1. 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

2. 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 (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

3. 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

4. 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)

5. 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

6. 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

7. 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)

8. 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.

9. 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)

10. 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.

11. 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.