The Resource use and management expenditure account (RUMEA)
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1 EUROPEAN COMMISSION EUROSTAT Directorate E: Sectoral and regional statistics Unit E2: Environmental accounts and climate change Doc. ENV/EXP/WG/15 (2012) Point 15 of the agenda The Resource use and management expenditure account (RUMEA) Eurostat Unit E2 Working Group Environmental Expenditure Statistics Joint Eurostat/EFTA group Meeting of 27 and 28 March 2012 BECH Building Room Quetelet
2 Meeting documents can be downloaded from the Environment statistics meetings CIRCA site at Please note that, for environmental reasons, paper copies of meeting documents will not be available in the meeting room. The only exceptions will be documents that are not posted on CIRCA at least one week before the meeting.
3 Background The DIMESA 1 established in 2009 a Task Force (TF) on Resource use and management expenditure accounts (RUMEA). The main aim of the TF is to contribute to the methodological advancement of RUMEA by developing a handbook, standard tables for data collection and a future module to be included in the Regulation 691/ RUMEA is a satellite account to the national accounts and it uses as basic classification the classification of resource use and management activities and expenditure (CRUMA). This classification together with other related classifications such as CEPA and CreMA are the subject of a sub-group that is meeting on 1-2 March 2012 to discuss boundary issues, definitions and explanatory notes. The outcomes of the discussion are presented in point 10 of the WG agenda. In 2010, the TF met twice (results were presented to the WG in 2010 and 2011), and in October 2011 met again and discussed the following: the presentation of the results following the second pilot exercise (testing the compilation of SERIEE tables for one CRUMA domain or sub-domain at free choice depending on data availability) as agreed in February 2011; technical details raised through the analysis of the results of the second pilot exercise The documents presented and discussed at the meetings of the TF can be found on Circa: ed&sb=title In the following sections you will find a detailed description of the results of the second pilot exercise and the most important points that were discussed during the October 2011 TF meeting. Delegates are kindly requested to: 1. Take note of the issues discussed in the TF and express an opinion. The issues are presented in sections 1 and Give an opinion on the proposed voluntary data collection as described in section Results of the RUMEA second pilot exercise Following the decision of the TF taken in October 2010 and presented to the WG in March 2011, Eurostat prepared the necessary documentation for the second pilot exercise and sent it to the TF on 4 May 2011:
4 a template (Excel workbook) based on the five SERIEE tables, highlighting the most important and easily identifiable variables as well as the links between the tables. The tables are presented in the Annex to this document. detailed guidelines for filling in the tables which were based on Eurostat's EPEA compilation guide A document describing the characteristic activities by CRUMA class/ sub-class was also provided to the TF. By end of August 2011, 5 countries (FI, FR, IT, SI, SE) replied to the pilot exercise. For NL useful information was taken from a report following a grant awarded by the Commission. The aim of the second pilot exercise was to test the accounting framework and methodology, rather than to obtain a complete resource use/resource management account. Therefore, it was proposed that the RUMEA tables could be compiled for only one CRUMA class or sub-class (for example only the use or the management of one natural resource) and for the complete set of producers or just some of them (only specialised producers, only specialised producers of general government, only specialised producers of corporations, etc.). All countries that replied to the pilot exercise used as data source national accounts (sometimes backed by information coming from structural business statistics and energy statistics), except France who used the national database on economic characteristics of enterprises. Countries chose to focus their work for this pilot exercise on CRUMA classes 10 (Use and management of water resources), 13 (use and management of fossil energy) and 14 (Use and management of minerals). All countries provided information for general government and and/or corporations sectors. Summing up, the pilot exercise raised awareness for the accounting tables and contributed to the understanding of the accounting rules of the RUMEA. The excel template used for the second pilot exercise proved feasible. Nevertheless, it was concluded that more explanatory notes on the accounting relationships implemented in the formulas are needed, in order to increase the awareness of compilers of the meaning of the accounts and figures. A detailed description by country of the RUMEA tables received by Eurostat is available in the document 'RUMEA 03 Results of the second pilot exercise' from the TF Circa folder: e_ /rumea_exercisepdf/_en_1.0_&a=d 2. Issues discussed and decisions taken at the TF meeting in October 2011 The TF discussed the outcome of the pilot exercise. Data sources that had been used included national accounts, business statistics, budget analysis, energy statistics, waste statistics, forestry statistics and environmental statistics and accounts (EPE, EGSS, subsidies)
5 The TF concluded that an integrated system of source data and accounts was a key to developing the RUMEA. Ideally, the data bases underlying the national accounts data should be used. The multiple uses of source data for different accounts and the use of one account as a source for another was essential for coherent good quality results at low costs. Where possible, the national accounts compilation process should be influenced such that data for various environmental accounts become available in the required detail 'automatically'. The integration of physical and monetary accounts and the integration of different monetary accounts (EPE, RUMEA, EGSS, subsidies) should be further pursued. The TF agreed that the focus of RUMEA should be restricted to cover only resource management. As the interest in the different natural resources varies across countries, the TF further recommended 4 natural resource domains (CRUMA classes) for which accounts should be developed with priority: Energy (renewable energy, energy saving) Minerals (recycling and recovery) Water (including supply and distribution, i.e. the use) Forests (both natural and cultivated) The TF agreed that the set of accounting tables should be further developed into a working tool where standard assumptions are built in. For a possible future regular data collection, the set of tables should be restricted to tables B and B1 (i.e. production and supply-use). While there are encouraging signs that a few countries start measuring own account activities, data for these activities are not available in most countries. Therefore, data collection should initially be limited to specialist producers. The TF discussed also the future statistical guide on RUMEA and suggested that the manual should include examples and practical guidance. Countries pointed out the need for more grants for gaining more experience in the field. The TF decided to launch a new pilot exercise which includes all WG members (see details in section 3). 3. Future plans Following the decision of the TF in October 2011, Eurostat further worked on updating the excel workbook and the supportive guidelines in view of launching the third pilot exercise. This exercise is meant to be the first RUMEA pilot data collection including countries other than task force members. The amount of information proposed to be asked through the pilot data collection is considerably restricted, to cover only energy resources and the characteristic activity 'renewable energy and energy saving'. The set of tables that were used for the second pilot exercise in the TF is currently being updated and more explanatory notes are prepared. 3
6 It is planned to launch the pilot data collection in April-May 2012 with a deadline set to July Member States are asked to participate in this pilot exercise. As suggested by the TF, the results will be carefully analysed before the next meeting of the TF, together with its linkages to the EGSS. 4
7 Annex: Description of the RUMEA tables used in the second pilot exercise RUMEA is a satellite account to the national accounts and it uses as basic classification the Classification of resource use and management activities and expenditure (CRUMA). CRUMA was developed on the basis of a classification originally built by Italy. It has been accepted by the London Group in April 2009 and submitted to the United Nations Expert Group on International economic and social classifications in September The UN Expert Group asked a few changes that have been incorporated in the Outcome paper on Natural resource use and management expenditure accounts 4. The last meeting of the UN Expert group took place in May The document /ERT-RUMEA/TF/04(2011)(19 October 2011) describes in detail the status of this classification. The template used for the second pilot exercise in the RUMEA TF included a set of five interrelated tables: TABLE B: the production of RUM characteristic products, and the way they are produced, TABLE B1: a table integrating supply and uses of RUM characteristic products, TABLE A: the national RUM expenditure, i.e. the expenditure for the uses (consumption) of RUM characteristic products and of connected and adapted products, for gross capital formation (investment) and some other transactions related with resource use and management (capital transactions and certain transfers), TABLE C: the financing of RUM expenditure, TABLE C1: the net cost burden for resource use and management on the various sectors of the economy. The compilation usually starts with the analysis of the supply of RUM characteristic products and the investment needed for this production (Table B) because such information is most widely available and most reliable. Table B determines the supply of RUM characteristic products. This supply is then complemented with available information on the uses in the supply-use table (Table B1). These uses, together with some additional information (on certain transfers, on expenditures for connected products etc.) then allow to complete Table A and to determine national expenditure. Based on Table A, the financing and the net costs can be analysed (Tables C and C1). The compilation sequence (B -> B1 -> A -> C -> C1) follows a natural progression from a minimum set of data most often available in countries to more complete accounts that require additional sets of data. Countries were provided with detailed guidelines for filling in the tables and they were suggested to focus on tables B, B1 and A as priority. The tables were directly derived from the tables as described in the SERIEE manual and EPEA compilation guide. Some simplifications were proposed by highlighting the most important data to be entered in the tables and the way (or some ways) to proceed when compiling the tables
8 A simplified image (without guidelines and notes) of the tables as they were sent to the TF for the second pilot exercise can be found below: Table B High priority for the homework CHARACTERISTIC PRODUCERS TRANSACTIONS (all figures are in EUR but labour inputs are in FTE) Specialised Non-specialised Label (by industry) Total GG/NPISHs Other (corporations) Secondary output Ancillary output B.1 1. CURRENT TRANSACTIONS B.1.1 B B B B B B B CURRENT USES intermediate consumption (P2) - of which characteristic products - of which adapted and connected products compensation of employees (D1) consumption of fixed capital (K1) other taxes on production (D29) other subsidies on production (D39) B net operating surplus - B OUTPUT (P1) B non-rum output - B RUM output B non-market (P13) - - B B B market (P11) - ancillary (P12) 1.3 RESOURCES B market output (sales, including partial payments*) - B current transfers including implicit subsidies** (D3) - B.2 2. CAPITAL TRANSACTIONS (balance) B.2.1 B.2.2 B.2.3 gross fixed capital formation (P51) other capital uses (K2) investment grants received (D92) B.2.4 other capital transfers received (D99) - B.3 3. FINANCING BY PRODUCERS = output (1.2) + balance of capital operations (2) - resources (1.3) B.4 Labour inputs B.5 Stock of fixed assets - - Legend of the colours Item not shown (the transaction may exist but it is not shown because of the method of determining national expenditure and the conventions adopted in the system of evaluating the EPEA) Item shown - Item absent (no transaction exists or a transaction may exist but no precedents have been found) Item is not a priority for the homework Item calculated automatically (e.g. totals of rows or columns) Item calculated automatically (e.g. from other tables) 6
9 Table B1 High priority for the homework Label Non-market Market Ancillary Total B Uses of resident units (purchasers' prices) B1.1.1 Intermediate consumption (P2) - B Specialised producers - B Other producers - B1.1.2 Final consumption (P3) - B1.1.3 Gross capital formation (P51) B Exports - - B1.3 Total uses (1+2) B1.4 Total resources ( ) B Output (P1) (basic prices) B1.5.1 B1.5.2 Specialised producers Other producers B1.6 4 Imports - - B Non-deductible VAT - B Other taxes less subsidies on products (D29 - D39) - 7
10 Label Components of national expenditure Specialised Table A High priority for the homework PRODUCERS Other producers (by industry) USERS / BENEFICIARIES CONSUMERS General Government (as collective consumer) Households as actual consumers A.1 1. Consumption of specific products - A Final consumption of characteristic products (P3) Rest of the world A market A non-market A Intermediate consumption of characteristic products (P2) A market A ancillary A Final consumption (P3) of A connected products A adapted products A Intermediate consumption (P2) of A connected products A adapted products A.2 2.Gross capital formation for characteristic activities A.3 3.Gross capital formation in specific products A in connected products A in adapted products A in characteristic products A.4 4. Specific transfers - A Subsidies (D31 and D39) - A characteristic products - A connected products - A adapted products - A Other specific transfers - A current including implicit subsidies* - - A capital (D92 and D99) - - A.5 5. Total uses of resident units ( ) A.6 6.Financing by the rest of the world A current uses - A.7 National expenditure (5-6) Total Table C Medium priority for the homework USERS / BENEFICIARIES FINANCING PRODUCERS CONSUMERS of UNITS General govt and NPISHs - Central government - Local government Specialised Other producers (by industry) General Government (as collective consumer) - NPISHs - - Corporations Specialist producers* Other producers* Households* National expenditure Rest of the world Uses of resident units Households as actual consumers Rest of the world Total which: current expenditure 8
11 Table C1 Low priority for the homework Corporations SECTORS Households GG and NPSIH Total C1.1 C1.2 ELEMENTS OF ENVIRONMENT- RELATED FINANCIAL BURDEN ("Net cost") 1. Financing of current national expenditure 2. Non-deductible VAT on current expenditure Specialised characteristic producers Other producers C Taxes on production C Net operating surplus - - C Any other profits - - C Interest on fixed capital* - C1.7 A. Environmental financial burden ("Net cost") ( ) 9
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