Communication from the Commission to the Council and the European Parliament - GDP and beyond : measuring progress in a changing world
Date: 2009-08-20
Institutions: European Commission
Subjects: dissemination of information, economic situation, exchange of information, globalisation, gross domestic product, provision of documents, report, short-term forecast

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 20.8.2009 
COM(2009) 433 final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE 
EUROPEAN PARLIAMENT 

GDP and beyond 
Measuring progress in a changing world 

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COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE 
EUROPEAN PARLIAMENT 

GDP and beyond 
Measuring progress in a changing world 

1. 

INTRODUCTION 

Gross  Domestic  Product  (GDP)  is  the  best  known  measure  of  macro-economic  activity.1 
Developed  in  the  1930s,  GDP  has  become  a  standard  benchmark  used  by  policy-makers 
throughout the world and is widely used in public debates. GDP aggregates the value added of 
all  money-based  economic  activities.  It  is  based  on  a  clear  methodology  that  allows 
comparisons to be made over time and between countries and regions. 

GDP has also come to be regarded as a proxy indicator for overall societal development and 
progress  in  general.  However,  by  design  and  purpose,  it  cannot  be  relied  upon  to  inform 
policy debates on all issues. Critically, GDP does not measure environmental sustainability or 
social  inclusion  and  these  limitations  need  to  be  taken  into  account  when  using  it  in  policy 
analysis and debates.2 

The  need  to  improve  data  and  indicators  to  complement  GDP  has  been  increasingly 
recognised  and  is  the  focus  of  a  number  of  international  initiatives.  These  initiatives  also 
reflect renewed societal and political priorities. In November 2007, the European Commission 
(together  with  the  European  Parliament,  the  Club  of  Rome,  the  WWF  and  the  OECD) 
organised the Beyond GDP conference.3 The conference revealed strong support from policy-
makers,  economic,  social  and  environmental  experts  and  civil  society  for  developing 
indicators  that  complement  GDP  and  aim  to  provide  more  comprehensive  information  to 
support policy decisions. 

This Communication therefore identifies a number of actions that can be taken in the short to 
medium  term.  The  overall  aim  is  to  develop  more  inclusive  indicators  that  provide  a  more 
reliable knowledge base for better public debate and policy-making. The Commission intends 
to  cooperate  with  stakeholders  and  partners  to  develop  indicators  that  are  internationally 
recognised and implemented. 

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GDP  =  private  consumption  +  investment  +  government  consumption  +  (exports  −  imports).  The 
framework  and  rules  on  how  to  calculate  it  are  set  in  the  European  System  of  Accounts  which  is 
broadly consistent with the UN System of National Accounts. 
For a recent overview of limitations of GDP see Stiglitz/Sen/Fitoussi (2008) Issues Paper, Commission 
on  the  Measurement  of  Economic  Performance  and  Social  Progress  (http://www.stiglitz-sen-
fitoussi.fr/documents/Issues_paper.pdf). 
www.beyond-gdp.eu 

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2. 

MEASURING PROGRESS IN A CHANGING WORLD 

2.1. 

Improved indicators reflecting new political and technical context 

The  EU  bases  several  policy  decisions  and  instruments  on  GDP.  In  the  current  economic 
downturn,  restoring  economic  growth  is  the  major  concern,  and  GDP  growth  is  a  key 
indicator to assess the effectiveness of the EU and national governments' recovery plans. 

When the European Council endorsed the European Economic Recovery Plan4 it recognised 
that the crisis should also be taken as an opportunity to set our economy more firmly on the 
path to a low-carbon and resource-efficient economy. The response to the crisis should seek to 
protect the hardest hit and the most vulnerable in society. These challenges point to the need 
for  more  inclusive  markers  than  just  GDP  growth;  for  indicators  that  concisely  incorporate 
social and environmental achievements (such as improved social cohesion, accessibility and 
affordability of basic goods and services, education, public health and air quality) and losses 
(e.g.,  increasing  poverty,  more  crime,  depleting  natural  resources).  The  reflections  on 
indicators contained in this Communication could contribute to setting new strategic goals for 
the post-2010 Lisbon Strategy. 

Statistical  techniques  and  computing  technologies  have  also  developed  beyond  recognition 
since the inception of national accounts and GDP. The EU finances several research projects 
on  new  indicators  reflecting  wider  public  concerns  than  those  currently  covered  by  GDP. 
There  are  no  insuperable  technical  obstacles  to  developing  the  quality  and  scope  of  our 
indicators  even  further  so  that  policy  decisions  can  progressively  be  based  on  a  more 
integrated, balanced and timely view of social, economic and environmental facts. 

2.2. 

Building on international and Member States efforts 

Reflection  on  how  to  complement  GDP  is  not  new.  Several  routes  are  being  explored  by 
international  and  national  institutions.  The  UNDP  has  developed  a  Human  Development 
Index  (HDI)  to  benchmark  countries  based  on  combined  measurement  of  GDP,  health  and 
education.  The  World  Bank  with  its  calculation  of  genuine  savings  has  pioneered  the 
inclusion  of  social  and  environmental  aspects  when  assessing  the  wealth  of  nations.  The 
OECD is running the Global Project on Measuring the Progress of Societies fostering the use 
of novel indicators in a participatory way. Several NGOs measure the "ecological footprint" – 
a  measurement  that  has  been  formally  recognised  as  a  target  for  environmental  progress  by 
some  public  authorities.  Researchers  have  published  pilot  indices  of  well-being  and  life 
satisfaction. The EU and Member States have developed and use a broad range of social and 
environmental indicators, often regrouped in sets of sustainable development indicators. The 
EU  also  promotes  and  supports  the  use  of  internationally  recognised  indicators  in 
neighbouring  countries  and  developing  countries.  Integrated  economic  and  environmental 
accounts are increasingly providing a wealth of information based on sound methodology. 

Against this context, solutions to improve, adjust or complement GDP are being sought. Most 
recently,  France  set  up  the  high  level  Commission  on  the  Measurement  of  Economic 
Performance and Social Progress, chaired by Joseph Stiglitz, in order "to identify the limits of 
GDP  as  an  indicator  of  economic  performance  and  social  progress"  and  "to  consider 

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additional information required for the production of a more relevant picture". Its report is due 
later this year. 

The  Commission  closely  monitors  and  in  many  cases  contributes  to  these  developments  to 
ensure international comparability between indicators. 

2.3. 

Improved indicators meeting citizens' concerns 

These initiatives are in line with public opinion as citizens aspire to balanced progress. 

A 2008 Eurobarometer poll showed that more than two thirds of EU citizens feel that social, 
environmental and economic indicators should be used equally to evaluate progress. Only just 
under one sixth prefer evaluation based mostly on economic indicators. An international poll 
in 2007 gave similar results.5 

Studies have also revealed that citizens can feel distanced from statistical information. GDP 
may be growing, but disposable incomes and public services are perceived as shrinking. As 
societies become more diverse, indicators based on averages or "the typical consumer" are not 
sufficient  to  fulfil  the  information  needs  from  citizens  and  policy-makers.  Complementing 
GDP  with  additional  concise  metrics  that  reflect  wider  public  concerns  would  demonstrate 
greater linkage between EU policy and citizens' preoccupations. 

3. 

FIVE ACTIONS TO BETTER MEASURE PROGRESS IN A CHANGING WORLD 

Against this background, the Commission proposes to implement the following five actions, 
which can be revised or supplemented in the light of the review planned in 2012. 

3.1. 

Complementing GDP with environmental and social indicators 

Indicators that summarise important issues with a single figure are essential communication 
tools.  They  trigger  policy  debate  and  give  people  a  feel  for  whether  or  not  progress  is  on 
track.  GDP  and  the  unemployment  and  inflation  rates  are  prominent  examples  of  such 
summary indicators. But they are not meant to reflect where we stand on issues such as the 
environment or social inequalities. To fill this gap, the Commission services intend to develop 
a comprehensive environmental index and improve quality-of-life indicators. 

3.1.1.  A comprehensive environmental index 

There  is  currently  no  comprehensive  environmental  indicator  that  can  be  used  in  policy 
debates alongside GDP. Such a single measurement for the environment would help foster a 
more balanced public debate on societal objectives and progress. Close candidates for such a 
purpose  are  the  ecological  and  carbon  footprints,  but  both  are  limited  in  scope.6  As 

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Special Eurobarometer 295/ March 2008; a similar poll conducted in 10 countries on the five continents 
shows an even higher support for going beyond GDP, with three quarters agreeing. 
The  carbon  footprint  summarises  only  greenhouse  gas  emissions.  The  Ecological  Footprint  excludes 
some impacts, e.g. on water. The Commission is testing it however among other indicators to monitor 
the Thematic strategy on Sustainable Use of Natural Resources and the Biodiversity Action Plan. 

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methodologies  for  composite  indices  and  data  are  now  sufficiently  mature7,  Commission 
services intend to present a pilot version of an index on environmental pressure in 2010. 

This index will reflect pollution and other harm to the environment within the territory of the 
EU to assess the results of environmental protection efforts. A fall in the value of the index 
will show that progress on environmental protection is being made. It will comprise the major 
strands of environmental policy: 

•  climate change and energy use 

•  nature and biodiversity 

•  air pollution and health impacts 

•  water use and pollution 

•  waste generation and use of resources 

The index will initially be published annually for EU and Member States with the longer term 
aim being – if successful – to publish it in parallel to GDP. Complementary information on 
sub-themes  and  related  environmental  goals  set  on  EU  and  national  level  will  be  published 
too to allow for correct interpretation of the index. By looking at it alongside GDP and social 
indicators, citizens would be able to assess whether EU and national policies – together with 
citizens' and business efforts – deliver the level of environmental protection they expect and 
whether progress is achieved in a balanced way towards social, economic and environmental 
goals. 

In addition to this comprehensive index on harm to or pressure on the environment, there is 
potential  to  develop  a  comprehensive  indicator  of  environmental  quality,  e.g.,  showing 
numbers  of  European  citizens  living  in  a  healthy  environment.  Research  on  this  will  be 
stepped up. 

The  Commission  will  also  continue  to  work  on  indicators  that  capture  the  environmental 
impact  outside  the  territory  of  the  EU  (e.g.  indicators  to  monitor  the  Thematic  Strategy  on 
Sustainable  Use  of  Natural  Resources)  and  will  continue  to  support  improvement  of  the 
Ecological Footprint. 

3.1.2.  Quality of life and well-being 

Citizens care for their quality of life and well-being. Income, public services, health, leisure, 
wealth,  mobility  and  a  clean  environment  are  means  to  achieve  and  sustain  those  ends. 
Indicators  on  these  "input"  factors  are  therefore  important  for  governments  and  the  EU.  In 
addition, social sciences are developing increasingly robust direct measurements of quality of 
life  and  well-being  and  these  "outcome"  indicators  could  be  a  useful  complement  to  the 
"input" indicators. 

The European Foundation for the Improvement of Living and Working Conditions is working 
on  this  issue.  In  addition,  the  Commission  has  launched  studies  on  the  feasibility  of  well-

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OECD,  European  Commission,  Joint  Research  Centre,  Handbook  on  Constructing  Composite 
Indicators: Methodology and User Guide, 2008. 

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being indicators and on consumer empowerment and, with OECD, on people's perception of 
well-being.  

3.2. 

Near real-time information for decision-making 

Factors  including  globalisation  and  climate  change  are  bringing  ever  faster  changes  to  the 
economy, society and the environment. Policy-making requires equivalent information on all 
those aspects – even if this goes at the expenses of accuracy – as it has to react quickly to new 
developments.  Currently,  there  are  considerable  differences  in  the  timeliness  of  statistics  in 
the  different  areas.  GDP  and  unemployment  figures  are  published  frequently  within  a  few 
weeks of the period they are assessing and this can allow near real-time decision making. By 
contrast,  environmental  and  social  data  in  many  cases  are  too  old  to  provide  operational 
information  e.g.  on  fast-changing  air  and  water  quality  or  work  patterns.  The  Commission 
will therefore aim to increase the timeliness of environmental and social data to better inform 
policy-makers all across the EU. 

3.2.1.  More timely environmental indicators 

Satellites,  automatic  measurement  stations  and  the  internet  make  it  increasingly  possible  to 
monitor  the  environment  in  real  time.  The  Commission  is  stepping  up  efforts  to  realise  this 
potential. It has taken major steps to employ these technologies with the INSPIRE Directive8 
and  GMES.9  Last  year  the  Commission  presented  the  Shared  Environmental  Information 
System  (SEIS),  a  vision  of  how  to  link  traditional  and  novel  data  sources  online  and  make 
them publicly available as fast as possible. A first example of such "near real-time reporting" 
is  the  ozone  web  of  the  European  Environment  Agency  (EEA)  which  provides  data  on 
harmful ground-level ozone concentrations to support daily decisions such as whether to take 
the car or public transport, or whether or not to undertake outdoor activities.10 

More  timely  data  can  also  be  produced  by  "now-casting",  which  uses  statistical  techniques 
similar to those used in forecasting to make reliable estimates. For instance, the EEA intends 
to  produce  short-term  estimates  of  greenhouse  gas  emissions  based  on  existing  short-term 
energy statistics. Eurostat intends to extend its use of now-casting to environmental accounts. 

3.2.2.  More timely social indicators 

Social data is usually collected from surveys using face-to-face interviews with large samples 
of respondents or using administrative data sources (e.g. tax or social security registers). The 
Commission, together with Member States, has been working to streamline and improve the 
surveys  and  reduce  the  time  lag  between  data  collection  and  publication.  The  European 
Labour Force Survey collects data on employment quarterly and results are published within 
half a year. Data on Healthy Life Years are also collected and disseminated on a yearly basis. 
Whenever possible and cost-effective, the timeliness of social data will be improved, e.g. with 
the new European System of Social Statistical Survey Modules. 

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Directive 2007/2/EC 
Global Monitoring for Environment and Security 
http://www.eea.europa.eu/maps/ozone/map 

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3.3.  More accurate reporting on distribution and inequalities 

Social  and  economic  cohesion  are  overarching  objectives  of  the  Community.  The  aim  is  to 
reduce disparities between regions and social groups. In addition, far-reaching reforms – such 
as  those  required  to  fight  climate  change  or  to  promote  new  patterns  of  consumption  –  can 
only  be  achieved  if  efforts  and  benefits  are  felt  to  be  equitably  shared  among  countries, 
regions, and economic and social groups. 

This is why distributional issues attract increasing attention. For example, even if the GDP per 
capita  figure  for  a  country  is  rising,  the  number  of  people  living  at  risk  of  poverty  may  be 
increasing.  Existing  data  from  national  accounts,  e.g.  on  household  income,  or  from  social 
surveys such as EU-SILC11, already allow for an analysis of key distributional issues. Policies 
affecting  social  cohesion  need  to  measure  disparities  as  well  as  aggregates  such  as  GDP  or 
GDP per capita. 

In  its  Renewed  Social  Agenda:  Opportunities,  Access  and  Solidarity,12  the  Commission 
reiterated  its  commitment  to  fight  poverty,  social  exclusion  and  discrimination.  To  foster 
exchange  of  experience  between  Member  States,  the  Commission  reports  on  a  set  of 
indicators agreed with Member States, to inform policy-makers about income disparities and 
particularly about the situation at the lower end of the income scale. The analysis of situations 
in Member States also looks at education, health, life expectancy, and various non-monetary 
aspects of social exclusion. Indicators of equal access to quality housing, transport and other 
services  and  infrastructure  that  are  essential  to  participate  fully  in  society  –  and  hence  to 
contribute to economic and social progress – are being developed. 

In addition, the link between social exclusion and environmental deprivation has been gaining 
attention. Clean air and water, unspoiled landscapes and rich biodiversity on the one hand and 
pollution and noise on the other are not evenly distributed. A recent study13 contracted by the 
Commission  confirmed  that  poorer  people,  while  polluting  less,  live  in  areas  of  lower 
environmental quality, which contributes to poorer health, stress and vulnerability to natural 
disasters. 

These analyses will be regularly updated and their results published. 

3.4. 

Developing a European Sustainable Development Scoreboard 

Sustainable Development (SD) is an overarching objective of the European Union. The aim is 
to  continuously  improve  the  quality  of  life  and  well-being  on  Earth  for  present  and  future 
generations.  The  EU  Sustainable  Development  Indicators  (SDIs)14  have  been  developed 
together  with  Member  States  to  monitor  progress  on  the  multitude  of  objectives  of  the  EU 
Sustainable  Development  Strategy  (SDS)  and  are  reflected  in  the  Commission's  biennial 
Progress Report. 

However, this monitoring tool does not fully capture recent developments in important areas 
that  are  not  yet  well  covered  by  official  statistics  (such  as  sustainable  production  and 

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EU Statistics on Income and Living Conditions 
COM (2008) 412 
"Addressing the social dimensions of environmental policy", study commissioned by DG EMPL, July 
2008; see http://ec.europa.eu/social/main.jsp?catId=88&langId=en&eventsId=145. 
Cf. Eurostat Statistical Book "Measuring progress towards a more sustainable Europe – 2007". 

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consumption or governance issues). For several reasons, SDIs cannot always be based on the 
most  recent  data.  Consequently,  they  may  not  fully  reflect  the  efforts  that  businesses,  civil 
society or governments at local or national levels are making to meet these challenges. 

A Sustainable Development Scoreboard 

To stimulate the exchange of experience between Member States and among stakeholders on 
policy  responses,  we  need  a  more  concise  and  up-to-date  set  of  data.  The  Commission 
therefore  explores  the  possibilities  to  develop,  together  with  Member  States,  a  Sustainable 
Development Scoreboard. The SD Scoreboard, based on the EU SDI set, could also include 
other quantitative and qualitative publicly available information, for instance on business and 
policy  measures.  The  Commission  services  intend  to  present  a  pilot  version  of  the  SD 
scoreboard in 2009. 

Thresholds for environmental sustainability 

The SDS sets as a key objective to respect the limits of the planet's natural resources. These 
include  nature's  limited  capacity  to  provide  renewable  resources  and  absorb  pollutants. 
Scientists  are  seeking  to  identify  related  physical  environmental  threshold  values  and 
highlight  the  potential  long-term  or  irreversible  consequences  of  crossing  them.  For  policy-
making  it  is  important  to  know  the  "danger  zones"  before  the  actual  tipping  points  are 
reached,  thereby  identifying  alert  levels.  The  cooperation  of  research  and  official  statistics 
will be stepped up in order to identify – and regularly update – such threshold values for key 
pollutants and renewable resources in order to inform policy debate and support target setting 
and policy assessment. 

3.5. 

Extending National Accounts to environmental and social issues 

The European System of Accounts is the main tool behind EU economic statistics as well as 
many economic indicators (including GDP). As a foundation for coherent policy-making, we 
need a data framework that consistently includes environmental and social issues along with 
economic ones. In its June 2006 conclusions, the European Council called on the EU and its 
Member  States  to  extend  the  national  accounts  to  key  aspects  of  Sustainable  Development. 
The  national  accounts  will  therefore  be  complemented  with  integrated  environmental-
economic accounting that provides data that are fully consistent. As methods are agreed and 
the  data  becomes  available  this  will  be  complemented,  in  the  longer  term,  with  additional 
accounts on social aspects. 

This will provide an integrated evidence base to underpin policy analysis, helping to identify 
synergies and trade-offs between different policy objectives, feeding for example into ex-ante 
impact  assessment  of  policy  proposals.  The  Commission  will  ensure  that  this  work  is  taken 
further in future revisions of the international System of National Accounts and the European 
System  of  Accounts.  In  the  longer  term  it  is  expected  that  more  integrated  environmental, 
social  and  economic  accounting  will  provide  the  basis  for  new  top-level  indicators.  The 
Commission  services  will  continue  to  explore  –  through  collaboration  with  international 
organisations, dialogue with civil society and research projects – how such macro-indicators 
could best be designed and used. 

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3.5.1.  Integrated environmental-economic accounting 

The  Commission  presented  its  first  strategy  on  "green  accounting"  in  1994.15  Since  then 
Eurostat  and  the  Member  States  –  in  collaboration  with  the  UN  and  the  OECD  –  have 
developed  and  tested  accounting  methods  to  the  point  where  several  Member  States  now 
regularly provide first sets of environmental accounts. 

Most common are the physical flow accounts on air emissions (including greenhouse gases) 
and  on  material  consumption  and  the  monetary  accounts  on  environmental  protection 
expenditure  and  taxes.  As  the  next  step,  the  Commission  plans  to  extend  data  collection  in 
these areas to all Member States. As a following step, physical environmental accounts could 
be set up for energy consumption, waste generation and treatment, and monetary accounts for 
environment-related  subsidies.  The  Commission  aims  to  have  these  accounts  fully  available 
for policy analysis by 2013. To ensure the accounts are comparable the Commission plans to 
propose a legal framework for Environmental Accounting early next year. 

A second strand of environmental accounts relates to natural capital, in particular changes in 
stocks,  the  most  advanced  of  which  are  the  accounts  on  forests  and  fisheries  stocks.  The 
Commission will contribute to the work currently undertaken at UN level. 

A  further  challenge  in  the  development  of  environmental  accounting  is  complementing 
physical  environmental  accounts  with  monetary  figures,  based  on  valuation  of  the  damage 
caused and prevented, changes in the stock of natural resources and in eco-system goods and 
services  obtaining  representative,  robust,  comparable  and  reliable  monetary  measures  at 
national  and  EU  level16.  Monetising  the  costs  of  environmental  damage  and  the  benefits  of 
environmental protection can help to focus policy debate to the extent that our prosperity and 
well-being depend on goods and services provided by nature. At micro level such valuation is 
conceptually  sound.  It  is  covered  by  several  studies,  notably  the  TEEB  (The  Economics  of 
Ecosystems  and  Biodiversity)  initiative,  an  ongoing  wide  ranging  valuation  of  ecosystem 
services,  jointly  undertaken  by  UNEP,  several  countries  and  the  Commission.  Valuation  is 
widely used in the Commission's impact assessments.17 The EEA plans to continue its work 
on valuation of and accounting for ecosystem goods and services, with a view to establishing 
internationally  accepted  methods.  However,  translating  such  studies  to  macro  level  in  a 
meaningful way needs further research and testing. The Commission intends to step up work 
on monetary valuation and the further development of conceptual frameworks. 

3.5.2.  Increasing use of existing social indicators from national accounting 

The existing European System of Accounts includes already indicators that highlight socially 
relevant  issues,  such  as  the  disposable  income  of  households  and  an  adjusted  disposable 
income figure that takes into account the differences in social protection regimes of different 

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COM (1994) 670  
The  research  project  EXIOPOL,  is  working  to  set  up  an  extended  Input-Output  framework  for  the 
estimation  of  environmental  impacts  and  external  costs  of  economic  sectors,  final  consumption  and 
resource use for countries in the EU; http://www.feem-project.net/exiopol/. 
See  also:  Handbook  on  estimation  of  external  costs  in  the  transport  sector,  February  2008 
http://ec.europa.eu/transport/sustainable/doc/2008_costs_handbook.pdf. 

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countries.  Those  figures18  reflect  better  what  people  can  consume  and  save  than  GDP  per 
capita. The Commission services intend to increase use of these indicators. 

4. 

CONCLUSION 

Gross  Domestic  Product  (GDP)  is  a  powerful  and  widely  accepted  indicator  for  monitoring 
short to medium term fluctuations in economic activity, notably in the current recession. For 
all  of  its  shortcomings,  it  is  still  the  best  single  measure  of  how  the  market  economy  is 
performing.  But  GDP  is  not  meant  to  be  an  accurate  gauge  of  longer  term  economic  and 
social  progress  and  notably  the  ability  of  a  society  to  tackle  issues  such  as  climate  change, 
resource  efficiency  or  social  inclusion.  There  is  a  clear  case  for  complementing  GDP  with 
statistics  covering  the  other  economic,  social  and  environmental  issues,  on  which  people's 
well-being critically depends. 

Work  to  complement  GDP  has  been  going  on  for  years,  at  both  national  and  international 
level. The Commission intends to step up its efforts and communication in this field. The aim 
is to provide indicators that do what people really want them to do, namely measure progress 
in delivering social, economic and environmental goals in a sustainable manner. Ultimately, 
national  and  EU  policies  will  be  judged  on  whether  they  are  successful  in  delivering  these 
goals and improving the well-being of Europeans. For this reason, future policies should be 
based  on  data  that  is  rigorous,  timely,  publicly  accepted  and  covers  all  the  essential  issues. 
The  Commission  intends  to  report  on  the  implementation  and  outcomes  of  the  actions  put 
forward by this Communication by 2012 at the latest. 

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However, these indicators still do not reflect the cost of reaching that level of income e.g. in the form of 
foregone leisure or activities that do not really increase consumption possibilities such as preventing or 
repairing damage caused by economic activity. 

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