expenditure of manufacturing industry
Sample survey (3000 enterprises of NACE rev. 2, sections B to F) on current expenditure and investment for environmental protection.
Survey on environmental protection expenditure of service industries
Sample survey (3000 enterprises of NACE rev. 2, sections G to S except public sector) on current expenditure and investment for environmental protection.
Survey on environmental services of service industries (producer of environmental services)
Sample survey (3000 enterprises with focus on most probable industries)

83. Other data sources
Analysis of business reports for covering specialised producers of the sector
„Non profit institutions serving households“.
Evaluation reports of organic farming support programmes

84. Practical examples and exercises

85. Environmental Protection Expenditure Accounts (EPEA) European Statistical Training Programme (ESTP)
Please address queries to your trainer:
Eva Milota