Eurostat WG Monetary environmental statistics and accounts 14

Eurostat WG Monetary environmental statistics and accounts 14 -05 -2018 Integrated compilation of monetary environmental economic accounts for Belgium Guy Vandille Federal Planning Bureau plan. be

Current state of monetary environmental economic accounts • Yearly production at EU-level ETEA (since 2013) EGSS (since 2017) EPEA (since 2017) plan. be

Current state of monetary environmental economic accounts • Yearly production at EU-level ETEA (since 2013) EGSS (since 2017) EPEA (since 2017) • Pilot studies by individual countries Re. MEA ESST plan. be

Current state of monetary environmental economic accounts • Yearly production at EU-level ETEA (since 2013) EGSS (since 2017) EPEA (since 2017) • Pilot studies by individual countries Re. MEA ESST • What’s wrong ? plan. be

This is wrong… • Monetary environmental economic accounts (MEEA) have been developed at different points in time, due to modular approach taken by Eurostat in the development and deployment of EEA plan. be

This is wrong… • Monetary environmental economic accounts (MEEA) have been developed at different points in time, due to modular approach taken by Eurostat in the development and deployment of EEA Approach taken <= limited resources available plan. be

This is wrong… • Monetary environmental economic accounts (MEEA) have been developed at different points in time, due to modular approach taken by Eurostat in the development and deployment of EEA Approach taken <= limited resources available • Drawback: confusion when EGSS, EPEA, Re. MEA, ESST and ETEA are presented next to one another plan. be

This is wrong… • Monetary environmental economic accounts (MEEA) have been developed at different points in time, due to modular approach taken by Eurostat in the development and deployment of EEA Approach taken <= limited resources available • Drawback: confusion when EGSS, EPEA, Re. MEA, ESST and ETEA are presented next to one another Overlaps (same variables, different levels of detail, different valuation) plan. be

This is wrong… • Monetary environmental economic accounts (MEEA) have been developed at different points in time, due to modular approach taken by Eurostat in the development and deployment of EEA Approach taken <= limited resources available • Drawback: confusion when EGSS, EPEA, Re. MEA, ESST and ETEA are presented next to one another Overlaps (same variables, different levels of detail, different valuation) => BEWILDERMENT plan. be

This is wrong… • Monetary environmental economic accounts (MEEA) have been developed at different points in time, due to modular approach taken by Eurostat in the development and deployment of EEA Approach taken <= limited resources available • Drawback: confusion when EGSS, EPEA, Re. MEA, ESST and ETEA are presented next to one another Overlaps (same variables, different levels of detail, different valuation) => BEWILDERMENT different terminology plan. be

This is wrong… • Monetary environmental economic accounts (MEEA) have been developed at different points in time, due to modular approach taken by Eurostat in the development and deployment of EEA Approach taken <= limited resources available • Drawback: confusion when EGSS, EPEA, Re. MEA, ESST and ETEA are presented next to one another Overlaps (same variables, different levels of detail, different valuation) => BEWILDERMENT different terminology => BEMUSEMENT plan. be

This is wrong… • Monetary environmental economic accounts (MEEA) have been developed at different points in time, due to modular approach taken by Eurostat in the development and deployment of EEA Approach taken <= limited resources available • Drawback: confusion when EGSS, EPEA, Re. MEA, ESST and ETEA are presented next to one another Overlaps (same variables, different levels of detail, different valuation) => BEWILDERMENT different terminology => BEMUSEMENT different classifications => different sources => different results plan. be

This is wrong… • Monetary environmental economic accounts (MEEA) have been developed at different points in time, due to modular approach taken by Eurostat in the development and deployment of EEA Approach taken <= limited resources available • Drawback: confusion when EGSS, EPEA, Re. MEA, ESST and ETEA are presented next to one another Overlaps (same variables, different levels of detail, different valuation) => BEWILDERMENT different terminology => BEMUSEMENT different classifications => different sources => different results => DOUBTS ABOUT RELIABILITY plan. be

This is wrong… • Monetary environmental economic accounts (MEEA) have been developed at different points in time, due to modular approach taken by Eurostat in the development and deployment of EEA Approach taken <= limited resources available • Drawback: confusion when EGSS, EPEA, Re. MEA, ESST and ETEA are presented next to one another Overlaps (same variables, different levels of detail, different valuation) => BEWILDERMENT different terminology => BEMUSEMENT different classifications => different sources => different results => DOUBTS ABOUT RELIABILITY • Conclusion: links between the different MEEA too unclear to be able to convey a clear message to potential user plan. be

Experience in Belgium • Belgium currently produces EGSS, EPEA and ETEA. Confusion is created by comparison of EGSS and EPEA. plan. be

Experience in Belgium • • Belgium currently produces EGSS, EPEA and ETEA. Confusion is created by comparison of EGSS and EPEA. Major cause of confusion: EP Expenditure Accounts contain many tables on the production of EP services, with split-up across constituent parts (IC, Co. E, GFCC, T-S, NOS) plan. be

Experience in Belgium • • • Belgium currently produces EGSS, EPEA and ETEA. Confusion is created by comparison of EGSS and EPEA. Major cause of confusion: EP Expenditure Accounts contain many tables on the production of EP services, with split-up across constituent parts (IC, Co. E, GFCC, T-S, NOS) Other causes of confusion: plan. be

Experience in Belgium • • • Belgium currently produces EGSS, EPEA and ETEA. Confusion is created by comparison of EGSS and EPEA. Major cause of confusion: EP Expenditure Accounts contain many tables on the production of EP services, with split-up across constituent parts (IC, Co. E, GFCC, T-S, NOS) Other causes of confusion: EPEA structured according to institutional sectors EGSS according to industries (diff. class=>diff. sources=>diff. results) Mismatch EGSS employment – EPEA Co. E: normal wage/FTE 60 -70 k for government and NPISH (2 mio euro) and for specialist and secondary producers (25 k) plan. be

Experience in Belgium • • • Belgium currently produces EGSS, EPEA and ETEA. Confusion is created by comparison of EGSS and EPEA. Major cause of confusion: EP Expenditure Accounts contain many tables on the production of EP services, with split-up across constituent parts (IC, Co. E, GFCC, T-S, NOS) Other causes of confusion: EPEA structured according to institutional sectors EGSS according to industries (diff. class=>diff. sources=>diff. results) Mismatch EGSS employment – EPEA Co. E: normal wage/FTE 60 -70 k for government and NPISH (2 mio euro) and for specialist and secondary producers (25 k) EPEA focuses on services EGSS includes goods and services Output CEPA 3 (waste) in EPEA is a lot lower than in EGSS plan. be

Experience in Belgium • • • Belgium currently produces EGSS, EPEA and ETEA. Confusion is created by comparison of EGSS and EPEA. Major cause of confusion: EP Expenditure Accounts contain many tables on the production of EP services, with split-up across constituent parts (IC, Co. E, GFCC, T-S, NOS) Other causes of confusion: EPEA structured according to institutional sectors EGSS according to industries (diff. class=>diff. sources=>diff. results) Mismatch EGSS employment – EPEA Co. E: normal wage/FTE 60 -70 k for government and NPISH (2 mio euro) and for specialist and secondary producers (25 k) EPEA focuses on services EGSS includes goods and services Output CEPA 3 (waste) in EPEA is a lot lower than in EGSS EPEA excludes resource management EGSS includes Re. M (avoiding depletion of natural resources = not environmental protection ? ? ? ) plan. be

The solution: Integrated compilation of MEEA plan. be

The solution: Integrated compilation of MEEA • Work on integration of MEEA by Eurostat already started in 2011 => progress in the field of terminology overlaps and use of different classifications plan. be

The solution: Integrated compilation of MEEA • • Work on integration of MEEA by Eurostat already started in 2011 => progress in the field of terminology overlaps and use of different classifications Belgium: focus on integration of environmental activity accounts, accounts dealing with the production and the use of environmentally beneficial products: EGSS and EPEA/Re. MEA ETEA plan. be

The solution: Integrated compilation of MEEA • • • Work on integration of MEEA by Eurostat already started in 2011 => progress in the field of terminology overlaps and use of different classifications Belgium: focus on integration of environmental activity accounts, accounts dealing with the production and the use of environmentally beneficial products: EGSS and EPEA/Re. MEA ETEA How to integrate EGSS and EPEA/Re. MEA ? plan. be

The solution: Integrated compilation of MEEA • • • Work on integration of MEEA by Eurostat already started in 2011 => progress in the field of terminology overlaps and use of different classifications Belgium: focus on integration of environmental activity accounts, accounts dealing with the production and the use of environmentally beneficial products: EGSS and EPEA/Re. MEA ETEA How to integrate EGSS and EPEA/Re. MEA ? 3 separate accounts avoiding overlaps EGSS deals with output EPEA and Re. MEA deal with expenditure plan. be

The solution: Integrated compilation of MEEA • • • Work on integration of MEEA by Eurostat already started in 2011 => progress in the field of terminology overlaps and use of different classifications Belgium: focus on integration of environmental activity accounts, accounts dealing with the production and the use of environmentally beneficial products: EGSS and EPEA/Re. MEA ETEA How to integrate EGSS and EPEA/Re. MEA ? 3 separate accounts (avoiding overlaps, EGSS deals with output – EPEA and Re. MEA deal with expenditure) OR: SUT+ EGSS = supply table EPEA/Re. MEA = use table + transfers + NEEP calculation, with supplyuse balance by product plan. be

The solution for Belgium: SUT+ plan. be

The solution for Belgium: SUT+ • Eurostat grant 05121. 2017. 002 -2017. 519 : Testing EPEA and EGSS in an integrated MEEA framework plan. be

The solution for Belgium: SUT+ • • Eurostat grant 05121. 2017. 002 -2017. 519 : Testing EPEA and EGSS in an integrated MEEA framework Step 1: design new tables plan. be

The solution for Belgium: SUT+ • • Eurostat grant 05121. 2017. 002 -2017. 519 : Testing EPEA and EGSS in an integrated MEEA framework Step 1: design new tables Create Supply and Use Tables for EP products: plan. be

The solution for Belgium: SUT+ • • Eurostat grant 05121. 2017. 002 -2017. 519 : Testing EPEA and EGSS in an integrated MEEA framework Step 1: design new tables Create Supply and Use Tables for EP products: 1) Remove all output related variables from EPEA => EPEA deals with the use of EP products (domestic + exports) + transfers, EGSS becomes the sole account dealing with the supply of EP products (domestic + imports) plan. be

The solution for Belgium: SUT+ • • Eurostat grant 05121. 2017. 002 -2017. 519 : Testing EPEA and EGSS in an integrated MEEA framework Step 1: design new tables Create Supply and Use Tables for EP products: 1) Remove all output related variables from EPEA => EPEA deals with the use of EP products (domestic + exports) + transfers, EGSS becomes the sole account dealing with the supply of EP products (domestic + imports) 2) Show supply and use of goods and services plan. be

The solution for Belgium: SUT+ • • Eurostat grant 05121. 2017. 002 -2017. 519 : Testing EPEA and EGSS in an integrated MEEA framework Step 1: design new tables Create Supply and Use Tables for EP products: 1) Remove all output related variables from EPEA => EPEA deals with the use of EP products (domestic + exports) + transfers, EGSS becomes the sole account dealing with the supply of EP products (domestic + imports) 2) Show supply and use of goods and services 3) Try and add Re. MEA in order to complete the use side plan. be

The solution for Belgium: SUT+ • • Eurostat grant 05121. 2017. 002 -2017. 519 : Testing EPEA and EGSS in an integrated MEEA framework Step 1: design new tables Create Supply and Use Tables for EP products: 1) Remove all output related variables from EPEA => EPEA deals with the use of EP products (domestic + exports) + transfers, EGSS becomes the sole account dealing with the supply of EP products (domestic + imports) 2) Show supply and use of goods and services 3) Try and add Re. MEA in order to complete the use side 4) Represent both supply and use according to institutional sectors and industries plan. be

The solution for Belgium: SUT+ • • Eurostat grant 05121. 2017. 002 -2017. 519 : Testing EPEA and EGSS in an integrated MEEA framework Step 1: design new tables Create Supply and Use Tables for EP products: 1) Remove all output related variables from EPEA => EPEA deals with the use of EP products (domestic + exports) + transfers, EGSS becomes the sole account dealing with the supply of EP products (domestic + imports) 2) Show supply and use of goods and services 3) Try and add Re. MEA in order to complete the use side 4) Represent both supply and use according to institutional sectors and industries • Step 2: collect data and fill the tables plan. be

The solution for Belgium: SUT+ • • Eurostat grant 05121. 2017. 002 -2017. 519 : Testing EPEA and EGSS in an integrated MEEA framework Step 1: design new tables Create Supply and Use Tables for EP products: 1) Remove all output related variables from EPEA => EPEA deals with the use of EP products (domestic + exports) + transfers, EGSS becomes the sole account dealing with the supply of EP products (domestic + imports) 2) Show supply and use of goods and services 3) Try and add Re. MEA in order to complete the use side 4) Represent both supply and use according to institutional sectors and industries • • Step 2: collect data and fill the tables Step 3: identify data gaps plan. be

The solution for Belgium: SUT+ • • Eurostat grant 05121. 2017. 002 -2017. 519 : Testing EPEA and EGSS in an integrated MEEA framework Step 1: design new tables Create Supply and Use Tables for EP products: 1) Remove all output related variables from EPEA => EPEA deals with the use of EP products (domestic + exports) + transfers, EGSS becomes the sole account dealing with the supply of EP products (domestic + imports) 2) Show supply and use of goods and services 3) Try and add Re. MEA in order to complete the use side 4) Represent both supply and use according to institutional sectors and industries • • • Step 2: collect data and fill the tables Step 3: identify data gaps Step 4: identify possible solutions to fill the gaps plan. be

Intermediate project output (02/2018 -> 04/2018) • Step 1: 4 sets of new questionnaires have been designed 2 EGSS (1 by NACE, 1 by IS) 2 EPEA (1 by NACE, 1 by IS) plan. be

Intermediate project output (02/2018 -> 04/2018) • Step 1: 4 sets of new questionnaires have been designed 2 EGSS (1 by NACE, 1 by IS) 2 EPEA (1 by NACE, 1 by IS) • Step 2: Data is being collected by means of surveys designed in the context of 2017 Eurostat project EGSS: 4563 enterprises (652 answers on 04 -05) EPEA: 12268 enterprises (648 answers on 04 -05) plan. be

Intermediate project output (02/2018 -> 04/2018) • Step 1: 4 sets of new questionnaires have been designed 2 EGSS (1 by NACE, 1 by IS) 2 EPEA (1 by NACE, 1 by IS) • Step 2: Data is being collected by means of surveys designed in the context of 2017 Eurostat project EGSS: 4563 enterprises (652 answers on 04 -05) EPEA: 12268 enterprises (648 answers on 04 -05) EGSS answers are being checked (necessary <= firms not familiar with our definitions) EPEA answers can only be checked for outliers plan. be

The EGSS questionnaire (1) • 11 sheets (EGSS now – EPEA now): Output Intermediate consumption of EP goods and services Intermediate consumption of other goods and services Gross value added Compensation of employees Other taxes less subsidies on production Consumption of fixed capital Net operating surplus Imports Employment plan. be

The EGSS questionnaire – supply table (2) • Columns: 1) NACE 2 -digits 2) 5 institutional sectors plan. be

The EGSS questionnaire – supply table (2) • • Columns: 1) NACE 2 -digits 2) 5 institutional sectors Rows: CEPA + CRe. MA plan. be

The EGSS questionnaire – supply table (2) • • • Columns: 1) NACE 2 -digits 2) 5 institutional sectors Rows: CEPA + CRe. MA Each CEPA + CRe. MA divided into: Market output Services Specialist Non-specialist Goods Cleaner and resource efficient Specialist Non-specialist Environmental sole purpose Specialist Non-specialist Non-market output Ancillary output Output for own final use plan. be

The EPEA questionnaire (1) • 5 sheets = use table (EGSS now – EPEA now): EP end-of-pipe investment EP integrated technologies investment Final consumption of EPS+G Intermediate consumption of EPS+G Exports plan. be

The EPEA questionnaire (1) • 5 sheets = use table (EGSS now – EPEA now): EP end-of-pipe investment EP integrated technologies investment Final consumption of EPS+G Intermediate consumption of EPS+G Exports • 4 sheets to link data at basic prices to purchaser’s prices VAT and other taxes less subsidies on EPS+G VAT on EPS+G Other taxes on EPS+G Subsidies on EPS+G plan. be

The EPEA questionnaire (1) • 5 sheets = use table (EGSS now – EPEA now): EP end-of-pipe investment EP integrated technologies investment Final consumption of EPS+G Intermediate consumption of EPS+G Exports • 4 sheets to link data at basic prices to purchaser’s prices VAT and other taxes less subsidies on EPS+G VAT on EPS+G Other taxes on EPS+G Subsidies on EPS+G • 3 sheets added to use table Gross fixed capital formation for the production of EPS+G Transfers National expenditure on environmental protection plan. be

The EPEA questionnaire – use table (2) • • • Columns: 1) NACE 2 -digits 2) 5 institutional sectors Rows: CEPA + CRe. MA Each CEPA + CRe. MA divided into: Market output Services Specialist Non-specialist Goods Cleaner and resource efficient Specialist Non-specialist Environmental sole purpose Specialist Non-specialist Non-market output Ancillary output Output for own final use plan. be

Supply – Use balance • To check balance S and U have to be expressed in same type of prices. plan. be

Supply – Use balance • • To check balance S and U have to be expressed in same type of prices. Data sources for Belgian EGSS and EPEA: Supply = at basic prices Use = at purchaser’s prices or basic prices plan. be

Supply – Use balance • • To check balance S and U have to be expressed in same type of prices. Data sources for Belgian EGSS and EPEA: Supply = at basic prices Use = at purchaser’s prices or basic prices • Choice for extra sheet in: EGSS: all row sums at purchaser’s prices by adding VAT and other taxes on EPS+G, and deducting subsidies on EPS+G plan. be

Supply – Use balance • • To check balance S and U have to be expressed in same type of prices. Data sources for Belgian EGSS and EPEA: Supply = at basic prices Use = at purchaser’s prices or basic prices • Choice for extra sheet in: EGSS: all row sums at purchaser’s prices by adding VAT and other taxes on EPS+G, and deducting subsidies on EPS+G EPEA: all row sums at basic prices by deducting VAT and other taxes on EPS+G, and adding subsidies on EPS+G plan. be

Supply – Use balance • • To check balance S and U have to be expressed in same type of prices. Data sources for Belgian EGSS and EPEA: Supply = at basic prices Use = at purchaser’s prices or basic prices • Choice for extra sheet in: EGSS: all row sums at purchaser’s prices by adding VAT and other taxes on EPS+G, and deducting subsidies on EPS+G EPEA: all row sums at basic prices by deducting VAT and other taxes on EPS+G, and adding subsidies on EPS+G Data on VAT, other taxes and subsidies on products in EPEA => probably easiest to calculate balance in EPEA plan. be