Environmental protection expenditure accounts : results of pilot applications.
Date: 2011-10-06
Institutions: Eurostat
Subjects: EU statistics, accounting system, comparative analysis, data collection, national expenditure, national statistics

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Environmental
Protection Expenditure
Accounts —

Results of pilot applications 

2

THEME 2
Economy  
and  
finance

E U R O P E A N
C O M M I S S I O N

 
A great deal of additional information on the European Union is available on the Internet.
It can be accessed through the Europa server (http://europa.eu.int).

Luxembourg: Office for Official Publications of the European Communities, 2002

ISSN 92-894-4528-9

© European Communities, 2002

Contents

3.1

2.2.1
2.2.2

2.1.1
2.1.2
2.1.3
2.1.4

Preface .............................................................................................................................................................. 5
Summary........................................................................................................................................................... 7
Introduction.............................................................................................................................................. 15
1
1.1 Short presentation of SERIEE.................................................................................................................. 15
The Environmental Protection Expenditure Account (EPEA)................................................................... 16
1.2
1.2.1 Objectives, uses and limitations ................................................................................................. 16
Classification of environmental protection activities (CEPA) ...................................................... 16
1.2.2
Concept of national expenditure ................................................................................................. 17
1.2.3
Categories of agents................................................................................................................... 17
1.2.4
Set-up of the EPEA..................................................................................................................... 18
1.2.5
2 Presentation of pilot applications .......................................................................................................... 19
2.1 Coverage of pilot applications .................................................................................................................. 19
Environmental domains or CEPA classes covered .................................................................... 19
Categories of statistical units covered ........................................................................................ 20
National expenditure components covered ................................................................................ 20
EPEA tables implemented .......................................................................................................... 21
2.2 Methodological questions......................................................................................................................... 21
Consumption of fixed capital....................................................................................................... 21
Negative net operating surplus ................................................................................................... 22
2.3 Quality of data and comparability of results ............................................................................................. 23
3 Results...................................................................................................................................................... 25
The production table (Table B)................................................................................................................. 25
3.1.1 Objectives ................................................................................................................................... 25
3.1.2 Organisation of production and classification of producers ........................................................ 25
Sources and calculation, coverage ............................................................................................. 27
3.1.3
3.2 Structure of the production table .............................................................................................................. 27
Intermediate consumption of environmental services by specialised producers ........................ 28
3.2.1
Consumption of fixed capital....................................................................................................... 29
3.2.2
3.2.3
Net operating surplus and subsidies........................................................................................... 30
3.3
The supply-use table (Table B1) .............................................................................................................. 30
3.4 National expenditure for environmental protection (Table A) ................................................................... 31
Adapted and connected products ............................................................................................... 31
3.4.1
Capital expenditure ..................................................................................................................... 32
3.4.2
Specific transfers ........................................................................................................................ 32
3.4.3
3.4.4
Expenditure by environmental domain ....................................................................................... 33
Financing (Table C).................................................................................................................................. 34
The net cost table (Table C1)................................................................................................................... 35
4 The way forward ...................................................................................................................................... 37
4.1 Uses of environmental protection expenditure accounts ......................................................................... 37
Links with physical data ........................................................................................................................... 37
4.2
Time series and constant prices estimates .............................................................................................. 38
4.3
Links with primary statistics...................................................................................................................... 38
4.4
4.5
Linking EPEA with other environment-related monetary data sets and national accounts ...................... 39
4.6 Simplifying the framework ........................................................................................................................ 39
Towards benchmark years for the EPEA ................................................................................................. 40
4.7
Annex 1: Summary by country..................................................................................................................... 41
Austria................................................................................................................................................................ 41
Denmark ............................................................................................................................................................ 47
France................................................................................................................................................................ 53
Germany ............................................................................................................................................................ 59
The Netherlands ................................................................................................................................................ 65
Switzerland ........................................................................................................................................................ 71
United Kingdom ................................................................................................................................................. 77
Annex 2: Detailed results: Tables A and B by domain and country......................................................... 81
Wastewater management Table A..................................................................................................................... 81
Waste management Table A ............................................................................................................................. 90
Air protection Table A ........................................................................................................................................ 98
Wastewater management Table B................................................................................................................... 106
Waste Management Table B ........................................................................................................................... 111
Air Protection Table B ...................................................................................................................................... 116
Net cost tables ................................................................................................................................................. 121
Annex 3: An estimate of EU environmental protection expenditure using PAC data .......................... 123
Bibliography ................................................................................................................................................. 129

3.5
3.6

3

Contents

List of tables

Table 1 Expenditure for air protection, waste and wastewater management in % of GDP, mid 1990s .................. 9
Table 2 EU-15 expenditure by environmental domain, 1998, in million ECU and in % of GDP ............................ 10
Table 3 Expenditure by user categories in % of total expenditure ........................................................................ 11
Table 4 Financing of expenditure in % of total expenditure .................................................................................. 11
Table 5 Structure (%) of production costs (specialised producers) ....................................................................... 11
Table 6 CEPA classes: 1-digit classification of environmental protection activities .............................................. 16
Table 7 Statistical year for pilot applications ......................................................................................................... 19
Table 8 Coverage of environmental domains in pilot applications ........................................................................ 20
Table 9 Coverage of statistical units involved in environmental protection expenditure ....................................... 20
Table 10 Coverage of adapted and connected products ....................................................................................... 20
Table 11 Uses of adapted and connected products............................................................................................... 21
Table 12 EPEA tables provided ............................................................................................................................. 21
Table 13 Methods used for calculating the consumption of fixed capital ............................................................... 22
Table 14 Consumption of fixed capital in % of the other costs of production......................................................... 22
Table 15 Subsidies and net operating surplus in % of output (specialised producers).......................................... 23
Table 16 Wastewater: classification of specialised producers ............................................................................... 25
Table 17 Waste: classification of specialised producers ........................................................................................ 26
Table 18 Ancillary output in % of external services................................................................................................ 26
Table 19 Ancillary output in % of total environmental protection services ............................................................. 27
Table 20 Structure of the production account for wastewater management, %..................................................... 27
Table 21 Structure of the production account for specialised producers of waste management ........................... 27
Table 22 Intermediate consumption of environmental protection services ............................................................ 28
Table 23 Structural ratios for waste management ................................................................................................. 28
Table 24 Structural ratios for wastewater management ......................................................................................... 29
Table 25 Consumption of fixed capital as a % of other production costs............................................................... 29
Table 26 Other subsidies and net operating surplus as a % of output (specialised producers) ............................ 30
Table 27 Deduction for intermediate consumption of specialised producers as a % of output .............................. 31
Table 28 Non-deductible taxes less subsidies on products as a % of final consumption ...................................... 31
Table 29 Adapted and connected products in the pilot applications ...................................................................... 31
Table 30 Value of the uses of adapted and connected products ........................................................................... 32
Table 31 Capital expenditure: % by categories of producers................................................................................. 32
Table 32 Capital expenditure in % of consumption of fixed capital ........................................................................ 32
Table 33 Specific transfers in % of the current uses of specific products .............................................................. 32
Table 34 Expenditure in % of GDP (total of the three main domains) ................................................................... 33
Table 35 Expenditure by environmental domain in % of GDP ............................................................................... 33
Table 36 Financing compared to expenditure for selected countries ..................................................................... 35
Table 37 The net cost table.................................................................................................................................... 35
Table 38 EU estimate: current expenditure by government and industry, million ECU ....................................... 123
Table 39 EU estimate: capital expenditure by government and industry, million ECU ........................................ 124
Table 40 EU estimate: total expenditure by government and industry, million ECU............................................ 124
Table 41 EU estimate: current and capital expenditure of specialised producers, million ECU........................... 125
Table 42 EU estimate: expenditure including other specialised producers.......................................................... 125
Table 43 EU estimate: current expenditure - transition to EPEA concepts, million ECU ..................................... 126
Table 44 EU estimate: total expenditure according to PAC and EPEA concepts, 1998, million ECU ................. 127

List of figures

Figure 1 The set of EPEA tables ........................................................................................................................... 18
Figure 2 Consumption of external wastewater management services .................................................................. 34
Figure 3 Consumption of external waste management services........................................................................... 34
Figure 4 Environmental protection expenditure in Austria 1991 and 1996: a comparison (%) ............................. 43
Figure 5 The structure of the German stock of fixed capital account .................................................................... 60

4

PREFACE

This publication is one of the outputs of Eurostat's Environmental Accounting work. The publication presents
the  results  of  pilot  applications  of  the  SERIEE’s  Environmental  Protection  Expenditure  Account  (EPEA)  in
several  countries  and  draws  lessons  for  future  work.  The  publication  also  includes  a  first  estimate  of
environmental  expenditure  accounts  for  the  EU.  This  estimate  was  based  on  the  results  of  the  pilot
applications  combined  with  the  replies  of  Member  States  to  the  2000  OECD/Eurostat  Pollution  Abatement
and Control expenditure questionnaire.

Following the publication of the SERIEE manual in 1994 (Commission of the European Communities 1994a),
several EU Member States as well as non-EU countries carried out pilot studies to test the application of the
EPEA. In recent years, more countries have undertaken such work (see the bibliography for detail).

This  publication  summarises  the  results  of  pilot  applications  undertaken  between  1995  and  1999.  The
publication  was  prepared  by  Gerard  Gié  of  Planistat  Europe  and  Anton  Steurer  of  Eurostat  B1.  The  pilot
applications benefited from financial support provided by the European Commission's Directorates General
Environment and Regional Policy, in the context of the Communication from the Commission to the Council
and  the  European  Parliament  on  Directions  for  the  EU  on  Environmental  Indicators  and  Green  National
Accounting - The Integration of Environmental and Economic Information Systems (COM(94) 670).

This  publication  complements  the  EPEA  Compilation  Guide  recently  published  by  Eurostat  (‘SERIEE
Environmental  Protection  Expenditure  Accounts  –  Compilation  Guide’,  Commission  of  the  European
Communities  2002).  This  compilation  guide  is  designed  to  help  compilers  in  the  practical  construction  of
environmental protection expenditure accounts. The guide also summarises the new developments since the
publication  of  the  1994  SERIEE,  including  the  new  CEPA  2000,  recommendations  on  connected  and
adapted products or the new NACE Rev. 1.1 and in this regard replaces the 1994 SERIEE manual.

In future the demand for economic data on environmental protection activities is expected to increase, e.g.
due to the implementation of the Water Framework Directive (European Parliament and Council 2000a) and
the  wider  use  of  cost-benefit  analysis  in  policy  making.  The  work  on  environmental  protection  expenditure
accounting  is  continuing  at  Eurostat.  This  work  is  focusing  on  collecting  data  more  regularly  from  more
Member  States,  further  methodological  development  of  SERIEE,  on  the  links  to  physical  data  and  on
improving the estimate for EU environmental expenditure.

Brian Newson
Head of Unit B1
National accounts methodology,
statistics of own resources

5

SUMMARY

The goal of Eurostat's environmental accounting work is to provide European Institutions and countries with
high  quality  and  comparable  data.  Analysis  of  the  pilot  applications  of  the  Environmental  Protection
Expenditure Account (EPEA) shows that data availability, quality and accuracy at national level are the main
limitations for the comparability of results at present. This situation can be explained by several factors:
·  
·  
·  

the rather complex organisation and management of environmental protection activities in the countries,
the difficulties in defining in a practical way environmental protection measures and expenditure, and
the lack of economic statistics, including national accounts data, at a detailed level.

Recent  developments  in  economic  classifications  (in  particular  the  NACE  Rev.1.1 1),  the  implementation  of
1995  European  System  of  National  Accounts  (1995  ESA),  the  amendment  of  the  Structural  Business
Statistics  Regulation,  and  the  revision  of  the  OECD/Eurostat  PAC  questionnaire  will  substantially  improve
the availability and comparability of basic data. One of the conclusions from the pilot applications is that the
implementation of the EPEA presents an opportunity for improving national accounts data also.2

Data comparability

coverage of environmental protection domains and categories of units involved in these activities,

The main problems identified as regards data comparability across countries relate to:
·  
·   estimation of uses of connected and adapted products,
·  
·  
·  

intermediate consumption of environmental protection services by specialised producers,
consumption of fixed capital, and
subsidies on production of environmental services.

Environmental protection domains covered

The  Classification  of  Environmental  Protection  Activities  (CEPA)3  provides  the  list  of  environmental
protection domains. Pilot applications rarely cover the full set of environmental domains. Generally, only air
protection,  wastewater  management,  waste  management  and  noise  abatement  are  presented  separately.
The  other  domains  (protection  of  soil  and  groundwater,  protection  of  landscape  and  biodiversity,  research
and  development  for  environmental  protection,  and  administration)  are  often  grouped  together,  or  not
covered. Only Austria estimates protection against radiation. For details see Table 8, page 20.

The  definition  of  the  domains  may  vary  across  countries.  In  two  cases  (Denmark  and  Austria),  waste
management explicitly includes recycling. For France, street cleaning is excluded from waste management.

The coverage of categories of units involved in environmental protection activities

Environmental  domains  are  sometimes  only  partially  covered  with  respect  to  the  types  of  units  involved  in
environmental protection. For example, the pilot application for Denmark does not cover ancillary activities.
For this country, environmental protection expenditure only corresponds to general government activities and
specialised  corporations  of  the  NACE  37  and  90  industries.  Regarding  specialised  producers  in  the  waste
and  wastewater  domains,  the  German  pilot  application  only  covers  general  government  units  and  publicly-
owned corporations (private corporations are excluded). Furthermore, for the ‘protection of biodiversity and
landscape’’, 
’other  environmental  protection  activities’,  only  general
government  activities  are  recorded.  In  general,  activities  of  non-profit  institutions  serving  households
(NPISH) are small and not accounted for in the pilot applications. For details see Table 9, page 20.

’environmental  research’  and 

In  the  case  of  ancillary  activities,  the  coverage  of  industries  is  generally  not  complete.  In  general,  only
divisions  10  to  41  of  the  NACE  Rev.  1  are  covered  be  the  primary  data  sources,  whereas  agriculture,
construction, transport and services are not. Few countries provide estimates of the expenditure in industries
outside NACE 10 to 41.

1  NACE  is  the  official  classification  of  economic  activities  in  the  European  Union.  NACE  Rev.  1.1  replaces  NACE  Rev.  1  from  the
statistical  year  2003  onwards.  It  will  introduce  three  new  classes  at  four-digit  level  under  division  90:  Collection  and  treatment  of
sewage; Collection and treatment of other waste; and Sanitation, remediation and similar activities.

2  Statistics Netherlands 1998a
3  The CEPA is the classification of environmental protection activities adopted by the Conference of European Statisticians in 1995. A
slightly  revised  version  (CEPA  2000)  has  been  adopted  as  a  world-wide  standard  in  2002.  The  CEPA  2002  can  be  found  on
Eurostat’s Ramon server (http://europa.eu.int/comm/eurostat/ramon).

7

                                                     
Summary

National expenditure components covered

Another  issue  refers  to  the  components  recorded  in  the  national  expenditure  aggregate.  Denmark  and
Germany do not record connected and adapted products. For other countries, the coverage of adapted and
connected products is variable. For details see  Table 10, page 20. Therefore, the impact of the addition of
adapted and connected products is also variable. For details see Table 11, page 21.

The  result  of  such  differences  in  coverage  is  that  data  comparability  is  rather  low.  Even  when  the
comparison  is  limited  to  the  three  main  domains  of  environmental  protection  (wastewater  and  waste
management and air protection), care should be taken regarding the exclusion of ancillary activities for the
Danish pilot application, and adapted and connected products in the Danish and German pilot applications.
In addition, other problems also affect data comparability. These are more related with the compilation of the
tables than with coverage issues and are described next.

Intermediate consumption of environmental protection services by specialised producers

The organisation of the provision of external environmental protection services is rather complex in the waste
and wastewater domains: in most countries these services are produced both by local governments and by
corporations.  Furthermore,  local  governments  choose  different  legal  forms  for  producing  these  services  –
municipalities themselves, corporations owned by municipalities, inter-municipal bodies, etc. Supply relations
and sub-contracting between all these units translate into monetary transactions which may lead to double
counting. For the main activities, several stages exist (e.g. collection and treatment of waste) which may be
undertaken  by  different  units  that  supply  these  services  to  one  another.  This  is  why  the  EPEA  framework
explicitly asks for these transactions to be identified and deducted.

Pilot applications make it possible, to a certain extent, to assess these flows. For details see  Table 22, page
28. However, it is not certain that the results are already fully consistent and comparable across countries.
An analysis of detailed national accounts data could provide more insights. It is worth noting that the 1995
ESA explicitly asks for ‘subcontracting’ to be recorded in output and intermediate consumption.

Consumption of fixed capital

Consumption of fixed capital (CFC) is an imputed transaction that represents the economic depreciation of
fixed assets used in production. CFC is important in the calculation of the value of ancillary and other non-
market output. When environmental protection services are market output, the CFC has no direct impact on
the level of expenditure.

CFC is calculated and not observed. In order to calculate CFC, one would ideally have a detailed description
of the stock of fixed assets. In general, this description is not available for the stocks of fixed assets used for
environmental protection activities. Therefore, it is necessary to make specific estimates for the compilation
of EPEA. This is mainly the case for ancillary producers; but also applies when one wants to distribute CFC
among  the  various  activities  (domains)  or  categories  of  units.  In  the  pilot  applications,  the  ratio  of  CFC  to
other  production  costs  (intermediate  consumption  and  compensation  of  employees)  varies  and  it  is  not
always clear whether differences originate from differences in the technical processes used or from the way
CFC is calculated. For details see Table 14, page 22.

Subsidies on production

The  assessment  of  subsidies  on  production  is  important  in  determining  whether  environmental  protection
services  are  fully  paid  for  by  users.  To  some  extent,  although  the  production  costs  of  the  services  do  not
reflect the full environmental costs, subsidies allow to check whether the polluter-pay-principle is applied.

The first task is therefore to identify subsidies on production of environmental protection services. While the
‘explicit’ subsidies are generally low, ‘implicit’ subsidies are worth considering. In some cases, for specialised
market  producers  of  the  local  government  institutional  sector  (municipalities),  the  CFC  is  higher  than  the
gross operating surplus of the unit. This means that the economic costs are not fully covered by revenues. In
this  case,  the  assumption  has  to  be  made  that  this  gap  is  compensated  by  an  implicit  subsidy  from  the
municipality to the producer. For details see Table 15, page 23.

In  addition,  several  other  limitations  exist  concerning  subsidies:  it  may  be  rather  difficult  to  identify  the  two
sides of the transaction. Subsidies may be identified on the government (payer) side, whereas no information
is available regarding the unit receiving the subsidy. Subsidies in the form of preferential or ‘soft’ loans are
common but are generally not recorded in the EPEA pilot applications.

8

Summary

Conclusions

Due to the differences in coverage and methods, the cross-countries comparability of the raw pilot results is
limited. Differences in coverage may be corrected, but it is more difficult to correct for differences in the way
the  tables  are  compiled.  Comparability  can  be  improved  through  a  detailed  analysis  of  data  sources  and
methods  used  and  through  linking  expenditure  with  physical  data,  at  least  for  the  waste  and  wastewater
management  domains:  quantities  of  waste  and  wastewater,  type  of  treatment,  stocks  of  installations  and
equipment,  etc.  This  would  make  it  possible,  for  example,  to  compare  prices  or  unit  costs  of  some
environmental  protection  activities  across  countries  and  to  attempt  to  explain  the  observed  differences.  Of
course, comparability will also be greatly improved by the current progress in the regular collection of basic
data (see the introduction to this summary).

Main results

Share of expenditure compared with GDP

As stated above, the comparability of data between countries is limited due to differences in coverage and
methods.  It  is  however  possible  to  give  an  overview  of  results  for  the  ‘core’  expenditure  in  terms  of
environmental  domains  and  components  of  expenditure.  The  table  below  gives  the  percentage  of  national
expenditure  in  relation  to  GDP  for  the  main  components  of  current  and  capital  national  expenditure
(consumption  of  external  services,  consumption  of  ancillary  services,  uses  of  adapted  and  connected
products and subsidies, capital formation and net acquisitions of land) for the total of the three main domains
(air  protection,  wastewater  and  waste  management).  Results  are  presented  by  countries.  The  weighted
average  is  also  presented.  The  average  is  calculated  for  each  component  taking  into  account  only  the
countries reporting data for this particular component. Most data refer to a year in the mid 1990s. For details
see Table 7 on page 19.

Table 1  Expenditure for air protection, waste and wastewater management in % of GDP, mid 1990s

Current expenditure
  Uses of external services
  Ancillary services
  Current uses of adapted & connected products
  Subsidies
Total
Capital expenditure
  By specialised producers
  By ancillary producers
  In adapted and connected products
Total
Total expenditure

A

D

DK

F

NL

UK

CH

Average

1.32% 1.24% 1.26% 0.71% 0.83% 0.55% 0.69% 1.03%
0.20% 0.30% 0.07% 0.33% 0.46%
0.45% 0.66%
0.06% 0.15% 0.05% 0.17% 0.09%
0.13%
0.01% 0.01% 0.01% 0.04% 0.08%
0.02%
1.91% 1.91% 1.27% 1.00% 1.35% 0.67% 1.19% 1.61%

0.73% 0.61% 0.33% 0.24% 0.26% 0.21% 0.35% 0.46%
0.06% 0.22% 0.16% 0.35% 0.16%
0.14% 0.19%
0.05%
0.06% 0.04%
0.87% 0.80% 0.33% 0.36% 0.52% 0.37% 0.70% 0.66%
2.77% 2.71% 1.60% 1.36% 1.87% 1.04% 1.89% 2.27%

111111

1.60

Austria and Germany have the highest expenditure in relation to GDP, 2.77% and 2.71% respectively for the
total  of  the  three  domains.  For  both  countries,  current  expenditure  is  1.9  %  of  GDP.  Germany  does  not
include  adapted  products.  Applying  the  average  of  Austria,  France,  Netherlands,  Switzerland  and  the  UK,
these adapted products would add around 0.1% of GDP to the German current expenditure.

The  Netherlands  and  Switzerland  come  in  second  position,  with  1.87%  and  1.89%  of  GDP.  Current
expenditure is 1.35% for the Netherlands and 1.2 % for Switzerland. However, the estimates are rather old:
1991  and  1992/93  respectively.  There  are  indications,  at  least  in  the  case  of  the  Netherlands,  that  the
expenditure was underestimated4. The percentage for Denmark is 1.60% of GDP, but this does not include
ancillary activities nor connected and adapted products, which would add approximately 0.55% of GDP.

Finally,  France  and  the  UK  are  much  lower,  1.36  and  1.04%  of  GDP  respectively.  However,  for  both
countries  there  is  an  underestimation.  For  France,  two  factors  contribute  to  this  underestimation:  the
negative net operating surplus of general government specialised producers in the wastewater management
domain  and  the  absence  of  recording  street  cleaning  expenditure  in  the  waste  management  domain.  This
would add 0.48% of GDP to the expenditure. In the UK’s case, the consumption of fixed capital has not been

4  Statistics Netherlands 1998a

9

                                                     
Summary

accounted for in national expenditure. Recording CFC would increase the UK expenditure by 23%, to 1.28%
of GDP. In general, comparisons should also take into account specific features of the countries’ structure of
production (e.g. the share of electricity generated from nuclear sources will have a significant impact on the
level of air protection expenditure). The distribution across the three main environmental domains is shown
in Table 35, page 33.

An estimate of EU-15 environmental protection expenditure

The pilot applications alone do not allow for estimates of total environmental protection expenditure at EU-15
level. Although the countries considered cover a large proportion of EU-15 GDP, they are not representative
of  all  EU  countries.  In  particular,  southern  countries  are  under-represented.  Furthermore,  the  coverage  in
terms of domains is incomplete. However, the pilot results provide valuable structural information which can
be combined with other data sources to produce an estimate for the EU.

Annex 3 presents an estimate of total EU-15 environmental protection expenditure. The calculation is based
on the results of the 2000 Eurostat/OECD PAC questionnaire which provides current and capital expenditure
for  industries  and  general  government  units.  These  data  have  been  expanded,  using  the  EPEA  pilot
applications  in  order  to  take  into  account  those  components  of  national  expenditure  not  covered  in  the
questionnaire  (mainly  the  consumption  of  fixed  capital  for  ancillary  producers  and  expenditure  on  external
services produced by specialised producers outside the general government sector). As far as possible, the
differences  between  ‘North’  and  ‘South’  countries  have  been  taken  into  account.  The  main  results  are
presented in Table 2 below.

Table 2  EU-15 expenditure by environmental domain, 1998, in million ECU and in % of GDP

Waste management
Wastewater management
Air protection
Sub-total
Noise abatement
Nature protection
Other
Sub-total
Total

Current
expenditure
44 238.6
46 486.4
12 507.7
103 232.7
2 625.8
3 028.8
11 035.9
16 690.5
119 923.4

Capital
% of
expenditure
GDP
0.583%
6 327.1
0.612% 20 897.1
0.165%
4 535.8
31 760.0
1.360%
962.1
0.035%
2 901.8
0.040%
3 862.8
0.145%
7 726.7
0.220%
1.579% 39 486.7

Total
% of
expenditure
GDP
0.083% 50 565.7
0.275% 67 383.5
0.060% 17 043.5
0.418% 134 992.7
3 587.9
0.013%
0.038%
5 930.7
0.051% 14 898.8
24 417.4
0.102%
0.520% 159 410.1

Structure
% of
of EPE, %
GDP
31.7%
0.666%
42.3%
0.887%
10.7%
0.224%
84.7%
1.778%
2.3%
0.047%
3.7%
0.078%
9.3%
0.196%
15.3%
0.322%
2.099% 100.0%

Distribution of environmental protection expenditure by user categories

With  52%  of  the  total  expenditure,  non-specialised  producers  have  the  largest  share.  Current  expenditure
corresponds  in  almost  equal  parts  to  purchases  of  external  environmental  protection  services  in  the  waste
and  wastewater  domains  and  to  internal  current  expenditure  (mainly  wastewater,  air  and  noise  domains).
Capital expenditure by non-specialised producers for their own environmental protection activities accounts
for 20% compared to their current expenditure.

General government and households each account for 20% of total expenditure. Expenditure of households
mainly  takes  the  form  of  purchases  of  external  environmental  protection  services.  Uses  of  connected  and
adapted products are rather small. For government, 40% are for collective consumption (mainly in the ‘other’
domains,  and  in  waste  management  services  for  France).  The  remainder  refers  to  capital  expenditure  in
waste and wastewater management.

The  expenditure  of  the  other  specialised  producers  (i.e.  corporations)  represents  only  8%  of  the  total  and
corresponds  to  their  capital  expenditure  for  the  production  of  environmental  protection  services.  Capital
expenditure by general government units is higher than that of other specialised producers.

10

Summary

Table 3  Expenditure by user categories in % of total expenditure

General government
NPISH
Corporations
- specialised
- non-specialised
Households
Rest of the world
Total

20.3%
0.0%
59.5%
7.7%
51.8%
20.2%
0.1%
100.0%

Financing of environmental protection expenditure

The  structure  of  financing  is  similar  to  that  of  expenditure  by  users.  The  main  difference  results  from  the
financing  of  the  capital  expenditure  of  other  specialised  producers.  In  some  countries  (e.g.  in  Germany
government-owned corporations in the waste and wastewater management domains), specialised producers
belong to the corporations sector, but their investments are financed by the government units they depend
upon.  Another  reason  is  the  way  waste  management  is  recorded  in  France.  Waste  management  services
are classified as non-market output and are part of government expenditure. However, they are financed by
a  local  tax  on  the  value  of  occupied  buildings.  Other  reasons  are  earmarked  taxes,  which  finance
investments of specialised producers but are paid by households, and subsidies for environmental protection
activities of non-specialised producers (agricultural subsidies in Austria).

Table 4  Financing of expenditure in % of total expenditure

General government
NPISH
Corporations:
- specialised
- non-specialised
Households
Rest of the world
Total

22.2%
0.0%
52.4%
1.1%
51.3%
24.8%
0.6%
100.0%

The production table

The  production  table  (Table  B)  of  the  EPEA  is  compiled  in  most  pilot  applications.  This  table  makes  it
possible  to  assess  the  impact  of  environmental  protection  expenditure  on  economic  activity  (supply  side),
and  to  derive  employment,  demand  to  other  industries,  etc.  It  also  allows  for  calculating  the  net  operating
surplus of specialised producers and ‘implicit’ subsidies.

Table  5  presents  the  share  of  the  main  cost  elements  (intermediate  consumption,  compensation  of
employees and consumption of fixed capital) in percent of total costs. In this presentation, neither taxes on
production nor net operating surplus are taken into account in the costs. Intermediate consumption does not
include intermediate consumption of environmental protection services. The differences between the various
environmental  domains  are  clearly  reflected  in  the  structure  of  the  production  account.  E.g.,  wastewater
management and air protection are capital-intensive, whereas waste management is more labour-intensive.

Table 5  Structure (%) of production costs (specialised producers)

Wastewater

   Intermediate consumption
   Compensation of employees
   Consumption of fixed capital

Waste

   Intermediate consumption
   Compensation of employees
   Consumption of fixed capital

Austria

Denmark

France

Germany

Netherlands

28.3
15.1
56.6

46.0
42.6
11.5

56.3
42.7
1.0

64.7
26.8
8.5

41.9
17.4
40.7

47.8
30.4
21.8

36.4
13.7
49.9

67.9
20.0
12.2

25.3
23.2
51.6

52.7
28.6
18.7

This table confirms that the structure of production costs is rather similar across countries, with the exception
of Denmark.

11

Conclusions

Summary

The analysis of the results of the EPEA pilot applications provides:
·   an indication of the magnitude of the economic resources used by countries to protect the environment,
·  

information on the distribution of expenditure by environmental domain and by category of units and the
way they contribute to the financing of the expenditure,
through  the  production  table,  a  basis  for  the  assessment  of  environmental  employment  and  other
economic impacts of environmental protection (demand to other industries, etc.

·  

However,  the  pilot  applications  are  too  limited  for  the  moment  to  cater  for  all  the  potential  uses.  Data
comparability across countries is not yet sufficient. Time series and physical data linkage are rare. Analytical
uses such as the assessment of economic instruments in the field of environmental protection and economic
impacts  of  expenditure  are  scarce.  The  integration  with  national  accounts  data  and  the  relation  to  basic
statistics need to be developed further.

The way forward

Improving basic data

In  the  next  few  years,  availability  of  basic  data  should  substantially  improve  due  to  recent  changes  in
statistical classifications and regulations:
·  

the amendment to the SBS regulation will integrate two new environmental variables, including a current
expenditure variable,
from  2003  (implementation  of  the  NACE  Rev.  1.1),  the  NACE  90  division  will  be  sub-divided  into  three
classes  (collection  and  treatment  of  sewage;  collection  and  treatment  of  other  waste;  sanitation,
remediation and similar activities), and
the adoption of the new COFOG in the national accounts has resulted in the collection of new data. In the
new COFOG, division 05 is dedicated to environmental protection, sub-divided into waste management,
wastewater management, etc.

·  

·  

The implementation of the 1995 ESA and the further development of environmental statistics increases the
availability of harmonised national accounts data and physical data.

The  new  revised  2002  Eurostat/OECD  environmental  expenditure  questionnaire  will  also  contribute  to
harmonised data Europe-wide.

Linking expenditure and physical data

Integrating  monetary  and  physical  data  is  one  of  the  main  features  of  satellite  accounts.  This  permits
analysis of the costs of activities in relation to the means used, or to the effects (benefits) achieved. In the
case  of  environmental  protection  activities,  it  would  mean  linking  monetary  data  with  equipment,
employment, pollution treated or avoided and so on.

Up to now, linking monetary and physical data in the field of environmental protection has been limited. One
of  the  reasons  was  the  lack  of  reliable  physical  data  on  pollution  and  on  pollution  abatement  equipment.
Other reasons were the lack of time series for expenditure data and constant prices estimates. An important
variable  for  environmental  protection  is  the  stock  of  fixed  environmental  protection  assets,  which  is  not
always available in monetary accounts. Finally, with the exception of waste and wastewater management, it
is  rather  difficult  to  link  monetary  estimates  with  pollution,  as  estimates  of  expenditure  are  difficult  to
disaggregate  by  single  pollutant,  whereas  pollutants  are  many  and  cannot  all  be  aggregated  into  a  single
theme.

Linking physical and expenditure data needs further analysis. A programme should be established, the first
step  of  which  could  be  to  try  to  integrate  physical  and  monetary  data  in  the  field  of  waste  and  wastewater
management.

Establishing time series and constant prices estimates

One of the limiting factors for analytical work and the full use of environmental protection expenditure data
has  been  the  lack  of  time  series.  Experience  has  shown  that  pilot  applications  made  with,  e.g.  five  years
periodicity  yield  rather  different  estimates.  These  differences  result  from  changes  in  the  focus  of

12

Summary

environmental policy or from the impact of new major environmental regulations. Differences may also result
from statistical revisions, e.g. due to new data sources becoming available. The impact of the two types of
changes  can  be  separated  when  the  methodology  is  stable  and  when  statistical  revisions  are  well
documented. Irregular estimates suffer from instability of data sources and methodology, including changes
in people in charge of the compilation.

Consistent  time  series  are  important  to  improve  the  stability  of  estimates,  to  identify  changes  in  a  reliable
way  and  to  support  analysis.  In  order  to  link  expenditure  with  changes  in  emissions,  the  latter  need  to  be
broken down according to several factors: impact of economic growth, changes in the structure of production
and consumption, and changes in emission factors. This requires time series in constant price.

The calculation of constant price estimates for environmental protection expenditure is difficult. The level of
environmental  protection  varies  over  time  because  of  changes  in  quantity  (e.g.  amount  of  waste  treated,
area  of  protected  forests,  etc.)  and  because  of  changes  in  ‘quality’  (type  of  treatment,  sophistication  of
management scheme, etc.). In most environmental domains, environmental protection expenditure increase
less through the quantity of pollutants collected and treated than through the improvement of collection and
treatment processes.

As  an  example,  in  most  European  countries  almost  all  waste  produced  by  households  is  already  collected
and treated, but not in the same way. In some countries, selective collection and sorting – which are more
costly – may be more important, treatment of exhaust gases of incineration plants may be more advanced,
etc.  The  same  considerations  hold  for  wastewater  where  the  differences  are  in  the  level  of  treatment
(primary, secondary and tertiary).

Linking EPEA with other environment-related monetary data sets and national accounts

Often,  environmental  taxes  have  an  incentive  purpose  and  economic  units  can  choose  between  taking
measures  to  reduce  their  pollution  or  paying  taxes.  In  order  to  take  full  advantage  of  environmental
protection expenditure estimates, these should be related to other environment-related monetary data sets
such as on environmental taxes and other economic instruments.

A  co-ordinated  compilation  of  environmental  protection  expenditure  and  environmental  industry  accounts
would  also  greatly  increase  the  use  of  expenditure  estimates,  making  it  possible  to  relate  these  to
international trade in environmental equipment and environmental employment and markets.

In general, the integration with national accounts should be strengthened. Integration with national accounts
could be made within a NAMEA-type framework, which directly integrates the expenditure for environmental
protection with national accounts transactions and emissions of pollutants. The EPEA follows rather closely
the conventions of national accounts and it is important to maintain the consistency with national accounts,
and to make any deviations explicit.

13

1 

Introduction

In 1994, Eurostat published the SERIEE Manual, which contains proposals for an Environmental Protection
Expenditure Account (EPEA). The 1994 SERIEE Manual follows the recommendations of Chapter XXI of the
1993 System of National Accounts (SNA 93). The primary purpose of the 1994 SERIEE Manual was to set
out the conceptual framework for a monetary description of environmental protection activities. The SERIEE
Manual was elaborated under the auspices of Eurostat by a working group composed of representatives of
the statistical institutes of Germany, Italy, the Netherlands and France.

This  was  followed  by  two  sets  of  pilot  applications,  the  first  during  1994-1996  (France,  Germany,
Netherlands,  Switzerland  and  UK)  and  the  second  during  1998-1999  (Austria,  Denmark  and  Germany).
Other  countries  also  tested  the  EPEA  framework,  although  in  a  less  systematic  way  (e.g.,  Finland  and
Sweden),  or  have  recently  applied  it  in  full  or  in  part  (e.g.  Australia,  Belgium,  the  Czech  Republic,  Japan,
Norway, Spain or the UK). Some countries produce EPEAs already regularly (e.g., France, Austria).

In parallel with these pilot applications, Eurostat organised several meetings of the SERIEE Task Force as
well  as  three  TES  courses  (TES  stands  for  Training  of  European  Statisticians).  The  SERIEE  Task  Force
meetings allowed to examine several technical points and to make recommendations for classifications and
compilation.5 One of the outputs of the Task Force was a proposal for slight changes in the Classification of
Environmental Protection Activities (CEPA), changes which were recommended for adoption by the London
Group on Environmental Accounting in 2001.6

In 2002, the English version of the new CEPA 2000 was approved by the UN Statistical Commission as part
of the revised System of integrated Environmental and Economic Accounting (SEEA). The French, German,
Italian and Spanish language versions of the CEPA 2000 were produced by Eurostat in 2002 in co-operation
with Member States. All these language versions are available on Eurostat’s Classification server RAMON
and can be viewed or downloaded as text files from http://europa.eu.int/comm/eurostat/ramon/.

This  work  of  the  SERIEE  Task  Force  resulted  in  the  elaboration  of  the  SERIEE  Environmental  Protection
Expenditure  Account  Compilation  Guide7  published  in  2002.  This  compilation  guide  is  designed  to  help
compilers  in  the  practical  construction  of  environmental  protection  expenditure  accounts.  The  guide  shows
how the SERIEE framework can be implemented in practice and what to do with available data. The guide
also summarises the new developments since the publication of the 1994 SERIEE, including the new CEPA
2000, recommendations on connected and adapted products or the new NACE Rev. 1.1 and in this regard
replaces the 1994 SERIEE manual.

The compilation guide and the 1994 SERIEE manual can be downloaded from the Eurostat public website.
An Excel file with a worked example to the SERIEE Compilation Guide is also available on the website.

1.1  Short presentation of SERIEE

The main objective of SERIEE is to assess the expenditure made by resident units of the national economy
for  protecting  the  environment  against  pollution  and  other  degradation,  as  well  as  for  managing  natural
resources. The system produces an aggregate called ‘national expenditure for environmental protection’ that
is  consistent  with  GDP  and  also  makes  it  possible  to  describe  how  this  expenditure  is  financed  and  the
economic activities aimed at protecting the environment.

The integration of physical data is another objective of SERIEE. The goal is to bring together environmental
protection  or  natural  resource  management  expenditure  and  data  relating  to  pollution  emitted  or  avoided
(waste,  wastewater,  etc.),  resources  used,  as  well  as  equipment  and  installations  for  environmental
protection. Although the system, as such, does not describe pollution, it enables a relationship to be drawn
between monetary flows and data on pollution generated by various fields of activity or industry.

SERIEE can be used to account for a broad set of relations between the economy and the environment and
offers  the  necessary  tools  for  an  analysis  based  on  the  application  of  the  polluter-pays-principle.  Monetary
data may be used to examine the extent to which different economic agents ‘internalise’ the actual costs of
environmental protection in their decision-making, and therefore for analysing international competitiveness.

5  Eurostat 1997, 1998, 2000a and 2000b
6  Eurostat 2001a
7 Commission of the European Communities 2002

15

                                                     
Introduction

The SERIEE conceptual framework, describing environmental protection activities as well as certain induced
activities (eco-activities), permits to analyse the economic consequences of these activities for the European
economy  and  for  that  of  its  Member  States.  Such  analysis  may  be  carried  out  from  the  standpoint  of
employment, markets, and so on, but also in view of international comparison.

The  rest  of  this  chapter  is  concerned  more  particularly  with  the  first  facet  of  SERIEE:  the  Environmental
Protection  Expenditure  Account  (EPEA).  A  detailed  presentation  of  this  account  can  be  found  in  the  1994
SERIEE  manual  and  in  the  2002  EPEA  Compilation  Guide  published  by  Eurostat.  The  following  section  is
devoted to a brief reminder of its principal characteristics.

1.2  The Environmental Protection Expenditure Account (EPEA)

1.2.1  Objectives, uses and limitations

The Environmental Protection Expenditure Account is intended to respond to the three following questions:
·   How much do resident units – either producers or consumers – pay, and in what form, for environmental

protection? (Determination of national expenditure for environmental protection);

·   How and by which agents is this expenditure financed? (Analysis of the financing of national expenditure);
·   What  are  the  economic  activities  aimed  at  environmental  protection?  (Analysis  of  the  production  of

environmental protection services).

Realised within the framework of a common European system, an objective of the EPEA is to provide for the
homogeneity and the comparability of data between Member States.

Consistent  with  the  framework  of  a  ‘satellite  account’,  i.e.  respecting  the  valuation  methods  and
classifications  of  national  accounts,  the  EPEA  enables  environmental  expenditure  to  be  placed  in
relationship  with  the  various  national  accounts  aggregates  (GDP,  final  consumption  expenditure,  capital
formation, etc.) or those of specific institutional sectors (general government, corporations, households).

1.2.2  Classification of environmental protection activities (CEPA)

In  1994,  European  environmental  statisticians  and  accountants  adopted  a  common  classification  of
environmental  protection  activities  (CEPA  1994).  As  indicated  above,  the  CEPA  1994  has  recently  been
replaced  by  a  slightly  revised  version,  the  CEPA  2000.  However,  only  the  CEPA  1994  will  be  referred  to
here, as this was the classification used in the pilot applications.

The  CEPA  is  a  generic,  multi-purpose,  functional  classification  for  environmental  protection.  It  is  used  for
classifying  activities  but  also  products,  actual  outlays  and  other  transactions.  The  compilation  of
environmental protection expenditure accounts includes determining environmental protection activities and
their output of environmental protection services by categories of CEPA.

Environmental protection activities are activities in the sense of national accounts: ‘an activity can be said to
take  place  when  resources  such  as  equipment,  labour,  manufacturing  techniques,  information  networks  or
products are combined, leading to the creation of specific goods or services’’ (ESA 1995 § 2.103). An activity
may be a principal, secondary or ancillary activity.

The  level  1  headings  of  CEPA  (1-digits)  are  the  CEPA  classes.  CEPA  classes  1  to  7  are  also  called
(environmental) domains. For international comparison purposes, this structure should be fully respected.

Table 6  CEPA classes: 1-digit classification of environmental protection activities

1-Protection of ambient air and climate
2-Wastewater management
3-Waste management
4-Protection of soil and groundwater
5-Noise and vibration abatement
6-Protection of biodiversity and landscape
7-Protection against radiation
8-Research and development
9-Other environmental protection activities

16

Introduction

1.2.3  Concept of national expenditure

A central concept of the EPEA is that of national expenditure. The objective of this aggregate is to account
for the entirety of the expenditure that the different agents of the national economy commit to environmental
protection in a way that is consistent with the national accounts.

The concept is based on Chapter XXI of the 1993 SNA. National expenditure is the sum of the effective uses
of resident units for environmental protection. National expenditure includes the following elements:
·   Final  or  intermediate  consumption  of  environmental  protection  goods  and  services.  Services  consist  in
environmental  protection  services  as  defined  in  the  CEPA  (e.g.  waste  or  wastewater  management
services).  Goods  mainly  consist  in  either  goods  used  specifically  for  environmental  protection,  called
‘connected’  products  (e.g.  septic  tanks,  catalytic  converters,  etc.)  or  cleaner  goods,  called  ‘adapted’
products (e.g. unleaded petrol) whose use is less environmentally harmful, although the main purpose of
their  use  is  not  environmental  protection.  With  regard  to  environmental  protection  services,  one
distinguishes between:

- 

- 

services  produced  by  one  unit  for  use  by  another  unit,  e.g.  external  waste  and  wastewater
collection and treatment services. These are part of the output in national accounts.
services produced as ancillary to another activity. They relate to the set of activities (prevention
of  pollution,  treatment  of  emissions,  etc.)  carried  out  by  production  units  in  order  to  limit  the
negative  effects  of  their  main  activity  on  the  environment.  These  ancillary  activities  are  also
called  internal  or  in-house  activities.  The  corresponding  ancillary  services  are  not  separately
identified as output in national accounts.

·   Gross  capital  formation  (and  net  acquisitions  of  land)  by  the  producers  of  environmental  protection

services, as well as gross capital formation in environmental protection goods and services.

·   Specific  transfers  for  environmental  protection  when  they  are  not  the  counterparts  of  the  previous
elements. Specific transfers may be either current or capital, and they may take different forms. They may
relate  to  tax  deductions  granted  to  the  purchaser  of  a  catalytic  converter,  subsidies  granted  to
characteristic  producers  so  that  they  can  lower  the  market  price  of  certain  specific  products,  or  even
specific levies for the collection and/or disposal of waste.

·   Less financing by the rest of the world.

1.2.4  Categories of agents

In  line  with  national  accounts  classifications,  the  EPEA  adopted  several  classifications  for  economic  units,
according to whether they act as producer or user/beneficiaries or whether they finance the expenditure.

Among the producers of environmental protection services are:
·   producers carrying out an environmental protection activity as their principal activity (mainly found in the
NACE 90 industry). Producers belonging to general government institutional sector are distinguished.

·   producers carrying out environmental protection activity as a secondary activity.
·   producers carrying out environmental protection activity as ancillary (in-house or internal) activity.

Among users/beneficiaries, are:
·   general government as a collective consumer,
·   households as individual consumers,
·   production units, and within these:

-
-
-

those carrying out environmental protection activity as their main activity,
those carrying out environmental protection activity as a secondary or ancillary activity,
those not carrying out any environmental protection activities themselves.

Finally, for the description of the financing of national expenditure, economic units are subdivided according
to the institutional sectors of national accounts:
·   general government,
·   non-profit institutions serving households (NPISH),
·   corporations, and
·   households.

Financial  institutions  do  not  explicitly  appear  in  the  list  of  institutional  sectors.  For  simplification,  they  are
grouped together with non-financial corporations in the corporations sector. For this reason, the analysis of
financing shows neither lending nor borrowing. All uses not financed by transfers (capital grants, subsidies,
etc.) are deemed to be financed by the users, i.e. the unit acquiring the corresponding product.

17

Introduction

1.2.5  Set-up of the EPEA

The EPEA consists of three main connected tables:
·   a  table  describing  the  various  components  of  national  expenditure  by  category  of  user  or  beneficiary

(Table A);

·   a table which, for the different categories of producers, describes production and presents the formation
of  the  value  of  the  output  of  environmental  protection  services  as  well  as  gross  capital  formation  and
capital transfers (Table B); and

·   a table which summarises the financing (Table C).

These tables are enhanced by two supplementary tables. Table B1 is a supply-use table for environmental
protection  services.  Table  C1  describes  the  environment-related  financing  burden  that  weighs  upon  the
different sectors of the economy.

In  practice,  the  compilation  of  all  these  tables  usually  starts  with  the  description  of  production  of
environmental  services  (Table  B)  because  primary  data  for  this  table  are  usually  the  most  complete.  The
articulation of these various tables is illustrated by the figure below. Compilation of the EPEA tables is greatly
facilitated by setting up an information system incorporating the different elements presented. For details see
the 2002 EPEA Compilation Guide.

Figure 1 The set of EPEA tables

Table B
Production table

Table B1
Supply-use table

FROM OUTPUT TO
USES: introduction of
imports/exports
and

taxes/subsidies 
products

on

OUTPUT
of EP services

Gross capital
formation plus
land acquisition

Table A
Uses
(expenditure)
table
USES
of EP services
by resident units

Table C
Financing of
expenditure

FINANCING of:

uses of EP services

Gross capital
formation plus
land acquisition
uses of adapted &
connected products
specific transfers

Gross capital
formation plus
land acquisition
uses of adapted &
connected products
specific transfers

Table C1
Net cost related to
environmental
protection
FINANCING of
CURRENT:

uses of EP services

Costs of capital
(interest)

uses of ad. & con.
products
specific transfers
less EP benefits
environmental taxes

18

2  Presentation of pilot applications

After the publication of the SERIEE manual in 1994, one of Eurostat’s priorities was the practical testing of
the EPEA accounting framework. Between 1995 and 1999, several Member States, as well as Switzerland,
carried out pilot studies to test the framework.

Before  presenting  the  main  test  results  for  Austria,  Denmark,  France,  Germany,  the  Netherlands,
Switzerland  and  the  United  Kingdom,  this  section  discusses  the  implementation  of  these  tests.  The
directions taken during implementation often have an effect on the actual results, and are often conditioned
by the availability of data.

Major differences in the application of the EPEA in the countries related to the coverage of the field of study,
the quality of the data, the methodological aspects and the interpretation of the system to be implemented.

The following sections present these differences affecting the comparability of results across countries. The
table below presents the statistical reference year for the pilot applications by country. According to the time
of undertaking the studies, the reference year varies between 1991 and 1995.

Table 7  Statistical year for pilot applications

Country

Year(s) covered

Austria
Denmark
France
Germany
Netherlands
Switzerland
United Kingdom

1995, 1996
1994
1994
(1991),1995
1991
1992/93
1994

2.1  Coverage of pilot applications

The coverage of pilot applications may be assessed from several points of view:
·  
·  
·  
·  

in terms of CEPA classes covered,
in terms of the types of statistical units covered,
in terms of components of the national expenditure covered, and
in terms of the EPEA tables compiled.

2.1.1  Environmental domains or CEPA classes covered

The table on the following page shows the environmental domains covered by each pilot application. Three
countries present a complete coverage of CEPA classes (Austria, Denmark and the UK), with the exception
of protection against radiation (only Austria managed to collect data for this domain, which is very small in
terms  of  expenditure).  However,  as  will  be  seen,  the  coverage  is  incomplete  in  other  respects.  The  three
countries  provide  separate  estimates  for  the  domains.  The  Netherlands  did  not  cover  biodiversity  and
landscape  in  the  pilot  application,  but  made  a  separate  estimate.8  Furthermore,  as  for  Germany,  some
domains are grouped together.

France  made  separate  estimates  only  for  four  domains,  but  the  other  domains  are  regularly  covered  by
estimates.9 Analysis of the coverage of domains should also take into account the various sub-headings of
the domain. France, for example, explicitly excludes street cleaning from waste management, whereas other
countries  do  not  specify  inclusion  or  exclusion.  Recycling  is  taken  into  account  in  Denmark  and  Austria.
However,  whereas  Austria  only  considers  the  ‘environmental  protection  output  of  recycling’,  i.e.  the  waste
management part of recycling, Denmark integrates all recycling output in the national expenditure.

8 Statistics Netherlands 1998b
9 IFEN 1999a

19

                                                     
Presentation of pilot applications

Table 8  Coverage of environmental domains in pilot applications

Air

Waste

Soil

Noise Biodiversity and

R&D

Other

Austria
Denmark
France
Germany
Netherlands
United Kingdom
* … domain is covered but grouped under ‘Other’.
p … domains is only partially covered.

yes
yes
yes
yes*
yes
yes

yes
yes
yesp
yes
yes
yes

Waste-
water
yes
yes
yes
yes
yes
yes

yes
yes
no
no
yes*
yes

yes
yes
yes
yes*
yes*
yes

landscape
yes
yes
no
yes
no
no

yes
yes
no
yes
no
yes

yes
yes
no
yes
yes
yes

2.1.2  Categories of statistical units covered

In  some  cases,  domains  are  only  partially  covered  concerning  the  actors  (statistical  units)  involved  in
environmental protection activities. The pilot application for Denmark does not cover ancillary activities. For
this  country,  environmental  protection  expenditure  includes  only  activities  of  general  government  and
specialised  corporations  of  the  NACE  37  and  90  industries.  As  for  specialised  producers  in  the  waste
domain, the German pilot application only covers general government units and publicly owned corporations
(which  means  that  private  corporations  are  excluded).  Furthermore,  for  the  ‘protection  of  biodiversity  and
landscape’,  ‘environmental  research’  and  ‘other  environmental  protection  activities’  domains,  only  general
government activities are recorded. In general, activities of non-profit institutions serving households are not
accounted for in the pilot applications.

Table 9  Coverage of statistical units involved in environmental protection expenditure

Air

Wastewater Waste

Soil

Noise

Austria
Denmark
France
Germany
Netherlands
United Kingdom

all
part
all
all
all
all

all
part
all
all
all
all

all
part
all
part
part
all

all
part

all
all

all
part
all
all
all
all

Biodiversity
and landscape
all
part

part

R&D

Other

all
part

part

all

all
part

part
part
all

In the case of ancillary activities, the coverage of industries is generally incomplete. In general, only NACE
10  to  41  are  covered,  whereas  agriculture,  construction,  transport  and  services  are  not.  However,  the
Netherlands makes estimates of ancillary expenditure in agriculture and transport.

2.1.3  National expenditure components covered

Another coverage issue refers to the components recorded in the national expenditure aggregate. Denmark
and  Germany  do  not  record  connected  and  adapted  products.  For  other  countries,  the  table  below  shows
that  the  coverage  of  adapted  and  connected  products  is  variable.  Therefore,  the  impact  of  adding  an
estimate of expenditure for a comprehensive set of adapted and connected products is also variable.

Table 10  Coverage of adapted and connected products

Austria

catalytic converters

Air

France

Netherlands

Switzerland

low sulphur fuel oil, low lead and
unleaded petrol, catalytic converters,
carburation adjustment services
low sulphur fuel oil, low lead and
unleaded gasoline, catalytic
converters, LPG equipment
catalytic converters, carburation
adjustment, low NOx heating systems

Wastewater

Waste

‘adapted’
washing
machines
septic tanks and
related services

dustbins,
composters,
rubbish sacks
dustbins, rubbish
sacks

some (not
specified)

compost
containers

Noise
anti-noise windows

anti-noise windows,
exhaust pipe

less noisy cars

United Kingdom catalytic converters

anti-noise windows

20

Presentation of pilot applications

Table 11  Uses of adapted and connected products
(as a % of the uses of environmental protection services)

Austria
France
Netherlands
Switzerland
UK

Waste

Wastewater

4.7%
5.1%
0.2%
0.0%
0.0%

1.2%
17.2%
1.6%
0.0%
0.0%

Air
84.3%
67.0%
113.2%
121.9%
52.4%

Noise

Other

Total

n.a.
208.2%
n.a.
0.0%
33.3%

7.6%
n.a.
10.9%
0.0%
n.a.

7.5%
18.1%
16.0%
14.1%
9.5%

2.1.4  EPEA tables implemented

All pilot applications rely on an approach by domain for setting up the accounts, but the full set of tables is
not always presented for every domain. The table below shows the tables provided in the pilot applications.

Table 12  EPEA tables provided

Austria
Denmark
France
Germany
Netherlands
UK

Table A
per domain
per domain
per domain
per domain
per domain
per domain

Table B
per domain
per domain
per domain
per domain
per domain
per domain

Table B1
semi-aggregated
per domain
per domain
-
per domain
-

Table C
semi-aggregated
aggregated
per domain
per domain
per domain
-

Table C1
-
aggregated
-
-
aggregated
-

The  majority  of  reports  do  not  include  all  EPEA  tables.  Only  Denmark  and  the  Netherlands  provided  all
tables.

In  accordance  with  the  way  tables  are  filled-in  in  the  majority  of  cases,  the  starting  point  for  compiling  the
EPEA  tables  is  the  production  account  (Table  B)  for  which  the  information  is  generally  most  complete.  On
the use side (Table A), the most important information is the purchase of environmental services (fees for the
treatment  of  waste  and  wastewater  to  government  producers,  purchases  of  environmental  services  by
private corporations and households).

Total national expenditure for environmental protection is calculated by adding the values obtained for each
environmental domain. However, this total must be interpreted with care as the fields covered by the studies
are different. Aggregation may also conceal certain characteristics of the field studied which are visible in the
non-aggregated data and may thus lead to wrong interpretations (see for example the discussion in section
2.3 below, which relates to the accounting treatment of the net operating surplus of specialised producers).

2.2  Methodological questions

Implementation  of  the  EPEA  raised  certain  methodological  questions  that  are  recalled  briefly  here.  These
questions  relate  to  the  consumption  of  fixed  capital,  the  issue  of  negative  net  operating  surplus  and  the
identification  and  deduction  of  intermediate  consumption  of  environmental  protection  services  by  the
producers of environmental protection services.

2.2.1  Consumption of fixed capital

The  first  point  concerns  the  methods  used  for  calculating  the  consumption  of  fixed  capital  (CFC).  In  the
EPEA, the consumption of fixed capital is necessary in order to calculate the value of ‘other non-market’ and
‘ancillary’ environmental protection services output and to calculate the net operating surplus of the market-
specialised producers. In general, national accounts databases do not provide the value of CFC at the level
of  single  environmental  domains  (exception  is  Denmark).  When  CFC  data  are  available  e.g.  for  NACE  90,
they have to be split into waste and wastewater.

The national accounts do not handle a database for the capital stock for environmental protection activities.
Therefore,  in  general,  environmental  accountants  have  to  calculate  CFC  themselves.  The  table  below

21

summarises  the  different  methods  used.  The  availability  of  data  is  the  main  problem  in  the  assessment  of
CFC and the methods used vary considerably across countries and environmental domains.

Presentation of pilot applications

Table 13  Methods used for calculating the consumption of fixed capital

Austria

Denmark

France

Germany

Netherlands

Switzerland

UK

Consumption  of  fixed  capital  is  estimated  based  on  capital  formation,  using  a  ratio  from  the
structural survey.
CFC  directly  comes  from  the  national  accounts.  For  general  government  environmental
protection activities, the ratio of total CFC to total output for government is applied.
Wastewater:  estimates  of  the  stock  of  gross  fixed  capital  are  used.  CFC  is  then  calculated
based on a linear model.
Air:  fixed  capital  stock  is  estimated  using  the  perpetual  inventory  method  (PIM  -  25  years  of
investments). CFC is calculated on the basis of a ‘sudden death model’ with linear depreciation.
Waste:  the  share  of  CFC  to  output  is  estimated  using  specific  surveys  and  national  accounts
data.
Noise:  an  estimate  of  the  stock  of  fixed  capital  for  1990  is  constructed  and  then  updated
according to a simplified PIM method, which also gives CFC.
The method is based on the ‘perpetual inventory method’ (PIM). Data generated by the model
are broken down as follows: 4 main environmental domains, 2 sectors: general government and
corporations (a breakdown is available for 20 industries).
The Netherlands have long time series for investments (broken down according to buildings and
equipment  and  by  six  environmental  domains.  Depreciation  is  calculated  using  an  estimated
lifetime of 25 years for buildings and 10 years for the mechanical part of equipment at historical
costs
Public sector: based on the time series of capital formation and stock of fixed capital, using a
fixed ratio method. The assumption is that CFC follows a linear model.
Private  sector:  the  consumption  of  fixed  capital  is  assumed  to  represent  50%  of  fixed  capital
formation.
As  there  are  no  comprehensive  data  on  the  existing  capital  stock,  the  UK  used  the  capital
expenditure to estimate the consumption of fixed capital.

This raises the question as to whether the CFC estimates obtained from such varied methods lead to very
different results. The table below gives an indication of the size of consumption of fixed capital in relation to
all other costs of production (taxes less subsidies were excluded).

Table 14  Consumption of fixed capital in % of the other costs of production

Austria
Denmark
France
Germany
Netherlands

Wastewater
management

Waste
management

Air
protection

105%
1%
68%
72%
104%

12%
9%
27%
16%
25%

30%
n.a.
70%
62%
125%

These data show that although the importance of consumption of fixed capital varies widely across countries,
the magnitude is more or less similar for given domains. When environmental protection services are market
output, the CFC has no impact on the overall level of expenditure (except for negative operating surplus, see
below).  However,  this  is  not  the  case  for  ancillary  services  and  other  non-market  services  where  output  is
determined by the sum of all costs of production including CFC.

2.2.2  Negative net operating surplus

The  second  methodological  question  relates  to  the  net  operating  surplus  (NOS),  defined  as  the  balance
between  the  value  of  market  output  and  current  uses  (intermediate  consumption,  compensation  of
employees,  other  taxes  less  subsidies  on  production  and  consumption  of  fixed  capital).  By  definition,  the
NOS  is  zero  for  non-market  producers.  When  market  producer  belong  to  the  general  government  sector
institutional  sector,  the  NOS  may  be  negative  when  total  costs  of  production  are  not  fully  compensated  by
output, measured by sales.

Analysis  of  the  reports  on  the  pilot  exercises  shows  that  a  negative  NOS  is  rather  frequent  for  general
government producers (see Table 15).

22

Presentation of pilot applications

Table 15  Subsidies and net operating surplus in % of output (specialised producers)

Type of producers

Austria
Govt. Other

Denmark
Other

France

Germany

Netherlands

Govt. Other Govt. Other Govt.

Other

Wastewater management

Subsidies on production
Net operating surplus

8.6% 0.0%
-8.6% 23.4%

0.3% 8.9% 0.0% 0.3% 0.0% 19.4% 0.0%
23.2% -42.3% 11.7% -1.6% 12.2% 0.0% 11.2%

Subsidies on production
Net operating surplus

2.2% 1.1%
0.6% -31.5%

0.9% 0.0% 0.0% 0.9% 0.0% 0.0% 0.0%
9.7% 0.0% 9.1% 19.7% 0.0% 0.0% 13.5%

Waste management

As the negative NOS only appears after deduction of the CFC from the gross operating surplus (GOS), it is
important to use an appropriate method for the calculation of CFC.

The  next  question  is  the  accounting  treatment  for  negative  NOS.  A  negative  NOS  represents  an  effective
(non-recorded) cost, and raises the associated problem of financing the remuneration of production factors.
The 1994 SERIEE manual suggests treating this negative balance as an implicit subsidy from government to
the concerned unit. Germany expressly applied this solution.

This treatment is generally appropriate e.g. for municipal waste management departments but could lead to
double counting for units that receive occasional capital transfers to cover the accumulated losses. Another
accounting solution could be to treat the negative NOS as collective consumption. This solution is retained
for the national accounts in the Netherlands. The practical implications of these two solutions do not appear
to be very different.

Care must be taken as regards aggregation: adding units with a negative NOS to units with a positive NOS
may lead to a balance which could lead to a wrong interpretation.

An  associated  methodological  point  concerns  the  financing  aspect  of  national  expenditure,  and  more
particularly, the method of calculating the aggregate of ‘Financing by Producers’ in Table B. Counter to what
the 1994 SERIEE manual suggests, in some applications the NOS was taken into account in this calculation.
This modifies the meaning of this aggregate, in particular when the NOS is negative.

2.3  Quality of data and comparability of results

The pilot applications do not allow for an explicit assessment of data quality. However, most reports provide
indications  concerning  available  data  and  their  sources,  missing  data  and  estimation  methods  for  closing
data gaps. Some countries, such as France, explain the quality of their estimates.

From these elements, it emerges that:
·   within the same country, the quality of data varies a lot from one environmental domain to another;
·  
the domains for which the data may be considered as good, differ from one country to another; and
·  
these differences seem in part to be linked with national policy orientations as regards the environment.

As  a  conclusion,  the  results  of  the  pilot  applications  must  be  interpreted  carefully,  especially  concerning
comparability  across  countries.  France  is  the  only  country  to  publish  EPEAs  annually  for  the  four  principal
environmental  domains,  and  as  a  result,  has  progressively  improved  its  methodology.  On  the  other  hand,
results from the other countries may generally be considered only as preliminary, and will certainly be subject
to revisions in the future.

Analysis of the results, as well as assessing the comparability of the data, is facilitated by knowledge of the
specific  characteristics  of  the  field  or  country  concerned.  For  example,  in  France,  electricity  production  is
largely based on nuclear sources while in the other countries electricity produced from fossil fuels is much
more important. This explains why expenditure devoted to air protection is less significant in France. In other
words,  a  high  amount  of  national  expenditure  may  quite  simply  reflect  a  more  significant  need  for
environmental  protection  because  of  higher  emissions.  These  differences  in  key  environmental  concerns
need to be taken into account when analysing the results.

23

3  Results

3.1  The production table (Table B)

3.1.1  Objectives

The production table shows the various elements that contribute to the formation of the value of the output:
·  
intermediate consumption,
·   compensation of employees,
·   other taxes less subsidies on production,
·   consumption of fixed capital, and
·   net operating surplus.

For other non-market output (i.e. output supplied free, or at prices that are not economically significant) and
for ancillary output, the net operating surplus is, by convention, put to zero.10

The production table is important in several aspects:
·  
·  

it is generally the starting point for the estimation of the expenditure side,
it allows to assess the impacts of the expenditure on economic activity, and in particular,
- employment, through the compensation of employees,
- demand to other industries, through intermediate consumption,
- eventual subsidies on production,
- use of fixed assets, through the consumption of fixed capital.

3.1.2  Organisation of production and classification of producers

The production table distinguishes various categories of producers. The main categories are:
·   Specialised producers11 of the general government institutional sector. These producers are either market

producers or other non-market producers.12

·   Specialised producers which pertain to other institutional sectors, mainly non-financial corporations. It is
sometimes worth distinguishing within these the public corporations and quasi-corporations, e.g. firms or
bodies  owned  by  municipalities  having  an  autonomy  of  decision  and  recognised  as  independent  legal
units, or whose behaviour is similar to that of corporations.

·   Non-specialised  producers.  These  are  either  producing  characteristic  services  as  secondary  output,  or

are engaged in ancillary activities.

Specialised producers

The  distribution  of  producers  varies  according  to  environmental  domains  and  country.  The  classifications
adopted in the various pilot applications do not always follow the EPEA classification, either because of lack
of data or because it was considered that strictly following the EPEA concepts would have made the results
less significant.

Table 16  Wastewater: classification of specialised producers

Austria
Denmark
France
Germany
Netherlands
UK

Institutional sector

General government (type of output)
67% (market)
0%
47% (market)
65% (market)
96% (market)
9% (non-market)

Corporations

33%
100%
53% (private firms)
35% (public firms)
4%
91% (private firms)

10 The  EPEA  adopted  the  same  conventions  as  the  ESA,  in  order  to  ensure  that  national  expenditure are  consistent  with  national
accounts aggregates. Alternatively, an imputed positive net operating surplus could be considered for these two categories of output,
which would represent the return to the fixed capital stock as a cost.

11 According to SERIEE, specialised producers are those producers whose principal activity is environmental protection.
12 Market producers of the general government institutional sector correspond to local KAU whose output is market but which have no
autonomy of decision, e.g. municipal departments which sell their services at an economically significant price but are managed by
local governments classified as "other non-market" producers for their main activity.

25

                                                     
For  France,  producers  of  wastewater  management  services  would  in  theory  have  to  be  classified  as
secondary producers as they are mainly found in NACE 41 (water supply industry). For Germany, data for
private firms were not available. This description of the production will change when data corresponding to
ESA 95 and NACE Rev. 1.1 (including the proposed decomposition of NACE 90) become available.

Results

Table 17  Waste: classification of specialised producers

Austria
Denmark
France
Germany
Netherlands
UK

Institutional sector

General government (type of output)
52%
0%
54% (non-market)
56% (market)
64% (market)
56%

Corporations

48%
100%
46% (private firms)
44% (public firms)
36%
44%

For  France,  output  of  general  government  units  involved  in  waste  management  has  recently  been
reclassified as market output. For Germany, data for private firms have not been not available.

For waste and wastewater management activities, the description of the production of specialised producers
according  to  the  institutional  sector  is  not  necessarily  particularly  relevant.  It  can  be  more  interesting  to
distinguish  public  and  private  corporations,  or  ‘public  services’  provided  to  the  whole  community  (e.g.
management  of  ‘municipal  waste’)  and  services  rendered  to  corporations  on  an  individual  basis  (e.g.
industrial waste management).

For  the  future,  it  would  be  useful  to  obtain  a  more  precise  description  of  the  organisation  of  these  two
domains, and to specify clearly how the data relate to national accounts classifications. The organisation is,
in particular for waste management, rather complex, with much subcontracting between units.

Non-specialised producers – secondary output of characteristic services

In general, the pilot applications do not show any important secondary output of characteristic services. First,
there  is  a  problem  of  data  availability.  Except  for  waste  and  wastewater  management  services,
environmental  protection  output  is  rarely  recorded  separately.  However,  the  main  reason  is  that  when  a
significant secondary output is identified, the pilot applications reclassify the units as specialised producers.
This  is,  in  particular,  the  case  for  the  Danish  pilot  application,  which  reclassifies  the  output  of  general
government units as that of specialised producers, and for the French pilot application, which reclassifies the
producers of wastewater management services as specialised even though they are mainly found within the
NACE 41 industry. Only France and Austria record secondary output (for waste management).

Ancillary output

Denmark did not report ancillary output. Other countries did, using the results of specific surveys. In some
cases (Germany, and partially France), estimates of output were derived from the stock of fixed capital for
environmental  protection,  through  a  ratio.  The  UK  and  the  Netherlands  have  direct  data  on  environmental
protection current expenditure. For waste, France estimated the expenditure for ancillary activities based on
the waste quantities internally treated.

Table 18  Ancillary output in % of external services

Waste
Wastewater

Austria
23
22

France
8
28

Germany

Netherlands

16
40

4
32

UK

3
26

For  noise  abatement,  ancillary  activities  represent  almost  100%  of  environmental  protection  activities.  The
situation is rather similar for air protection, as is shown in Table 19.

26

Results

Table 19  Ancillary output in % of total environmental protection services

Air

Austria
81

France
99

Germany
100

Netherlands
97

UK
99

3.1.3  Sources and calculation, coverage

With the exception of Denmark which almost directly extracts the data from its national accounts database,
the  pilot  applications  rely  on  specific  data  gathering.  The  main  sources  are  government  finance  statistics,
surveys of environmental protection expenditure by the manufacturing industry, data extracted from national
accounts  or  production  statistics  (output  of  relevant  products  of  NACE  90)  and  results  of  specific  surveys
(municipalities, public producers, etc.).

3.2  Structure of the production table

The  tables  below  give  the  structure  of  the  production  table  for  the  specialised  producers  of  the  two  main
domains.  The  various  elements  which  contribute  to  the  formation  of  the  output  value  are  expressed  as  a
percentage  of  the  output  value,  as  given  by  standard  national  accounts  conventions,  i.e.  either  the
producers' price (market output) or the cost of production (other non-market and ancillary output). The tables
also show the intermediate consumption of specialised producers in environmental protection services.

Table 20  Structure of the production account for wastewater management, %

France

Denmark
Other

Output
Intermediate consumption
    of which EPS
Compensation of employees
Other taxes less subsidies on production
Consumption of fixed capital
Net operating surplus
EPS = environmental protection services
Note:  The  Austrian  report  only  gives  the  total  of  intermediate  consumption  of  characteristic  services  by  specialised  producers  for
waste and wastewater. The distribution between the two domains was made using the supply-use tables (B1). Within each domain,
the distribution is made according to the total intermediate consumption of each category of producer.

Germany
Govt. Other Govt. Other Govt. Other
100.0
36.1
0.0
18.8
0.5
95.8
-42.3

Austria
Govt. Other
100.0
33.7
10.5
11.1
-6.4
70.2
-8.6

100.0 100.0
32.9
3.8
11.9
-0.3
57.1
-1.6

100.0
44.8
0.0
15.0
0.0
28.0
12.2

100.0
35.7
8.1
25.4
-19.4
58.3
0.0

100.0
43.1
13.4
18.8
2.3
12.4
23.4

100.0
48.0
12.2
32.7
0.0
8.2
11.2

100.0
43.6
0.8
32.4
-0.1
0.8
23.2

60.1
0.0
21.5
1.5
5.2
11.7

Netherlands

The structure of the production table highlights some interesting elements:
·  
the importance of the consumption of fixed capital for government units,
·  
the  importance  of  intermediate  consumption  of  environmental  protection  services  (EPS)  by  specialised
producers (excluding France), and
the either explicit or implicit (via negative NOS) other subsidies on production for government units.

·  

All  these  points  will  be  examined  below.  However,  it  should  be  borne  in  mind  that  all  these  data  are
preliminary  and  somewhat  outdated,  whereas  the  organisation  of  production  evolved  and  prices  of
environmental services substantially increased in recent years.

Table 21  Structure of the production account for specialised producers of waste management

Output
Intermediate consumption
    of which EPS
Compensation of employees
Other taxes less subsidies on production
Consumption of fixed capital
Net operating surplus

EPS = environmental protection services

Austria
Govt. Other
100.0
100.0
74.4
59.7
29.3
23.5
43.1
32.5
-1.0
-1.1
12.1
8.3
-31.5
0.6

Denmark
Other

100.0
58.5
0.6
24.0
0.2
7.6
9.7

France

100.0
45.4

Netherlands
Germany
Govt. Other Govt. Other Govt. Other
100.0
100.0
52.7
73.9
25.0
56.6
20.3
11.4
0.0
0.8
13.5
13.8
13.5
0.0

100.0
66.5
23.5
20.4
0.0
13.1
0.0

100.0
61.9
12.0
12.4
-0.9
6.9
19.7

28.7
2.8
14.0
9.1

21.2
1..6
14.1
0.0

100.0
63.1

27

Results

For  waste  management,  consumption  of  fixed  capital  is  less  important  than  for  wastewater  management,
and explicit or implicit subsidies are rather low (except Austria). The importance of intermediate consumption
of environmental protection services by specialised producers should be noted.

3.2.1 

Intermediate consumption of environmental services by specialised producers

For waste and wastewater management, a considerable part of the intermediate consumption of specialised
producers consists of environmental services. This situation results from two main factors:
·  

for  the  two  domains  there  are  two  different  activities,  collection  and  treatment,  and  producers  may  be
specialised in one and subcontract or purchase the other. For example, waste collectors may deliver the
waste collected to a waste treatment facility.

·   often  municipalities  are  responsible  for  the  organisation  of  these  ‘public  services’  and  may  subcontract
the  production  to  private  firms  or  to  inter-municipal  bodies.  In  this  case,  there  may  be  different  ways  to
record the transactions in the municipal accounts.

Table 22  Intermediate consumption of environmental protection services
(as a % of environmental protection services output – specialised producers)

Wastewater management

Waste management

Corporations units Government units

13.4%
Austria
0.8%
Denmark
0.0%
France*
0.0%
Germany
Netherlands
12.2%
*…In the French pilot application, the output of wastewater management services is calculated and recorded net of this
intermediate consumption of environmental protection services by specialised producers.

23.5%
-
56.6%
12.0%
23.5%

Corporations units
29.3%
0.6%
0.0%
0.0%
25.0%

Government units
10.5%
-
0.0%
3.8%
8.1%

It is rather important to correctly identify this subcontracting to avoid double-counting. In order to verify that
all  subcontracting  has  been  removed,  one  possibility  is  to  calculate  ‘technical  ratios’  calculated  after  the
deduction of identified subcontracting, e.g.:
·  
·  
·  

intermediate consumption/compensation of employees,
intermediate consumption/consumption of fixed capital,
intermediate consumption/(compensation of employees plus consumption of fixed capital).

Table 23  Structural ratios for waste management

Austria
Govt. Other Total
1.08
1.05
1.11
IC/CE
4.01
3.73
IC/CFC
4.36
0.85
0.82
IC/(CE + CFC) 0.89

Denmark
Govt.
2.41
7.62
1.83

France

Germany
Govt. Other Total Govt. Other Total Govt. Other Total
1.84
2.98
1.51
2.82
4.48
1.25
1.11
1.78
0.69

4.02
7.23
2.58

1.58
3.24
1.06

3.44
5.54
2.12

1.36
2.05
0.82

2.10
3.28
1.28

1.57
2.19
0.91

Netherlands

Table  23  could  suggest  that  the  elimination  of  subcontracting  is  not  sufficient  for  Germany  (and  perhaps
Denmark).  However,  this  approach  assumes  that  there  is  some  genuine  ‘technical  coefficient’  that
determines a ‘correct’ ratio between IC and CE/CFC. This is not necessarily the case due to the differences
in  organisation  and  technical  processes  across  countries,  e.g.  the  relative  share  of  incineration  versus
landfilling,  the  extent  of  selective  collection,  composting  etc.  Furthermore,  it  is  not  clear  to  what  extent
differences in coverage influence the ratios:
·   Street cleaning: France does not include street cleaning, whereas it should be included according to the

CEPA. However, it is not clear whether all other countries really include street cleaning.

·   Recycling:  Denmark  accounts  for  the  whole  output  of  recycling,  not  only  the  environmental  part  (i.e.
revenues  from  accepting  waste  for  recycling  as  opposed  to  the  revenues  from  selling  the  recovered
secondary raw materials). Therefore, the output, as recorded above, is overestimated and the ‘technical
ratio’  distorted.  Recycling  is  not  accounted  for  in  Germany,  the  Netherlands  and  France,  whereas  the
environmental part is included in Austria's data.

·   Other  coverage  issues:  Germany  does  not  report  on  ‘purely  private  disposal  firms’  nor  on  secondary
output,  and  ‘there  still  seems  to  be  a  substantial  under-recording’.  The  accounting  method  for  wheeled
waste  containers  and  other  waste  bins  may  vary  across  countries:  these  may  be  included  in  the
government  expenditure  when  the  containers  are  provided  ‘free’  or  as  connected  products  when
households and businesses must purchase them.

28

Results

IC/CE
IC/CFC
IC/(CE + CFC)

Table 24  Structural ratios for wastewater management

Austria

Denmark

France

Germany

Netherlands

Govt. Other Total Govt. Govt. Other Total Govt. Other Total Govt. Other Total
1.09
2.09 1.58 1.87
2.41
1.92
2.79
0.49
0.38 11.56 1.03
0.33 2.40 0.50
0.34
0.72
0.29 0.95 0.39
2.25
0.32

1.32
53.50
1.29

2.98
1.60
1.04

2.65
0.73
0.58

2.45
0.51
0.42

1.09
0.47
0.33

1.09
4.37
0.87

Table  24  could  suggest  that  the  elimination  of  subcontracting  is  not  sufficient  for  France,  Germany  and
maybe Austria. (In the French pilot application, intermediate consumption data are presented as already net
of  sub-contracting.)  A  problem  is  the  low  estimate  for  consumption  of  fixed  capital  for  Denmark  (see  also
Table 14 above).

3.2.2  Consumption of fixed capital

Consumption of fixed capital is an important item for the compilation of national expenditure, as it explicitly
influences  the  value  of  ‘other  non-market’  and  ancillary  environmental  protection  services.  Furthermore,
when CFC is deducted from the gross operating surplus of market producers, the result may be a negative
net operating surplus, which should be specifically analysed.

The consumption of fixed capital is an imputed transaction which does not directly come from surveys. It is
generally  calculated  by  national  accountants  on  the  basis  of  the  stock  of  fixed  capital  (perpetual  inventory
method).  However,  regarding  environmental  protection  activities,  the  consumption  of  fixed  capital  is  rarely
directly  available  in  national  accounts  databases  because  national  accountants  do  not  hold  capital  stock
models  for  more  detailed  levels  than,  e.g.  division  90  of  NACE  Rev. 1.,  except  in  some  countries.
Furthermore,  national  accounts  do  not  separate  ancillary  activities,  or  detailed  activities  of  general  or  local
government.

In  general,  therefore,  specific  calculations  have  to  be  made  by  environmental  accountants.  These
calculations are not always explicitly presented in the pilot applications. However, comparisons can be made
of the ratios of consumption of fixed capital to other production costs, in particular to the sum of intermediate
consumption (excluding subcontracting) and compensation of employees.

Results show that wastewater management is very capital intensive and that, with the exception of Denmark,
consumption  of  fixed  capital  accounts  for  40%  to  50%  of  total  production  costs  (taxes  less  subsidies  on
production are excluded).

Table 25  Consumption of fixed capital as a % of other production costs

Wastewater
Waste
Air
Noise
Other

Austria
105%
12%
30%
258%
9%

Denmark
1%
9%
n.a.
n.a.
10%

France
68%
27%
70%
69%
n.a.

Germany
72%
16%
62%
235%
n.a.

Netherlands
104%
25%
125%
n.a.
23%

In  the  wastewater  management  domain  the  ratio  for  general  government  producers  is  higher  than  for
producers of the corporations sector (see Table 20). This implies that much of the fixed capital is, in general,
owned by general government units, whereas other producers only operate this fixed capital.

Waste management is much less capital-intensive than wastewater management, except for Denmark (but
consumption of fixed capital in the wastewater domain is underestimated for Denmark).

In the air domain, the activities are mainly ancillary and also rather capital intensive. However, the range of
variation is higher than for waste and wastewater management. In the noise domain, consumption of fixed
capital constitutes the main component of production costs.

29

Results

3.2.3  Net operating surplus and subsidies

In the case of market producers, the net operating surplus allows to verify whether the costs of production
are covered by sales. However, it is necessary to take into account other subsidies on production also. Table
26 presents data for subsidies and net operating surplus with regard to waste and wastewater management.

Table 26  Other subsidies and net operating surplus as a % of output (specialised producers)

Subsidies on production
Net operating surplus

Subsidies on production
Net operating surplus

Austria

Govt.

Other

Denmark
Other

France

Germany

Govt.

Other

Govt.

Other

Netherlands
Govt. Other

Wastewater management
8.9
0.3
0.0
23.2
-42.3
23.4
Waste management
0.0
0.9
0.0
9.7

1.1
-31.5

0.0
11.7

0.0
9.1

8.6
-8.6

2.2
0.6

0.3
-1.6

0.9
19.7

0.0
12.2

0.0
0.0

19.4
0.0

0.0
0.0

0.0
11.2

0.0
13.5

For waste management, subsidies are very low. The net operating surplus of general government producers
is nil or insignificant for France, Netherlands and Austria, but rather high for Germany (general government
producers correspond to municipalities). For France, the net operating surplus is nil by construction (output is
‘other non-market’). For the Netherlands, the net operating surplus is also nil, although the output is market.

The  net  operating  surplus  of  other  producers  is  generally  positive  (more  or  less  10%  of  output)  except  for
Austria (-31.5% of the output value) and Germany (net operating surplus is nil). In Germany, other producers
correspond to ‘government-owned corporations’ as data for private firms were not available.

Wastewater management offers a different picture: subsidies are rather frequent for government producers,
except  for  Germany13.  The  net  operating  surplus  is  also  negative  for  three  countries,  and  would  become
negative  for  all  countries  (except  Denmark)  without  subsidies.  For  France,  subsidies  plus  negative  net
operating surplus represent 50% of the value of market output, 19% for the Netherlands and 17% for Austria.
On the contrary, other producers do not receive subsidies and always show a positive net operating surplus
(from 12 to 24% of output).

This  means  that,  in  general,  the  value  of  wastewater  management  services  produced  by  producers  of  the
general  government  sector  even  when  they  are  marketed  –  i.e.  measured  at  basic  prices  –  underestimate
the full economic costs involved in the production of these services, and thus the national expenditure. In this
case, the EPEA recommends introducing specific transfers. This is not done in all pilot applications. France
does not compensate the negative net operating surplus of general government producers. Austria takes into
account  neither  the  subsidies  nor  the  negative  net  operating  surplus.  In  these  two  cases,  the  national
expenditure is underestimated.

3.3  The supply-use table (Table B1)

The supply-use table serves as a transition between the output (recorded at basic prices or production cost)
and the uses of environmental protection services, recorded at purchasers’ prices.

The  main  elements  to  be  introduced  are  the  uses  of  environmental  protection  services  by  specialised
producers, which are part of total supply and use but are not recorded in national expenditure, and taxes less
subsidies  on  products,  including  non-deductible  VAT.  Theoretically,  imports  and  imports  should  also  be
introduced but they are rather rare for environmental protection services.

Not all pilot applications draw detailed supply-use tables for environmental protection services. Furthermore,
the interpretation of these tables is rarely straightforward.

The first correction deducts the intermediate uses by specialised producers. This deduction corresponds to
the presentation made above (see section 3.2.1).

13 Note, however, that in Germany the capital aid received was up to 50% of the gross capital formation, and that in 1991 the negative

net operating surplus of general government producers represented 8% of the output value.

30

                                                     
Results

Table 27  Deduction for intermediate consumption of specialised producers as a % of output

Austria
Denmark
France
Germany
Netherlands

Waste and wastewater
15.9%
0.7%
16.4%
3.9%
16.1%

Other
5.1%
0.0%
0.0%
0.2%
10.9%

The second practical correction adds the non-deductible VAT and other taxes on products. Non-deductible
VAT  mainly  concerns  final  consumption.  As  indicated,  the  treatment  of  non-deductible  VAT  is  not  always
clear in the pilot applications. Denmark, e.g. records non-deductible VAT on intermediate consumption. For
Germany, Table B1 is not explicitly presented but taxes less subsidies on products can be reconstituted from
tables  A  and  B.  For  Austria,  the  non-deductible  VAT,  the  output  in  Table  B  and  the  uses  of  environmental
services  in  Table  A  are  not  strictly  consistent.  As  regards  the  Netherlands,  there  are  some  discrepancies
between Tables B1, A and B when the tables are disaggregated by domains and type of output.

The table below gives the weight of taxes less subsidies on products in final consumption, as they may be
reconstituted  from  the  pilot  applications.  According  to  the  remarks  made  above,  these  results  should  be
considered with care. Whereas the supply-use table is, in some way, the core of the EPEA, results show that
it  is  not  always  established  with  great  precision.  On  the  whole,  non-deductible  VAT  and  other  taxes  less
subsidies on products represent 7% of the value of final consumption of environmental protection services.

Table 28  Non-deductible taxes less subsidies on products as a % of final consumption

Austria
Denmark
France
Germany
Netherlands

Waste

15.5%
8.8%
3.4%
16.2%

Wastewater

7.5%

2.8%
3.2%
10.9%
7.6%

Other
3.9%
0.0%
0.0%
1.0%
n.a.

3.4  National expenditure for environmental protection (Table A)

The  national  expenditure  aggregate  adds  expenditure  in  connected  and  adapted  products,  the  capital
expenditure  and  the  specific  transfers  to  the  uses  of  environmental  protection  services  by  resident  units.
When existing, financing by the rest of the world is deducted.

3.4.1  Adapted and connected products

Not all pilot applications report on the uses of adapted and connected products. Denmark and Germany do
not present estimates. For other countries, the coverage of adapted and connected products is variable.

Table 29  Adapted and connected products in the pilot applications

Austria

France

Netherlands

UK

Switzerland

Waste
Wastewater
Air
Noise
Other
Waste
Wastewater
Air

Noise
Waste
Air

Noise
Air
Noise
Air

dustbins, composters, rubbish sacks
‘green’ washing machines
catalytic converters
noise protective windows
bio milk products
households waste receptors and sacks
construction and emptying services of septic tanks
unleaded  gasoline,  desulphurised  fuels,  replacement  of  catalytic
converters, carburation adjustment services
double glazing and exhaust pipe (silencers) replacement
compost containers
low  sulphur  gasoline  and  fuel  oil,  unleaded  gasoline,  catalytic
converters, LPG equipment
exhaust pipe
catalytic converters
noise protective windows
carburation adjustment, catalytic converters, low NOx heating systems

31

Results

Due to the differences in the coverage of adapted and connected products, the weight of uses of adapted
and connected products is rather variable according to countries and domains.

Table 30  Value of the uses of adapted and connected products
as a % of the uses of environmental protection services

Austria
France
Netherlands
Switzerland
UK

Waste

Wastewater

4.7%
5.1%
0.2%
0.0%
0.0%

1.2%
17.2%
1.6%
0.0%
0.0%

Air
84.3%
67.0%
113.2%
121.9%
52.4%

Noise

Other

Total

n.a.
208.2%
n.a.
0.0%
33.3%

7.6%
n.a.
10.9%
0.0%
n.a.

7.5%
18.1%
16.0%
14.1%
9.5%

Expenditure  in  adapted  and  connected  products  averages  12.4%  of  the  uses  of  environmental  protection
services for the countries under analysis. This percentage varies from 3% in the waste management domain
to 84% in the air protection domain.

3.4.2  Capital expenditure

Capital expenditure for environmental protection corresponds to the gross fixed capital formation and the net
acquisition of land by characteristic producers, either specialised or non-specialised.

Table 31  Capital expenditure: % by categories of producers

Total
  Specialised
  Ancillary

Austria

France

Germany

Netherlands

Switzerland

100.0%
45.0%
55.0%

100.0%
74.5%
25.5%

100.0%
75.6%
24.4%

100.0%
45.0%
55.0%

100.0%
48.6%
51.4%

There  is  less  regularity  for  capital  expenditure  than  for  current  expenditure,  and  the  results  of  pilot
applications  depend  upon  the  specific  situation  of  each  country  for  the  year  under  report.  In  general,
however, capital expenditure more than compensates for the consumption of fixed capital.

Table 32  Capital expenditure in % of consumption of fixed capital

Wastewater
Waste
Air
Total

Austria

France

154.7%
162.0%
301.7%
165.8%

121.9%
77.1%
58.8%
107.3%

Germany
168.3%
172.4%
93.7%
153.2%

Netherlands

66.1%
169.5%
163.9%
114.9%

3.4.3  Specific transfers

As can be seen from the subsidies in  Table 15, in general, specific transfers are rather small. It should be
kept in mind that specific transfers are mainly those transfers (subsidies), the effect of which is to lower the
value of uses of environmental protection services and adapted and connected products as reported in Table
A.  They  do  not  include  those  transfers  which  are  financing  environmental  protection  expenditure  already
recorded  (e.g.  investment  grants  to  producers  to  help  fund  investment  that  is  already  recorded  as  capital
expenditure of these producers).

Table 33  Specific transfers in % of the current uses of specific products

Austria
Denmark
France
Germany
Netherlands
Switzerland

Waste

0,0%
0,4%
0,8%
0,4%
0,3%

Wastewater
0,2%
0,3%
3,2%
0,9%
14,5%

Air

Other

Total

2,0%

4,3%

22,8%

2,8%

1,9%
4,8%
9,1%

1,3%
0,4%
3,9%
0,9%
6,1%
1,4%

32

Results

From the table above, it appears that specific transfers are almost zero in the waste management domain.
They are only important in wastewater management in the Netherlands (subsidies to wastewater specialised
producers which have to deal with unfavourable conditions). In the air domain, they are more systematic and
very high in France (prices of unleaded gasoline were subsidised through a reduction of taxes).

Specific transfers are also rather common for other domains, however they are not always specified. On the
whole,  for  the  six  countries  they  represent  just  1.8%  of  the  uses  of  specific  products.  It  is  therefore  worth
considering whether these data – which are very time consuming – need to be systematically collected, for
such a small correction at the current expenditure level. Perhaps the collection should be limited to specific
transfers that are known as being important for the country considered.

3.4.4  Expenditure by environmental domain

The  table  below  presents  the  expenditure  for  the  main  three  domains  (waste,  wastewater  and  air)  in  %  of
GDP. The different components of the expenditure are given in order to show the issues covered.

Table 34  Expenditure in % of GDP (total of the three main domains)

Current expenditure
  uses of external services
  ancillary services
  adapted & connected products
  subsidies

Sub-total

Capital expenditure
  by specialised producers
  by ancillary producers
  in adapted and connected products

Sub-total

Total expenditure

A

D

DK

F

NL

UK

CH

Aver.

1.32% 1.24% 1.26% 0.71% 0.83% 0.55% 0.69% 1.03%
0.20% 0.30% 0.07% 0.33% 0.46%
0.45% 0.66%
0.06% 0.15% 0.05% 0.17% 0.09%
0.13%
0.02%
0.01% 0.01% 0.01% 0.04% 0.08%

1.91% 1.91% 1.27% 1.00% 1.35% 0.67% 1.19% 1.61%

0.73% 0.61% 0.33% 0.24% 0.26% 0.21% 0.35% 0.46%
0.06% 0.22% 0.16% 0.35% 0.16%
0.14% 0.19%
0.05%
0.06% 0.04%

0.87% 0.80% 0.33% 0.36% 0.52% 0.37% 0.70% 0.66%

2.77% 2.71% 1.60% 1.36% 1.87% 1.04% 1.89% 2.27%

For  those  countries  with  a  good  coverage,  the  following  table  gives  the  expenditure  by  domain.  The
coverage  of  the  column  ‘other  domains’  varies  widely  across  countries  so  that  the  percentage  is  not
significant.  The  most  complete  coverage  is  for  Austria.  For  France,  only  the  noise  abatement  domain  is
covered.  However,  even  for  waste  and  wastewater  management  the  variation  is  substantial,  between
Germany and Austria on the one hand and France, Netherlands and Switzerland on the other. For the two
last countries, the date of pilot applications must also be taken into account. Data for the Netherlands refer to
1991 and Swiss data to 1992/93, whereas for other countries the years covered are 1994 or 1995.

Table 35  Expenditure by environmental domain in % of GDP

Austria
France
Germany
Netherlands
Switzerland
Average

Wastewater
management

Waste
management

Air
protection

1.45%
0.72%
1.36%
0.77%
0.76%
1.09%

1.04%
0.52%
0.94%
0.61%
0.64%
0.77%

0.29%
0.13%
0.41%
0.50%
0.49%
0.33%

Other
domains
0.54%
0.06%
0.14%
0.26%
0.11%

Total

2.78%
1.37%
2.71%
1.88%
1.89%
2.19%

Air  protection  is  rather  specific:  the  low  percentage  for  France  certainly  results  from  the  importance  of
nuclear power plants in electricity generation.

The  figures  on  the  next  page  illustrate  that  the  differences  remain  high  even  when  the  comparisons  are
limited to the uses of external services. Available data for Sweden, Australia and Japan have been added.

33

Figure 2 Consumption of external wastewater management services
(in % of GDP)

Results

Germany 95

Denmark 94

France 94

Austria 95

Netherlands

Sweden 94

UK 94

EU average

91

Switzerland
92/93

Australia  95

Japan 95

Figure 3 Consumption of external waste management services
(as a % of GDP)

1,2%

1,0%

0,8%

%
GD
P

0,6%

0,4%

0,2%

0,9%

0,8%

0,7%

0,6%

P
D
G
%

0,5%

0,4%

0,3%

0,2%

0,1%

Germany 95 Denmark 94

France 94

Austria 95

UK 94

Netherlands
91

6 EU
countries

Switzerland
92/93

Australia 95

Japan 95

3.5  Financing (Table C)

Table 36 presents how the expenditure of the various categories of actors are financed. Due to the existence
of  transfers,  the  unit  that  makes  the  expenditure  or  benefits  from  it  is  not  always  the  unit  that  finances  it.
However, in general the structure of financing and the structure of expenditure are quite similar.

One  of  the  differences  comes  from  the  financing  of  investments  of  specialised  producers.  For  example,  in
Germany  the  investments  of  public  corporations  in  the  wastewater  and  waste  management  domains,
classified under the category ‘other specialised producers’, are financed by municipalities.

34

 
Results

For France, the main change is due to the classification of waste management services as non-market. They
enter  the  general  government  expenditure,  as  collective  consumption,  whereas  they  are  financed  by
households through a specific local tax on the value of dwellings. This situation will change as these services
are  now  classified  as  market.  Another  difference  comes  from  the  septic  tanks,  which  are  recorded  as
expenditure of non-specialised producers (the real estate industry) but are financed by households.

In the Netherlands, a part of the financing of the specialised government producers comes from households
and  firms,  through  the  payment  of  water  pollution  tax  and  fuel  tax.  Hence  the  financing  of  general
government is less than its expenditure. For 1991, financing by the ‘rest of the world’ was identified.

The situation is reverse in Austria where general government finances a substantial part of the expenditure
of  non-specialised  and  non-characteristic  producers.  Expenditure  by  non-characteristic  producers  mainly
consist of more environmental friendly agricultural practices, which are financed by central government and
European  funds.  A  part  of  the  expenditure  of  non-specialised  producers  is  also  financed  by  general
government in the research and development domain.

In general, in the pilot applications the table on financing is presented as being provisional. Not all flows are
identified  and  assumptions  have  to  be  made,  in  particular  regarding  the  relations  between  public
corporations and general government.

Table 36  Financing compared to expenditure for selected countries

General government
Corporations
  specialised
  other
Households
Rest of the World
Total

Austria

France

Netherlands

Expenditure
19.6%
55.7%
3.6%
52.0%
24.5%
0.3%
100.0%

Financing
30.0%
38.2%
3.0%
35.1%
26.4%
5.3%
100.0%

Expenditure
33.8%
49.4%
2.1%
47.3%
16.9%

Financing
21.7%
43.4%
2.1%
41.3%
34.9%

100.0%

100.%

Expenditure
25.2%
53.0%
1.5%
51.5%
21.2%
0.6%
100.0%

Financing
19.2%
53.5%
-1.3%
54.9%
24.6%
2.7%
100.0%

3.6  The net cost table (Table C1)

Only three pilot applications reported on the net cost of environmental protection and these tables were not
complete. In the Netherlands, the net operating surplus does not offset the calculated interest on fixed assets
(i.e.  the  costs  of  tied-up  capital).  This  is  due  to  the  fact  that  specialised  producers  mainly  belong  to  the
general government sector and have a zero net operating surplus. The situation is the reverse in Denmark,
where specialised producers belong to the corporation sector and have a huge positive net operating surplus
(but consumption of fixed capital is probably underestimated substantially). Therefore, whereas in Denmark
the net current cost of environmental protection is 16% lower than the current expenditure, it is slightly higher
in the Netherlands.

In  the  table,  the  VAT  and  other  taxes  on  products  are  accounted  as  receipts  of  the  general  government
sector, which reduces the financing of the current expenditure by general government.

Table 37  The net cost table

Financing of current national expenditure
Non-deductible VAT
Taxes on production
Net operating surplus
Any other profits
Interest on fixed capital
Net current cost of environmental protection
millions of national currency units

Denmark

Netherlands

General
government
2 401
-1 157
-54

Other
sectors

12 344

General
government
1 398
-873

Other
sectors

8 381

-1 604

114
1 304

267
11 007

769
1 294

-181

344
8 544

35

4  The way forward

4.1  Uses of environmental protection expenditure accounts

Environmental  protection  expenditure  accounts  are  one  of  the  modules  of  the  System  of  integrated
Environmental  and  Economic  Accounting  (SEEA).  They  have  been  tested  in  several  countries  within  the
European Union and in other OECD countries (e.g. Australia, Japan, the Czech Republic). However, with a
few exceptions such as France and Austria, they are not yet regularly compiled.

There are several reasons for this situation:
·   primary data required for the compilation are not yet regularly available,
·   compilation is rather work-intensive as long as the primary data are not available in an easy-to-use form,
·  

the uses of environmental expenditure accounts are not yet clearly established.

There are at least two types of uses for EPEA. The first refers to national uses, the second to international
comparisons.

At national level, the main uses include to:
·  

follow  the  changes  in  environmental  protection  expenditure  over  time  and  link  these  changes  with
environmental policies, on the one hand, and changes in environmental pressures, on the other.

·   assess  the  impact  of  environmental  protection  expenditure  on  economic  activity  and  main  economic

·  

aggregates or indicators, including employment, external trade and competitiveness.
follow  the  application  of  the  polluter-pays  principle,  to  determine  the  contribution  of  the  various
institutional  sectors  to  the  financing  of  environmental  protection  expenditure  and,  more  generally,  to
evaluate the (net) burden of environmental concerns on economic sectors.

·   analyse the effectiveness of environmental protection measures, including to evaluate measures already

in place and to forecast the likely effects of planned measures.

At EU level, uses are similar: EPEA results allow assessing the costs of environmental protection policies, to
measure  resulting  impacts  on  competitiveness  (either  on  the  internal  market  or  in  relation  with  other
economic  areas),  to  estimate  employment  in  the  environmental  sector,  etc.  Furthermore,  EPEA  make  it
possible to compare national policies for specific domains (e.g. waste or wastewater) and help to report on
European regulations (e.g. the WFD).

EPEA data also serve for the construction of a coherent set of indicators describing the ‘response’ of society
to environmental concerns. Such a set of indicators may include for example:
·  
·  

the net cost of environmental protection, and
the contribution of environmental activity to economic growth, exports and innovation, etc.

These uses can only fully unfold based on a regular compilation of EPEA. Other factors also limit the use of
EPEA, in particular the absence for the time being of established links between monetary and physical data.

4.2  Links with physical data

Being able to integrate monetary and physical data is one of the main advantages of satellite accounts. This
integration makes it possible to analyse the costs of activities in relation to the means used, or to the effects
(benefits).  In  the  case  of  environmental  protection  activities,  it  would  mean  linking  monetary  data  with
physical data on equipment (e.g. treatment capacities), employment, pollution treated or avoided, etc.

For the moment, at European Union level the linking of environment-related monetary and physical data is
limited  to  the  presentation  of  emissions  of  atmospheric  pollutants  by  economic  activities  (NAMEA  for  air
emissions). Although progress has been made for water pollutants and solid waste, statistics on those issues
are less well developed so far.

The lack of reliable physical data is, of course, the main constraint for linking monetary and physical data in
the  environmental  protection  field.  Quantities  of  waste  produced,  collected  and  treated,  volumes  of
wastewater collected and treated are not yet available on a regular basis for most Member States. The same
applies  to  data  about  the  stocks  of  waste  and  wastewater  collection  and  treatment  equipment  and
installations, which are the most significant physical variables for linking of expenditure and emissions.

37

The way forward

Regarding  the  link  between  expenditure  and  physical  data  on  emissions,  it  is  necessary  to  take  into
consideration that emissions vary not only according to environmental protection measures but also with the
level  and  the  structure  of  the  economic  activity.  Therefore,  to  link  expenditure  with  changes  in  emissions,
changes  in  emissions  need  to  be  broken  down  according  to  several  factors:  economic  growth,  changes  in
the  structure  of  production  and  consumption,  before  identifying  changes  in  ‘emission’  factors  and  relating
them to environmental protection expenditure and capital stock.

In  this  domain,  there  is  a  need  for  defining  a  work  programme.  A  first  step  could  be  to  try  to  integrate
physical and monetary data in the field of waste and wastewater management.

4.3  Time series and constant prices estimates

One  of  the  current  limiting  factors  for  analytical  work  and  full  use  of  environmental  protection  expenditure
data is the lack of consistent time series. Experience has shown that estimates made with, for example, a
five-year  periodicity  yield  rather  different  estimates.  These  differences  may  result  from  changes  in
environmental  policy  focus  or  from  new  data  sources  becoming  available.  However,  the  impact  of  the  two
types  of  changes  is  difficult  to  assess  when  methodology  is  unstable.  Irregular  estimates  suffer  from  the
instability of data sources and methodology, including the changes of the people in charge of compilation.

Time series are important to not only improve the stability of estimates and characterise changes in a reliable
way,  they  are  also  necessary  for  analysis.  Relating  changes  in  emission  factors  with  expenditure
necessitates constant price series.

As  far  as  environmental  protection  expenditure  is  concerned,  the  calculation  of  specific  constant  price
estimates is difficult: the level of environmental protection varies across years, not only due to an increase in
quantity but also due to a ‘quality’ effect. In most domains (and the main ones in monetary terms, e.g. waste,
wastewater  collection  and  treatment)  environmental  protection  increases  less  through  the  quantity  of
pollutants collected and treated than through the improvement of the collection and treatment methods.

As  an  example,  in  most  European  countries  almost  all  waste  produced  by  households  is  already  collected
and treated, but not in the same way. In some countries, selective collection and sorting – which are more
costly  –  may  be  more  important,  treatment  of  exhaust  gases  of  incineration  plants  may  be  more  or  less
developed,  etc.  The  same  considerations  hold  for  wastewater  where  the  differences  are  in  the  level  of
treatment  (mechanical,  biological  or  chemical).  Therefore,  constant  price  series  should  take  into  account
changes  in  the  collection  and  treatment  methods  (advanced  wastewater  treatment,  selective  waste
collection, etc.) and integrate these quality effects as volume changes.

This means that changes in physical quantities must be described in a detailed way. If this is not the case,
the  price  per  unit  (e.g.  fees  charged  per  tonne  of  waste  collected  and  treated  or  per  cubic  meter  of
wastewater released into the sewage system) will incorporate ‘quality changes’, i.e. changes in the level of
environmental protection.

In this domain, there is also a need for further work. In addition, this work is clearly related to the work on the
linking of physical and monetary data.

4.4  Links with primary statistics

One of the main constraints for the compilation of EPEA is the availability of primary data on environmental
expenditure.

Three main categories of data are necessary:
·   data on current and capital in-house environmental protection expenditure by industries,
·   data on the NACE 90 industry, and
·   data on public spending from finance statistics.

Until  now,  not  all  countries  conduct  surveys  on  current  and  capital  in-house  environmental  protection
expenditure by industries. However, the situation will greatly improve with the adoption of the amendment of
the SBS 58/97 Regulation. According to this amendment, the Regulation will require countries to report on
two  new  environmental  variables,  including  a  current  expenditure  variable.  As  a  consequence,  ancillary
activities  will  be  rather  well  covered  for  capital  and  current  expenditure  in  the  waste  and  wastewater

38

The way forward

management  and  air  protection  domains.  Furthermore,  pilot  studies  are  planned  for  Biodiversity  and
landscape, and Soil and groundwater due to the increased policy importance of these two domains.

Data availability will also improve with regard to specialised producers. In the context of the NACE revision,
the breakdown of NACE 90 into three classes has been agreed. The two first classes (90.01 collection and
treatment  of  sewage,  90.02  collection  and  treatment  of  other  waste)  will  provide  data  on  specialised
producers in the wastewater and waste management domains. Many EU countries have already divided the
NACE  90,  for  the  purposes  of  industrial  surveys.  However,  the  revision  of  NACE  will  provide  more
harmonised data.

The  adoption  of  the  new  COFOG  also  results  in  new  data.  A  1-digit  position  is  ‘Environmental  protection’,
sub-divided  into  ‘Waste  management’,  ‘Wastewater  management’,  ‘Pollution  abatement’,  ‘Protection  of
biodiversity and landscape’, etc. Countries will be required to report at the 1-digit level.

Data on specialised producers should therefore be fairly complete in some years.

Implementation of the ESA 95, with its regular revisions of the ‘base years’ will also increase the availability
of harmonised data, with a clearer demarcation between general government and corporations units in the
field of specialised producers.

Finally,  the  revision  of  the  OECD/Eurostat  PAC  questionnaire  and  the  work  on  definition  of  environmental
protection variables will also be an opportunity to harmonise data across EU countries.

4.5  Linking EPEA with other environment-related monetary data sets and national

accounts

In most cases, environmental taxes have an incentive purpose and economic units have the choice between
taking measures to reduce their pollution and paying taxes. In order to take full advantage of environmental
protection expenditure estimates, these have to be integrated with other environment-related monetary data
sets, in particular environmental taxes and other environmental protection economic instruments.

A  co-ordinated  approach  of  environmental  protection  expenditure  and  environmental  industry  would  also
greatly  increase  the  use  of  expenditure  estimates,  allowing  to  relate  these  to  external  trade  of  equipment,
employment and technological aspects.

In general, the integration with national accounts should be strengthened. Although the EPEA follows rather
closely  national  accounts  conventions  and  methodology,  classification  of  units  in  the  pilot  applications
sometimes  moves  away  from  national  accounts  classification.  Examples  are  general  government  units
treated  as  specialised  producers,  whereas  in  national  accounts  they  are  not  classified  in  this  way.  Some
simplifications of the EPEA framework have been advocated and shall be considered, however, an important
aspect is to maintain the consistency with national accounts, or when there are deviations, to explain them.

Integration with national accounts could be made within a NAMEA-type framework, which directly integrates
the  expenditure  for  environmental  protection  with  national  accounts  transactions  and  pollutants  emissions.
This integration should be an axis for further work.

4.6  Simplifying the framework

Finally, one of the obstacles for the regular compilation of EPEAs, and thus for their use, is the complexity of
the  framework.  This  complexity  is  stressed  by  several  pilot  applications.  However,  this  complexity  aspect
should  be  placed  within  the  context  of  the  lack  of  data  and  of  the  multiplication  of  reporting  systems  for
environmental protection.

Several  propositions  have  been  made  as  regarding  Table  A.  They  refer  to  the  classification  of  users:
specialised  producers  could  be  grouped  together  instead  of  being  disaggregated  according  to  the
institutional sectors to which they belong (i.e. mainly general government and corporations). Non-specialised
producers  could  be  grouped  with  non-characteristic  producers,  as  long  as  ancillary  output  continues  to  be
distinguished  as  a  category  of  intermediate  consumption.  As  a  counterpart,  the  production  table  could  be
reorganised  in  order  to  show  better  the  various  categories  of  producers,  in  relation  with  the  NACE  and
sectoral classifications.

39

The way forward

However,  these  simplifications  in  the  presentation  would  not  really  reduce  the  work.  Work  reduction  will
mainly come from the regular availability of basic data. Environmental accountants will then concentrate their
work on four main issues:
·  

to  identify,  as  exactly  as  possible,  the  intermediate  consumption  of  specialised  producers  in
environmental protection services;
to calculate and/or distribute the consumption of fixed capital between the various categories of producers
and domains in table B;
to draw comprehensive supply-use tables for environmental protection services (table B1); and
to  identify  the  most  important  transfers  between  government  units  and  integrate  them  in  the  financing
table.

·  

·  
·  

4.7  Towards benchmark years for the EPEA

Since  the  first  and  second  round  of  pilot  applications,  data  availability  has  improved,  as  attested  by  the
answers  to  the  2000  OECD/Eurostat  PAC  questionnaire:  eight  countries  were  able  to  provide  data  on
ancillary current and capital expenditure and nine on the public sector.

New surveys have been launched or are now being made on a regular basis. ESA 1995 implementation was
an opportunity to revise the classification of economic units and collect more data. The revisions of the base
year will contribute to a further improvement of data.

Conditions  therefore  seem  favourable  to  engage  in  a  programme  whose  main  objective  would  be  the
implementation of the EPEA in the largest possible number of EU countries for the reference year 2000. This
would provide a benchmark for more regular assessment. This assessment could take two forms: an annual
update  of  main  aggregates  (e.g.  national  current  and  capital  expenditure  for  the  main  categories  of  users)
and a five-year revision of the full EPEA.

40

Annex 1: Summary by country

Austria

1

Introduction

As far as possible, the Austrian Central Statistical Office14 founded its calculation on the existing figures for
environmental protection expenditures and outlays. Some important data were therefore already available.

Apart  from  evaluating  government  finance  statistics,  and  surveys  of  municipalities  for  waste  management
and  wastewater  management  activities,  the  work  focused  on  incorporating  the  manufacturing  and  service
sectors.

Some gaps remained:
·   Subsidies corresponding to subsidised loans for capital expenditure on environmental protection.
·   The unequivocal allocation of budget data to particular environmental domains was not always possible.
·   Expenditure on connected and adapted products could only be estimated for private households.
·  
It was not always possible to make a correct division of output into market and non-market.
·   No foreign trade data were available in a useable form.
·   Calculation of the "environmental capital stock" is not yet complete, and the consumption of fixed capital

could be estimated only on the basis of capital expenditure.

2

Basic data

2.1

Federal, provincial and municipal budgets, associations and NPISH

Main data sources were:
·   Analysis of accounts and estimates in the general government sector.
·   Surveys for associations of municipalities in the waste management sector (analysis of the annual reports
and a sample survey (13 out of 80 associations), extrapolated to a total of 3,8 millions residents served by
associations.

·   Budgets  of  large  towns  and  cities,  a  full  survey  for  towns  included  in  the  “Towns  yearbook”  (which
includes  all  municipalities  with  more  than  10  000  inhabitants)  and  a  sample  of  municipalities  with  a
population of less than 10 000 inhabitants, for the wastewater and waste disposal.

·   Annual  reports  of  large  environmental  organisations  were  used  to  elaborate  a  service  structure  for
NPISH; results were compared to subsidies received from the public sector. However, it was not possible
to separate the strict environmental protection part of these activities.

2.2 Manufacturing sector

The Austrian Chamber of Commerce conducts a survey which covers manufacturing, mining, and quarrying,
but  not  those  sawmills  which  are  subsidiaries  of  forestry  operators,  nor  construction  enterprises.  Finally,
NACE  sections  C,  D,  and  E  are  covered  (in  section  E,  only  groups  402  and  403  were  surveyed).  Figures
were grossed up on the basis of the average employee numbers reported (from the 1995 structural survey).

Capital  formation  was  subdivided  into  "end  of  pipe"  and  "integrated  technology".  Capital  grants  were  also
calculated and the current expenditure broken down into compensation of employees, fees and other costs,
"cost saving from proceeds of related products" as well as subsidies were collected.

Expenditure  for  protection  of  ambient  air,  wastewater  management,  waste  management,  noise  abatement
were  asked  separately,  whereas  "protection  of  soil  and  groundwater"  and  "protection  of  landscape  and
biodiversity"  were  surveyed  jointly.  Research  and  development  was  also  requested.  Consumption  of  fixed
capital had to be calculated on the basis of capital formation, since there is no information available about
the stock of fixed capital. In the future, this stock will be calculated.

2.3

Commerce and services

Annual  surveys  and  industry  censuses  give  information  about  the  secondary  output  of  some  industries:
02.02  (agriculture,  forestry  etc.),  37  (recycling),  45.11  (demolition  and  wrecking  of  buildings  …),  51.57

14   Milota E. and A. Aichinger, Austrian Central Statistical Office 1999.

41

                                                     
Annex 1 Austria

(wholesale  of  waste  and  scrape),  92.53  (botanical  gardens  etc.).  For  eco-consultancy,  the  results  of  a
specific survey were used that cover firms in division 74 (Other business activities) of the NACE Rev. 1.

2.4

Eco-consulting

In the course of the 1994 eco-consultancy market analysis, the size of this service sector was estimated by
the IUW15 project team as embracing 400 Austrian suppliers with world sales of ATS 1.75 billion in 1993, and
was in 1996 partly updated and revised for the year 1995. The sales volume breaks down between suppliers
of the relevant sectors as follows:

74.20
74.14
74.11
91.33

Architectural and engineering activities and related technical consultancy
Market research and public opinion polling
Legal activities (environmental lawyers)
Associations and research institutes

The large number of multiple answers given by 181 suppliers means that the specialisation requested cannot
be used to make a breakdown by environmental domains. The results of the 1995 performance and structure
survey in these NACE 4-digit items were broken down using the sector structure from the above study.

2.5

Households

Apart  from  their  payments  to  characteristic  producers  (sewage  and  waste  charges,  payments  for  motor
vehicle exhaust measurements and heating system emission measurements) expenditure of households for
dustbins,  composters,  rubbish  sacks,  noise  protective  windows,  catalytic  converters,  "green"  washing
machines were estimated.

Coverage of household expenditure

Environmental domain

Environmental services

Connected products

Adapted products

Protection of ambient air

Motor vehicle exhaust and heating
system emission measurements

Wastewater management

Sewage charges

Catalytic converters

"Green" washing machines
and dish washers

Waste management

Waste charges

Noise and vibration abatement

Other domains

Payments to environmental
organisations

Dustbins, composters,
rubbish-sacks
Noise protective windows

Bio milk products

2.6

Comments

Wastewater  and  waste  management  are  the  domains  best  covered.  Data  quality  in  these  domains  can  be
considered  as  very  good,  since  the  three  components  –  private  sector  disposal,  associations  of
municipalities and the public sector – are partly constructed using exhaustive surveys or very large samples.
Consumption of fixed capital in the general government sector was estimated on the basis of the ratio that
consumption of fixed capital bears to fixed capital formation for the private sector.

A  problem,  however,  is  the  great  deal  of  integration  among  disposal  enterprises  themselves  and  between
them  and  the  general  government.  Both  general  government  and  private  and  public  sector  disposal
enterprises  award  subcontracts  to  other  disposal  enterprises  for  the  provision  of  disposal  services.  This
probably  inflates  both  output  and  intermediate  consumption  figures.  In  Tables  B  and  B1,  intermediate
consumption of characteristic services by specialised producers (waste management domain) is introduced.
The  main  problem,  however,  lies  in  the  division  of  output  among  the  user  sectors,  since  this  intermediate
consumption, and thus also the entire final use of environmental services produced by private and public sector
disposal enterprises, could not really be definitively calculated.

In the waste management domain, the net operating surplus of specialised producers is negative. This may
be  due  to  the  fact  that  consumption  of  fixed  capital  is  estimated  or  that  there  is  some  non-recorded  non-
market output, or some non-recorded implicit subsidy by municipalities (e.g. soft loans).

15 Interdisciplinary Institute for Environment and Economics of Vienna Economics University [Wirtschaftsuniversität Wien].

42

                                                     
Annex 1 Austria

3

Results

In  1996,  about  42%  of  total  National  Expenditure  was  on  wastewater  management,  followed  by  waste
management  (about  30%).  The  remainder  is  divided  among  protection  of  soil  and  landscape  (about  10%),
protection  of  ambient  air  and  climate  (about  9%),  research  and  development  (about  4%)  and  general
environmental protection (about 3%). National Expenditure for noise abatement is of minor importance.

If  this  is  compared  with  the  1991  environmental  protection  expenditure  account,  which,  while  based  on  a
more  limited  set  of  data,  followed  similar  conceptual  norms 16,  the  effect  of  national  legislation  on
environmental  protection  expenditure  can  also  be  clearly  seen.  The  protection  of  ambient  air  was  a  very
important environmental protection objective in the 1980s and early 1990s. In 1993 the legislator put a clear
focus on waste management with the Waste Management Act [Abfallwirtschaftsgesetz] and the Packaging
Order [Verpackungsverordnung]. The effects are clearly visible in the chart.

Figure 4 Environmental protection expenditure in Austria 1991 and 1996: a comparison (%)

in %

50,0

45,0

40,0

35,0

30,0

25,0

20,0

15,0

10,0

5,0

0,0

Waste water management

Waste management

1991 (ATS 50.3 billion)

1996 (ATS 79.5 billion)

Protection of 
ambient air and 
climate

Protection of soil,
ground water,
biodiversity and
landscape

Environmental 
protection, general1)

Noise abatement

1) Research and development, protection against radiation and other unassignable activities.

The present results are an initial, relatively detailed approximation of environmental protection expenditure in
Austria.  For  detailed  analysis,  we  shall  have  to  see  how  the  data  situation  develops  and  to  what  extent
additional research will be possible. It ought to be possible to extrapolate from the existing data base at least
for the near future.

16 Steurer A., Umweltschutzausgaben in Österreich 1990 und 1991 [Environmental Protection Expenditure in Austria 1990 and 1991],

Statistische Nachrichten 10/1993.

43

                                                     
Annex 1 Austria

Austria

Table A: National expenditure for environmental protection

Users/beneficiaries

Producers

General government as 
collective consumer

Specialised producers

Other producers

General 
government

Other

Non 
specialised

Non 
characteristic

Central 
government

Local 
government

Households as 
actual 
consumers

Rest of the 
world

Total

1 Consumption of specific products
1.1 Final consumption of EPS
     market
     non-market
1.2 Intermediate consumption of EPS
    market
    ancillary
1.3 Final consumption of 
    connected products
    adapted products
1.4 Intermediate consumption of
    connected products
    adapted products

8,950
8,950

8,950

285
285

285

1,746
1,746

1,746

29,377

29,377
16,483
12,895

19,987
16,725
15,499
1,226

3,262
897
2,365

2 Gross capital formation for EP

14,324

3,036

4,114

3 Gross capital formation in specific products
   connected products
   adapted products
   characteristic services

4 Specific transfers
4.1 Subsidies on production
    connected products
    adapted products
    characteristic services
4.2 Other specific transfers
    current transfers
    capital transfers

5 Total uses of residents units
    current uses
    capital uses

6 Less financing by the rest of the world
   current uses
   capital uses

7 National expenditure for EP
   Current
   Capital
million national currency units
EPS: environmental protection services
EPA: environmental protection activities
EP: environmental protection

26

26

41
41

14,324

3,036

14,324

3,036

33,558
29,418
4,140

14,324

3,036

14,324

3,036

33,558
29,418
4,140

1,012
1,012

9,962
8,950
1,012

4,475

5,487
4,475
1,012

503

248

503
456
46

20,490
20,443
46

20,490
20,443
46

248
211
37

248
211
37

248
211
37

285
285

1,746
1,746

285
285

1,746
1,746

60,345
27,706
15,499
12,207
29,377
16,483
12,895
3,262
897
2,365

21,474

1,038
1,012

26

791
41

751
667
84

83,648
61,053
22,595

4,475

79,173
56,578
22,595

44

Annex 1 Austria

Current transactions

Current uses
  intermediate consumption 
      of which characteristic services
  compensation of employees
  consumption of fixed capital
  plus taxes on production
  less other subsidies
  net operating surplus

Output
  non environmental output
  environmental protection output
     non market
     market

Current EP resources
    market output
    current transfers

Capital transactions 

   gross fixed capital formation
   other capital uses, net
   investment grants received
   other capital transfers received

Financing by producers

labour inputs
stock of fixed assets
million national currency units

Table B: Production of environmental protection services

Specialised producers

General goverment

Central           

government

Local 
government

Total

Non 
specialised 
producers

Total

Other

12 367

9 530

8 324

30 221

5 659
9 203
378
1 271
-3 053

23 283

23 283
3 257
20 026

20 857
20 026
831

14 324
7 991
4 041

5 168
1 856
355
110
-1 577

15 221
894
14 328

14 328

14 328
14 328

3 036
779
506

1 520
1 923
1 552
41

33 127
5 509
27 618
21 845
5 773

13 059
5 773
7 286

4 164

2 778

12 347
12 981
2 285
1 422
-4 630

71 631
6 403
65 228
25 102
40 126

48 243
40 126
8 117

21 523
8 770
7 325

20 700

4 202

21 453

46 356

Table B1: Supply and use of EP services

1 Uses of residents units (purchaser's price)
1.1 Intermediate consumption
1.1.1 of which specialised producers
1.1.2 of which other producers
1.2 Final consumption
1.3 Gross capital formation
2 Exports
Total uses
3 Output (basic price or cost of production)
4 Imports
5 Non deductible VAT
6 Oher taxes less subsidies on products
Total supply
million national currency units

Non market

Market

Ancillary

Total

12 207

12 207

12 207
12 207

40 126
24 601
8 119
16 483
15 499
26

40 126
38 487

1 639

12 895
12 895

12 895

12 895
12 895

65 228
37 496
8 119
29 377
27 706
26

65 228
63 589

1 639

12 207

40 126

12 895

65 228

45

Annex 1 Austria

Table C: Financing of national expenditure

Users/beneficiaries

Producers

General government as 
collective consumer

Specialised producers

Other producers

General 
government

Other

Non 
specialised

Non 
characteristic

Central 
government

Local 
government

Households 
as actual 
consumers

Rest of the 
world

Total

1 General government
   central government
   local government

2 NPISHs

3 Corporations
   specialised producers
   other producers

4 Households

14 321
44
14 277

3

506
492
15

2 529
2 529

3 050
2 963
87

29 403

29 403

1 105

National expenditure
Plus financing by the rest of the world
Uses of resident units

million national monetary units

14 324

3 036

33 558

14 324

3 036

33 558

4 475
3 493
982

285
285

1 746

1 746

503
3
500

248
248

1 012

5 487
4 475
9 962

19 987

285

285

1 746

20 489

1 746

20 489

248

248

25 134
7 527
17 607

3

31 932
2 529
29 403

22 104

79 173
4 475
83 648

46

Annex 1 Denmark

Denmark

1

Introduction

For the compilation of the EPEA tables, Statistics Denmark 17 used national accounts data. Using these data,
a  full  consistency  between  the  EPEA  tables  and  national  accounts  is  obtained  regarding  concepts  and
definitions.

However, as a consequence, only external environmental protection activities are dealt with. Neither adapted
and  connected  products  nor  ancillary  activities  are  included.  Non-profitable  institutions  serving  households
are not covered, nor possible specialised producers outside the four selected positions of NACE Rev.1.

As a general observation, Statistics Denmark stresses that "integrated environment protection activities are
very difficult to assess, and therefore it is very difficult to draw any firm conclusions about development over
time  in  the  real  environmental  costs,  real  financial  burden,  etc.  Likewise,  differences  in  the  degree  of  non-
observable integrated costs make it difficult to compare different countries."

For much of the activity by general government, it can be questioned whether the environmental protection is
the principal activity or not. Whereas this is obvious for the Ministry of the Environment, the Environmental
Protection  Agency  and  the  National  Environmental  Research  Institute,  it  is  disputable  for  many  other
environmental protection activities of general government agencies. However, for the sake of simplicity, all
characteristic  activities  carried  out  by  general  government  were  considered  as  "principal"  activity  and  the
corresponding units as specialised producers.

2

Scope of the institutional sectors

Applying the ESA concepts, the general government sector groups together institutional units whose output
is mainly "other non-market".

For  the  compilation  of  the  EPEA  tables,  Statistics  Denmark  places  the  general  government  institutional
sector in one group and four "industries" (defined by their NACE codes) in the other. In order to avoid double
counting,  the  parts  of  these  four  industries'  activities  carried  out  by  units  belonging  to  the  general
government institutional sector are subtracted.

Statistics  Denmark  starts  with  the  production  of  environmental  services  by  general  government  and  non-
financial corporations. Then, transfers and capital transactions (GFCF) are analysed.

2.1

The general government sector

The method for data collection is the labelling of relevant items in Statistics Denmark's database with public
finance  accounts  (DIOR).  This  labelling  allows  separating  environmental  revenues  and  expenditure  from
other revenues and expenditure. A first labelling had been made in such a way as to enable a division into
domains (Waste, Wastewater, R&D, Management of forests, Buildings, Traffic and Environment …)18. A new
labelling system was made which focuses on the SERIEE system and the CEPA classification.

The  scope  of  the  two  labelling  systems  is  different  to  some  extent:  e.g.  job  training  in  the  Ministry  of  the
Environment  and  the  Environmental  Protection  Agency  are  excluded  in  the  new  labelling,  whereas  some
environmental  research  outside  "pure"  environmental  research  institutes  are  included.  All  central  and  local
government  accounts  were  screened.  For  some  institutions  whose  main  purpose  was  not  environmental
protection, it was necessary to estimate the part of the activity related to EP; e.g. 47% of the activity of the
geological  survey  of  Denmark  was  allocated  to  EP,  whereas  the  rest  was  considered  Natural  resources
management.

For all relevant positions (labels), intermediate consumption (inc. taxes less subsidies) and compensation of
employees is available. The consumption of fixed capital is estimated as 10% of intermediate consumption
and  compensation  of  employees.  Within  general  government  output,  a  distinction  is  made  between  non-
market and market output

17  Gravgård Pedersen O., Statistics Denmark 1999
18  See Nordentoft A. and E. Vesselbo, Statistics Denmark 1996

47

                                                     
Annex 1 Denmark

Finally,  output  of  environmental  protection  services  by  general  government  units,  either  specialised  or  not
(but mainly specialised) is estimated and classified as output by specialised producers.

2.2

Non-financial corporations

Four  industries  are  considered  (37  "recycling",  900010  "sewage  removal  and  disposal",  900020  "refuse
collection and sanitation services" and 900030 "refuse dumps and refuse disposal plants").

Some  other  industries  outside  37  and  90  certainly  produce  environmental  protection  output  but  were  not
estimated,  as  it  was  considered  difficult  to  identify  the  environmental  protection  output  of  these  other
industries. Recycling 37 was considered as environmental protection for the total.

All output of industries 37 and 90 within non-financial corporations is market output sold to other units. A part
of this output is non-environmental, and is deducted in the compilation of EPEA tables.

2.3

Current transfers to producers

As  other  specialised  producers  do  not  receive  current  transfers,  only  current  transfers  within  the  general
government  institutional  sector  (central  and  local  government),  i.e.  "other  current  transfers"  are  dealt  with.
The  DIOR  database  allows  to  allocate  these  transfers  by  origin  and  destination  and  to  classify  them  by
domain.

3 EPEA tables

3.1 Table B

The Table B is established on the basis of the data mentioned above. Two versions are set up: the table B
by NACE code and the table B by CEPA group. The results are fully consistent with national accounts data.

Non-environmental output is almost zero. Transfers as a financing item for general government comes from
the analysis of transfers, and financing by producers is directly available.

3.2 Tables B1 and A

The  first  step  is  to  pass  to  purchaser's  prices.  For  the  general  government  output,  it  is  assumed  that  the
basic  price  is  the  purchaser's  price  (no  VAT  and  other  taxes  on  products).  Non-market  output  is  used  as
general government consumption.

To  determine  the  output  of  non-financial  corporations,  the  industry-by-industry  Input-Output  Table  is  used
(general  government  contribution  and  non-environmental  output  being  removed)  in  order  to  describe  the
uses of the output. Intermediate consumption of environmental protection services by specialised producers
is also identified.

The  commodity  flow  system  shows  for  all  commodities  the  VAT,  trade  margins  (zero  for  environmental
services)  and  the  other  taxes  less  subsidies  on  products.  The  other  taxes  less  subsidies  on  products
correspond  to  a  tax  on  waste  paid  by  the  industries  and  households  creating  the  waste.  With  this
information, completing Table B1 is rather straightforward.

In a further step, Table A is drawn up; Statistics Denmark does not account for the subsidies on products as
a component of national expenditure, because these are not available from national accounts data, but only
the taxes less subsidies on products. Specific transfers are distributed between users. Financing by the rest
of the world (European institutions) is identified and deducted from uses by resident units.

4

Conclusion

The Danish report gives an illustration of a method for the construction of the SERIEE tables that starts with
National  Accounts  data.  The  first  step  is  the  identification  of  environmental  services  output,  capital
transactions and transfers through the analysis of general government accounts. The second step is the use
of  NACE  90  and  37  production  accounts  and  industry-by-industry  input-output  tables.  All  tables  can  be
drawn up for the various domains.

48

Annex 1 Denmark

The main differences in scope with the EPEA framework are:
·   expenditure on adapted and connected products are not recorded,
·   expenditure related to ancillary activities are not recorded,
·   street cleaning is excluded, and
·   all recycling is included.

Although  the  compilation  is  reduced  in  relation  to  the  EPEA  framework,  the  resulting  national  expenditure
amounts to 1.6% of GDP.

According  to  previous  estimates  (see  Nordentoft,  Anders  and  Vesselbo,  Eyvind,  1996),  adapted  and
connected  products  would  add  10%  to  national  expenditure  and  ancillary  activities  another  15%.  Statistics
Denmark stresses that “with the data derived directly from the national accounts, a very substantial part of
the observable environmental protection expenditure and activities can be described at relatively low cost”.

49

Annex 1 Denmark

Denmark

Table A: National expenditure for environmental protection

Users/beneficiaries

Producers

General government as 
collective consumer

Specialised producers

Other producers

General 
government

Other

Non 
specialised

Non 
characteristic

central 
government

Local 
government

Households as 
actual 
consumers

Rest of the 
world

Total

6 522

6 522
6 522

n.a.
n.a.

n.a.
n.a.
n.a.

24
24

24

6 546
6 546

6 546
6 546

n.r.
n.r.

n.r.
n.r.

225

n.r.
n.r.
n.r.

225

225

225

225

n.a.

n.r.
n.r.

n.r.
n.r.

3 162

n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.

n.r.
n.r.
n.r.

3 162

3 162

3 162

3 162

901
901

901

1 454
1 454

1 454

5 822
5 822
5 822

n.a.
n.a.

23
23

23

901
901

12
12

889
889

1 454
1 454

5 845
5 845

1 454
1 454

5 845
5 845

14 699
8 177
5 822
2 355
6 522
6 522

3 387

47
47

47

18 133
14 746
3 387

12
12

18 121
14 734
3 387

1 Consumption of specific products
1.1 Final consumption of EPS
     market
     non-market
1.2 Intermediate consumption of EPS
    market
    ancillary
1.3 Final consumption of 
    connected products
    adapted products
1.4 Intermediate consumption of
    connected products
    adapted products

2 Gross capital formation for EP

3 Gross capital formation in specific products
   connected products
   adapted products
   characteristic services

4 Specific transfers
4.1 Subsidies on production
    connected products
    adapted products
    characteristic services
4.2 Other specific transfers
    current transfers
    capital transfers

5 Total uses of residents units
    current uses
    capital uses

6 Less financing by the rest of the world
   current uses
   capital uses

7 National expenditure for EP
   Current
   Capital
million national currency units
EPS: environmental protection services
EPA: environmental protection activities
EP: environmental protection

50

Annex 1 Denmark

Table B: Production of environmental protection services

Specialised producers

General goverment

Central         

government

Local 
government

Total

Non 
specialised 
producers

Total

Other

Current transactions

Current uses
  intermediate consumption 
      of which characteristic services
  compensation of employees
  consumption of fixed capital
  plus taxes on production
  less other subsidies
  net operating surplus

Output
  non environmental output
  environmental protection output
     non market
     market

Current EP resources
    market output
    current transfers

Capital transactions 

   gross fixed capital formation
   other capital uses, net
   investment grants received
   other capital transfers received

Financing by producers

labour inputs
stock of fixed assets
million national currency units

1 060

1 217
228

2 505

2 505
2 354
150

312
150
162

178
47
12
12

5 657
71
2 928
534
54
47
1 604

10 730
8
10 722

10 722

10 722
10 722

3 250
-88

125

2 405

3 025

n.a.

n.a.
n.a.
n.a.
n.a.

n.a.

n.a.
n.a.

n.a.

6 717
71
4 145
762
54
47
1 604

13 235
8
13 227
2 354
10 872

11 034
10 872
162

3 428
-41
12
137

5 430

Table B1: Supply and use of EP services

1 Uses of residents units (purchaser's price)
1.1 Intermediate consumption
1.1.1 of which specialised producers
1.1.2 of which other producers
1.2 Final consumption
1.3 Gross capital formation
2 Exports
Total uses
3 Output (basic price or cost of production)
4 Imports
5 Non deductible VAT
6 Oher taxes less subsidies on products
Total supply
million national currency units

Non market

Market

Ancillary

Total

2 354

2 354

2 354
2 354

2 354

12 418
6 596
74
6 522
5 822

12 418
10 871

1 157
390
12 418

n.a.

n.a.

14 772
6 596
74
6 522
8 176

14 772
13 225

1 157
390
14 772

51

Annex 1 Denmark

Table C: Financing of national expenditure

Users/beneficiaries

Producers

General government as 
collective consumer

Specialised producers

Other producers

General 
government

Other

Non 
specialised

Non 
characteristic

Central 
government

Local 
government

Households 
as actual 
consumers

Rest of the 
world

Total

1 General government
   central government
   local government

2 NPISHs

3 Corporations
   specialised producers
   other producers

4 Households

National expenditure
Plus financing by the rest of the world
Uses of resident units

million national monetary units

225
140
85

225

225

137
137

3 025
3 025

3 162

3 162

24
24

889
889

1 453

1 453

23
23

6 522

6 522

6 546

6 546

889
12
901

1 453

1 453

5 822

5 845

5 845

2 751
1 213
1 538

9 547
3 025
6 522

5 822

18 120
12
18 132

52

Annex 1 France

France

1

Introduction

France compiles environmental protection expenditure since several years. In 1994, new methodologies for
wastewater  and  waste  management,  air  protection  and  noise  abatement  were  designed  based  on  the
SERIEE framework19. Figures are published on an annual basis with 1990 as the starting year. This regular
production of the EPEA tables allows analysis specifically in terms of evolutions.

In  general,  for  the  compilation  of  EPEA  tables,  France  uses  a  mix  of  national  accounts  data  and  specific
calculations.  The  “quantity  times  price  (or  costs)”  method  plays  an  important  role  in  the  waste  and
wastewater  domains.  The  main  reason  for  applying  this  method  was  the  lack  of  data  on  local  government
units in these domains, whereas these units provide half of the services20.

The presentation of the French methodology will follow the four main domains.

2

Wastewater

2.1 Output and uses of external wastewater management services

The French Statistical institute (INSEE) compiles a set of supply-use tables for National Accounts purposes.
In  the  national  accounts  there  is  a  supply-use  table  for  the  product  “distributed  water”  which  includes
sewerage.  The  estimate  of  the  production  and  consumption  of  sewerage  services  is  based  chiefly  on  this
source.  However,  the  data  cannot  be  incorporated  as  they  stand.  Only  the  part  relating  to  wastewater
management can be used for the environmental protection expenditure accounts.

The supply of drinking water is separated from wastewater management using the structure of the price of
water, the consumption of drinking water by domestic customers and the proportions of French communes
connected to drinking water supply and sewerage services. The idea is to reconstruct a “notional” household
consumption by multiplying the unit price of a cubic metre of water by the annual water consumption of the
French  population.  As  the  price  of  water  is  made  up  of  different  components  (water  supply,  sewerage,
charges, taxes), this consumption will also separate these components.

A  further  breakdown  is  made  between  market  “general  government”  units  and  non-financial  corporations,
using  the  annual  enterprise  survey.  This  survey  provides  a  breakdown  of  the  turnover  of  enterprises
according  to  products  distinguishing,  in  particular,  the  “purification  of  wastewater”.  This  figure  is  used  to
estimate these enterprises' turnover in this domain. The production of general government is obtained as the
difference between the total production and the production of enterprises.

For investments, no information is available for local government units. Investments by specialised producers
are  approached  from  the  supply  side,  i.e.  via  the  turnover  of  firms  that  build  wastewater  sewers  and
wastewater treatment plants.

2.2

Ancillary producers

The  level  of  investment  expenditure  is  determined  by  the  annual  Antipol  survey  conducted  since  1991.  This
survey  of  the  largest  establishments  in  the  manufacturing  industry  and  the  agri-food  sector  covers  all  their
environmental protection investments.

Very little is known about the running costs of wastewater treatment plants belonging to ancillary producers. This
production is estimated, up until 1992, on the basis of information from the Ministry of the Environment. It is re-
updated  on  the  basis  of  the  index  of  industrial  production  prices  and  specific  investments  made  the  previous
year (the associated running costs are estimated at 10% of the cost of the plant). In 1996, a new survey was
launched covering current environmental protection expenditure by industry. This allows a more precise estimate
to be made of the production of ancillary services.

19 IFEN 1998
20  This situation has evolved and a new methodology is being defined.

53

                                                     
Annex 1 France

2.3

Connected products: independent household sewerage (septic tanks)

Independent sewerage is included in the wastewater management expenditure account as a connected product.
Septic  tank  emptying  services  are  consumption  of  connected  products,  and  the  construction  of  independent
sewerage systems is considered a gross fixed capital formation of connected products.

The Annual Enterprise Survey conducted by INSEE in the service sector provides information on the production
of “emptying and cleaning of septic tanks services”

Regarding  the  construction  of  septic  tanks,  the  only  information  is  for  the  quantities  of  septic  tanks  built  each
year and the average unit cost. The estimate is therefore made by multiplying the quantities installed by the unit
cost.

2.4

Transfers

Wastewater  management  includes  a  system  for  collecting  funds  which  are  then  used  to  help  finance
decontamination:
·   The water agencies collect charges based on the water used and the pollution produced. These are then
used  for  investment  grants  in  connection  with  water  resources,  sewerage  and  the  operation  of
wastewater treatment plants.

·   The  Ministry  of  Agriculture's  National  Water  Supply  Development  Fund  (FNDAE)  collects  charges  and

uses them to subsidise investments in water supply and sewerage in rural areas.

3

Waste management

3.1

Current expenditure

In the absence of monetary data directly usable for the accounts, the valuations were made by a method similar
to  that  used  in  the  “Environment  Satellite  Accounts”  (CSE)  published  by  INSEE  in  1986.  The  principle  is  to
estimate  the  quantities  of  the  different  categories  of  waste  (municipal  waste,  industrial  waste)  at  the  various
stages (collection and treatment) and to multiply them by unit costs. The results obtained by multiplying by unit
costs  are  compared  with  other  available  data:  results  of  the  Annual  Enterprise  Survey  of  the  service  sector
conducted by INSEE and the data from the public accounts.

The  estimate  is  a  “cost  of  production”  value  and  is  distributed  between  the  various  types  of  units  (local
government  and  corporations).  The  output  of  corporations  specialised  in  municipal  waste  collection  and
treatment is deemed to be purchased by municipalities, VAT and the output of municipal bodies are added and
the total is treated as collective consumption. In the municipal waste domain, households and small firms pay a
tax which is not based on the service provided but on the value of their dwellings. This treatment will evolve as it
was decided by French national accountants to treat this tax as the payment of a service.

As regards industrial waste, external and internal treatment are distinguished, which gives the value of ancillary
services.

3.2

Investment for waste management

Investments in the field of waste management are made by general government as specialised producers and
by firms both as specialised producers and as ancillary producers.

For investment of specialised producers, the main limitation is the lack of data for local government units. The
total  of  the  gross  fixed  capital  formation  of  specialised  producers  is  estimated  using  a  supply  side  approach.
Then, investment by firms is deducted in order to arrive at the local government investment.

Investment for ancillary activities is provided by the Antipol survey, conducted by SESSI and SCEES since 1991.
For 1990, an estimate was made from the EAE Services.

3.3

Connected and adapted products

The connected products included are household waste receptacles and collection sacks: dustbins, wheel bins,
bin bags, etc. In the absence of data on their uses, connected products are valued from the supply side. The
production  of  bin  bags,  provided  by  the  quarterly  production  surveys,  was  related  to  an  initial  estimate  of  the

54

Annex 1 France

consumption of connected products by households. This ratio makes it possible to move from the production to
the total consumption of connected products every year.

3.4

Transfers and financing

There are two main categories of transfers:

Two  organisms  classified  in  the  corporation  sector  (Eco-Emballages  and  Adelphe)  are  in  charge  of  collecting
“voluntary  contributions”  from  the  “producers”  of  packaging  and  of  distributing  subsidies  and  capital  aid  to  the
municipalities for the development of separate waste collection.

Two  taxes  are  earmarked  for  waste  management  financing:  the  waste  oil  tax  and  the  Waste  Management
Modernisation  Fund  (funded  from  landfill  charges)21.  These  taxes  are  managed  by  a  specialised  public  body
(ADEME). They are mainly used to finance investment of local government units. The water agencies also pay
subsidies for toxic industrial waste management.

4

Air protection and noise abatement

In  the  air  protection  and  noise  abatement  domains,  there  are  two  main  items:  expenditure  by  ancillary
producers and expenditure on adapted and connected products.

4.1

Expenditure for ancillary activities

For the purpose of estimating investment, the Antipol survey on environmental protection capital expenditure
is used.

On the basis of the 1970 to 1994 series of investments at constant prices, a simple model, based on the PIM
method  was  used  to  calculate  the  gross  fixed  capital  stock  for  air  protection  between  1989  to  1994.  The
consumption  of  fixed  capital  at  current  prices  was  then  calculated.  Since  operating  costs  are  linked  to  the
gross  fixed  capital  stock  at  a  given  date,  the  method  is  to  estimate  a  ratio  [operating  costs  /  gross  fixed
capital  stock]  for  a  base  year.  The  sum  of  consumption  of  fixed  capital  and  operating  costs  is  entered  as
current  expenditure.  The  same  method,  although  simplified,  is  applied  in  the  noise  abatement  domain
separately for industrial noise and traffic noise.

Expenditure on connected and adapted products

4.2
The  adapted  products  included  are:  unleaded  petrol;  desulphurised  fuel,  cars  with  catalytic  converters.  An
attempt  to  include  solvent-free  paints  and  substitutes  to  CFC  was  not  successful.  Connected  products
include: catalytic converters for cars when replaced and carburation adjustment services in the air domain,
and anti-noise windows and exhaust pipes replacement in the noise abatement domain.

Although more expensive to produce than ordinary leaded petrol, unleaded petrol in fact cheaper at purchasers’
prices  as  a  result  of  general  government  subsidies.  The  additional  cost  therefore  breaks  down  into  two
components:
·   The first component consists of a “negative consumption” by households or enterprises, which is valued
as the difference between the pump prices of ordinary and unleaded petrol, multiplied by the total quantity
consumed each year.

·   The  second  component  consists  of  a  subsidy  for  the  purchase  of  unleaded  petrol.  This  second
component is valued as the tax differential between ordinary and unleaded petrol, multiplied by the total
quantity  consumed  each  year.  The  total  of  these  two  components  is  equal  to  the  extra  cost  (before
subsidies) of unleaded petrol.

5 Conclusion

The French methodology to complete the EPEA tables largely relies on the quantity- times-price approach
and use of the supply side approach. This situation will evolve due to the availability of detailed data on local
government  units  and  firms  (implementation  of  the  new  classification  of  activities  and  products  based  on
NACE Rev1). The next developments will consist in comparing the two approaches in order to allow to place
annual evolutions in perspective, separating volume and price changes, etc.

21  This situation has changed with the creation of the General tax on polluting activities (TGAP) which is no longer earmarked.

55

                                                     
Annex 1 France

France

Table A: National expenditure for environmental protection

Users/beneficiaries

Producers

General government as 
collective consumer

Specialised producers

Other producers

General 
government

Other

Non 
specialised

Non 
characteristic

Central 
government

Local 
government

Households as 
actual 
consumers

Rest of the 
world

Total

1 Consumption of specific products
1.1 Final consumption of EPS
     market
     non-market
1.2 Intermediate consumption of EPS
    market
    ancillary
1.3 Final consumption of 
    connected products
    adapted products
1.4 Intermediate consumption of
    connected products
    adapted products

15,762
186

186
15,576

15,576

2 Gross capital formation for EP

15,326

2,197

6,011

21,281

20,764
20,764

517
374
143

5,880
5,465
415

1,214
1,186

573
613
28
28

20,653
20,653

20,653

16,591
11,926
11,926

4,665
2,048
969

1,367
1,364

889
475

218
218

218

15,326

2,197

15,326

2,197

21,991
15,980
6,011

28,375
22,495
5,880

20,653
20,653

17,958
17,958

15,326

2,197

15,326

2,197

21,991
15,980
6,011

28,375
22,495
5,880

20,653
20,653

17,958
17,958

74,287
32,765
11,926
20,839
36,340
20,764
15,576
4,665
2,048
969
517
374
143

23,534

5,880
5,465
415

2,799
2,768

1,462
1,306
28
28

106,500
77,086
29,414

106,500
77,086
29,414

3 Gross capital formation in specific products
   connected products
   adapted products
   characteristic services

4 Specific transfers
4.1 Subsidies on production
    connected products
    adapted products
    characteristic services
4.2 Other specific transfers
    current transfers
    capital transfers

5 Total uses of residents units
    current uses
    capital uses

6 Less financing by the rest of the world
   current uses
   capital uses

7 National expenditure for EP
   Current
   Capital
million national currency units
EPS: environmental protection services
EPA: environmental protection activities
EP: environmental protection

56

Annex 1 France

Current transactions

Current uses
  intermediate consumption 
      of which characteristic services
  compensation of employees
  consumption of fixed capital
  plus taxes on production
  less other subsidies
  net operating surplus

Output
  non environmental output
  environmental protection output
     non market
     market

Current EP resources
    market output
    current transfers

Capital transactions 

   gross fixed capital formation
   other capital uses, net
   investment grants received
   other capital transfers received

Financing by producers

labour inputs
stock of fixed assets
million national currency units

Table B: Production of environmental protection services

Specialised producers

General goverment

Central           

government

Local 
government

Total

Non 
specialised 
producers

Total

Other

19 502
11 892
4 464
13 462
232
978
-4 666

32 016
327
31 689
20 670
11 019

30 298
11 019
19 279

19 502
11 892
4 464
13 462
232
978
-4 666

32 016
327
31 689
20 670
11 019

30 298
11 019
19 279

15 326

15 326

3 119

3 119

15 862

7 140

7 965
2 701
707

3 638

30 873
825
30 048

30 048

29 034
29 006
28

2 157
40
80

2 525
5 780

218
551

16 969

16 969
15 763
1 206

1 723
1 723

4 790
1 221
239
110

42 504
11 892
14 954
21 943
939
1 196
-477

79 858
1 152
78 706
36 433
42 273

61 055
41 748
19 307

22 273
1 261
3 438
110

13 598

13 598

3 131

21 425

38 154

Table B1: Supply and use of EP services

1 Uses of residents units (purchaser's price)
1.1 Intermediate consumption
1.1.1 of which specialised producers
1.1.2 of which other producers
1.2 Final consumption
1.3 Gross capital formation
2 Exports
Total uses
3 Output (basic price or cost of production)
4 Imports
5 Non deductible VAT
6 Oher taxes less subsidies on products
Total supply
million national currency units

Non market

Market

Ancillary

Total

20 839

20 839

20 839
20 856

-17
20 839

44 582
32 656
11 892
20 764
11 926

140
44 722
42 273
20
2 196
233
44 722

15 577
15 577

15 577

15 577
15 604

-27
15 577

80 998
48 233
11 892
36 341
32 765

140
81 138
78 733
20
2 196
189
81 138

57

Annex 1 France

Table C: Financing of national expenditure

Users/beneficiaries

Producers

General government as 
collective consumer

Specialised producers

Other producers

General 
government

Other

Non 
specialised

Non 
characteristic

Central 
government

Local 
government

Households 
as actual 
consumers

Rest of the 
world

Total

12 217

12 217

70
1 338

1 701

13 918

13 918

578
398
180

1 512
1 488
24

2 197

21 162

21 178

21 162

21 178

6 358

6 358

112

112

2 413
2 413

198

198

252

5 685

14 183

15 347

21 992

28 375

20 653

17 958

21 992

28 375

20 653

17 958

23 078
4 299
18 779

46 255
2 267
43 988

37 168

106 501

106 501

1 General government
   central government
   local government

2 NPISHs

3 Corporations
   specialised producers
   other producers

4 Households

National expenditure
Plus financing by the rest of the world
Uses of resident units

million national monetary units

58

Annex 1 Germany

Germany

1

Introduction

The 1999 German22 report extends a previous version (1996)23  in  several  aspects.  In  particular,  the  “new”
Länder and public disposal enterprises are included.

The German methodology relies largely on three main sources: the compilation of the "stock of fixed capital
account  for  environmental  protection",  a  treatment  of  the  financial  statistics  of  public  budgets  and  the
statistics of the annual financial statements of public enterprises.

The listed limitations are:
·   manufacturing  industry:  there  is  no  information  for  "protection  of  soil  and  groundwater",  "protection  of

landscape and biodiversity",

·   expenditure for adapted and connected products are not available,
·   subsidies in the form of low interest loans are not available,
·   secondary producers in manufacturing industry are not shown,
·   neither are "purely" private disposal firms (waste and wastewater) shown.

2 Stock of fixed capital for the environmental protection account (SFCA)

2.1 The SFCA model

From 1975, expenditure, costs and capital stocks for environmental protection domains: waste, wastewater,
air  and  noise  are  available  for  the  "former"  Länder.  For  the  manufacturing  industry  (inc.  mining  and
electricity)  and  general  government,  the  consumption  of  fixed  capital  is  calculated  directly  by  the  SCFA,
which  is  also  the  basis  for  the  calculation  of  current  expenditure.  For  general  government,  figures  are
available from financial statistics.

The starting point is the time series of gross fixed capital formation for environmental protection. Extension of
the  SFCA  to  the  “new”  Länder  necessitated  a  specific  calculation.  For  the  general  government  sector,  an
attempt to reconstitute the series of gross fixed capital formation was not successful. So it was decided to
use physical indicators for the stock of waste and wastewater facilities and to value them using 1991 prices.
The stock was then distributed by age classes. The SCFA model was run and finally the stock of fixed capital
for 1990 could be integrated in the general model. Special retirements were calculated for 1991 and 1992 to
take account of the effects of German re-unification.

For the manufacturing industry, the assumption was that the stock in 1990 was zero and then annual gross
capital fixed capital formation was taken into account.

Public  enterprises  constitute  a  growing  part  of  environmental  protection  in  the  wastewater  and  waste
domains. They are no longer included in the general government financial statistics. Data are available for
this specific category of enterprises. However, no information was available on private firms, which certainly
means that for waste management there is an under-recording of output and expenditure.

The structure of the SFCA is shown in Figure 5.

22 Riege-Wcislo W., German Federal Statistical Office 1999
23  M. Kuhn and U. Lauber, German Federal Statistical Office 1996

59

                                                     
Figure 5 The structure of the German stock of fixed capital account

Annex 1 Germany

Environmental protecton 
investment in current 
prices 

Environmental protection 
investment in constant 
prices 

Fixed assets for 
environmental protection 

Manufacturing 
industry 

General 
govern-
ment 

Estimated working life of 
capital goods 

Current environmental 
protection expenditure in 
the manufacturing 
Industry in constant 
prices 

Consumption of fixed 
capital for environmental 
protection in constant 
prices 

Current environmental 
protection expenditure by 
general government in 
constant prices 

Current environmental 
protection expenditure in 
the manufacturing 
Industry in current prices 

Consumption of fixed 
capital for environmental 
protection at replacement 
prices 

Current environmental 
protection expenditure by 
general government in 
current prices 

Expenditure on environmental protection by the manufacturing industry and general government at current prices 

Initial data 

2.2

Calculation of the production of environmental services

The  calculation  is  made  separately  for  general  government,  public  enterprises  and  manufacturing  industry
(ancillary output).

For  the  general  government,  data  are  from  the  financial  statistics;  according  to  the  1999  report,  there  is  a
close interconnection among disposal enterprises themselves and between them and the government. Thus
both  government  and  the  private  and  public  disposal  enterprises  frequently  place  subcontracts  with  other
enterprises for disposal services. This increases both the output and intermediate consumption.

In the 1999 report, a distinction is made between purely state-run operations and public enterprises. For the
public  enterprises,  the  information  available  is  intermediate  consumption,  compensation  of  employees,
consumption  of  fixed  capital,  total  output  and  capital  formation.  As  regards  output,  there  could  be  some
double  counting  here,  but  it  could  not  be  further  quantified  owing  to  the  lack  of  information  concerning
financial inter-linkages especially in the statistics of the annual financial statements of public enterprises, but
also in the financial statistics.

Consumption of fixed capital by public enterprises is calculated from the balance sheets; it corresponds more
to commercial depreciation than CFC. The CFC of general government units comes from SFCA.

60

 
 
 
 
 
 
 
 
 
 
 
 
 
Annex 1 Germany

2.3

Calculation of the national expenditure

Output  from  general  government  and  public  enterprises  is  distributed  amongst  users  on  the  basis  of  the
environmental  Input-Output  Table24.  External  environmental  protection  services  used  by  specialised
producers are deducted from the uses in order to arrive at national expenditure in environmental protection
services.

Wastewater units have a negative net operating surplus; it is assumed that there is an implicit subsidy that
compensates this negative NOS.

For the financing table, the main data sources are the public financial statistics (investment grants and other
capital transfers). It was not possible to calculate the subsidies in the form of soft loans, nor the structure of
the financing of specialised producers outside general government.

3

Results

National expenditure on environmental protection in Germany in 1995 amounted to approx. DM 100 billion,
with water management and protection representing 50%, followed by waste management (30%) and other
environmental protection activities (18%); on the basis of the primary statistical definitions, the latter include
noise  abatement  and  ambient  air  protection  measures  taken  by  the  manufacturing  industry.  The  estimate
therefore  covers  the  major  part  of  characteristic  services  in  Germany.  There  are,  however,  still  significant
gaps, especially in the coverage of private disposal enterprises in the waste sector.

National expenditure for environmental protection represented 2.9% of gross domestic product in Germany
in 1995. The respective result for 1991 was 2.1 % (for the former Federal Republic of Germany). There are
two dominant reasons for the substantial nominal increase of 77% compared to the results of the SERIEE
study  for  1991  (with  national  expenditure  of  56.5  billion  DM).  First,  of  course,  the  inclusion  of  the  New
Länder, where there was a substantial backlog in the environmental protection field. Secondly, it was for the
first  time  possible  to  include  the  public  disposal  corporations  in  Germany.  Their  expenditure  in  the  –
quantitatively  important  –  domains  of  waste  and  wastewater  management  accounted  for  about  2/3  of  the
total  nominal  increase.  However,  it  should  be  noted  that  an  exact  analysis  of  the  reasons  for  the  increase
would  require  a  re-calculation  of  the  1991  results,  which  is  not  possible  because,  inter alia,  data  on  public
disposal corporations are not available for 1991.

Starting with the reporting year 1996, important changes will be introduced:
·   The survey of capital expenditure for environmental protection in the manufacturing industry also asks for
nature conservation and soil decontamination. However, expenditure for integrated measures is no longer
asked for.

·   Current expenditure will be asked from enterprises and manufacturing industry units directly.
·   New  statistics  of  "goods  and  services  for  environmental  protection"  cover  the  "supply"  side.  They  ask
about  sales  of  "goods  and  services  for  environmental  protection"  by  units  in  the  manufacturing  industry
and in the service and general government sectors. However, it does not include sales by disposal firms
connected with government functions or responsibilities.

·   A new survey asks investors in environmental protection for breakdown of their capital expenditure.

24  Kuhn, M. German Federal Statistical Office 1997

61

                                                     
Annex 1 Germany

Germany

Table A: National expenditure for environmental protection

Users/beneficiaries

Producers

General government as 
collective consumer

Specialised producers

Other producers

General 
government

Other

Non 
specialised

Non 
characteristic

Federal 
government 
and Länder

Local 
government

Households as 
actual 
consumers

Rest of the 
world

Total

69 981
23 213
20 038
3 175
46 768
22 924
23 844

29 484

638
638

638

100 103
70 619
29 484

100 103
70 619
29 484

1 Consumption of specific products
1.1 Final consumption of EPS
     market
     non-market
1.2 Intermediate consumption of EPS
    market
    ancillary
1.3 Final consumption of 
    connected products
    adapted products
1.4 Intermediate consumption of
    connected products
    adapted products

n.r.
n.r.

n.r.
n.r.

n.r.
n.r.

n.r.
n.r.

25 509

21 259

25 509
1 665
23 844

21 259
21 259

2 564
2 564

2 564

611
611

611

20 038
20 038
20 038

n.a.
n.a.

2 Gross capital formation for EP

12 211

10 075

7 198

n.r.
n.r.

n.a.
n.a.

n.a.
n.a.

n.r.
n.r.
n.r.

n.r.
n.r.
n.r.

638
638

638

12 849
638
12 211

10 075

10 075

32 707
25 509
7 198

21 259
21 259

2 564
2 564

611
611

20 038
20 038

12 849
638
12 211

10 075

10 075

32 707
25 509
7 198

21 259
21 259

2 564
2 564

611
611

20 038
20 038

3 Gross capital formation in specific products
   connected products
   adapted products
   characteristic services

4 Specific transfers
4.1 Subsidies on production
    connected products
    adapted products
    characteristic services
4.2 Other specific transfers
    current transfers
    capital transfers

5 Total uses of residents units
    current uses
    capital uses

6 Less financing by the rest of the world
   current uses
   capital uses

7 National expenditure for EP
   Current
   Capital
million national currency units
EPS: environmental protection services
EPA: environmental protection activities
EP: environmental protection

62

Annex 1 Germany

Current transactions

Current uses
  intermediate consumption 
      of which characteristic services
  compensation of employees
  consumption of fixed capital
  plus taxes on production
  less other subsidies
  net operating surplus

Output
  non environmental output
  environmental protection output
     non market
     market

Current EP resources
    market output
    current transfers

Capital transactions 

   gross fixed capital formation
   other capital uses, net
   investment grants received
   other capital transfers received

Financing by producers

labour inputs
stock of fixed assets
million national currency units

Table B: Production of environmental protection services

Specialised producers

General goverment

Federal government 
and Länder

Local 
government

Total

Non 
specialised 
producers

Total

Other

1 615
96
990
305

19

2 890
159
2 732
2 564
168

166
168

635

38
31

3 131

12 799
2 125
3 904
8 296

407
2 600

27 190
636
26 554
611
25 943

13 300
25 763

14 414
2 221
4 894
8 601

426
2 600

30 080
795
29 286
3 175
26 111

13 466
26 111

9 664

9 145

3 249
3 440

7 493
7 206

17 383

23 844

23 844
23 844

17 383

17 383

17 383
17 383

33 223
2 221
15 636
19 247

426
2 600

71 307
795
70 513
27 019
43 494

30 849
43 494

11 577

12 212

10 075

7 198

29 485

3 147
2 319

4 127

3 185
2 350

7 258

3 185
2 350

26 445

33 703

22 753

331 591

47 055

401 399

Table B1: Supply and use of EP services

1 Uses of residents units (purchaser's price)
1.1 Intermediate consumption
1.1.1 of which specialised producers
1.1.2 of which other producers
1.2 Final consumption
1.3 Gross capital formation
2 Exports
Total uses
3 Output (basic price or cost of production)
4 Imports
5 Non deductible VAT
6 Oher taxes less subsidies on products
Total supply
million national currency units

Non market

Market

Ancillary

Total

3 175

3 175

3 175
3 175

3 175

45 183
25 145
2 221
22 924
20 038

45 183
43 494

1 689
45 183

23 844
23 844

23 844

23 844
23 844

23 844

72 202
48 989
2 221
46 768
23 213

72 202
70 513

1 689
72 202

63

Table C: Financing of the national expenditure

Users/beneficiaries

General government as 
collective consumer

Federal 
government 
and Länder

Local 
government

2 564
2 564

611

611

Producers

Specialised producers

Other producers

General 
government

Other

Non 
specialised

Non 
characteristic

10 504
3 366
7 138

25

1 621
52
1 569

700

8 449
2 039
6 410

13

1 138
71
1 067

476

32 707

21 259

32 707

21 259

1 General government
   federal and länder
   local government

2 NPISHs

3 Corporations
   specialised producers
   other producers

4 Households

National expenditure
Plus financing by the rest of the world
Uses of resident units

million national monetary units

12 850

10 076

32 707

21 259

12 850

10 076

32 707

21 259

2 564

2 564

611

611

Annex 1 Germany

Households 
as actual 
consumers

Rest of the 
world

Total

22 128
7 969
14 159

38

56 725
123
56 602

21 214

100 105

100 105

20 038

20 038

20 038

64

Annex 1 Netherlands

The Netherlands

1

Introduction

The  Dutch  pilot  application  of  SERIEE25  is  one  of  the  most  extensive:  all  economic  sectors  and
environmental domains are included, except the protection of landscape and biodiversity, because "it seems
there  are  large  interpretation  differences  between  countries  with  regard  to  this  domain".  Landscape
management  was  studied  in  a  later  exercise26.  The  five  SERIEE  tables  were  filled  in  for  the  total
expenditure.  Tables  A  and  B  are  also  given  separately  for  the  air,  water  and  waste  and  "other"  domains.
However, as they refer to 1991, data are rather old. Furthermore, as many improvements have been made in
the  classification  of  units  following  the  implementation  of  NACE  Rev.1  and  ESA  1995,  the  situation  has
evolved  since  the  time  the  pilot  application  was  made27.  Presentation  of  the  pilot  application  is  made
following the sequence of EPEA tables.

2

Table A: National expenditure by components and by users/beneficiaries

2.1

Central government

Environmental  expenditure  of  central  government  includes  transactions  of  many  ministries.  For  example:
transactions  by  ministry  of  public  works  and  traffic  for  the  treatment  of  underwater  soil  pollution  (mostly
payments  to  specialised  NACE  90  firms)  and  transactions  by  the  Ministry  of  Defence  carrying  out  their
environmental policy plan: mostly cleaning-up of soil pollution. The most important, however, is the ministry
of housing, planning and environment. Almost all expenditures of this ministry – regardless of whether they
are  for  salaries,  investment  grants  or  other  subsidies  –  are  financed  by  a  general  fuel  levy  (WABM),
earmarked for this purpose only. Furthermore, there are two ministries (1) of traffic and public works (2) of
agriculture  that  cover  part  of  their  environmental  expenditure  by  specific  taxes  paid  by  aeroplanes  and
farmers, respectively.

The costs of environmental activities of central government are entered in table A as final consumption of the
central government.

Furthermore,  the  central  government  pays  all  kinds  of  transfers  to  other  sectors.  The  most  important  ones
are:
·   Payments for environmental policy in developing countries.
·   Subsidies to local government agencies for setting up anti-noise walls and insulation of houses.
·  

Investment  grants  to  environmental  service  industries,  local  government  units,  other  non-specialised
enterprises (including traffic) and households.

·   Subsidies to local government for administration, management and control.
·   The financing of a part of the interest and depreciation of the sewers system of the municipalities partly
because some of them have to deal with unfavourable conditions (type of soil for example) and therefore
had relatively high investments in the past.

'sewer' subsidy;

Only these transfers classified as subsidies appear in Table A:
·  
·   subsidy on purchase of low noise and clean trucks and (touring car) buses;
·   subsidy on the purchase of low NOx heating systems by households;
·   subsidy of 50% on the purchase of compost containers;
·   subsidy  to  environment-unfriendly  car  breakers  yards  intended  to  put  an  end  to  their  activities  by

compensating for their income losses; and
·   environmental subsidy to developing countries.

2.2

Local government

All costs for environmental protection activities by local government units are included except costs by units
classified as specialised market producers, i.e. local government services covering more than 50% of their
costs  by  taxes  or  levies:  this  is  the  case  for  waste  and  wastewater  collection  and  treatment  services.
Administrative fees are classified as non-environmental output and thus deducted.

25 Dietz E., Statistics Netherlands 1995
26  Statistics Netherlands 1998b
27  Statistics Netherlands 1998a

65

                                                     
Annex 1 Netherlands

2.3

Households

Households  pay  for  sewage  charges  and  wastewater  treatment.  They  also  pay  for  waste  collection  and
treatment.  These  payments  are  without  VAT  because  the  fiscal  authorities  see  the  waste  disposal  and
wastewater collection and treatment as the provision of collective goods and services and the corresponding
financing as taxes. This also applies to public services offered to firms.

Households pay for the non-subsidised part of compost containers. Households consume adapted products:
low  sulphur  gasoline,  low  sulphur  fuel  oil,  low  lead  or  unleaded  gasoline,  they  buy  cars  with  catalysts  and
less noise potential, that therefore are more expensive.

2.4

Non-specialised and non-characteristic producers

The main part of the expenditure corresponds to industrial firms surveyed by the environmental expenditure
questionnaire. Estimations for agriculture as well as for firms with less than 20 employees and firms outside
the survey for industry are made.

In-house  current  environmental  expenditure  are  entered  as  intermediate  consumption  of  ancillary
environmental  protection  services.  Intermediate  consumption  of  environmental  market  services  mainly
consists  of  fees  for  wastewater  collection  and  treatment  produced  by  specialised  local  government  units,
waste  payments  for  services  of  private  environmental  service  industries  (estimated  on  the  basis  of  a  1993
survey of these industries) and administrative fees.

Intermediate consumption of adapted products for non-characteristic producers consists in the consumption
of  unleaded  and  low-sulphur  fuel  apportioned  to  industries.  The  same  applies  to  the  gross  fixed  capital
formation in adapted products which consists mainly in the costs of catalysts.

2.5

Specialised producers

The  gross  fixed  capital  formation  of  specialised  government  units  and  other  specialised  producers  results
from a survey. It is entered in Table A. From the statistics on enterprises there is information that the private
waste management sector received an investment grant from the European Investment Bank to build a large
incineration plant. The construction (and the capital formation) is spread out over several years, whereas the
total subsidy is recorded in 1991; hence national expenditure of the ‘other’ producers for 1991 is negative.

3

Table B: Production of characteristic services

Table  B  shows  all  transactions  of  characteristic  producers  (government,  other  specialised  and  non-
specialised  producers).  For  most  of  the  government  sub-sectors,  data  are  available  on  the  use  of  these
services, for some of them estimates had to be made.

Specialised units within the municipalities carry out sewerage collection. As mentioned before, they receive a
subsidy  on  their  interest  and  depreciation  costs;  the  subsidy  is  entered  as  a  subsidy  on  production.  Their
capital  costs  are  gross  figures.  The  subsidy  together  with  the  sewer  taxes  paid  by  households  and  firms
more or less add up to total operation costs of the municipalities.

In the column for other specialised producers, the data on the environmental service industries (NACE 90)
were used. It should be mentioned that the population of firms (and other variables like sales) has increased
since 1991 because of special actions to improve the quality of the general business register with regard to
class 90. This means that the 1991 figures show an (unknown) underestimation.

A  secondary  output  by  non-specialised  producers  has  been  recorded  in  order  to  close  the  gap  between
demand and supply of soil decontamination services. The data on the supply are incomplete and there is the
fact that cleaning-up of soil pollution sometimes is a secondary activity of construction firms.

As regards ancillary activities, the total costs are entered. The output with regard to related products is not
known because of the fact that the operational costs for a certain year are based on calculation. No separate
estimates of, for example, the sale of by-products were made.

4

Table B1: Supply and use table for characteristic services

Table  B1  is  derived  from  Tables  A  and  B.  The  uses  of  market  characteristic  services  by  the  specialised
producers come from Table B, and the intermediate consumption by other producers (non-specialised and

66

Annex 1 Netherlands

non-characteristic) and also final consumption by central and local government (non-market) from Table A.
Non-deductible VAT results from the comparison of total uses of market services with the output value.

5

Table C: Financing of national expenditure

Table C gives an overview of the financing of the uses of the resident units. There are two peculiarities:
1)  Financing of the specialised government producers is mainly by central and local government. Part of the
investment  by  local  government  (wastewater  treatment)  is  financed  by  investment  grants  of  a  central
government  water  agency  (under  the  supervision  of  the  ministry  of  traffic  and  public  works).  This
transaction is rather complex because this agency is in turn financed by the water pollution tax paid by
water boards (local government) and enterprises, and the water boards, in their turn, by water pollution
taxes  imposed  on  households  and  enterprises.  Here  it  is  assumed  that  households  and  enterprises
directly finance the water agency. The investment grants from the water agency to the local government
units  are  entered  in  Table  C  as  financing  by  households  and  other  producers  for  amounts  which  are
proportional to their total water pollution tax payments.

2) As already mentioned, the 1991 budget of the ministry of (housing, planning and) environment was more
or  less  financed  by  the  general  fuel  levy.  So  the  proceeds  from  this  levy  were  used  for  all  kinds  of
expenditures  varying  from  general  administration  and  management  but  also  the  investment  grants  to
other sector and subsidies for administration of local government. In table C, these transactions appear in
the  columns  'other  non-specialised  producers',  'central'  and  'local  government'  as  financing  by
households and other producers in proportion to their fuel tax payments.

The financing tables also take account of the aircraft noise tax and of the manure surplus tax, both of which
are earmarked for environmental protection.

6

Table C1: Environmental related financial burden

In  this  table,  the  financing  of  current  national  expenditure  is  corrected  for  elements  like  VAT,  taxes  and
interest. In 1991 there were no taxes such as, for example, on CO2. In 1995, there were three taxes of this
kind: on fuel, dumping of waste and the abstraction of water for consumption.

For general government, non-deductible VAT is calculated: 18.5% (1991 VAT-'high rate) from intermediate
consumption  of  specialised  government  units  and  investments.  As  mentioned  before,  government  units  do
not charge VAT. Table C1 does not change much in the distribution of the financial burden.

7

Concluding remarks

Statistics  Netherlands,  in  general,  has  the  information  to  fill  in  the  SERIEE-tables,  but  it  seems  that  a  lot
more  information  is  needed  to  fill  in  all  tables  and  to  connect  them  in  a  proper  way.  For  the  breakdown  in
cost  categories  and  connecting  mutual  payments  between  economic  sectors,  estimates  were  sometimes
made. Table B1 is important because it confronts the data on use and supply and therefore gives indications
as to which are the weakest data.

Several adaptations to the Dutch system of costs and financing of environmental control had to be made. In
this  system,  all  activities  of  the  economic  actors  are  based  on  or  translated  into  (yearly)  costs.  There  is  a
close  link  to  the  administrations  of  the  sectors,  for  example,  with  regard  to  the  distinction  between
investments and operational costs. The major advantage of the SERIEE-system is that it shows that there is
a  producer-side  and  a  user-side  on  all  environmental  transactions.  It  is  then  possible  to  describe  what
economic activities are induced by environmental protection (output of environmental protection services).

There is a lack of information on items such as (for all domains) connected and adapted products, removal of
(polluted)  dredged  spoil  by  local  government,  adaptation  of  infrastructure  into  landscape  by  the  'road
builders' and several other items within the domain 'protection of biodiversity and landscape'.

When there are several economic (government) sectors between the (environmental) taxpayers and the end-
user,  recording    the  financing  in  SERIEE  becomes  complicated.  The  financing  table  ends  up  in  a  mix  of
direct financing of the costs of environmental protection activities and sometimes complex indirect financing
flows mainly concerning the financing of investments.

67

Annex 1 Netherlands

The Netherlands

Table A: National expenditure for environmental protection

Users/beneficiaries

Producers

General government as 
collective consumer

Specialised producers

Other producers

General 
government

Other

Non 
specialised

Non 
characteristic

Central 
government

Local 
government

Households as 
actual 
consumers

Rest of the 
world

Total

2,346

2,432

2,346

2,346

2,113
2,113

793
793

793

960
960

960

2,855
2,252
2,252

603
2
601

15
15

15

164
82

82

82

82
164

793
793

960
960

2,870
2,870

793
793

960
960

2,870
2,870

164
164

9,386
4,005
2,252
1,753
4,459
2,113
2,346
603
2
601
319

319

3,211

358

358

577
158

158
419
419

13,532
10,045
3,569

367

13,247
10,045
3,202

319

319

358

358

66
61

61
5
5

2,856
2,498
358

2,856
2,498
358

1 Consumption of specific products
1.1 Final consumption of EPS
     market
     non-market
1.2 Intermediate consumption of EPS
    market
    ancillary
1.3 Final consumption of 
    connected products
    adapted products
1.4 Intermediate consumption of
    connected products
    adapted products

2 Gross capital formation for EP

1,242

203

1,766

3 Gross capital formation in specific products
   connected products
   adapted products
   characteristic services

4 Specific transfers
4.1 Subsidies on production
    connected products
    adapted products
    characteristic services
4.2 Other specific transfers
    current transfers
    capital transfers

5 Total uses of residents units
    current uses
    capital uses

6 Less financing by the rest of the world
   current uses
   capital uses

7 National expenditure for EP
   Current
   Capital
million national currency units
EPS: environmental protection services
EPA: environmental protection activities
EP: environmental protection

414

414
414

1,656
414
1,242

1,656
414
1,242

203

203

367

-164

-164

4,112
2,346
1,766

4,112
2,346
1,766

68

Annex 1 Netherlands

Current transactions

Current uses
  intermediate consumption 
      of which characteristic services
  compensation of employees
  consumption of fixed capital
  plus taxes on production
  less other subsidies
  net operating surplus

Output
  non environmental output
  environmental protection output
     non market
     market

Current EP resources
    market output
    current transfers

Capital transactions 

   gross fixed capital formation
   other capital uses, net
   investment grants received
   other capital transfers received

Financing by producers

labour inputs
stock of fixed assets
million national currency units

Table B: Production of environmental protection services

Specialised producers

General goverment

Central           

government

Local 
government

Total

Non 
specialised 
producers

Total

Other

3 476
1 002
1 378
1 534

414

5 974
133
5 841
1 753
4 088

4 088
4 088

1 242

192

819
375
313
194

179

1 505
157
1 348

1 348

1 348
1 348

203

384

967

312
1 065

2

2 507

2 507
2 346
161

161
161

1 766

197

5 262
1 377
2 003
2 793

414
181

9 986
290
9 696
4 099
5 597

5 597
5 597

3 211

773

2 803

-181

3 915

6 537

Table B1: Supply and use of EP services

1 Uses of residents units (purchaser's price)
1.1 Intermediate consumption
1.1.1 of which specialised producers
1.1.2 of which other producers
1.2 Final consumption
1.3 Gross capital formation
2 Exports
Total uses
3 Output (basic price or cost of production)
4 Imports
5 Non deductible VAT
6 Oher taxes less subsidies on products
Total supply
million national currency units

Non market

Market

Ancillary

Total

1 753

1 753

1 753
1 753

1 753

5 742
3 490
1 377
2 113
2 252

5 742
5 597

145

5 742

2 346
2 346

2 346

2 346
2 346

9 841
5 836
1 377
4 459
4 005

9 841
9 696

145

2 346

9 841

69

Annex 1 Netherlands

Table C: Financing of the national expenditure

Users/beneficiaries

Producers

General government as 
collective consumer

Specialised producers

Other producers

General 
government

Other

Non 
specialised

Non 
characteristic

Central 
government

Local 
government

Households 
as actual 
consumers

Rest of the 
world

Total

1 466
414
1 052

63

63

127

1 656

1 656

17
17

59
59

66
66

-181
-181

-164
367
203

4 013

4 013

37

4 109

4 109

2 790

2 790

2 856

2 856

354
332
22

295

295

144

793

793

535

535

264

264

161

960

960

13
13

82
82

2 857

2 870

2 870

82

82

2 592
983
1 609

7 244
-181
7 425

3 326

13 162
367
13 529

1 General government
   central government
   local government

2 NPISHs

3 Corporations
   specialised producers
   other producers

4 Households

National expenditure
Plus financing by the rest of the world
Uses of resident units

million national monetary units

70

Annex 1 Switzerland

Switzerland

1

Introduction

The  Swiss  pilot  exercise28  aimed  at  complementing  and  adapting  the  evaluation  of  environmental
expenditure  to  the  SERIEE  methodology.  In  relation  to  the  previous  estimates 29,  further  information  and
adjustments  were  needed  on  intra-governmental  transfers  (subsidies  and  capital  grants),  environmental
protection expenditure by special-purpose agencies and private disposal undertakings, consumption of fixed
capital  for  characteristic  activities,  as  well  as  ecological  taxes.  This  summary  focuses  on  the  work
undertaken to fill the data gap.

2

Specific points

2.1

Intra-governmental transfers

The  intra-governmental  transfers  in  the  domains  of  water  protection  and  waste  management  were
determined on the basis of public finance statistics (EFV 1995). This adjustment could not be undertaken for
the other environmental domains, since they are not indicated separately in financial statistics.

A  particular  examination  of  financial  flows  between  special-purpose  agencies  and  municipalities  was
undertaken.  They  were  also  derived  from  the  public  finance  statistics.  The  assumption  was  that  the
contributions  of  the  municipalities  to  public  utilities  can  be  fully  credited  to  the  special-purpose  agencies.
These  contributions  are  therefore  entered  in  the  SERIEE  tables  according  to  the  type  of  use  i.e.  not  as
transfers, but either as fixed capital formation or as current expenditure.

2.2

Treatment of public sector deficits

The services of the federal government and cantons are not fully covered by fees. The deficits 30 are entered
as  non-market  output  in  Table  B.  In  the  case  of  the  federal  government,  the  entire  output  is  non-market
(since  the  federal  government  does  not  charge  fees  for  its  services),  and  in  the  case  of  cantons  and
municipalities, only the proportion not covered by fee income and payments is classified as non-market. The
production of characteristic services by cantons and municipalities is divided into a market and a non-market
part,  depending  on  whether  these  services  are  paid  for  by  the  consumers  or  are  internally  subsidised.  In
Tables A and C , the non-market output is entered as the collective consumption of the general government.
In the case of the municipalities, net operating surpluses are indicated as such.

2.3

Consumption of fixed capital

Neither  the  EPE  survey,  nor  the  public  finance  statistics,  provide  adequate  information  to  enable
consumption of fixed capital in the public sector in the environmental domain to be inserted directly into the
SERIEE tables. For this reason, in order to estimate the consumption of fixed capital, a time series of fixed
capital formation was formed on the basis of data from public finance statistics for 1991 and 1992. For these
two years, the fixed capital formation expenditure in the public sector in the domains of water protection and
waste  management  are  indicated  separately.  The  relationship  between  this  fixed  capital  formation  and  the
total fixed capital formation in the public sector (for which time series are available) enables a time series of
fixed capital formations in the domains of water protection and waste management to be estimated. The aim
of  the  estimate  is  to  determine  a  consumption  of  fixed  capital  formula  which  can  be  applied  to  the
environmental domains.

The following working steps were taken:
1.

For  1991  and  1992,  the  fixed  capital  formation  in  the  domains  of  water  protection  and  waste
management  were  indicated  separately  in  the  public  finance  statistics.  These  fixed  capital  formations
are equated with the total fixed capital formation in the public sector. This gives the proportion of fixed
capital  formation  in  the  areas  of  water  protection  and  waste  management  in  the  total  fixed  capital
formation in the public sector.
Fixed capital formation in the domains of waste management and water protection are estimated on the
basis  of  the  time  series  of  the  total  fixed  capital  formation  in  the  public  sector  for  1970-1991.  It  is

2.

28  Swiss Federal Office of Statistics 1996
29  See INFRAS 1995
30 Difference between cost of production and market output (i.e. that proportion of the output of characteristic services that cannot be

covered by income from fees).

71

                                                     
Annex 1 Switzerland

3.
4.

5.

6.

assumed  that  the  fixed  capital  formation  made  in  recent  years  in  the  domains  of  waste  management
and water protection have constituted a constant proportion of the total fixed capital formation.
The fixed capital formation are adjusted to price increases, using the Building Costs Index,
It  is  assumed  that  the  consumption  of  fixed  capital  takes  place  linearly  and  that  the  life  of  t he  fixed
capital is 25 years. The cumulative consumption of fixed capital is calculated.
The  residual  value  of  the  fixed  capital  formation  is  calculated  by  subtracting  the  consumption  of  fixed
capital  from  the  fixed  capital  formation  already  made  and  adding  the  new  fixed  capital  formation.  The
cumulative residual values give the net stock of fixed assets.
The calculated consumption of fixed capital is equated to the fixed capital formation made in  1992. In
1992,  the  consumption  of  fixed  capital  makes  up  around  70%  of  the  value  of  the  new  fixed  capital
formation. Consumption of fixed capital can then be estimated on the basis of the fixed capital formation
determined  in  the  EPE  survey.  The  same  rate  of  consumption  of  fixed  capital  is  used  for  federal
government, cantons and municipalities, and for all the environmental domains.

Estimation of consumption of fixed capital in the private sector is based on figures from national accounts for
recent years.

For the private sector, it is assumed that the consumption of fixed capital is around 50% of the fixed capital
formation, since it must be assumed that the stock of environmental protection fixed assets is still increasing.

2.4

Breakdown of current expenditure in the private sector

The  SERIEE  Table  B  requires  current  expenditure  to  be  divided  into  compensation  of  employees  and
intermediate consumption. In the EPE study, only fee payments are recorded separately; the other current
expenditure  is  surveyed  without  further  differentiation.  The  breakdown  of  the  total  current  expenditure  into
compensation  of  employees  and  intermediate  consumption,  is  estimated  on  the  basis  of  the  net-product
statistics  (BFS  1993),  which  record  the  total  expenditure  of  corporations  according  to  the  different
components. The proportion of labour costs in the current expenditure is, according to this, around one third,
whilst  that  of  the  intermediate  consumption  is  two  thirds  of  current  expenditure  (excluding  consumption  of
fixed capital).

2.5

Distribution of fee payments between households and corporations

The financial statistics provide accurate data on the fee income of the public sector in the domains of waste
management and water protection, but not on the distribution of these payments over the private households
and corporations. Since no official figures exist in this connection, estimates were undertaken on the basis of
physical data on consumption of water and production of waste.

2.6

Interest on fixed capital

In Table C1, which records the environment-related financial burdens, interest on fixed capital must also be
taken into account. Calculation of the interest on fixed capital in the public sector is based on the estimate of
net stock of fixed assets and on the assumption that the interest rate on the net stock of fixed capital is the
rate  of  long-term  federal  loans  (4%).  For  the  tied-up  capital  in  the  domains  of  water  protection  and  waste
management,  this  results  in  interest  charge  representing  a  proportion  of  57%  of  the  consumption  of  fixed
capital. In a first approximation, it was assumed that this percentage also applies to the other environmental
domains.

In  the  private  sector,  the  estimate  was  based  on  figures  from  the  net-product  statistics,  in  which  the
percentage distribution of expenditure items is indicated (including expenditure on interest and consumption
of fixed capital). The ratio between interest expenditure and consumption of fixed capital varies from industry
to industry. In order to simplify, an average ratio between consumption of fixed capital and interest payments
was retained.

2.7

Environmental protection expenditure in agriculture

Environmental expenditure in agriculture was not included in the EPE survey of the private sector. Estimates
are  based  on  various  discussions  with  experts  of  the  Swiss  Research  Institute  for  Rural  Economy  and
Agricultural  Engineering.  Agriculture  was  classified  as  a  non-specialised  producer.  Expenditure  made  from
public  funds  (protection  of  nature  and  landscape  –  hedgerows,  forests)  were  not  taken  into  account.  The
main item is water protection (farmyard manure plants and silos for wastewater containment).

72

Annex 1 Switzerland

2.8

Environmental protection expenditure by private households

In addition to the expenditure on the use of characteristic services from the public sector, figures for private
households  in  the  domain  of  protection  of  ambient  air  are  also  estimated.  This  involves  expenditure  on
catalytic converters, low-NOx burners and on exhaust-gas maintenance. The estimates are mainly based on
the number of vehicles and heating installations and unit costs. The refurbishment of heating installations is
the main item. Noise abatement measures are also taken into account in the public sector.

3

Conclusions

The first-ever preparation of the SERIEE tables on the basis of EPE data available for Switzerland, together
with  a  few  additional  estimates,  has  produced  a  variety  of  additional  information  to  supplement  previous
studies:
·  
·   presentation of data compatible with national accounts,
·   additional estimates of data, and
·   basic suitability of Swiss data in relation to SERIEE.

improvement of consistency of data,

The size and the structures of the EPE indicated in the BFS pilot study are basically confirmed by the results
produced  by  the  SERIEE  method.  The  overall  EPE  according  to  SERIEE  is  some  20%  higher,  which  is
basically  attributable  to  the  additional  consideration  of  consumption  of  fixed  capital  and  the  supplementary
estimate of fee payments.

Almost half the national environmental expenditure is made by non-specialised producers. Roughly a third of
the  national  expenditure  is  attributable  to  the  public  sector  as  a  collective  consumer  and  the  private
households.  The  remaining  expenditure  is  made  by  the  specialised  producers  of  the  general  government
(capital  formation).  The  most  significant  characteristic  services  are  produced  in  the  domain  of  water
protection (44%), followed by that of waste management (28%);

An improvement in the database should be aimed at the following:
·   Eco-industry:  it  was  not  possible  to  investigate  eco-industry  data  in  the  study.  Given  the  increasing

importance of this industry, one ought to aim at a separate recording.

·   Detailed evaluation of public finance statistics (EFV) data: by a purposeful evaluation of data available at
the  BFS,  it  would  be  possible  to  obtain  more  detailed  information,  particularly  with  regard  to  the  time
series of fixed capital formation in the public sector.

·   Consumption of fixed capital: the data from financial statistics could be evaluated even better in the area
of the public sector (figures are available, but not published). For the private sector, it would be necessary
to create a database, so that fixed capital formation time-series could also be constructed.

73

Annex 1 Switzerland

Switzerland

Table A: National expenditure for environmental protection

Users/beneficiaries

Producers

General government as 
collective consumer

Specialised producers

Other producers

General 
government

Other

Non 
specialised

Non 
characteristic

Federal 
government 
and cantons

Local 
government

Households as 
actual 
consumers

Rest of the 
world

Total

1 Consumption of specific products
1.1 Final consumption of EPS
     market
     non-market
1.2 Intermediate consumption of EPS
    market
    ancillary
1.3 Final consumption of 
    connected products
    adapted products
1.4 Intermediate consumption of
    connected products
    adapted products

2 Gross capital formation for EP

3 Gross capital formation in specific products
   connected products
   adapted products
   characteristic services

4 Specific transfers
4.1 Subsidies on production
    connected products
    adapted products
    characteristic services
4.2 Other specific transfers
    current transfers
    capital transfers

5 Total uses of residents units
    current uses
    capital uses

6 Less financing by the rest of the world
   current uses
   capital uses

7 National expenditure for EP
   Current
   Capital
million national currency units
EPS: environmental protection services
EPA: environmental protection activities
EP: environmental protection

n.r.
n.r.

n.r.
n.r.

1 278

n.r.
n.r.
n.r.

1 278

1 278

1 278

1 278

n.r.
n.r.

n.r.
n.r.

n.r.
n.r.
n.r.

55

55
55

55
55

55
55

1 527

629

1 527

1 527

629
629

682
682

682

471
471

471

1 454
864
864

590
590

1 354

2 881
1 527
1 354

2 881
1 527
1 354

629
629

682
682

471
471

1 454
1 454

629
629

682
682

471
471

1 454
1 454

4 763
2 017
864
1 153
2 156
629
1 527
590
590

2 632

10

65

10
10

10
10

10
10

65
65

7 460
4 828
2 632

7 460
4 828
2 632

74

Annex 1 Switzerland

Current transactions

Current uses
  intermediate consumption 
      of which characteristic services
  compensation of employees
  consumption of fixed capital
  plus taxes on production
  less other subsidies
  net operating surplus

Output
  non environmental output
  environmental protection output
     non market
     market

Current EP resources
    market output
    current transfers

Capital transactions 

   gross fixed capital formation
   other capital uses, net
   investment grants received
   other capital transfers received

Table B: Production of environmental protection services

Specialised producers

General goverment

Federal government 
and cantons

Local 
government

Total

Non 
specialised 
producers

Total

Other

309

360
209

878

878
683
195

195
195

698

314
686

72

1 769

1 769
471
1 298

1 298
1 298

1 007

674
895

72

2 647

2 647
1 154
1 493

1 493
1 493

299

979

1 278

17

38

55

55
55

55

55

632

254
677

1 563
37
1 526
1 526

1 354
25

1 656

966
1 572

72

4 265
37
4 228
2 735
1 493

1 548
1 493
55

2 632
25

Financing by producers

981

1 450

2 431

2 855

5 286

labour inputs
stock of fixed assets
million national currency units

Table B1: Supply and use of EP services

1 Uses of residents units (purchaser's price)
1.1 Intermediate consumption
1.1.1 of which specialised producers
1.1.2 of which other producers
1.2 Final consumption
1.3 Gross capital formation
2 Exports
Total uses
3 Output (basic price or cost of production)
4 Imports
5 Non deductible VAT
6 Oher taxes less subsidies on products
Total supply
million national currency units

Non market

Market

Ancillary

Total

1 209
55
55

1 154

1 209
1 209

1 493
629

629
864

1 493
1 493

1 526
1 526

1 526

1 526
1 526

4 228
2 210
55
2 155
2 018

4 228
4 228

1 209

1 493

1 526

4 228

75

Table C: Financing of national expenditure

Users/beneficiaries

Annex 1 Switzerland

Households 
as actual 
consumers

Rest of the 
world

Total

General government as 
collective consumer

Federal 
government 
and cantons

Local 
government

682
682

471

471

682

682

471

471

1 454

1 454

1 454

10
10

10

10

2 521
1 443
1 078

3 484

3 484

1 454

7 459

7 459

Producers

Specialised producers

Other producers

General 
government

Other

Non 
specialised

Non 
characteristic

1 278
673
605

1 278

1 278

55
53
2

55

55

25
25

2 855

2 855

2 880

2 880

629

629

629

629

1 General government
   federal and cantons
   local government

2 NPISHs

3 Corporations
   specialised producers
   other producers

4 Households

National expenditure
Plus financing by the rest of the world
Uses of resident units

million national monetary units

76

Annex 1 United Kingdom

United Kingdom

1

Introduction

The UK pilot application31 relies mainly on a pilot survey of industrial firms to assess the expenditure made
by  firms  for  environmental  purposes.  The  pilot  survey  was  complemented  by  a  comparison  of  expenditure
estimates with supply-side estimates of the market of eco-industries and a translation of the UK results into
the SERIEE classification.

The presentation follows the same structure as the UK report, in which the focus is first put on expenditure of
enterprises.

2

Environmental protection expenditure by firms

The UK organised a postal survey on expenditure incurred by industry to achieve environmental objectives.
NACE  codes  C,  D  and  E  were  surveyed.  The  sample  was  drawn  from  the  Inter-Departmental  Business
register, at the firm level. For large firms, available disaggregated business reporting units were used. The
sample  was  stratified  according  to  Department  of  the  Environment  estimates  of  sectional  environmental
expenditure, taking into account firm size.

Employment  was  used  as  a  grossing  variable.  As  regards  capital  expenditure,  end-of-pipe  and  integrated
processes  were  distinguished.  For  current  expenditure,  own  account  and  payments  to  others  (the  majority
for  purchases  of  waste  management  services)  were  separated.  In  practice  subsidies  appeared  to  be
insignificant and revenues (annual income from waste by-products and savings attributed to environmental
investment) rather small.

The  survey  also  provides  environmentally-related  research  and  development,  charges  paid  to  the
environmental regulatory authorities (e.g. for the control of discharges to water), as well as environmentally-
related fines and expenditure on developing cleaner products and purchasing cleaner materials.

3

Comparison of environmental expenditure with supply-side data

The pilot survey has generated estimates of the total resources spent on environmental protection for each
environmental media and type of expenditure (capital / current) by the manufacturing industry. By examining
the supply of the equipment and services purchased to carry out these environmental protection activities, it
is possible to validate the reported levels of certain categories of expenditure.  The principal opportunity for
validation is current expenditure – payments to others, by analysis of the revenues received for the supply of
waste and sewerage disposal services, and receipts to public authorities, such as the Environment Agency.
The survey results and the supply-side data appeared to be of a similar order of magnitude.

The  pilot  survey  results  report  considerably  higher  expenditure  for  effluent  disposal,  but  the  reported
expenditure figures include the cost of disposing of all forms of wastewater, which can include the specialist
disposal  of  hazardous  liquids,  which  generate  expenditures  in  excess  of  effluent  charges.  The  largest
variation is for waste disposal expenditure.  It should be noted though, that the supply-side estimates on the
value  of  industrial  waste  disposal  have  been  calculated  from  data  on  waste  arising  (DoE  sources)  and
average  costs  of  waste  haulage  and  disposal,  both  of  which  are  subject  to  considerable  uncertainty.
Payments to regulatory authorities are the most consistent between the two sources.

4

Conversion of pilot survey data into the SERIEE EPEA format

The key conceptual difference in the two approaches concerns the inclusion of "consumption of fixed capital"
in  the  EPEA  tables,  ensuring  consistency  with  the  Systems  of  National  Accounts  (SNA),  and  hence  GDP.
These  tables  contain  all  three:    "fixed  capital  formation  (capital  investment),  "consumption  of  fixed  capital"
(depreciation of capital stock), and "final and intermediate consumption" (current expenditure). On the UK’s
environmental expenditure, it reports capital and current expenditure, but does not include the consumption
of fixed capital as this is not a cash expenditure.

The key analytical issues arising from the use of the pilot survey to calculate EPEA accounts concern (1) the
scope of the information requested in the survey of industry, and (2) the quality of the reported results.

31 ECOTEC 1996

77

                                                     
Annex 1 United Kingdom

In  terms  of  coverage,  the  survey  of  industry  provides  a  reasonably  good  data  set  with  which  to  complete
Tables A and  B, although as noted above, more detailed information is required in a number of areas. The
main area which needs to be addressed is data on the purchase of adapted (green) products. This has not
been  included  in  the  UK  expenditure  results  due  to  the  low  response  for  this  question.  Other  sources  of
information, however, may be used.  For example, industry (and households) purchase unleaded fuel which,
in  the  majority  of  cases,  is  subsidised  by  central  government.  This  should  show  up  in  the  accounts  as  a
transfer payment to firms and households.  This is perhaps an issue concerning all transfer payments, which
are better examined from public records, rather than from a survey of industry.

To complete Table B, however, more detail is required. Ideally, expenditure on environmental protection for
each user/beneficiary needs to be described according to:
·  

the  type  of  transaction  (intermediate  consumption,  compensation  of  employees,  consumption  of  fixed
capital, taxes on production (less subsidies) and net operating surplus), and
the  nature  of  the  provider  of  purchased  equipment  and  services  (specialised  producer  (government  or
other); non-specialised producer (as secondary or ancillary output)).

·  

With  regard  to  the  first  of  these  considerations,  the  information  collected  from  the  pilot  survey  of  industry
provides  a  reasonable  basis  from  which  to  estimate  the  different  types  of  transactions.  Intermediate
consumption  and  compensation  for  employees  can  be  estimated  from  direct  operating  expenditures  and
environmental  labour  costs,  respectively,  and  as  a  first-cut  estimate,  consumption  of  fixed  capital  can  be
estimated from capital investments (assuming a ratio of consumption of fixed capital to fixed capital formation
representing the maturity of the market32.  Specific information is requested on taxes and subsidies.

With  regard  to  the  second  consideration,  information  on  the  nature  of  providers  of  environmental
equipment/services are not requested in the survey of industry, although with a knowledge of the structure of
the eco-industry, an approximate first estimate can be made.

The survey, however, cannot capture the details of the transactions of specialised producers, and a separate
enquiry is required to collect this information.

32 Ideally, one would estimate the current capital stock in each environmental domain, and weigh by an appropriate depreciation rate
(e.g.  over  20  to  30  years).  Also  additional  work  needs  to  be  carried  out  to  be  able  to  obtain  a  representative  picture  of  the  net
operating surplus, compensation to employees, taxes etc. which form an integral part of Table B.

78

                                                     
Annex 1 United Kingdom

United Kingdom

Table A: National expenditure for environmental protection

Users/beneficiaries

Producers

General government as 
collective consumer

Specialised producers

Other producers

General 
government

Other

Non 
specialised

Non 
characteristic

Central 
government

Local 
government

Households as 
actual 
consumers

Rest of the 
world

Total

1 Consumption of specific products
1.1 Final consumption of EPS
     market
     non-market
1.2 Intermediate consumption of EPS
    market
    ancillary
1.3 Final consumption of 
    connected products
    adapted products
1.4 Intermediate consumption of
    connected products
    adapted products

2 Gross capital formation for EP

3 Gross capital formation in specific products
   connected products
   adapted products
   characteristic services

4 Specific transfers
4.1 Subsidies on production
    connected products
    adapted products
    characteristic services
4.2 Other specific transfers
    current transfers
    capital transfers

5 Total uses of residents units
    current uses
    capital uses

6 Less financing by the rest of the world
   current uses
   capital uses

7 National expenditure for EP
   Current
   Capital

n.r.
n.r.

n.r.
n.r.

274

n.r.
n.r.
n.r.

274

274

274

274

1,728

314

1,728
1,240
488

314
314

1,291
1,291

1,291

510
440

440
70
70

1,704
1,072

1,072

632

n.r.
n.r.

n.r.
n.r.

1,169

1,203

n.r.
n.r.
n.r.

1,169

1,169

2,931
1,728
1,203

314
314

510
510

1,291
1,291

1,704
1,704

1,169

1,169

2,931
1,728
1,203

314
314

510
510

1,291
1,291

1,704
1,704

million national currency units
Note: this table does not include consumption of fixed capital. Including CFC would increase the current national expenditure by 1,773 billions UK £ (i.e. 36,1% ).
EPS: environmental protection services
EPA: environmental protection activities
EP: environmental protection

5,547
2,803

2,803
2,112
1,624
488

632

2,646

8,193
5,547
2,646

8,193
5,547
2,646

79

Annex 1 United Kingdom

Table B: Production of environmental protection services

Specialised producers

General goverment

Central           

government

Local 
government

Total

Non 
specialised 
producers

Total

Other

Current transactions

Current uses
  intermediate consumption 
      of which characteristic services
  compensation of employees
  consumption of fixed capital
  plus taxes on production
  less other subsidies
  net operating surplus

Output
  non environmental output
  environmental protection output
     non market
     market

Current EP resources
    market output
    current transfers

Capital transactions 

   gross fixed capital formation
   other capital uses, net
   investment grants received
   other capital transfers received

Financing by producers

labour inputs
stock of fixed assets
million national currency units;  including consumption of fixed capital (1,773 billions UK £)

753

978
150

1,470

1,226
668

310

178
955

1,881

3,364

1,443

1,881
1,881

3,364

3,364

1,443
1,443

2,533

2,382
1,773

6,688

6,688
3,324
3,364

274

1,169

1,203

2,646

80

Annex 2 Detailed results

Annex 2: Detailed results: Tables A and B by domain and country

Wastewater management Table A

Country
Domain

Rate of exchange
population
GDP

In million national currency

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Capital formation in adapted & connected prod.
Specific transfers
Total

In million ecu

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Capital formation in adapted & connected prod.
Specific transfers
Total

as a % of GDP

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Capital formation in adapted & connected prod.
Specific transfers
Total

Ecu/inhabitant

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Capital formation in adapted & connected prod.
Specific transfers
Total

Year

1995

Austria
Wastewater management

13,18 ATS/ecu
8 047,5 thousand
180,2 billion ecu

Producers

Specialised

General government
Central 
Local

Corporations

12 796

12 796

1 095

1 107

1 095

30
11 360

Producers

Specialised

General government
Central 
Local

Corporations

971

971

83

83

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

Goverment

Households

Rest of the 
World

Total

Non 
specialised

10 223

10 223
6 464
3 759

776

776
490
285

84

2
862

Non 
specialised

0,431%

0,431%
0,272%
0,158%

Consumers

Goverment

Households

Rest of the 
World

Total

1 192
1 192

1 192

7 639
7 639
7 633
6

237
0

1 192

7 876

Consumers

19 054
8 830
7 633
1 198
10 223
6 464
3 759
237
14 997

30
34 318

90
90

90

580
580
579
0

18
0

90

598

Consumers

1 446
670
579
91
776
490
285
18
1 138

2
2 604

Goverment

Households

Rest of the 
World

Total

0,050%
0,050%

0,050%

0,322%
0,322%
0,321%
0,000%

0,010%
0,000%

0,802%
0,372%
0,321%
0,050%
0,431%
0,272%
0,158%
0,010%
0,632%

0,001%
1,445%

0,539%

0,046%

0,047%

0,539%

0,046%

0,001%
0,478%

0,050%

0,332%

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

96,4

96,4
60,9
35,4

10,4

0,3
107,1

10,3

10,3

120,6

120,6

Consumers

Goverment

Households

Rest of the 
World

Total

11,2
11,2

11,2

72,0
72,0
72,0
0,1

2,2
0,0

11,2

74,3

179,6
83,3
72,0
11,3
96,4
60,9
35,4
2,2
141,4

0,3
323,5

81

Denmark
Wastewater management

7,54 DKR/ecu
5 206,5 thousand
128,0 billion ecu

Producers

Specialised

General government
Central 
Local

Corporations

Annex 2 Detailed results

Year

1994

Non 
specialised

1 199

1 199
1 199

2 456

2 456

1 199

Consumers

Goverment

Households

Rest of the 
World

Total

3 036
3 036
3 036

12
3 048

4 235
3 036
3 036

1 199
1 199

2 456

12
6 703

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment

Households

Rest of the 
World

Total

326

326

Producers

Specialised

General government
Central 
Local

Corporations

159

159
159

159

Non 
specialised

0,124%

0,124%
0,124%

0,254%

0,254%

0,124%

Producers

Specialised

General government
Central 
Local

Corporations

403
403
403

2
404

562
403
403

159
159

326

2
889

Consumers

Goverment

Households

Rest of the 
World

Total

0,315%
0,315%
0,315%

0,001%
0,316%

Consumers

0,439%
0,315%
0,315%

0,124%
0,124%

0,254%

0,001%
0,694%

Non 
specialised

Goverment

Households

Rest of the 
World

Total

30,5

30,5
30,5
nr

62,6

62,6

30,5

77,3
77,3
77,3

0,3
77,6

107,9
77,3
77,3

30,5
30,5

62,6

0,3
170,7

Country
Domain

Rate of exchange
population
GDP

In million national currency

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Capital formation in adapted & connected prod.
Specific transfers
Total

In million ecu

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Capital formation in adapted & connected prod.
Specific transfers
Total

as a % of GDP

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Capital formation in adapted & connected prod.
Specific transfers
Total

Ecu/inhabitant

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Capital formation in adapted & connected prod.
Specific transfers
Total

82

Annex 2 Detailed results

Country
Domain

Rate of exchange
population
GDP

In million national currency

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Capital formation in adapted & connected prod.
Specific transfers
Total

In million ecu

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Capital formation in adapted & connected prod.
Specific transfers
Total

as a % of GDP

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Capital formation in adapted & connected prod.
Specific transfers
Total

Ecu/inhabitant

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Capital formation in adapted & connected prod.
Specific transfers
Total

France
Wastewater management

6,58 FFR/ecu
57 899,5 thousand
1 139,3 billion ecu

Year

1994

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

18 584

18 584
12 065
6 519

826

2 352

826

548
21 484

13 686

13 686

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

2 824

2 824
1 834
991

357

83
3 265

126

126

2 080

2 080

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

0,248%

0,248%
0,161%
0,087%

0,183%

0,011%

0,031%

0,183%

0,011%

0,007%
0,287%

Consumers

Goverment

Households

Rest of the 
World

Total

11 926
11 926
11 926

1 175

4 086
478
17 665

30 510
11 926
11 926

18 584
12 065
6 519
1 175
16 864
4 086
1 026
53 661

Consumers

Goverment

Households

Rest of the 
World

Total

1 812
1 812
1 812

179

621
73
2 685

4 637
1 812
1 812

2 824
1 834
991
179
2 563
621
156
8 155

Consumers

Goverment

Households

Rest of the 
World

Total

0,159%
0,159%
0,159%

0,016%

0,055%
0,006%
0,236%

0,407%
0,159%
0,159%

0,248%
0,161%
0,087%
0,016%
0,225%
0,055%
0,014%
0,716%

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment

Households

Rest of the 
World

Total

48,8

48,8
31,7
17,1

6,2

1,4
56,4

31,3
31,3
31,3

3,1

10,7
1,3
46,4

35,9

35,9

2,2

2,2

80,1
31,3
31,3

48,8
31,7
17,1
3,1
44,3
10,7
2,7
140,9

83

Germany
Wastewater management

1,87 DM/ecu

81 678,0 thousand
1 880,2 billion ecu

Producers

Specialised

General government
Central 
Local

Corporations

Annex 2 Detailed results

Year

1995

Consumers

Goverment

Households

Rest of the 
World

Total

524
524

524

12 192
12 192
12 192

Non 
specialised

15 518

15 518
7 356
8 162

9 826

250
10 076

6 846

2 769

6 846

18 287

524

12 192

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

8 298

8 298
3 934
4 365

Consumers

Goverment

Households

Rest of the 
World

Total

280
280

280

6 520
6 520
6 520

5 255

134
5 388

3 661

1 481

3 661

9 779

280

6 520

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

0,441%

0,441%
0,209%
0,232%

Consumers

Goverment

Households

Rest of the 
World

Total

0,015%
0,015%

0,015%

0,347%
0,347%
0,347%

0,279%

0,007%
0,287%

0,195%

0,079%

0,195%

0,520%

0,015%

0,347%

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

101,6

Consumers

Goverment

Households

Rest of the 
World

Total

3,4
3,4

3,4

79,8
79,8
79,8

101,6
48,2
53,4

18,1

44,8

44,8

119,7

3,4

79,8

64,3

1,6
66,0

28 234
12 716
12 192
524
15 518
7 356
8 162

19 441

250
47 925

15 098
6 800
6 520
280
8 298
3 934
4 365

10 396

134
25 628

0,803%
0,362%
0,347%
0,015%
0,441%
0,209%
0,232%

0,553%

0,007%
1,363%

184,9
83,3
79,8
3,4
101,6
48,2
53,4

127,3

1,6
313,8

Country
Domain

Rate of exchange
population
GDP

In million national currency

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Capital formation in adapted & connected prod.
Specific transfers
Total

In million ecu

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Capital formation in adapted & connected prod.
Specific transfers
Total

as a % of GDP

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Capital formation in adapted & connected prod.
Specific transfers
Total

Ecu/inhabitant

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Capital formation in adapted & connected prod.
Specific transfers
Total

84

Annex 2 Detailed results

Country
Domain

Rate of exchange
population
GDP

In million national currency

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Capital formation in adapted & connected prod.
Specific transfers
Total

In million ecu

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Capital formation in adapted & connected prod.
Specific transfers
Total

as a % of GDP

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Capital formation in adapted & connected prod.
Specific transfers
Total

Ecu/inhabitant

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Capital formation in adapted & connected prod.
Specific transfers
Total

The Netherlands
Wastewater management

2,31 DGL/ecu
15 069,5 thousand
244,5 billion ecu

Year

1991

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

1 326

1 326
633
693
31
342

130
1 829

7

7

723

723

Consumers

Goverment

Households

Rest of the 
World

Total

106
106

106

1 384
1 384
1 384

284
1 668

106

Consumers

2 816
1 490
1 384
106
1 326
633
693
31
1 072

414
4 333

Producers

Specialised

General government
Central 
Local

Corporations

313

313

3

3

Non 
specialised

Goverment

Households

Rest of the 
World

Total

574

574
274
300
13
148

56
792

46
46

46

46

599
599
599

123
722

1 219
645
599
46
574
274
300
13
464

179
1 876

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

0,235%

0,128%

0,001%

0,128%

0,001%

Producers

Specialised

General government
Central 
Local

Corporations

20,8

20,8

0,2

0,2

Consumers

Goverment

Households

Rest of the 
World

Total

0,019%
0,019%

0,019%

0,245%
0,245%
0,245%

0,019%

0,050%
0,295%

Consumers

0,499%
0,264%
0,245%
0,019%
0,235%
0,112%
0,123%
0,005%
0,190%

0,073%
0,767%

0,235%
0,112%
0,123%
0,005%
0,061%

0,023%
0,324%

Non 
specialised

Goverment

Households

Rest of the 
World

Total

38,1

38,1
18,2
19,9
0,9
9,8

3,7
52,5

3,0
3,0

3,0

39,8
39,8
39,8

3,0

8,2
47,9

80,9
42,8
39,8
3,0
38,1
18,2
19,9
0,9
30,8

11,9
124,5

85

Annex 2 Detailed results

Sweden
Wastewater management

9,16 SEK/ecu
8 780,5 thousand
174,2 billion ecu

Year

1994

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment

Households

Rest of the 
World

Total

636

636
636

5 912
5 912
5 912

2 246

2 246

636

5 912

6 548
5 912
5 912

636
636

2 246

8 158

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment

Households

Rest of the 
World

Total

245

245

Producers

Specialised

General government
Central 
Local

Corporations

69

69
69

69

Non 
specialised

0,04%

0,04%
0,04%

645
645
645

645

715
645
645

69
69

245

891

Consumers

Goverment

Households

Rest of the 
World

Total

0,37%
0,37%
0,37%

0,14%

0,14%

0,04%

0,37%

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment

Households

Rest of the 
World

Total

7,9

7,9
7,9

7,9

73,5
73,5
73,5

81,4
73,5
73,5

7,9
7,9

27,9

73,5

101,4

27,9

27,9

0,41%
0,37%
0,37%

0,04%
0,04%

0,14%

0,51%

Country
Domain

Rate of exchange
population
GDP

In million national currency

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Capital formation in adapted & connected prod.
Specific transfers
Total

In million ecu

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Capital formation in adapted & connected prod.
Specific transfers
Total

as a % of GDP

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Capital formation in adapted & connected prod.
Specific transfers
Total

Ecu/inhabitant

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Capital formation in adapted & connected prod.
Specific transfers
Total

86

Annex 2 Detailed results

Country
Domain

Rate of exchange
population
GDP

in million national currency

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

In million ecu

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

as a % of GDP

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

€/inhabitant

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

Switzerland
Wastewater management

1,775 SWF/ecu
6 843,0 thousand
188,3 billion ecu

Year

1992/93

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment

Households

Rest of the 
World

Total

153
153

153

544
544
544

838

838
464
374

409

1 247

153

544

1 535
697
544
153
838
464
374

1 075

2 610

666

666

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment

Households

Rest of the 
World

Total

472

472
261
211

230

703

Non 
specialised

0,251%

0,251%
0,139%
0,112%

0,122%

86
86

86

306
306
306

865
393
306
86
472
261
211

606

86

306

1 471

Consumers

Goverment

Households

Rest of the 
World

Total

0,046%
0,046%

0,046%

0,163%
0,163%
0,163%

0,459%
0,209%
0,163%
0,046%
0,251%
0,139%
0,112%

0,322%

0,781%

0,373%

0,046%

0,163%

375

375

Producers

Specialised

General government
Central 
Local

Corporations

0,199%

0,199%

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment

Households

Rest of the 
World

Total

12,6
12,6

12,6

44,8
44,8
44,8

69,0

69,0
38,2
30,8

33,7

102,7

12,6

44,8

54,9

54,9

126,4
57,4
44,8
12,6
69,0
38,2
30,8

88,5

214,9

87

Annex 2 Detailed results

Australia
Wastewater management

1,648 AU$/ecu
18 071,8 thousand
308,8 billion ecu

Year

1995/96

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment

Households

Rest of the 
World

Total

377

377
265
112

271
9
657

419

419

121
121

121

1 729
1 729
1 729

121

1 729

Consumers

2 228
1 851
1 729
121
377
265
112

690
9
2 927

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

Goverment

Households

Rest of the 
World

Total

229

229
161
68

165
5
399

74
74

74

1 049
1 049
1 049

74

1 049

254

254

1 352
1 123
1 049
74
229
161
68

419
5
1 776

Producers

Specialised

General government
Central 
Local

Corporations

0,082%

0,082%

Non 
specialised

0,074%

0,074%
0,052%
0,022%

0,053%
0,002%
0,129%

Consumers

Goverment

Households

Rest of the 
World

Total

0,024%
0,024%

0,024%

0,340%
0,340%
0,340%

0,024%

0,340%

0,438%
0,364%
0,340%
0,024%
0,074%
0,052%
0,022%

0,136%
0,002%
0,575%

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment

Households

Rest of the 
World

Total

12,7

12,7
8,9
3,8

9,1
0,3
22,1

4,1
4,1

4,1

58,1
58,1
58,1

4,1

58,1

14,1

14,1

74,8
62,1
58,1
4,1
12,7
8,9
3,8

23,2
0,3
98,3

Country
Domain

Rate of exchange
population
GDP

in million national currency

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

In million ecu

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

as a % of GDP

Current uses of characteristic services
             final
               market
               non market
             intermediate
               market
               ancillary
Adapted & connected products
GFCF
Specific transfers
Total

€/inhabitant

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

88

Annex 2 Detailed results

Country
Domain

Rate of exchange
population
GDP

in million national currency

Current uses of characteristic services
             final
               market
               non market
             intermediate
               market
               ancillary
Adapted & connected products
GFCF for characteristic activities
Specific transfers
Total

In million ecu

Current uses of characteristic services
             final
               market
               non market
             intermediate
               market
               ancillary
Adapted & connected products
GFCF
Specific transfers
Total

as a % of GDP

Current use of characteristic services
             final
               market
               non market
             intermediate
               market
               ancillary
Adapted & connected products
GFCF
Specific transfers
Total

€/inhabitant

Current uses of characteristic services
             final
               market
               non market
             intermediate
               market
               ancillary
Adapted & connected products
GFCF
Specific transfers
Total

Japan
Wastewater management

123 Yen/ecu
125 727 thousand
3 916,7 billion ecu

Producers

Specialised

General government
Central 
Local

Corporations

3 399 300

3 399 300

Producers

Specialised

General government
Central 
Local

Corporations

27 637

27 637

Producers

Specialised

General government
Central 
Local

Corporations

0,706%

0,706%

Year

1995

Non 
specialised

638 900

638 900
563 800
75 100

39 300

678 200

Non 
specialised

5 194

5 194
4 584
611

320

5 514

Non 
specialised

0,133%

0,133%
0,117%
0,016%

0,008%

0,141%

Consumers

Goverment

Households

Rest of the 
World

Total

1 082 400
1 082 400
1 082 400

57 800

18 000
1 158 200

1 721 300
1 082 400
1 082 400

638 900
563 800
75 100
57 800
3 438 600
18 000
5 235 700

Consumers

Goverment

Households

Rest of the 
World

Total

8 800
8 800
8 800

470

146
9 416

13 994
8 800
8 800

5 194
4 584
611
470
27 956
146
42 567

Consumers

Goverment

Households

Rest of the 
World

Total

0,225%
0,225%
0,225%

0,012%

0,004%
0,240%

0,357%
0,225%
0,225%

0,133%
0,117%
0,016%
0,012%
0,714%
0,004%
1,087%

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment

Households

Rest of the 
World

Total

41,3

41,3
36,5
4,9

2,5

43,9

70,0
70,0
70,0

3,7

1,2
74,9

219,8

219,8

111,3
70,0
70,0

41,3
36,5
4,9
3,7
222,4
1,2
338,6

89

Annex 2 Detailed results

Waste management Table A

Country
Domain

Rate of exchange
population
GDP

In million national currency

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total expenditure

In million ecu

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total expenditure

as a % of GDP

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total expenditure

E+B31cu/inhabitant

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total expenditure

Austria
Waste management

13,18 ATS/ecu
8 047,5 thousand
180,2 billion ecu

Year

1995

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

13 538

13 538
8 909
4 629

400
3
13 941

1 431

1 431

1 941

1 941

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

1 027

109

109

147

147

Producers

Specialised

General government
Central 
Local

Corporations

0,060%

0,082%

0,060%

0,082%

Producers

Specialised

General government
Central 
Local

Corporations

13,5

13,5

18,3

18,3

1 027
676
351

30
0
1 058

Non 
specialised

0,570%

0,570%
0,375%
0,195%

0,017%
0,000%
0,587%

Non 
specialised

127,6

127,6
84,0
43,6

3,8
0,0
131,4

Consumers

Goverment Households

Rest of 
the World

Total

839
839

839

5 635
5 635
5 600
36

897

839

6 532

Consumers

20 012
6 475
5 600
875
13 538
8 909
4 629
897
3 773
3
24 685

Goverment Households

Rest of 
the World

Total

64
64

64

428
428
425
3

68

64

496

Consumers

1 518
491
425
66
1 027
676
351
68
286
0
1 873

Goverment Households

Rest of 
the World

Total

0,035%
0,035%

0,035%

0,237%
0,237%
0,236%
0,001%

0,038%

0,035%

0,275%

Consumers

0,843%
0,273%
0,236%
0,037%
0,570%
0,375%
0,195%
0,038%
0,159%
0,000%
1,039%

Goverment Households

Rest of 
the World

Total

7,9
7,9

7,9

53,1
53,1
52,8
0,3

8,5

7,9

61,6

188,7
61,0
52,8
8,2
127,6
84,0
43,6
8,5
35,6
0,0
232,7

90

Annex 2 Detailed results

Country
Domain

Rate of exchange
population
GDP

In million national currency

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total expenditure

In million ecu

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

as a % of GDP

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

E+B31cu/inhabitant

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

Denmark
Waste management

7,54 DKR/ecu
5 206,5 thousand
128,0 billion ecu

Year

1994

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

5 173

5 173
5 173

24
5 197

706

706

Consumers

Goverment Households

Rest of 
the World

Total

2 786
2 786
2 786

11
2 797

7 959
2 786
2 786

5 173
5 173

706
35
8 700

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment Households

Rest of 
the World

Total

686

686
686

3
689

Non 
specialised

0,536%

0,536%
0,536%

0,002%
0,538%

Non 
specialised

131,8

94

94

Producers

Specialised

General government
Central 
Local

Corporations

0,073%

0,073%

Producers

Specialised

General government
Central 
Local

Corporations

131,8
131,8
nr

0,6
132,4

18,0

18,0

369
369
369

1
371

1 056
369
369

686
686

94
5
1 154

Consumers

Goverment Households

Rest of 
the World

Total

0,289%
0,289%
0,289%

0,001%
0,290%

0,825%
0,289%
0,289%

0,536%
0,536%

0,073%
0,004%
0,901%

Consumers

Goverment Households

Rest of 
the World

Total

71,0
71,0
71,0

0,3
71,2

202,7
71,0
71,0

131,8
131,8

18,0
0,9
221,6

91

Annex 2 Detailed results

Year

1994

France
Waste management

6,58 FRF/Ecu
57 899,5 thousand
1 139,3 billion ecu

Producers

Specialised

General government
Central 
Local

Corporations

2 105

2 105

1 331

1 331

Producers

Specialised

General government
Central 
Local

Corporations

320

320

202

202

0,028%

0,018%

0,028%

0,018%

Producers

Specialised

General government
Central 
Local

Corporations

5,5

5,5

3,5

3,5

Non 
specialised

11 778

11 778
8 672
3 106

826
256
12 860

Non 
specialised

1 790

1 790
1 318
472

126
39
1 954

0,157%
0,116%
0,041%

0,011%
0,003%
0,172%

Consumers

Goverment Households

Rest of 
the World

Total

20 653
20 653

20 653

1 648

20 653

1 648

Consumers

32 431
20 653

20 653
11 778
8 672
3 106
1 648
4 262
256
38 597

Goverment Households

Rest of 
the World

Total

3 139
3 139

3 139

250

250

3 139

Consumers

4 929
3 139

3 139
1 790
1 318
472
250
648
39
5 866

Goverment Households

Rest of 
the World

Total

0,275%
0,275%

0,275%

0,022%

0,275%

0,022%

Consumers

0,433%
0,275%

0,275%
0,157%
0,116%
0,041%
0,022%
0,057%
0,003%
0,515%

Non 
specialised

Goverment Households

Rest of 
the World

Total

30,9

30,9
22,8
8,2

2,2
0,7
33,8

54,2
54,2

54,2

54,2

4,3

4,3

85,1
54,2

54,2
30,9
22,8
8,2
4,3
11,2
0,7
101,3

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

0,157%

Country
Domain

Rate of exchange
population
GDP

In million national currency

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total expenditure

In million ecu

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total expenditure

as a % of GDP

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total expenditure

E+B31cu/inhabitant

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total expenditure

92

Annex 2 Detailed results

Country
Domain

Rate of exchange
population
GDP

In million national currency

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total expenditure

In million ecu

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

as a % of GDP

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

E+B31cu/inhabitant

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

Germany
Waste management

1,87 DM/Ecu

81 678,0 thousand
1 880,2 billion ecu

Producers

Specialised

General government
Central 
Local

Corporations

1 447

1 447

3 229

3 229

Producers

Specialised

General government
Central 
Local

Corporations

774

774

1 727

1 727

Producers

Specialised

General government
Central 
Local

Corporations

0,041%

0,041%

0,092%

0,092%

Producers

Specialised

General government
Central 
Local

Corporations

9,5

9,5

21,1

21,1

Year

1995

Non 
specialised

19 256

19 256
15 399
3 857

740
81
20 077

Non 
specialised

10 297

10 297
8 235
2 063

396
43
10 736

Non 
specialised

0,548%

0,548%
0,438%
0,110%

0,021%
0,002%
0,571%

Non 
specialised

126,1

126,1
100,8
25,3

4,8
0,5
131,4

Consumers

Goverment Households

Rest of 
the World

Total

307
307

307

7 846
7 846
7 846

41
7 887

307

Consumers

27 409
8 153
7 846
307
19 256
15 399
3 857

5 416
122
32 947

Goverment Households

Rest of 
the World

Total

164
164

164

4 196
4 196
4 196

22
4 218

164

Consumers

14 657
4 360
4 196
164
10 297
8 235
2 063

2 896
65
17 619

Goverment Households

Rest of 
the World

Total

0,009%
0,009%

0,009%

0,223%
0,223%
0,223%

0,009%

0,001%
0,224%

Consumers

0,780%
0,232%
0,223%
0,009%
0,548%
0,438%
0,110%

0,154%
0,003%
0,937%

Goverment Households

Rest of 
the World

Total

2,0
2,0

2,0

2,0

51,4
51,4
51,4

0,3
51,6

179,5
53,4
51,4
2,0
126,1
100,8
25,3

35,5
0,8
215,7

93

Annex 2 Detailed results

The Netherlands
Waste management

2,31 DGL/ecu
15 069,5 thousand
244,5 billion ecu

Year

1991

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

1 608

Consumers

Goverment Households

Rest of 
the World

Total

858
858
858

2

2
862

104
104

104

104

Consumers

2 570
962
858
104
1 608
1 480
128
2
839
7
3 418

1 608
1 480
128

127
5
1 740

Non 
specialised

Goverment Households

Rest of 
the World

Total

696

696
641
55

55
2
753

45
45

45

45

371
371
371

1

1
373

1 113
416
371
45
696
641
55
1
363
3
1 480

516

516

196

196

Producers

Specialised

General government
Central 
Local

Corporations

223

223

85

85

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

0,285%

0,285%
0,262%
0,023%

0,022%
0,001%
0,308%

0,091%

0,035%

0,091%

0,035%

Consumers

Goverment Households

Rest of 
the World

Total

0,018%
0,018%

0,018%

0,018%

0,152%
0,152%
0,152%

0,000%

0,000%
0,153%

0,455%
0,170%
0,152%
0,018%
0,285%
0,262%
0,023%
0,000%
0,149%
0,001%
0,605%

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment Households

Rest of 
the World

Total

46,2

46,2
42,5
3,7

3,6
0,1
50,0

3,0
3,0

3,0

3,0

24,6
24,6
24,6

0,1

0,1
24,8

73,8
27,6
24,6
3,0
46,2
42,5
3,7
0,1
24,1
0,2
98,2

14,8

14,8

5,6

5,6

Country
Domain

Rate of exchange
population
GDP

In million national currency

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total uses

In million ecu

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total uses

as a % of GDP

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total uses

E+B31cu/inhabitant

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total uses

94

Annex 2 Detailed results

Country
Domain

Rate of exchange
population
GDP

In million national currency

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

In million ecu

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

as a % of GDP

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

E+B31cu/inhabitant

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

Switzerland
Waste management

1,775 SWF/ecu
6 908,0 thousand
195,3 billion ecu

Year

1992/93

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment Households

Rest of 
the World

Total

489

489
154
335

218

707

644
644

644

307
307
307

644

307

Consumers

1 440
951
307
644
489
154
335

741

2 181

Non 
specialised

Goverment Households

Rest of 
the World

Total

363
363

363

173
173
173

811
536
173
363
275
87
189

417

363

173

1 228

Consumers

Goverment Households

Rest of 
the World

Total

0,186%
0,186%

0,186%

0,089%
0,089%
0,089%

0,415%
0,274%
0,089%
0,186%
0,141%
0,044%
0,097%

0,214%

0,629%

523

523

Producers

Specialised

General government
Central 
Local

Corporations

294

294

Producers

Specialised

General government
Central 
Local

Corporations

0,151%

0,151%

275

275
87
189

123

398

Non 
specialised

0,141%

0,141%
0,044%
0,097%

0,063%

0,204%

0,186%

0,089%

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment Households

Rest of 
the World

Total

39,9

39,9
12,6
27,3

17,8

57,7

52,5
52,5

52,5

25,0
25,0
25,0

52,5

25,0

117,4
77,6
25,0
52,5
39,9
12,6
27,3

60,4

177,8

42,6

42,6

95

Annex 2 Detailed results

Australia
Waste management

1,648 AU$/ecu
18 071,8 thousand
308,8 billion ecu

Year

1995/96

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

958

319

319

190

190

Producers

Specialised

General government
Central 
Local

Corporations

581

581
387
194

118
1
700

194

194

116

116

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

0,188%

Consumers

Goverment Households

Rest of 
the World

Total

256
256

256

458
458
458

256

458

Consumers

1 671
714
458
256
958
638
319

703
1
2 376

958
638
319

194
1
1 153

Non 
specialised

Goverment Households

Rest of 
the World

Total

155
155

155

278
278
278

155

278

Consumers

1 014
433
278
155
581
387
194

427
1
1 442

Goverment Households

Rest of 
the World

Total

0,050%
0,050%

0,050%

0,090%
0,090%
0,090%

0,050%

0,090%

Consumers

0,329%
0,140%
0,090%
0,050%
0,188%
0,125%
0,063%

0,138%
0,000%
0,467%

0,188%
0,125%
0,063%

0,038%
0,000%
0,227%

Non 
specialised

Goverment Households

Rest of 
the World

Total

32,2

32,2
21,4
10,7

6,5
0,0
38,7

8,6
8,6

8,6

15,4
15,4
15,4

8,6

15,4

56,1
24,0
15,4
8,6
32,2
21,4
10,7

23,6
0,0
79,8

0,063%

0,037%

0,063%

0,037%

Producers

Specialised

General government
Central 
Local

Corporations

10,7

10,7

6,4

6,4

Country
Domain

Rate of exchange
population
GDP

In million national currency

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

In million ecu

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

as a % of GDP

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

E+B31cu/inhabitant

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

96

Annex 2 Detailed results

Country
Domain

Rate of exchange
population
GDP

In million national currency

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

In million ecu

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

as a % of GDP

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

E+B31cu/inhabitant

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

Year

1995

Japan
Waste management

123 Yen/ecu
125 727,0 thousand
3 916,7 billion ecu

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

1 773 600

1 773 600
1 738 400
35 200

Consumers

Goverment Households

Rest of 
the World

Total

1 356 400
1 356 400
1 356 400

3 130 000
1 356 400
1 356 400

1 773 600
1 738 400
35 200

1 041 000

41 000

18 500

41 000

1 792 100

1 356 400

4 171 000

981 500

981 500

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

14 420

14 420
14 133
286

150

14 570

333

333

7 980

7 980

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

0,368%

0,368%
0,361%
0,007%

Consumers

Goverment Households

Rest of 
the World

Total

11 028
11 028
11 028

11 028

25 447
11 028
11 028

14 420
14 133
286

8 463

33 911

Consumers

Goverment Households

Rest of 
the World

Total

0,282%
0,282%
0,282%

0,650%
0,282%
0,282%

0,368%
0,361%
0,007%

0,216%

0,866%

0,204%

0,204%

0,009%

0,004%

0,009%

0,372%

0,282%

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

114,7

63,5

63,5

2,7

2,7

114,7
112,4
2,3

1,2

115,9

Consumers

Goverment Households

Rest of 
the World

Total

87,7
87,7
87,7

87,7

202,4
87,7
87,7

114,7
112,4
2,3

67,3

269,7

97

Annex 2 Detailed results

Air protection Table A

Country
Domain

Rate of exchange
population
GDP

In million national currency

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

In million ecu

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

as a % of GDP

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

Ecu/inhabitant

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

Austria
air

13,18 ATS/ecu
8 047,5 thousand
180,2 billion ecu

Year

1995

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

2 302

2 302

2 302

1 756
2
4 060

24

24

Consumers

Goverment Households

Rest of the 
World

Total

719
719
648
71

1 941

96
2 756

3 021
719
648
71
2 302

2 302
1 941
1 780
98
6 840

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment Households

Rest of the 
World

Total

175

175

175

133
0
308

2

2

55
55
49
5

147

7
209

229
55
49
5
175

175
147
135
7
519

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

0,097%

0,097%

0,097%

0,074%
0,000%
0,171%

0,001%

0,001%

Consumers

Goverment Households

Rest of the 
World

Total

0,030%
0,030%
0,027%
0,003%

0,082%

0,004%
0,116%

0,127%
0,030%
0,027%
0,003%
0,097%

0,097%
0,082%
0,075%
0,004%
0,288%

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment Households

Rest of the 
World

Total

21,7

21,7

21,7

16,6
0,0
38,3

0,2

0,2

6,8
6,8
6,1
0,7

18,3

0,9
26,0

28,5
6,8
6,1
0,7
21,7

21,7
18,3
16,8
0,9
64,5

98

Annex 2 Detailed results

Country
Domain

Rate of exchange
population
GDP

In million national currency

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

In million ecu

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

as a % of GDP

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

Ecu/inhabitant

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

Denmark
air

7,54 DKR/ecu
5 206,5 thousand
128,0 billion ecu

Year

1994

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment Households

Rest of the 
World

Total

4
4

4

4

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment Households

Rest of the 
World

Total

1
1

1

1

4
4

4

4

1
1

1

1

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment Households

Rest of the 
World

Total

0,000%
0,000%

0,000%

0,000%
0,000%

0,000%

0,000%

0,000%

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment Households

Rest of the 
World

Total

0,1
0,1

0,1

0,1

nr

0,1
0,1

0,1

0,1

99

Annex 2 Detailed results

Country
Domain

Rate of exchange
population
GDP

In million national currency

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

In million ecu

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

as a % of GDP

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

Ecu/inhabitant

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

France
air

6,58 FFR/Ecu
57 899,5 thousand
1 139,3 billion ecu

Year

1994

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment Households

Rest of the 
World

Total

5 115
27

27
5 088

5 088
275
1 636
628
7 654

40

40

5 115,0
27,0

27,0
5 088,0

5 088,0
1 552,0
1 676,0
1 517,0
9 860,0

1 277

889
2 166

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment Households

Rest of the 
World

Total

777
4

4
773

773
42
249
95
1 163

6

6

777
4

4
773

773
236
255
231
1 498

194

135
329

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment Households

Rest of the 
World

Total

0,068%
0,000%

0,000%
0,068%

0,068%
0,004%
0,022%
0,008%
0,102%

0,001%

0,001%

0,068%
0,000%

0,000%
0,068%

0,068%
0,021%
0,022%
0,020%
0,132%

0,017%

0,012%
0,029%

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment Households

Rest of the 
World

Total

13,4
0,1

0,1
13,4

13,4
0,7
4,3
1,6
20,1

0,1

0,1

13,4
0,1

0,1
13,4

13,4
4,1
4,4
4,0
25,9

3,4

2,3
5,7

100

Annex 2 Detailed results

Country
Domain

Rate of exchange
population
GDP

In million national currency

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

In million ecu

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

as a % of GDP

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

Ecu/inhabitant

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

Germany
air

1,87 DM/ecu

81 678,0 thousand
1 880,2 billion ecu

Producers

Specialised

General government
Central 
Local

Corporations

Producers

Specialised

General government
Central 
Local

Corporations

Year

1995

Non 
specialised

11 236

11 236

11 236

3 173

14 409

Non 
specialised

6 008

6 008

6 008

1 697

7 705

Consumers

Goverment Households

Rest of the 
World

Total

11 236

11 236

11 236

3 173

14 409

Consumers

Goverment Households

Rest of the 
World

Total

6 008

6 008

6 008

1 697

7 705

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

0,320%

0,320%

0,320%

0,090%

0,410%

Consumers

Goverment Households

Rest of the 
World

Total

0,320%

0,320%

0,320%

0,090%

0,410%

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment Households

Rest of the 
World

Total

73,6

73,6

73,6

20,8

94,3

73,6

73,6

73,6

20,8

94,3

101

Annex 2 Detailed results

The Netherlands
air

2,31 DGL/ecu
15 069,5 thousand
244,5 billion ecu

Year

1991

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

849

849

849
208
1 014
36
2 107

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Goverment Households

Rest of the 
World

Total

101
101

101

601

13
614

101

Consumers

950
101

101
849

849
809
1 014
49
2 822

Non 
specialised

Goverment Households

Rest of the 
World

Total

368

368

368
90
439
16
912

44
44

44

44

260

6
266

411
44

44
368

368
350
439
21
1 222

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

0,150%

0,150%

0,150%
0,037%
0,180%
0,006%
0,373%

Consumers

Goverment Households

Rest of the 
World

Total

0,018%
0,018%

0,018%

0,018%

0,106%

0,002%
0,109%

0,168%
0,018%

0,018%
0,150%

0,150%
0,143%
0,180%
0,009%
0,500%

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment Households

Rest of the 
World

Total

24,4

24,4

24,4
6,0
29,1
1,0
60,5

2,9
2,9

2,9

2,9

17,3

0,4
17,6

27,3
2,9

2,9
24,4

24,4
23,2
29,1
1,4
81,1

Country
Domain

Rate of exchange
population
GDP

In million national currency

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

In million ecu

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

as a % of GDP

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

Ecu/inhabitant

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

102

Annex 2 Detailed results

Country
Domain

Rate of exchange
population
GDP

In million national currency

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

In million ecu

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

as a % of GDP

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

Ecu/inhabitant

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

Switzerland
air

1,775 SWF/ecu
6 908,0 thousand
192,3 billion ecu

Year

1992/93

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment Households

Rest of the 
World

Total

417

417
5
412

569

986

62
62

62

62

5
5

5

590

595

484
67

67
417
5
412
590
586

1 660

17

17

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment Households

Rest of the 
World

Total

235

235
3
232

321

555

35
35

35

35

3
3

3

332

335

273
38

38
235
3
232
332
330

935

Consumers

Goverment Households

Rest of the 
World

Total

Non 
specialised

0,122%

0,122%
0,001%
0,121%

0,167%

0,018%
0,018%

0,001%
0,001%

0,018%

0,001%

0,173%

0,289%

0,018%

0,174%

0,142%
0,020%

0,020%
0,122%
0,001%
0,121%
0,173%
0,172%

0,486%

10

10

Producers

Specialised

General government
Central 
Local

Corporations

0,005%

0,005%

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment Households

Rest of the 
World

Total

34,0

34,0
0,4
33,6

46,4

80,4

5,1
5,1

5,1

0,4
0,4

0,4

48,1

39,5
5,5

5,5
34,0
0,4
33,6
48,1
47,8

5,1

48,5

135,4

1,4

1,4

103

Annex 2 Detailed results

Australia
air

1,65 AU$/ecu
18 071,8 thousand
308,8 billion ecu

Year

1995/96

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment Households

Rest of the 
World

Total

75

75
42
33
31
279
0
385

32
32

32

32

87

87

107
32

32
75
42
33
118
280
0
505

1

1

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment Households

Rest of the 
World

Total

45

45
26
20
19
169
0
233

19
19

19

19

53

53

65
19

19
45
26
20
72
170
0
306

1

1

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

0,015%

Consumers

Goverment Households

Rest of the 
World

Total

0,006%
0,006%

0,006%

0,017%

0,006%

0,017%

Consumers

0,021%
0,006%

0,006%
0,015%
0,008%
0,006%
0,023%
0,055%
0,000%
0,099%

0,015%
0,008%
0,006%
0,006%
0,055%
0,000%
0,076%

Non 
specialised

Goverment Households

Rest of the 
World

Total

2,5

2,5
1,4
1,1
1,0
9,4
0,0
12,9

1,1
1,1

1,1

1,1

2,9

2,9

3,6
1,1

1,1
2,5
1,4
1,1
4,0
9,4
0,0
16,9

0,000%

0,000%

Producers

Specialised

General government
Central 
Local

Corporations

0,0

0,0

Country
Domain

Rate of exchange
population
GDP

In million national currency

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

In million ecu

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

as a % of GDP

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

Ecu/inhabitant

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

104

Annex 2 Detailed results

Country
Domain

Rate of exchange
population
GDP

In million national currency

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

In million ecu

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

as a % of GDP

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

Ecu/inhabitant

Current uses of characteristic services
             final consumption
               market
               non market
             intermediate consumption
               market
               ancillary
Current uses of adapted & connected products
Capital formation for characteristic activities
Specific transfers
Total

Japan
air

123,0 100 Yen/ecu

125 727,0 thousand
3 916,7 billion ecu

Producers

Specialised

General government
Central 
Local

Corporations

Producers

Specialised

General government
Central 
Local

Corporations

Year

1995

Non 
specialised

571 300

571 300

571 300
10 300
297 600

879 200

Non 
specialised

4 645

4 645

4 645
84
2 420

7 148

Consumers

Goverment Households

Rest of the 
World

Total

571 300

571 300

571 300
31 200
297 600

900 100

20 900

20 900

Consumers

Goverment Households

Rest of the 
World

Total

4 645

4 645

4 645
254
2 420

7 318

170

170

Producers

Specialised

General government
Central 
Local

Corporations

Non 
specialised

0,119%

Consumers

Goverment Households

Rest of the 
World

Total

0,119%

0,119%
0,002%
0,062%

0,182%

0,004%

0,004%

0,119%

0,119%

0,119%
0,006%
0,062%

0,187%

Producers

Specialised

General government
Central 
Local

Corporations

Consumers

Non 
specialised

Goverment Households

Rest of the 
World

Total

36,9

36,9

36,9
0,7
19,2

56,9

1,4

1,4

36,9

36,9

36,9
2,0
19,2

58,2

105

Wastewater management Table B

In million national currency

Current transactions
  intermediate consumption
     of which characteristic services
     of which  adapted and connected products
  compensation of employees
  other taxes less other subsidies on production
     of which other taxes on production
     of which other subsidies
  gross operating surplus
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  of which related products
  of which other non environmental output
  Environmental output
    of which non market
        principal
        secondary
    of which market
        principal
        secondary
    of which ancillary

Current environmental protection resources
    market output
    current transfers

Capital Transactions
    gross fixed capital formation
    other capital uses (net)
    investment grants received
    other capital transfers received

Annex 2 Detailed results

Austria
Wastewater management

Year
Table B

1995

Specialised producers

Non specialised producers

General 
Government

Other

Secondary 
output

Ancillary 
output

Total

11 827
3 991
1 241

1 308
-763
258
1 021
7 291
8 307
-1 016

11 827

11 827
1 198
1 198

10 630
10 630

10 791
10 630
162

12 796
5 147
2 846

5 751
2 480
771

1 083
132
149
17
2 056
711
1 345

5 751
326
326

5 425

5 425
5 425

5 425
5 425

1 095
321
325

3 822
1 879

502
764
794
30
676
676

3 822
63
63

3 759

3 759

1 107

225

21 400
8 350
2 012

2 894
134
1 201
1 067
10 023
9 694
329

21 454
389
389

21 066
1 198
1 198

16 108
16 055
54
3 759

16 290
16 108
182

14 997
5 469
3 395

54

54

54

54

74
54
20

Financing by producers

15 097

1 091

4 641

20 829

Current transactions
  intermediate consumption (as a % of current transactions)
     of which characteristic services 
     of which  adapted and connected products
  compensation of employees (as a % of current transactions)
  other taxes less other subsidies on production (id)
     of which other taxes on production
     of which other subsidies
  gross operating surplus (as a % of current transactions)
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  Environmental output
    of which non market as a % of environmental output
        principal
        secondary
    of which market as a % of environmental output
        principal
        secondary
    of which ancillary as a % of environmental output

100,0%
33,7%
10,5%

11,1%
-6,4%
2,2%

61,6%
70,2%
-8,6%

100,0%

100,0%
10,1%
10,1%

89,9%
89,9%

100,0%
43,1%
13,4%

18,8%
2,3%
2,6%

35,7%
12,4%
23,4%

100,0%
5,7%
94,3%

100,0%
100,0%

100,0%
49,2%

13,1%
20,0%
20,8%

17,7%
17,7%

100,0%

100,0%

100,0%
1,6%
98,4%

100,0%

100,0%

100,0%

100,0%
39,0%
9,4%

13,5%
0,6%
5,6%

46,8%
45,3%
1,5%

100,0%
1,8%
98,2%
5,7%
5,7%

76,5%
76,2%
0,3%
17,8%

106

Annex 2 Detailed results

In million national currency

Current transactions
  intermediate consumption
     of which characteristic services
     of which  adapted and connected products
  compensation of employees
  other taxes less other subsidies on production
     of which other taxes on production
     of which other subsidies
  gross operating surplus
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  of which related products
  of which other non environmental output
  Environmental output
    of which non market
        principal
        secondary
    of which market
        principal
        secondary
    of which ancillary

Current environmental protection resources
    market output
    current transfers

Capital Transactions
    gross fixed capital formation
    other capital uses (net)
    investment grants received
    other capital transfers received

Financing by producers

Current transactions
  intermediate consumption (as a % of current transactions)
     of which characteristic services 
     of which  adapted and connected products
  compensation of employees (as a % of current transactions)
  other taxes less other subsidies on production (id)
     of which other taxes on production
     of which other subsidies
  gross operating surplus (as a % of current transactions)
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  Environmental output
    of which non market as a % of environmental output
        principal
        secondary
    of which market as a % of environmental output
        principal
        secondary
    of which ancillary as a % of environmental output

Denmark
Wastewater management

Year
Table B

1994

Specialised producers

Non specialised producers

General 
Government

Other

Secondary 
output

Ancillary 
output

Total

4 172
1 820
34

1 352
-3
9
12
1 003
34
969

4 172
1

1
4 171

4 171

4 171
4 171

2 453
2

85

2 371

100,0%
43,6%
0,8%

32,4%
-0,1%
0,2%

24,0%
0,8%
23,2%

100,0%
0,0%
100,0%

4 172
1 820
34

1 352
-3
9
12
1 003
34
969

4 172
1

1
4 171

4 171

4 171
4 171

2 453
2

85

2 371

100,0%
43,6%
0,8%

32,4%
-0,1%
0,2%

24,0%
0,8%
23,2%

100,0%
0,0%
100,0%

100,0%

100,0%

107

Annex 2 Detailed results

France
Wastewater management

Year
Table B

1994

Specialised producers

Non specialised producers

General 
Government

Other

Secondary 
output

Ancillary 
output

Total

11 019
3 978

12 591
7 561

6 519
2 444

30 129
13 983

2 072
-923
55
978
5 892
10 558
-4 666

2 711
186
186

2 133
656
1 477

1 498
-48

48
2 625
2 625

6 281
-785
241
1 026
10 650
13 839
-3 189

11 019

12 591

6 519

30 129

11 019

12 591

6 519

30 129

11 019
11 019

12 591
12 591

11 019

12 591

23 610
23 610

6 519

6 519

13 686

826

2 352

16 864

2 952

239

3 191

In million national currency

Current transactions
  intermediate consumption
     of which characteristic services
     of which  adapted and connected products
  compensation of employees
  other taxes less other subsidies on production
     of which other taxes on production
     of which other subsidies
  gross operating surplus
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  of which related products
  of which other non environmental output
  Environmental output
    of which non market
        principal
        secondary
    of which market
        principal
        secondary
    of which ancillary

Current environmental protection resources
    market output
    current transfers

Capital Transactions
    gross fixed capital formation
    other capital uses (net)
    investment grants received
    other capital transfers received

Financing by producers

10 734

826

8 632

20 192

Current transactions
  intermediate consumption (as a % of current transactions)
     of which characteristic services 
     of which  adapted and connected products
  compensation of employees (as a % of current transactions)
  other taxes less other subsidies on production (id)
     of which other taxes on production
     of which other subsidies
  gross operating surplus (as a % of current transactions)
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  Environmental output
    of which non market as a % of environmental output
        principal
        secondary
    of which market as a % of environmental output
        principal
        secondary
    of which ancillary as a % of environmental output

100,0%
36,1%

100,0%
60,1%

100,0%
37,5%

100,0%
46,4%

18,8%
-8,4%
0,5%

53,5%
95,8%
-42,3%

21,5%
1,5%
1,5%

16,9%
5,2%
11,7%

23,0%
-0,7%

40,3%
40,3%

20,8%
-2,6%
0,8%

35,3%
45,9%
-10,6%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%
100,0%

100,0%
100,0%

78,4%
78,4%

100,0%

21,6%

108

Annex 2 Detailed results

In million national currency

Current transactions
  intermediate consumption
     of which characteristic services
     of which  adapted and connected products
  compensation of employees
  other taxes less other subsidies on production
     of which other taxes on production
     of which other subsidies
  gross operating surplus
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  of which related products
  of which other non environmental output
  Environmental output
    of which non market
        principal
        secondary
    of which market
        principal
        secondary
    of which ancillary

Current environmental protection resources
    market output
    current transfers

Capital Transactions
    gross fixed capital formation
    other capital uses (net)
    investment grants received
    other capital transfers received

Financing by producers

Current transactions
  intermediate consumption (as a % of current transactions)
     of which characteristic services 
     of which  adapted and connected products
  compensation of employees (as a % of current transactions)
  other taxes less other subsidies on production (id)
     of which other taxes on production
     of which other subsidies
  gross operating surplus (as a % of current transactions)
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  Environmental output
    of which non market as a % of environmental output
        principal
        secondary
    of which market as a % of environmental output
        principal
        secondary
    of which ancillary as a % of environmental output

Germany
Wastewater management

Year
Table B

1995

Specialised producers

Non specialised producers

General 
Government

Other

Secondary 
output

Ancillary 
output

Total

7 130
3 193

1 073

2 864
1 996
868

7 130

7 130

13 351
4 391
505

1 585
-38

38
7 413
7 625
-212

13 351
182

13 169
524
524

12 645

7 130

12 645
12 645

7 130
7 130

8 162
3 280

2 949

1 933
1 933

8 162

8 162

28 643
10 864
505

5 607
-38

38
12 210
11 554
656

28 643
182

28 461
524
524

19 775

8 162

8 162

19 775
19 775

6 846

2 769

19 441

9 826

2 680
2 279

5 573

100,0%
32,9%
3,8%

11,9%
-0,3%

55,5%
57,1%
-1,6%

100,0%
1,4%
98,6%
4,0%
4,0%

6 846

100,0%
44,8%

15,0%

40,2%
28,0%
12,2%

100,0%

100,0%

96,0%

100,0%

2 680
2 279

10 931

23 350

100,0%
40,2%

36,1%

23,7%
23,7%

100,0%

100,0%

100,0%
37,9%
1,8%

19,6%
-0,1%

42,6%
40,3%
2,3%

100,0%
0,6%
99,4%
1,8%
1,8%

69,5%

100,0%

28,7%

109

Annex 2 Detailed results

The Netherlands
Wastewater management

Year
Table B

1991

Specialised producers

Non specialised producers

General 
Government

Other

Secondary 
output

Ancillary 
output

Total

98
47
12

32

19
8
11

98
16

16
82

82

82
82

7

7

100,0%
48,0%
12,2%

32,7%

19,4%
8,2%
11,2%

100,0%
16,3%
83,7%

2 134
762
173

541
-414

414
1 245
1 245

2 134
22
22

2 112
7
7

2 105

2 105
2 105

723

192

538

100,0%
35,7%
8,1%

25,4%
-19,4%

58,3%
58,3%

100,0%
1,0%
99,0%
0,3%
0,3%

99,7%

100,0%

693
262

83

348
348

693

693

2 925
1 071
185

656
-414

414
1 612
1 601
11

2 925
38
22
16
2 887
7
7

2 187

693

693

2 187
2 187

1 058

226

328

34

987

1 532

100,0%
37,8%

12,0%

50,2%
50,2%

100,0%

100,0%

100,0%
36,6%
6,3%

22,4%
-14,2%

55,1%
54,7%
0,4%

100,0%
1,3%
98,7%
0,2%
0,2%

75,8%

100,0%

24,0%

In million national currency

Current transactions
  intermediate consumption
     of which characteristic services
     of which  adapted and connected products
  compensation of employees
  other taxes less other subsidies on production
     of which other taxes on production
     of which other subsidies
  gross operating surplus
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  of which related products
  of which other non environmental output
  Environmental output
    of which non market
        principal
        secondary
    of which market
        principal
        secondary
    of which ancillary

Current environmental protection resources
    market output
    current transfers

Capital Transactions
    gross fixed capital formation
    other capital uses (net)
    investment grants received
    other capital transfers received

Financing by producers

Current transactions
  intermediate consumption (as a % of current transactions)
     of which characteristic services 
     of which  adapted and connected products
  compensation of employees (as a % of current transactions)
  other taxes less other subsidies on production (id)
     of which other taxes on production
     of which other subsidies
  gross operating surplus (as a % of current transactions)
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  Environmental output
    of which non market as a % of environmental output
        principal
        secondary
    of which market as a % of environmental output
        principal
        secondary
    of which ancillary as a % of environmental output

110

Annex 2 Detailed results

Waste Management Table B

million national currency

Current transactions
  intermediate consumption
     of which characteristic services
     of which  adapted and connected products
  compensation of employees
  other taxes less other subsidies on production
     of which other taxes on production
     of which other subsidies
  gross operating surplus
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
    of which related products
    of which other non environmental output
  Environmental output
    of which non market
        principal
        secondary
    of which market
        principal
        secondary
    of which ancillary

Current environmental protection resources
    market output
    current transfers

Capital Transactions
    gross fixed capital formation
    other capital uses (net)
    investment grants received
    other capital transfers received

Austria
Waste management

Year
Table B

1995

Specialised producers

Non specialised producers

General 
Government

Other

Secondary 
output

Ancillary 
output

Total

10 158
6 061
2 387

3 297
-108
116
224
909
844
65

10 158

10 158
875
875

9 284
9 284

9 607
9 284
323

1 431
492
84

9 471
7 050
2 777

4 085
113
206
93
-1 777
1 145
-2 922

9 471
568
568

8 903

8 903
8 903

8 903
8 903

1 941
457
181

4 716
3 479

415
483
486
3
339
339

4 716
87
87

4 629

4 629

400

191

24 345
16 591
5 164

7 796
488
808
320
-529
2 328
-2 857

27 925
2 749
825
1 925
25 176
875
875

19 672
18 186
1 486
4 629

20 008
19 672
336

3 772
950
456

3 580
2 094
169
1 925
1 486

1 486

1 486

1 499
1 486
13

Financing by producers

1 840

2 217

2 081

5 029

11 167

Current transactions
  intermediate consumption (as a % of current transactions)
     of which characteristic services 
     of which  adapted and connected products
  compensation of employees (as a % of current transactions)
  other taxes less other subsidies on production (id)
     of which other taxes on production
     of which other subsidies
  gross operating surplus (as a % of current transactions)
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  Environmental output
    of which non market as a % of environmental output
        principal
        secondary
    of which market as a % of environmental output
        principal
        secondary
    of which ancillary as a % of environmental output

100,0%
59,7%
23,5%

32,5%
-1,1%
1,1%

8,9%
8,3%
0,6%

100,0%

100,0%
8,6%
8,6%

91,4%
91,4%

100,0%
74,4%
29,3%

43,1%

-18,8%
12,1%
-30,9%

100,0%
6,0%
94,0%

100,0%
100,0%

100,0%
73,8%

8,8%
10,2%
10,3%

7,2%
7,2%

100,0%
58,5%
41,5%

100,0%
1,8%
98,2%

100,0%

100,0%

100,0%

100,0%
68,1%
21,2%

32,0%
2,0%
3,3%

-2,2%
9,6%
-11,7%

100,0%
9,8%
90,2%
3,5%
3,5%

78,1%
72,2%
5,9%
18,4%

111

Annex 2 Detailed results

Denmark
Waste management

Year
Table B

1994

Specialised producers

Non specialised producers

General 
Government

Other

Secondary 
output

Ancillary 
output

Total

6 557
3 837
40

1 576
10
45
35
1 134
500
635

6 557
7

7
6 550

6 550
6 550

653
797
-91

52

654

100,0%
58,5%
0,6%

24,0%

17,3%
7,6%
9,7%

100,0%
0,1%
99,9%

100,0%
100,0%

6 557
3 837
40

1 576
10
45
35
1 134
500
635

6 557
7

7
6 550

6 550
6 550

6 550

653
797
-91

52

654

100,0%
58,5%
0,6%

24,0%
0,2%
0,7%

17,3%
7,6%
9,7%

100,0%
0,1%
99,9%

100,0%
100,0%

million national currency

Current transactions
  intermediate consumption
     of which characteristic services
     of which  adapted and connected products
  compensation of employees
  other taxes less other subsidies on production
     of which other taxes on production
     of which other subsidies
  gross operating surplus
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
    of which related products
    of which other non environmental output
  Environmental output
    of which non market
        principal
        secondary
    of which market
        principal
        secondary
    of which ancillary

Current environmental protection resources
    market output
    current transfers

Capital Transactions
    gross fixed capital formation
    other capital uses (net)
    investment grants received
    other capital transfers received

Financing by producers

Current transactions
  intermediate consumption (as a % of current transactions)
     of which characteristic services 
     of which  adapted and connected products
  compensation of employees (as a % of current transactions)
  other taxes less other subsidies on production (id)
     of which other taxes on production
     of which other subsidies
  gross operating surplus (as a % of current transactions)
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  Environmental output
    of which non market as a % of environmental output
        principal
        secondary
    of which market as a % of environmental output
        principal
        secondary
    of which ancillary as a % of environmental output

112

Annex 2 Detailed results

million national currency

Current transactions
  intermediate consumption
     of which characteristic services
     of which  adapted and connected products
  compensation of employees
  other taxes less other subsidies on production
     of which other taxes on production
     of which other subsidies
  gross operating surplus
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
    of which related products
    of which other non environmental output
  Environmental output
    of which non market
        principal
        secondary
    of which market
        principal
        secondary
    of which ancillary

Current environmental protection resources
    market output
    current transfers

Capital Transactions
    gross fixed capital formation
    other capital uses (net)
    investment grants received
    other capital transfers received

France
Waste management

Year
Table B

1994

Specialised producers

Non specialised producers

General 
Government

Other

Secondary 
output

Ancillary 
output

Total

20 997
15 524
11 892

2 392
177
177

2 904
2 904

20 997
327
327

20 670
20 670

19 279

19 279

1 640

167

18 227
8 267

5 235
519
519

4 206
2 549
1 657

18 227
825
825

17 402

17 402

16 388
16 388

1 331

80

3 106
1 686

1 027
-143

143
536
536

1 206

3 106

1 206

3 106

3 106

1 206

1 206
1 206

42 330
25 477
11 892

8 654
553
696
143
7 646
5 989
1 657

43 536
1 152
1 152

42 384
20 670

17 402
1 206
3 106

36 873
17 594
19 279

826

3 797

247

Financing by producers

1 473

2 265

3 932

7 670

Current transactions
  intermediate consumption (as a % of current transactions)
     of which characteristic services 
     of which  adapted and connected products
  compensation of employees (as a % of current transactions)
  other taxes less other subsidies on production (id)
     of which other taxes on production
     of which other subsidies
  gross operating surplus (as a % of current transactions)
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  Environmental output
    of which non market as a % of environmental output
        principal
        secondary
    of which market as a % of environmental output
        principal
        secondary
    of which ancillary as a % of environmental output

100,0%
73,9%
56,6%

11,4%
0,8%
0,8%

13,8%
13,8%

100,0%
1,6%
98,4%
100,0%

100,0%
45,4%

28,7%

23,1%
14,0%
9,1%

100,0%
4,5%
95,5%

100,0%
100,0%

100,0%

100,0%
54,3%

33,1%
-4,6%

17,3%
17,3%

100,0%

100,0%

100,0%

100,0%
60,2%
28,1%

20,4%
1,3%
1,6%

18,1%
14,1%
3,9%

100,0%
2,6%
97,4%
48,8%

43,9%
41,1%
2,8%
7,3%

113

Annex 2 Detailed results

million national currency

Specialised producers

Non specialised producers

Germany
Waste management

Year
Table B

1995

Current transactions
  intermediate consumption
     of which characteristic services
     of which  adapted and connected products
  compensation of employees
  other taxes less other subsidies on production
     of which other taxes on production
     of which other subsidies
  gross operating surplus
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
    of which related products
    of which other non environmental output
  Environmental output
    of which non market
        principal
        secondary
    of which market
        principal
        secondary
    of which ancillary

Current environmental protection resources
    market output
    current transfers

Capital Transactions
    gross fixed capital formation
    other capital uses (net)
    investment grants received
    other capital transfers received

Financing by producers

Current transactions
  intermediate consumption (as a % of current transactions)
     of which characteristic services 
     of which  adapted and connected products
  compensation of employees (as a % of current transactions)
  other taxes less other subsidies on production (id)
     of which other taxes on production
     of which other subsidies
  gross operating surplus (as a % of current transactions)
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  Environmental output
    of which non market as a % of environmental output
        principal
        secondary
    of which market as a % of environmental output
        principal
        secondary
    of which ancillary as a % of environmental output

General 
Government

14 106
8 702
1 692

1 737
-122

122
3 789
976
2 813

14 106
502

13 604
307

Other

10 253
6 471

2 176
162
162

1 444
1 444

10 253

10 253

13 297

10 253

13 297
13 297

10 253
10 253

Secondary 
output

Ancillary 
output

Total

3 857
2 235

900

722
722

3 857

3 857

28 216
17 408
1 692

4 813
40
162
122
5 955
3 142
2 813

28 216
502

27 714
307

23 550

3 857

3 857

3 857

27 407
23 550

1 447

3 229

740

5 416

270
38

1 139

100,0%
61,7%
12,0%

12,3%
-0,9%

26,9%
6,9%
19,9%

100,0%
3,6%
96,4%
2,3%

100,0%
63,1%

21,2%

14,1%
14,1%

100,0%

100,0%

97,7%

100,0%

270
38

1 139

100,0%
61,7%
6,0%

17,1%
0,1%
0,6%

21,1%
11,1%
10,0%

100,0%
1,8%
98,2%
1,1%

85,0%

100,0%
57,9%

23,3%

18,7%
18,7%

100,0%

100,0%

100,0%

13,9%

114

Annex 2 Detailed results

million national currency

Current transactions
  intermediate consumption
     of which characteristic services
     of which  adapted and connected products
  compensation of employees
  other taxes less other subsidies on production
     of which other taxes on production
     of which other subsidies
  gross operating surplus
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
    of which related products
    of which other non environmental output
  Environmental output
    of which non market
        principal
        secondary
    of which market
        principal
        secondary
    of which ancillary

Current environmental protection resources
    market output
    current transfers

Capital Transactions
    gross fixed capital formation
    other capital uses (net)
    investment grants received
    other capital transfers received

Financing by producers

Current transactions
  intermediate consumption (as a % of current transactions)
     of which characteristic services 
     of which  adapted and connected products
  compensation of employees (as a % of current transactions)
  other taxes less other subsidies on production (id)
     of which other taxes on production
     of which other subsidies
  gross operating surplus (as a % of current transactions)
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  Environmental output
    of which non market as a % of environmental output
        principal
        secondary
    of which market as a % of environmental output
        principal
        secondary
    of which ancillary as a % of environmental output

The Netherlands
Waste management

Year
Table B

1991

Specialised producers

Non specialised producers

General 
Government

Other

Secondary 
output

Ancillary 
output

Total

2 117
1 408
497

432

277
277

2 117
108
108

2 009
104

1 211
638
303

246

327
164
163

1 211
134
47
87
1 077

1 905

1 077

1 905
1 905

1 077
1 077

516

171

384

-213

100,0%
52,7%
25,0%

516

100,0%
66,5%
23,5%

128
41

3 456
2 087
800

33

711

54
54

128

128

658
495
163

3 456
242
155
87
3 214
104

2 982

128

128

2 982
2 982

814

10
384

548

127

10

245

100,0%
32,0%

100,0%
60,4%
23,1%

20,4%

20,3%

25,8%

20,6%

13,1%
13,1%

100,0%
5,1%
94,9%
5,2%

27,0%
13,5%
13,5%

100,0%
11,1%
88,9%

94,8%

100,0%

42,2%
42,2%

100,0%

100,0%

19,0%
14,3%
4,7%

100,0%
7,0%
93,0%
3,2%

92,8%

100,0%

4,0%

115

Annex 2 Detailed results

Austria
air

Year
Table B

1995

Specialised producers

Non specialised producers

General 
Government

Other

Secondary 
output

Ancillary 
output

Total

2480
1549

2480
1549

322

32
2

577

2478
175
175

2303

2303

1756

1658

322

32
2

577

3050
197
175
22
2853
71
71

479
2
477
2303

2059
479
1580

1780
211
1722

500
22

22
477

477

477

1856
477
1379

100,0%
62,5%

100,0%
62,5%

13,0%

13,0%

0,1%

0,1%

23,3%

23,3%

100,0%
4,5%
95,5%

100,0%
7,1%
92,9%

100,0%

100,0%
6,5%
93,5%
2,5%

16,8%

100,0%

80,7%

73

73
71
71

2
2

203
2
201

24
211
64

100,0%

100,0%
97,5%

2,5%
2,5%

Air Protection Table B

In million national currency

Current transactions
  intermediate consumption
     of which characteristic services
     of which  adapted and connected products
  compensation of employees
  other taxes less other subsidies on production
     of which other taxes on production
     of which other subsidies
  gross operating surplus
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  of which related products
  of which other non environmental output
  Environmental output
    of which non market
        principal
        secondary
    of which market
        principal
        secondary
    of which ancillary

Current environmental protection resources
    market output
    current transfers

Capital Transactions
    gross fixed capital formation
    other capital uses (net)
    investment grants received
    other capital transfers received

Financing by producers

Current transactions
  intermediate consumption (as a % of current transactions)
     of which characteristic services 
     of which  adapted and connected products
  compensation of employees (as a % of current transactions)
  other taxes less other subsidies on production (id)
     of which other taxes on production
     of which other subsidies
  gross operating surplus (as a % of current transactions)
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  Environmental output
    of which non market as a % of environmental output
        principal
        secondary
    of which market as a % of environmental output
        principal
        secondary
    of which ancillary as a % of environmental output

116

Annex 2 Detailed results

In million national currency

Current transactions
  intermediate consumption
     of which characteristic services
     of which  adapted and connected products
  compensation of employees
  other taxes less other subsidies on production
     of which other taxes on production
     of which other subsidies
  gross operating surplus
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  of which related products
  of which other non environmental output
  Environmental output
    of which non market
        principal
        secondary
    of which market
        principal
        secondary
    of which ancillary

Current environmental protection resources
    market output
    current transfers

Capital Transactions
    gross fixed capital formation
    other capital uses (net)
    investment grants received
    other capital transfers received

Financing by producers

Stock of fixed assets

Current transactions
  intermediate consumption (as a % of current transactions)
     of which characteristic services 
     of which  adapted and connected products
  compensation of employees (as a % of current transactions)
  other taxes less other subsidies on production (id)
     of which other taxes on production
     of which other subsidies
  gross operating surplus (as a % of current transactions)
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  Environmental output
    of which non market as a % of environmental output
        principal
        secondary
    of which market as a % of environmental output
        principal
        secondary
    of which ancillary as a % of environmental output

France
air

Year
Table B

1 994

Specialised producers

Non specialised producers

General 
Government

Other

Secondary 
output

Ancillary 
output

Total

55
34

19
2
2

25
-25

55

55

55
55

27
28

40

100,0%
62,1%

35,0%
2,9%

45,8%
-45,8%

100,0%

100,0%

100,0%

5088
2995

-27

27

2120

5088

5142
3029

19
-26
2
27

2145
-25

5142

5088

5142

55
55

5088

5088

27
28

1261

110

1221

110

34832

34832

100,0%
58,9%

100,0%
58,9%

-0,5%
0,9%

41,7%

0,4%
-0,5%
0,9%

41,7%
-0,5%

100,0%

100,0%

100,0%

100,0%

1,1%

100,0%

98,9%

117

Annex 2 Detailed results

Germany
air

Year
Table B

1995

Specialised producers

Non specialised producers

General 
Government

Other

Secondary 
output

Ancillary 
output

Total

11236
3797

11236
3797

3127

3127

4312

4312

11236

11236

11236

11236

65510

65510

100,0%
33,8%

100,0%
33,8%

27,8%

27,8%

38,4%

38,4%

100,0%

100,0%

100,0%

100,0%

In million national currency

Current transactions
  intermediate consumption
     of which characteristic services
     of which  adapted and connected products
  compensation of employees
  other taxes less other subsidies on production
     of which other taxes on production
     of which other subsidies
  gross operating surplus
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  of which related products
  of which other non environmental output
  Environmental output
    of which non market
        principal
        secondary
    of which market
        principal
        secondary
    of which ancillary

Current environmental protection resources
    market output
    current transfers

Capital Transactions
    gross fixed capital formation
    other capital uses (net)
    investment grants received
    other capital transfers received

Financing by producers

stock of fixed assets

Current transactions
  intermediate consumption (as a % of current transactions)
     of which characteristic services 
     of which  adapted and connected products
  compensation of employees (as a % of current transactions)
  other taxes less other subsidies on production (id)
     of which other taxes on production
     of which other subsidies
  gross operating surplus (as a % of current transactions)
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  Environmental output
    of which non market as a % of environmental output
        principal
        secondary
    of which market as a % of environmental output
        principal
        secondary
    of which ancillary as a % of environmental output

118

Annex 2 Detailed results

In million national currency

Current transactions
  intermediate consumption
     of which characteristic services
     of which  adapted and connected products
  compensation of employees
  other taxes less other subsidies on production
     of which other taxes on production
     of which other subsidies
  gross operating surplus
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  of which related products
  of which other non environmental output
  Environmental output
    of which non market
        principal
        secondary
    of which market
        principal
        secondary
    of which ancillary

Current environmental protection resources
    market output
    current transfers

Capital Transactions
    gross fixed capital formation
    other capital uses (net)
    investment grants received
    other capital transfers received

Financing by producers

Current transactions
  intermediate consumption (as a % of current transactions)
     of which characteristic services 
     of which  adapted and connected products
  compensation of employees (as a % of current transactions)
  other taxes less other subsidies on production (id)
     of which other taxes on production
     of which other subsidies
  gross operating surplus (as a % of current transactions)
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  Environmental output
    of which non market as a % of environmental output
        principal
        secondary
    of which market as a % of environmental output
        principal
        secondary
    of which ancillary as a % of environmental output

The Netherlands
air

Year
Table B

1991

Specialised producers

Non specialised producers

General 
Government

Other

Secondary 
output

Ancillary 
output

Total

29
10

19

29

29
29
29

1

100,0%
34,5%

65,5%

100,0%

100,0%
100,0%

849
283

78

488
487
1

849

849

878
293

97

488
487
1

878

878
29
29

849

849

797

76

798

76

100,0%
33,3%

100,0%
33,4%

9,2%

11,0%

57,5%
57,4%
0,1%

55,6%
55,5%
0,1%

100,0%

100,0%

100,0%

100,0%
3,3%

100,0%

96,7%

119

Annex 2 Detailed results

Switzerland
air

Year
Table B

1992/93

Specialised producers

Non specialised producers

General 
Government

Other

Secondary 
output

Ancillary 
output

Total

24

36

12

72

72

62

10

10

17

93

35

285

413
1
1

412

412

569

5

117

71

297

485
1
1

484

62

10
412

10

586

5

100,0%

100,0%

100,0%

100,0%

100,0%
0,2%
99,8%

100,0%
0,2%
99,8%

100,0%

85,1%

In million national currency

Current transactions
  intermediate consumption
     of which characteristic services
     of which  adapted and connected products
  compensation of employees
  other taxes less other subsidies on production
     of which other taxes on production
     of which other subsidies
  gross operating surplus
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  of which related products
  of which other non environmental output
  Environmental output
    of which non market
        principal
        secondary
    of which market
        principal
        secondary
    of which ancillary

Current environmental protection resources
    market output
    current transfers

Capital Transactions
    gross fixed capital formation
    other capital uses (net)
    investment grants received
    other capital transfers received

Financing by producers

Current transactions
  intermediate consumption (as a % of current transactions)
     of which characteristic services 
     of which  adapted and connected products
  compensation of employees (as a % of current transactions)
  other taxes less other subsidies on production (id)
     of which other taxes on production
     of which other subsidies
  gross operating surplus (as a % of current transactions)
     of which consumption of fixed capital
     of which net operating surplus

Output
  Non environmental output
  Environmental output
    of which non market as a % of environmental output
        principal
        secondary
    of which market as a % of environmental output
        principal
        secondary
    of which ancillary as a % of environmental output

120

Annex 2 Detailed results

Net cost tables

Net cost table 

Denmark

in million national currency

Corporations

Households

General 
government

Total

Financing of current national expenditure
Non deductible VAT 
Taxes on production
Net operating surplus
Any other profits
Interest on fixed capital

Environmental 
industry

Non-environmental 
industry

6 522,0

5 822,0

-1 604,0

267,0

2 401,0
-1 157,0
-54,0

14 745,0
-1 157,0
-54,0
-1 604,0

114,0

381,0

Net current cost of environmental protection

-1 337,0

6 522,0

5 822,0

1 304,0

12 311,0

The Netherlands

in million national currency

Corporations

Households

General 
government

Total

Environmental 
industry

Non-environmental 
industry

Financing of current national expenditure
Non deductible VAT 
Taxes on production
Net operating surplus
Any other profits
Interest on fixed capital

-181,0

42,0

5 219,0

3 162,0

1 398,0
-873,0

302,0

769,0

Net current cost of environmental protection

-139,0

5 521,0

3 162,0

1 294,0

9 779,0
-873,0

-181,0

1 113,0

9 838,0

Switzerland

in million national currency

Corporations

Households

General 
government

Total

Financing of current national expenditure
Non deductible VAT 
Taxes on production
Net operating surplus
Any other profits
Interest on fixed capital

Net current cost of environmental protection

Environmental 
industry
n.a. 

n.a. 

n.a. 

Non-environmental 
industry

412,0

595,0

67,0

1 074,0

n.a. 

n.a. 

95,0

507,0

n.a. 
n.a. 

595,0

7,0

74,0

102,0

1 176,0

121

Annex 3: An estimate of EU environmental protection expenditure

Annex 3: An estimate of EU environmental protection expenditure using PAC data

Pilot applications are not representative for the EU as a whole and cover different years. It is not possible to
derive an estimate of the environmental protection expenditure in the EU directly from the pilot applications.
In  order  to  go  beyond  this  limitation,  the  results  of  the  2000  Eurostat/OECD  PAC  questionnaire33 were
combined with the data and structural information derived from the EPEA pilot applications. On this basis, an
environmental expenditure account for the EU for the year 1998 could be estimated.

Relation between PAC questionnaire data and EPEA

In  the  PAC  questionnaire,  countries  report  on  the  current  and  capital  expenditure  for  environmental
protection by industry, government and specialised producers. However, the answers are neither complete
nor  homogeneous  between  countries.  Answers  for  specialised  producers  are  few.  Concerning  industry,
some countries include purchases of external environmental protection services, which may also be included
in the expenditure of government and/or specialised producers.

Furthermore, the expenditure concepts are not the same in the PAC questionnaire and the EPEA. In EPEA,
national  expenditure  includes  the  gross  operating  surplus  of  producers,  whereas  the  PAC  only  records
"operating  expenditure",  i.e.  essentially  intermediate  consumption  and  compensation  of  employees,
excluding  thus  consumption  of  fixed  capital  and  net  operating  surplus.  In  the  EPEA,  national  expenditure
includes the expenditure for adapted and connected products as well as specific transfers. Finally, as uses
are recorded at purchaser's prices, EPEA adds taxes less subsidies on products.

When  using  the  PAC  questionnaire  results,  it  is  therefore  first  necessary  to  check  the  PAC  questionnaire
data for industry and general government in order to eliminate possible double counting and deviations from
the "operating expenditure" concept. Then, expenditure by specialised producers have to be added, in order
to  obtain  the  estimate  of  expenditure  according  to  the  PAC.  Finally  one  has  to  add  these  components  of
expenditure which are not included in the PAC expenditure.

Calculating the PAC expenditure for the EU

In the first step, the PAC questionnaire data were checked against the EPEA pilot application results for the
years and countries for which such a comparison could be made (DK, D, F, NL, A, UK). The PAC data were
corrected for differences in definitions and concepts across countries.

After  correcting  the  PAC  data,  the  method  consisted  in  calculating  the  average  ratio  that  expenditure  by
domain  bears  to  GDP  and  applying  this  ratio  to  the  total  EU-15  GDP  for  1998.  The  estimates  of  the
investment and current expenditure by government and industry  were made only using countries for which
data were available for recent years (1996 onwards) and were fairly complete (for example, covering not only
central but also local governments).

The estimates  were  made  by  domain,  and  separately  for  investment  and  current  expenditure.  The  table  in
annex gives for each expenditure category of the number of countries whose data were used, as well as the
share of their GDP in EU-15 GDP. For the main domains, this ratio exceeds 60%. However, the ratio is lower
for nature protection and "other" domains.

Table 38  EU estimate: current expenditure by government and industry, million ECU

Current expenditure
Waste management
Wastewater management
Air protection
Noise abatement
Other domains
Sub-total PAC
Nature protection
Total expenditure

Industry

3 748,3
5 962,7
5 303,4
368,7
4 136,7
19 519,8
476,5
19 996,4

Government
13 072,1
7 543,7
286,2
592,1
6 036,5
27 530,6
2 552,3
30 082,9

Total
16 820,4
13 506,4
5 589,6
960,7
10 173,3
47 050,4
3 028,8
50 079,2

33 See Commission of the European Communities (2001b). This publication also includes key results of the estimate presented here.

123

                                                     
Annex 3: An estimate of EU environmental protection expenditure

Table 39  EU estimate: capital expenditure by government and industry, million ECU

Investment
Waste management
Wastewater management
Air protection
Noise abatement
Other domains
Sub-total PAC

Nature protection

Total expenditure

Industry

1 192,3
2 689,9
4 313,1
368,9
1 780,6
10 344,7

1 720,7

Government
2 424,4
11 131,2
177,7
593,3
1 500,8
15 827,3

Total
3 616,6
13 821,1
4 490,8
962,1
3 281,4
26 172,0

1 181,1

2 901,8

12 065,4

17 008,5

29 073,8

Table 40  EU estimate: total expenditure by government and industry, million ECU

Total
Waste management
Wastewater management
Air protection
Noise abatement
Other domains
Sub-total PAC

Nature protection

Total expenditure

Industry

4 940,5
8 652,6
9 616,5
737,5
5 917,3
29 864,5

2 197,2

Government
15 496,5
18 674,8
463,9
1 185,3
7 537,4
43 357,9

3 733,4

Total
20 437,0
27 327,5
10 080,4
1 922,9
13 454,7
73 222,4

5 930,7

32 061,7

47 091,3

79 153,1

Expenditure by government and industry represents 1.04% of GDP, with the following distributions:

EU estimate: distribution of expenditure by domain

By domain

Waste management
Wastewater management
Air protection
Noise abatement
Other domains
Nature protection

Total

Investment
Current

Total

% of
GDP
0,269%
0,360%
0,133%
0,025%
0,177%
0,078%

% of the
total

25,8%
34,5%
12,7%
2,4%
17,0%
7,5%

1,042%

100.0%

0,383%
0,660%

36,7%
63,3%

1,042%

100.0%

In  a  second  step,  estimates  for  expenditure  corresponding  to  the  output  and  gross  capital  formation  of
specialised  producers  not  pertaining  to  government  were  made.  Due  to  the  very  low  response  rate  for
specialised producers in the PAC questionnaire, the estimate was based on the ratio that the expenditure of
these  producers  bear  to  the  expenditure  of  the  government  specialised  producers  in  the  EPEA  pilot
applications. Due to either the low quality of data for other domains or the weakness of the involvement of
other specialised producers, only four domains were considered. The method was used after verification that
the classification was the same in EPEA pilot applications and PAC responses, for the years considered34.
However, this method does not make it possible to take into account possible changes in the distribution of
specialised producers between government and corporations from 1994/95 to 1997/98.

Results  for  the  expenditure  corresponding  to  output  and  gross  capital  formation  of  other  specialised
producers are the following, in million ECU:

34 These EPEA pilot applications mainly refer to 1994 and 1995.

124

                                                     
Annex 3: An estimate of EU environmental protection expenditure

Table 41  EU estimate: current and capital expenditure of specialised producers, million ECU

Current

Capital

Total

Waste management
Wastewater management
Air protection
Other domains

Total

14 611,8
10 961,7
251,3
862,7

26 687,5

2 710,5
7 076,0
45,0
581,4

17 322,3
18 037,7
296,3
1 444,1

10 412,9

37 100,4

However, it is not entirely clear to what extent purchases from the other specialised producers are included
in  the  PAC  questionnaire  data  for  current  expenditure  of  industries.  Amongst  those  countries  for  which  an
EPEA pilot application is available, for France and the UK, the PAC results clearly included purchases from
other specialised producers.

The overall result, following the second step, was as follows:

Table 42  EU estimate: expenditure including other specialised producers

Current

Industry

Government

million ECU

million ECU

Other
specialised
million ECU

Total

million ECU

in %

Waste management
Wastewater management
Air protection
Noise abatement
Other domains
Sub-total PAC
Nature protection
Total

3 748,3
5 962,7
5 303,4
368,7
4 136,7
19 519,8
476,5
19 996,4

13 072,1
7 543,7
286,2
592,1
6 036,5
27 530,6
2 552,3
30 082,9

14 611.8
10 961.7
251.3
0.0
862.7
26 687.5
0.0
26 687.5

31 432.2
24 468.1
5 840.9
960.7
11 035.9
73 737.9
3 028.8
76 766.7

40.9%
31.9%
7.6%
1.3%
14.4%
96.1%
3.9%
100.0%

Investment

Industry

Government

million ECU

Million ECU

Other
specialised
million ECU

Total

million ECU

in %

Waste management
Wastewater management
Air protection
Noise abatement
Other domains
Sub-total PAC
Nature protection
Total

1 192,3
2 689,9
4 313,1
368,9
1 780,6
10 344,7
1 720,7
12 065,4

2 424,4
11 131,2
177,7
593,3
1 500,8
15 827,3
1 181,1
17 008,5

2 710.5
7 076.0
45.0
0.0
581.4
10 412.9
0.0
10 412.9

6 327.1
20 897.1
4 535.8
962.1
3 862.8
36 584.9
2 901.8
39 486.7

16.0%
52.9%
11.5%
2.4%
9.8%
92.7%
7.3%
100.0%

Total

Industry

Government

million ECU

million ECU

Other
specialised
million ECU

Total

million ECU

in %

Waste management
Wastewater management
Air protection
Noise abatement
Other domains
Sub-total PAC
Nature protection
Total EPE

4 940,5
8 652,6
9 616,5
737,5
5 917,3
29 864,5
2 197,2
32 061,7

15 496,5
18 674,8
463,9
1 185,3
7 537,4
43 357,9
3 733,4
47 091,3

17 322,3
18 037,7
296,3
0,0
1444,1
37 100,4
0,0
37 100,4

37 759,3
45 365,2
10 376,6
1922,9
14 898,8
110 322,8
5 930,7
116 253,4

32.5%
39.0%
8.9%
1.7%
12.8%
94.9%
5.1%
100.0%

Including expenditure by other specialised producers, 1998 expenditure was estimated at 116.2 billion ECU,
which represents 1.53% of GDP.

125

Annex 3: An estimate of EU environmental protection expenditure

EU estimate: total expenditure by domain

Waste management
Wastewater management
Air protection
Noise abatement
Other domains
Nature protection

total

investment
current

total

% of
GDP
0.497%
0.597%
0.137%
0.025%
0.196%
0.078%

% of
total

32.5%
39.0%
8.9%
1.7%
12.8%
5.1%

1.531%

100.0

0.520%
1.011%

34.0%
66.0%

1.531%

100.0%

Calculating the EPEA national expenditure for the EU-15

The third step was the transition from PAC estimates to EPEA national expenditure, i.e.:
·   adding gross operating surplus of characteristic producers,
·   adding VAT and other revaluation items of EPEA table B1,
·   adding uses of adapted and connected products, and
·   adding  current  specific  transfers,  as  well  as  implicit  subsidies  corresponding  to  negative  net  operating

surplus of general government specialised producers.

These  additions  were  made  for  the  four  domains  waste  management,  wastewater  management,  air
protection and noise abatement. Data for nature protection and "other domains" were much less detailed and
did not allow the correction to be made. Furthermore, in pilot applications the coverage of other domain was
rather reduced or uncertain for some countries.

For waste, wastewater and air, the process was to calculate the average ratio that the items above bear to
estimates  based  on  the  PAC  concepts  for  the  countries  that  made  pilot  applications  (Austria,  Denmark,
France Germany, Netherlands and UK), and then to expand the PAC estimate. For noise, this would have
resulted  in  a  huge  increase  so  another  method  was  used:  the  average  percentage  to  GDP  was  applied  to
expand the PAC estimate.

Table 43  EU estimate: current expenditure - transition to EPEA concepts, million ECU

Current

Transition to national expenditure

PAC

GOS

VAT, etc.

ACP

Subsidies

Total

% GDP

Waste management
Wastewater management
Air protection
Noise abatement
Others

31 432,2
8 739,4
24 468,1 18 966,5
4 432,2
877,7

5 840,9
960,7
11 035,9

2 345,6
490,3
57,0

1 320,2
890,7
2 172,9
787,4

401,2 44 238,6
1 670,8 46 486,4
4,8 12 507,7
2 625,8
11 035,9

0.583%
0.612%
0.165%
0.035%
0.145%

Sub total

73 737,9 33 015,8

2 892,9

5 171,2

2 076,8 116 894,5

1.539%

Nature protection

3 028,8

3 028,8

0.040%

Total

76 766,7 33 015,8

2 892,9

5 171,2

2 076,8 119 923,4

1.579%

EU-15 1998 GDP

7 593 144

126

Annex 3: An estimate of EU environmental protection expenditure

Table 44  EU estimate: total expenditure according to PAC and EPEA concepts, 1998, million ECU

Expenditure according to PAC
concepts

Expenditure according to EPEA
concepts

Total

% GDP

% EPE

Total

% GDP

% EPE

Waste management
Wastewater management
Air protection
Noise abatement
Others

37 759,3
45 365,2
10 376,6
1 922,9
14 898,8

0.497%
0.597%
0.137%
0.025%
0.196%

32,5% 50 565,7
39,0% 67 383,5
8,9% 17 043,5
3 587,9
1,7%
12,8% 14 898,8

0.666%
0.887%
0.224%
0.047%
0.196%

Sub total

110 322,8

1.453%

94,9% 153 479,4

2.021%

Nature protection

5 930,7

0.078%

5,1%

5 930,7

0.078%

31.7%
42.3%
10.7%
2.3%
9.3%

96.3%

3.7%

Total

116 253,4

1.531%

100,0% 159 410,1

2.099%

100.0%

EU-15 1998 GDP

Annex

Number  of  countries  considered  for  the  first  step  and  their  corresponding  GDP  for  calculating  the  ratio  of
expenditure to GDP. For the main countries, the year is 1997 or 1998.

Investment
government

Current
government

Investment
 industry

Current
industry

Number of
countries

GDP
(trillion ECU)

Number of
countries

GDP
(trillion ECU)

Number of
countries

GDP
(trillion ECU)

Number of
countries

GDP
(trillion ECU)

Wastewater
Waste
Air
Noise
Other
Nature

10
10
7
5
9
9

4,6
4,6
3,2
2,7
2,8
2,8

9
11
7
5
8
8

4,5
4,8
3,2
1,1
2,7
2,7

8
7
8
7
5
3

5,4
5,2
5,4
5,1
2,0
1,8

9
9
8
8
6
4

5,4
5,4
5,3
5,3
2,0
2,0

Basic data for countries

1993

1994

1995

1996

1997

1998

108 446

118 541

6 578 965 6 904 176 7 268 248 7 593 142
155 789
1 432 638 1 561 740 1 670 845 1 763 760 1 880 187 1 877 938 1 866 547 1 921 764
987 210 1 040 541 1 089 370 1 139 320 1 188 101 1 224 606 1 243 823 1 297 401
349 675
244 462
332 392
324 479
182 608
188 453
182 452
927 259 1 161 180 1 252 776

317 324
180 178
859 746

871 290

128 024

137 793

144 268

148 903

278 334

296 347

817 727

259 112

1992

1990

831 578

113 694

776 753

105 048

957 587
232 629

1991
GDP at market price (million ECU)
EU-15
DK
D
F
NL
A
822 317
UK
Population, mid-year (thousand inhabitants)
368 034
EU-15
5 172
DK
80 625
D
57 374
F
15 184
NL
7 915
A
UK
58 003
Exchange rate, annual average (1ECU = …)
7.86
DK
2.05
D
6.91
F
2.31
NL
14.44
A
UK
0.71
Source: Eurostat yearbook (2000 Edition)

364 599
5 141
79 433
56 735
14 952
7 730
57 572

366 254
5 154
80 014
57 056
15 070
7 819
57 796

7.91
2.05
6.97
2.31
14.43
0.7

7.81
2.02
6.85
2.27
14.22
0.74

369 714
5 189
81 157
57 655
15 291
7 989
58 196

7.59
1.94
6.63
2.18
13.62
0.78

371 011
5 207
81 439
57 900
15 383
8 028
58 397

7.54
1.92
6.58
2.16
13.54
0.78

372 130
5 234
81 678
58 139
15 459
8 048
58 602

7.33
1.87
6.53
2.1
13.18
0.83

373 194
5 263
81 915
58 375
15 531
8 062
58 805

7.36
1.91
6.49
2.14
13.43
0.81

374 150
5 285
82 035
58 610
15 611
8 072
58 998

7.48
1.96
6.61
2.21
13.82
0.69

7.5
1.97
6.6
2.22
13.85
0.68

127

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