Statistisches Bundesamt, Wiesbaden 2015 Reproduction and distribution, also of parts, are permitted provided that the source is mentioned.

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2 Published by: Statistisches Bundesamt (Federal Statistical Office), Wiesbaden Homepage: You may contact us at: Central Information Service Phone: +49 (0) 611 / Periodicity: non-recurrent Published on 7 May 2015 Order number: [PDF] Statistisches Bundesamt, Wiesbaden 2015 Reproduction and distribution, also of parts, are permitted provided that the source is mentioned.

3 Federal Statistical Office Environmental-economic accounting Gustav-Stresemann-Ring Wiesbaden Germany Economy-wide environmental protection expenditure accounts for Germany Project and report commissioned by the European Union Project of Directorate E, Eurostat, European Commission Grant Agreement number: Final Report Susanne Becker Federal Statistical Office December 2014

4 Contents 1 Introduction EPEA Research on data sources Research on data for specialised producers Research on data for non-specialised producers Methodology and compilation Modification of the EPEA tables Specifics on the compilation for specialised producers Specifics on the compilation for non-specialised producers Specifics on the compilation for the use side Presentation and interpretation of the results EPE data for reporting year Time series data Comparison to former data on EPE in Germany Future developments EPE draft tables ReMEA Conclusions References Annex 1: CEPA Annex 2: EPEA tables for reporting year Table B: Production of EP services 2010 (total) Table B1: Supply-uses of EP services 2010 (total) Table A: National expenditure for EP 2010 (total) Table B: Production of EP services 2010 (pollution management) Table B1: Supply-uses of EP services 2010 (pollution management) Table A: National expenditure for EP 2010 (pollution management) Table B: Production of EP services 2010 (waste water management) Table B1: Supply-uses of EP services 2010 (waste water management) Table A: National expenditure for EP 2010 (waste water management) Table B: Production of EP services 2010 (waste management) Table B1: Supply-uses of EP services 2010 (waste management) Table A: National expenditure for EP 2010 (waste management) Table B: Production of EP services 2010 (protection of biodiversity and landscapes) Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

5 Contents 2.14 Table B1: Supply-uses of EP services 2010 (protection of biodiversity and landscapes) Table A: National expenditure for EP 2010 (protection of biodiversity and landscapes) Table B: Production of EP services 2010 (R&D and other EP activities) Table B1: Supply-uses of EP services 2010 (R&D and other EP activities) Table A: National expenditure for EP 2010 (R&D and other EP activities) Annex 3: Time series data 3.1 Production of EP services (total) Supply-uses of EP services (total) National expenditure for EP (total) Environmental protection output by producers National expenditure for EP by users National expenditure for EP per domain Annex 4: EPE draft tables for reporting year EPE draft table 1 General government EPE draft table 2 Corporations: ancillary production (total) a EPE draft table 2 Corporations: ancillary production of NACE B b EPE draft table 2 Corporations: ancillary production of NACE C c EPE draft table 2 Corporations: ancillary production of NACE D d EPE draft table 2 Corporations: ancillary production of NACE EPE draft table 3 Corporations as secondary and specialist producers of market EP services EPE draft table 4 Total supply of environmental protection services EPE draft table 5 Households EPE draft table 6 Transfers a EPE draft table 7.1 Total economy by CEPA b EPE draft table 7.2 Total economy, total CEPA Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

6 List of figures and tables Figure 1 The set of EPEA tables Table 1 Abbreviated notations of statistics/surveys Table 2 Overview of different survey on specialised producers (NACE 37 39) Table 3 Extended table B Table 4 Extended table B Table 5 Table A Table 6 Overview CEPA, COFOG, NACE Rev Table 7 Extended table B1 with links to table B Table 8 Table A with links to tables B and B Table 9 EPE draft table 1 General government Table 10 EPE draft table 2 Corporations: ancillary production (total) Table 11 EPE draft table 3 Corporations as secondary and specialist producers of market EP services Table 12 EPE draft table 4 Total supply of EP services Table 13 EPE draft table 5 Households Table 14 EPE draft table 6 Transfers Results refer to NA data before revision according to ESA Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

7 Abbreviations CEPA CPA classification of environmental protection activities and expenditure classification of products by activity COFOG classification of functions of government CReMA classification of resource management activities EEA EGSS EP EPE EPEA ESA ESTP GDP GCF GFCF IC JQ mn NA NACE NSO OECD environmental economic accounts environmental goods and services sector environmental protection environmental protection expenditure environmental protection expenditure accounts European system of accounts European statistical training programme gross domestic product gross capital formation gross fixed capital formation intermediate consumption Joint questionnaire for EPE million national accounts nomenclature of economic activities in the European Union national statistical office Organisation for Economic Co-operation and Development ReMEA resource management expenditure accounts ROW SBS SEEA rest of the world Structural business statistics system of environmental economic accounting SERIEE European system for the collection of economic information on the environment SNA SUT System of national accounts supply and use table Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

8 1 Introduction In 1994, Eurostat developed the European System for the Collection of Economic Information on the Environment, called SERIEE (Eurostat, 1994). It describes approaches to measure society s efforts to protect the environment. The 1994 SERIEE manual stated the conceptual framework for a monetary description of environmental protection activities. The environmental protection expenditure account (EPEA) is one of two satellite accounts that have been developed within the SERIEE system. The EPEA is designed as an economically oriented satellite account to the national accounts in a way that allows for links between economic and physical accounts (Eurostat, 1994, p. 12). The main principles of EPEA are described in chapter 2. In 2014, EPEA got a legal basis and was included as the fourth module added to EU Regulation on environmental economic accounts. Regulation (EU) No 538/2014 amending Regulation (EU) No 691/2011 on European environmental economic accounts was adopted on 16 April Annex IV describes the module for environmental protection expenditure accounts and defines the data to be collected, compiled, transmitted and evaluated by the Member States (Regulation (EU) No 538/2014 of the European Parliament and of the Council of 16 April 2014, 2014). Since the full EPEA framework is quite expensive in terms of resources to be set up, the EPE module for inclusion in Regulation 691/2011 proposes significant simplifications which nevertheless still allow reaching the objective of having a measure of EPE for the whole economy comparable to national accounts (Eurostat, 2014b). In Germany, three previous projects concerning environmental protection expenditure accounts were conducted by the German Federal Statistical Office supported by Eurostat grants. In 1996, the first study dealt with approaches to implement SERIEE in Germany. It provided data for the reporting year 1991 for West Germany (Kuhn & Lauber, 1996). The following project implemented SERIEE for reunified Germany for the reporting year 1995 (Riege-Wcislo, 1999). The third study was finished in During this project a national compilation guide was developed. Additionally, the EPEA tables were compiled for the reporting years (Lauber, 2004). Even though the national compilation guide draw a detailed description of the compilation of EPEA tables for Germany, it was not possible to continue the compilation of the tables for the following years. The main reason for that was a change in the classification of public finance statistics. So, the former calculation of expenditure for environmental protection was continued und published in the following years. The current project aims at the enlargement and modification of the German environmental protection expenditure accounts in order to meet the requirements of the EPE module. According to the project application, the following new aspects have to be considered: inclusion of additional environmental areas (climate change, nature protection, protection from radiation, soil protection), inclusion of additional economic sectors or branches (private enterprises of waste and waste water protection, agriculture, transport, other services), as far as possible development of estimation procedure for environmental protection expenditures of private households, and inclusion of expenditure for resource management. Additionally, the current compilation has to be adapted to changes of basic data and other on-going developments. This includes a backwards compilation of data according to NACE Rev. 2 as well as an adaption to new classifications in German Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

9 1 Introduction financial statistics. Furthermore, coefficients used for the estimation of data in case no basic data are available have to be checked and adapted to the current. Finally, it has to be assessed how to provide more timely data than up to now. To ensure that the requirements of the expenditure module can be met regularly the development of a calculation tool based on the special situation in Germany has to be implemented. Because the calculations should follow the EPEA framework as far as possible, we decide to try again the filling in of the EPEA tables proposed in the 2002 EPEA compilation guide. We slightly changed or rather expanded the classic EPEA tables to be able to fill in the new draft tables of the EPE module of the Regulation and the Joint Questionnaire for EPE (JQ). Details on that point can be found in section 4.1. The report is structured as follows: Chapter 2 gives a short description of the EPEA framework in theory. Chapter 3 assesses possible data sources for German environmental protection expenditure accounts. This is followed by the main chapter (4) dealing with the compilation of the German EPEA for the years 2000 to Afterwards presentation and interpretation of the results are given in chapter 5. Future developments concerning German EPEA are described in chapter 6. In chapter 7, a first test of the draft tables for the EPE module of the Regulation is conducted based on the German EPEA results of this project. An assessment of the possibility of developing resource management expenditure accounts for Germany is presented in chapter 8. The last chapter (9) summarises the main findings of this report. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

10 2 EPEA This chapter summarizes the main principles concerning the EPEA framework given in chapter 3 of the 2002 EPEA Compilation Guide. First of all, it is important to note that EPEA uses the national accounts (NA) definitions and concepts. This ensures the compilation of aggregate expenditure indicators in a consistent and complete way without double counting. The following components have to be included for the calculation of environmental protection expenditure (EPE): i. The domestic uses of environmental protection (EP) products. These products are EP services or connected and adapted products. The value of EP services produced for internal uses to reduce the environmental impact of the main production activities (called ancillary activities) is also included. ii. iii. Domestic gross capital formation for EP (i.e. investments for EP). Those transfers for EP that are not already reflected in the expenditure recorded under the two previous categories. As the national accounts, the EPEA framework is a double entry accounting system, i.e. all flows are recorded twice, as a resource and as a use. This is comparable to the NA supply-use tables. For each main category of EP services supply and use have to be equal. EPEA consist of a set of five tables (see Figure 1). Figure 1: The set of EPEA tables Source: Eurostat, 2002, p. 18. The tables are listed according to the compilation procedure in practice: 1. Table B describes the supply of EP services. 2. Table B1 integrates the supply and uses of EP services. 3. Table A presents the expenditure for the uses of EP services and of connected and adapted products, for gross capital formation (GCF) and some other transactions related with EP. National EP expenditure is determined in this table. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

11 2 EPEA 4. Table C illustrates the financing of EP expenditure. 5. Table C1 describes the net cost burden of EP for the various sectors of the economy. According to the SERIEE manual, there are two main types of producer units: characteristic producers and non-characteristic producers. In the following, we focus on the first group because these producers execute characteristic activities, i.e. environmental protection activities. Non-characteristic producers are all other producer units of the national economy (Eurostat, 1994, p. 30). The terms characteristic and non-characteristic are used in the 1994 SERIEE manual. In this report, we follow the terms of the 2002 EPEA Compilation Guide and use EP activities and EP producers instead of characteristic activities and characteristic producers. The EP producers are divided into two categories: specialised producers and nonspecialised producers. Specialised producers are defined as those producers which execute an EP activity as their principal activity (Eurostat, 2002, p. 67). They are classified into two categories according to the institutional sector they belong to (Eurostat, 2002, p. 67): General government: This category groups together specialised producers of the general government and non-profit institutions serving households (NPISH) sectors. The EPEA compilation guide suggests to separate government specialised producers by the level of government (central government and local government, with a specific category for municipalities). Corporations: This category groups together the specialised producers of the corporations and households institutional sectors. The EPEA compilation guide assumes that all EP activities carried out by general government units are classified as being produced by specialised producers. We will follow this approach (although not all government units carry out EP activities as their main activity 1 ). Non-specialised producers are divided into two groups (Eurostat, 2002, p. 19): Producers that undertake EP as a secondary activity (in the following called non-specialised producers with secondary output). Producers that undertake EP activities in-house for own use (in the following called non-specialised producers with ancillary output). These types of producers can be found in the columns of the production table B. All EP activities are classified according to CEPA The abbreviation CEPA stands for classification of environmental protection activities and expenditure. The following environmental protection domains are distinguished in the classification: Protection of ambient air and climate (CEPA 1), Waste water management (CEPA 2), Waste management (CEPA 3), Protection and remediation of soil, groundwater and surface water (CEPA 4), Noise and vibration abatement (CEPA 5), Protection of biodiversity and landscapes (CEPA 6), Protection against radiation (CEPA 7), Environmental research and development (CEPA 8), Other environmental protection activities (CEPA 9). The detailed classification is given in Annex 1. For more information on CEPA like explanatory notes and definitions see Eurostat (2002, Annex 1). 1 See Eurostat (2002, p. 67) for detailed explanation. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

12 2 EPEA More information on specific details of the above mentioned principles will be given in the corresponding sections in this report. In the following chapter we describe the initial steps of the project work that have been done. This primarily covers data research and subsequently the description of the chosen data sources. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

13 3 Research on data sources After becoming familiar with the concepts of environmental protection expenditure accounts we explored possible data sources for specialised and non-specialised producers. In the following section data research on specialised producers is described. In section 3.2 the research on data for non-specialised producers is outlined. 3.1 Research on data for specialised producers Before presenting the relevant statistics concerning EP producers a short overview of the specific situation of these producers in Germany is given. The focus will be on specialised producers in the domains waste and waste water management (this corresponds to CEPA classes 2 and 3). Additionally, government as specialised producers also produces EP services in other CEPA classes but to a lesser extent. In the 2004 project report, the German situation of the environmental protection sector is illustrated along with some difficulties and problems regarding the compilation of the EPEA tables at that time (Lauber, 2004). In the following, we briefly describe the current situation in Germany and highlight the developments since the last project. We illustrate the changes and improvements in the statistical compilation of EP expenditure but we also have to note that some aspects remain unchanged. The main activities of specialised producers are EP services in the waste and waste water management domains. In Germany, local governments (municipalities) are responsible for these duties but they have the opportunity to delegate the provision of waste and waste water services to private or public corporations. There exist three possible organisational forms: i. Public corporations: The local government themselves provide the services, i.e. single-handedly by the municipalities. ii. Formally privatised corporations: They are majority-owned by the public authorities. iii. Private corporations: Municipalities have a holding in these corporations between zero and 50 per cent. The legal forms of specialised producers under responsibility of municipalities are possible under public or private law (Friedrich Ebert Stiftung, 2000) (Friedrich Ebert Stiftung, 2004). There exist five legal forms for a company under public law: Regiebetrieb, Eigenbetrieb, Zweckverband, Öffentlich-rechtliche Anstalt, and Betrieb gewerblicher Art. 2 The last term is no real form of organisation but a construction according to tax law. Additionally, there are different legal forms under private law. The three most common forms in Germany are: Limited liability company ( Gesellschaft mit beschränkter Haftung, GmbH ), Public limited company ( Aktiengesellschaft, AG ), and Limited partnership with a limited liability company as general partner ( GmbH & Co. KG ). Corporations with a legal form under private law are subject to taxation by virtue of the form of organisation. 2 The terms are named in German because a translation is not always distinct. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

14 3 Research on data sources In the end of the 1980 s, the reorganisation of companies under public law to companies under private law started. As a consequence of this action, the transactions of these corporations were no longer covered in the public finance statistics. Hence, a new survey was introduced in 1992 which covers the formally privatised corporations (called public enterprises statistics in the following). The 2004 project report states that it is possible to identify the first two organisational forms of specialised producers (public and formally privatised corporations). The compilation of EP expenditure of public corporations is based on the public finance statistics. The data source for formally privatised corporations is the public enterprises statistics. Problems occurred with the compilation of the third organisational form: private corporations. It was not possible to compile or estimate economic data of private specialised producers in the 2004 project. But there were references about future developments which might allow the compilation of data at a later point in time. For example, the development of an additional question in the public enterprises statistics to identify the overlap of formally privatised corporations in the public enterprises statistics and the turnover tax statistics. Furthermore, the planned revision of NACE was mentioned. The Regulation establishing NACE Rev. 2 as the relevant classification for economic activities was adopted in December 2006 and has been in use since January 2008 (Eurostat, 2008, p. 17). One important change that is of main interest for the compilation of EP expenditure is the creation of a new section E Water supply; sewerage, waste management and remediation activities. The divisions 37 (Sewerage), 38 (Waste collection, treatment and disposal activities; material recovery) and 39 (Remediation activities and other waste management services) can directly be assigned to specialised producers. As a consequence, all specialised producers with waste and waste water management activities have to be recorded in these divisions irrespective of their legal form and of their (private or public) ownership. One result of the introduction of the NACE Rev. 2 is the new coverage of specialised producers in different official statistics in Germany because these corporations are now classified into the section producing industry ( Produzierendes Gewerbe ). The following structural business statistics include data on specialised producers since 2008, the year when NACE Rev. 2 was introduced: i. Current expenditure for environmental protection in industry (Fachserie 19 Reihe 3.2) (Statistisches Bundesamt, continously.f), ii. Investments for environmental protection in industry (Fachserie 19 Reihe 3.1) (Statistisches Bundesamt, continously.e), and iii. Employees, turnover and investments of enterprises in energy supply, water supply, sewerage, waste management and remediation activities (Fachserie 4 Reihe 6.1) (Statistisches Bundesamt, continously.a). Two other data sources are not specific regarding the required data (except turnover) but help to define the scope of the specialised producers in Germany: iv. Turnover tax statistics (advance returns) (Fachserie 14 Reihe 8.1) (Statistisches Bundesamt, continously.c), and v. Business register. Additionally, there are the already mentioned statistics about formally privatised and public corporations: vi. Annual balance sheets of public funds, institutions and enterprises, and vii. Public finance statistics (Fachserie 14 Reihe 3.1) (Statistisches Bundesamt, continously.b). Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

15 3 Research on data sources Last but not least, there are various data concerning specialised producers in the viii. National accounts. So, there are various (in part new) data sources which have to be carefully evaluated for their use in the German environmental protection expenditure accounts. We define the following abbreviated notations for the above mentioned statistics and surveys in this report: Table 1: Abbreviated notations of statistics/surveys i Current expenditure for environmental protection in EPE survey industry (Fachserie 19 Reihe 3.2) ii Investments for environmental protection in industry EP investment survey (Fachserie 19 Reihe 3.1) iii Employees, turnover and investments of enterprises in SBS (NACE D and E) energy supply, water supply, sewerage, waste management and remediation activities (Fachserie 4 Reihe 6.1) iv Turnover tax statistics (advance returns) (Fachserie 14 Turnover tax statistics Reihe 8.1) v Business register Business register vi Annual balance sheets of public funds, institutions and Public enterprises statistics enterprises vii Public finance statistics (Fachserie 14 Reihe 3.1) Public finance statistics viii National accounts NA To analyse the different data of the above mentioned statistics, an overview is given first. The following table compares number of corporations, number and compensation of employees, turnover and investments in the NACE divisions A detailed description of the statistics follows afterwards. Table 2: Overview of different surveys on specialised producers (NACE 37-39) 2010 number of corporations number of employees compensation of employees (in mill. Euro) turnover/ output (in mill. Euro) investment (in mill. Euro) EPE survey 575 1,492 EP investment survey 1,890 2,367 SBS (NACE D and E) 2, ,955 6,119 35,000 4,006 Turnover tax statistics 7,635 30,512 Business register 10, ,184 32,549 Public enterprises statistics 1,992 93,589 4,109 19,377 3,686 Public finance statistics 639 7,868 5,031 National accounts 189,000 7,310 41,780 7,270 Source: Statistisches Bundesamt, surveys and statistics from reporting year A brief comparison of the number of enterprises reveals large differences in the surveys and statistics. So, we decided to gather more information about specialised producers from sources outside the official statistics to complete our picture of specialised producers in Germany. To find out more about the scope of the NACE divisions 37 39, we conducted a background research on specialised producers and especially the number of enterprises with waste and waste water management services. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

16 3 Research on data sources Associations One starting point was the research on German associations with members of the waste and waste water management sector. The main goal is to obtain an estimate for the number of enterprises for each of NACE divisions Additionally, we were looking for other data on specialised producers which may be relevant for the compilation of EPEA. There exist different associations which cover waste water management, waste management or both sections in Germany: German Association of Energy and Water Industry ( BDEW, Bundesverband der Energie- und Wasserwirtschaft e. V. ), German Association of Waste Management, Water and Resource Industry ( BDE, Bundesverband der Deutschen Entsorgungs-, Wasser- und Rohstoffwirtschaft e. V. ), German Association Secondary Raw Materials and Waste Management ( bvse, Bundesverband Sekundärrohstoffe und Entsorgung e. V. ), Confederation of German Steel Recycling and Waste Management Enterprises ( BDSV, Bundesvereinigung Deutscher Stahlrecycling- und Entsorgungsunternehmen e. V. ), German Association of Local Utilities ( VKU, Verband kommunaler Unternehmen e. V. ), and German Union for Water Industry, Wastewater and Waste ( DWA, Deutsche Vereinigung für Wasserwirtschaft, Abwasser und Abfall e. V. ). Some of these associations do not publish reports and data for the public but only for their members. Others like the BDEW provide a lot of data and graphs about waste water management on its website. But they basically use official statistics or data from other associations. We found two interesting publications concerning waste water management. The first one is a joint publication of the BDEW, the DWA, the VKU and three other water associations about the German water industry in 2011 (ATT, BDWE, DBVW, DWA, & VKU, 2011). This illustration of the sector contains in addition to some background information about the organisational form of waste water management enterprises an estimated number of 6,900 sewerage local units ( Abwasserbeseitigungsbetriebe ). The other publication is called Wirtschaftsdaten der Abwasserbeseitigung (Economic data on sewerage). Every two years, the DWA in cooperation with the German Association of Cities and Towns ( DST, Deutscher Städtetag ) and the German Association of Towns and Municipalities ( DStGB, Deutscher Städte- und Gemeindebund ) conducts this survey for sewerage enterprises (DWA, 2012). Around 500 enterprises participated in the survey but the participation of smaller enterprises was low. At least the 500 enterprises supply almost fifty per cent of the German sewerage population. The survey asks for sewage fees, cost structure of sewerage disposal, investments, organisational/legal forms and expenditure of private households for sewerage disposal. The bsve publishes an overview about the recycling and waste management industry. It states 5,503 enterprises with a turnover of 20,156 million Euro in the waste management sector in 2007 (bvse, 2010, p. 8). But the used numbers originate from official statistics and other publications. Another publication from the VKU examines local public utilities in the supply and disposal services sectors (VKU, 2012). There are data on waste and waste water management corporations, for example investment, turnover, number of employees etc. The problem with these data is the scope of the data because it is not obvious whether it covers just the members of the VKU or if it aims to cover the whole sector. In any case, the published numbers are (in part much) smaller than the data in Table 2. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

17 3 Research on data sources In conjunction with our internet research on associations, we discovered one additional interesting report from the ifo institute, published by the German Association of Cooperative Credit Institutions (BVR, Bundesverband der Deutschen Volks- und Raiffeisenbanken) (Ifo Institut, 2013). In addition to an illustration with data from the turnover tax statistics it provides an analysis of data from annual reports of 1,000 corporate clients of these credit institutions. It reports the shares of labour costs, cost of materials, consumption of fixed capital etc. in the total output 3. Data from associations cannot solve the issue to find an estimate for the number of enterprises for the NACE divisions On the one hand this is due to the fact that associations also use official statistics. On the other hand there is the distinction between enterprises and local units in the data which does not allow a direct comparison. We decided to prefer data from official statistics and only revert to data from associations in the case we do not find the relevant data in official statistics. From the German NSO, there are two data sources available that are useful regarding the total number of enterprises of specialised producers in the waste and waste water management sector: the German business register and the turnover tax statistics. Business register The German business register is a regularly updated database, which includes enterprises and local units, whether economically active or presently inactive, with a taxable amount of sales (turnover) of goods delivered and services rendered and/or with employees covered by compulsory social insurance contributions (Statistisches Bundesamt, 2014b). Hence, enterprises which are not subject to pay turnover taxes and which do not have employees covered by compulsory social insurance contributions are not covered in the business register. Additionally, the quality of the data in the business register largely depends on the quality of the respective administrative data (Statistisches Bundesamt, 2014b). With the help of data collection from different sources and combined plausibility checks the quality of data in the business register is improved. Nonetheless, there are discrepancies between the business register and subject field statistics ( Fachstatistik ) due to differences in the used methods. Data in the business register are released with a delay of two years and there exists a reference date. One important characteristic of the business register is the assignment of an enterprise with more than one local unit to the NACE division with the focus of the enterprise. But it is possible to exploit a list with the additional business activities of the enterprise. Turnover tax statistics The turnover tax statistics (advance returns) present data from enterprises that are liable to submit an advance turnover tax return (Statistisches Bundesamt, 2014a). These statistics do not include small entrepreneurs (turnover of less than EUR 17,500) and businesses for which no tax due arises. To compare data from the turnover tax statistics and the business register, we only considered the number of enterprises with VAT from the business register. Although we know that the business register uses data from the turnover tax statistics and that we compared in both cases data from 2010, we discovered a difference between the two data sources. Obviously due to methodological or other reasons the two statistics are not directly comparable. Hopefully, the restructuring of the German business register in 2014 will lead to more plausible results. The data we used for our check dated back to summer 2013 with a status of the register of May Total output = turnover + inventories movements + internally produced and capitalised assets. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

18 3 Research on data sources Structural business statistics The annual structural surveys in the field of electricity, gas, steam and air conditioning supply and also water supply, sewerage, waste management and remediation activities cover amongst others enterprises in NACE divisions 37, 38 and 39. The surveys are divided into the investment survey which contains detailed information on investments of the enterprises and into the cost structure survey which includes for example data on turnover, payroll costs, expenditure on raw materials and supplies. But there exists cut-off thresholds for enterprises for both surveys: an annual volume of waste water of 200,000 m³ for waste water management enterprises and a turnover of one million Euros for waste management enterprises. The SBS (NACE D and E) is the most extensive structural business statistics for the NACE divisions As mentioned before there exist two more SBS in the context of EP expenditure and EP investment. But a simple comparison of the numbers of respondent enterprises in NACE divisions reveals that these statistics do not cover all relevant enterprises. The advantage of these two surveys is the breakdown by CEPA categories. However, the surveys are not able to cover the entire scope in the NACE divisions (especially the EPE survey only includes around 20 per cent of the enterprises of the SBS). Above all, specialised producers in NACE division 37 are assumed to produce most of their output in CEPA 2 (waste water management) and specialised producers in NACE division 38 in CEPA 3 (waste management). For that reason, we do not need the complete CEPA breakdown for enterprises of NACE divisions (see also assumption concerning ancillary output of specialised producers in section 4.2). Public enterprises statistics Public funds, institutions and enterprises (in short: public enterprises) are created by hiving off tasks from the core budgets of the central, regional and local authorities (Federation, Länder, municipalities/associations of municipalities), by business startups, or by acquisition of interest. Originally, it was especially supply, disposal and transport tasks that were hived off from the core budgets of the central, regional and local authorities (Federation, Länder, municipalities/associations of municipalities), while today public enterprises work in nearly all economic branches. About 90 per cent of public enterprises operate at the municipality level. Public enterprises may be set up under public or private law. The only decisive criterion is that the Federation, Länder or municipalities/associations of municipalities hold directly or indirectly more than 50 per cent of the nominal capital or voting rights. Public enterprises have a commercial or cameralistic accounting system of their own. (Statistisches Bundesamt, 2014c). So, public enterprises statistics should cover all formally privatised corporations that are part of specialised producers in NACE divisions 37, 38 and 39. Some of the observation units are part of the government sector in accordance with ESA (European system of accounts). Hence, in the EPEA framework we also have to check whether some units of the public enterprises have to be counted to government sector because we have the division between government sector and corporations sector in the EPEA tables. It is also important to know that the public enterprises statistics can be analysed according to function ( Aufgabenbereich ) or according to economic activity ( wirtschaftliche Tätigkeit ) which correspond to NACE Rev. 2 classification. We prefer the evaluation according to economic activity because this is directly comparable to other statistics (for example SBS) and national accounts. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

19 3 Research on data sources Problematic is the overlap to all business statistics that cover accounting data (e.g. cost structure surveys). The results of the statistics are only comparable to a limited extent because of the special boundary of the group of respondents. So, a major problem is the overlap between the public enterprises statistics and the SBS (NACE 37 39) because both statistics cover enterprises of the NACE divisions To determine which enterprises are represented in both statistics, there is an action going on to mark public enterprises in the business register. With this identification marking the separation between public and private enterprises will be possible. In the future, it may be possible to separate public enterprises from the corporations sector but till the end of this project the marking process of public enterprises in the business register is not yet satisfactory. However, we do not have to separate public enterprises to fulfil the EU Regulation and the separation is only recommended but not obligatory in the EPEA framework (Eurostat, 2002, p. 26). Public finance statistics Public finance statistics regularly provide a comprehensive and detailed picture of the entire public finance management. They show the revenue obtained by the overall public budget, the expenditure that was financed by such revenue, and the extent to which the overall public budget had to use outside funds (borrowing on the credit market) or reserves to cover the financial balance (Statistisches Bundesamt, 2014d). The data of these statistics constitute the main statistical source to calculate, in the context of national accounting, data for the general government sector relating to the EU Stability Pact and the government account (Statistisches Bundesamt, 2014e). So far the public finance statistics department has done an extra evaluation of public expenditure and revenues of selected environmental functional areas. Unfortunately, this evaluation is not available until around 30 months after the reporting year. A revision took place in the public finance statistics from reference year 2011 onwards. Together with a general revision of the national accounts, a broader definition of the overall public budget was introduced, i.e. public funds, institutions and enterprises that are part of the government sector according to ESA are also included in the overall public budget. 4 National accounts National accounts draw the most comprehensive picture of the three NACE divisions as NA aim for representing the whole economy. According to this concept, all corporations should be included in the national accounts. National accounts would also be the best possible source for the compilation of the EPEA tables because the EPEA compilation guide emphasises the consistency between the System of national accounts (SNA) and EPEA (Eurostat, 2002, p. 15). Unfortunately, in German NA the three NACE divisions (37, 38 and 39) are not split up in the standard tables while in EPEA separate data for each NACE division are needed. Moreover, according to EPEA we have to split non-market and market output for specialised producers. This, again, is not provided in the standard transmission programme of national accounts. However, due to the fact that national accounts data are consistent with the EPEA concepts, it would be reasonable to use NA data for the compilation of German EPEA. So, we explored the possibilities of using NA data for EPEA. The German NA department uses some of the above mentioned statistics as basis for their calculation. The structural business statistics (NACE 37 39) are used for the calculations of the corporations sector for enterprises in NACE divisions 37, 38 and 39. The public finance 4 Details can be found in Terms of the statistics of public finance and public service personel (Statistisches Bundesamt, 2014e). Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

20 3 Research on data sources statistics are the basis for the government sector. Additionally, budget analysis is done for calculating data for the government sector. In using NA data for EPEA, we benefit in the way that we do not have to adjust data from basic statistics to NA concepts. Additionally, a possible overlap between the different statistics is excluded because the NA department uses the statistics in such a way that double counting is avoided. Also the assignment of public enterprises to the government sector is done in the NA department and is in accordance with ESA and therefore also in accordance with EPEA. Our NA department provided us with the following data that partly go beyond the Eurostat transmission programme: i. National Accounts Domestic product, detailed annual results (Fachserie 18 Reihe 1.4) (Statistisches Bundesamt, continously.g), ii. Supply and use tables (SUT), in part at a more detailed level for NACE divisions 37, 38 and 39 than published, iii. Data on output and intermediate consumption (IC) for the corporations sector (NACE divisions 37, 38 and 39), iv. Data on market output of government sector for NACE divisions 37, 38 and 39, v. Government expenditure by function (COFOG) delivered to Eurostat, vi. Extra evaluation of the non-market output of government sector for COFOG division 05. All NA data were provided before the implementation of the general NA revision that considers the concepts of ESA It is important to remember this when comparing EPEA data to NA data. This means that the results presented in the current project in the future will have to be adapted to revised NA data. For details see chapter 6. Data testing and compilation of the EPEA tables for specialised producers are described in section Research on data for non-specialised producers Non-specialised producers are all producers which do not produce EP activities as a principal activity but as secondary or ancillary activity (see chapter 2). We distinguish non-specialised producers with secondary output and non-specialised producers with ancillary output. Non-specialised producers with secondary output For non-specialised producers with secondary output of EP services, there are no data available so far. Our research for possible data sources for producers with secondary EP output followed the recommendations in the 2002 EPEA compilation guide. First, we had a look at production statistics. To get secondary output, the production statistics must include variables like turnover subdivided into different product groups. For example, it seems very likely that an enterprise classified in NACE division 36 (water supply) also produces EP services like waste water management (this corresponds to product group 37). The relevant enterprises that are assumed to produce secondary EP output are surveyed in SBS (NACE D and E): i. Employees, turnover and investments of enterprises in energy supply, water supply, sewerage, waste management and remediation activities (Fachserie 4 Reihe 6.1) (Statistisches Bundesamt, continously.a). In addition to the above outlined characteristics, the SBS (NACE D and E) presents data on kind-of-activity units of the enterprise ( fachliche Unternehmensteile ). These data cover employees, wages and salaries, turnover and investment for each NACE division cross classified with the executed producing activity. That means we have information whether the respondent enterprises of NACE divisions 35 and 36 generate turnover in Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

21 3 Research on data sources another NACE division and on the amount of the turnover. Focusing on EP services we are interested in the turnover of these enterprises in NACE divisions 37, 38 and 39. However, some of these data are not available because of confidentiality or because they are unknown. Another data source for non-specialised producers with secondary output is the supply table from the national accounts: ii. Input-output accounts (Fachserie 18 Reihe 2) (Statistisches Bundesamt, continously.d). In the supply table, output for each product group is specified for NACE division in A*64 breakdown. Again, we are interested in the product groups 37, 38 and 39 and it is possible to identify which NACE division (apart from NACE divisions 37 39) produce EP output as secondary output. Also in this context, using NA data has the advantage that we do not have to adjust data from basic statistics to EPEA concepts. Non-specialised producers with ancillary output For non-specialised producers with ancillary output of EP services we can use the following structural business statistics already mentioned before as data source for specialised producers: i. Current expenditure for environmental protection in industry (Fachserie 19 Reihe 3.2) (Statistisches Bundesamt, continously.f), and ii. Investments for environmental protection in industry (Fachserie 19 Reihe 3.1) (Statistisches Bundesamt, continously.e). These two SBS cover enterprises in NACE sections B (Mining and quarrying), C (Manufacturing), D (Electricity, gas, steam and air conditioning supply), and E (Water supply; sewerage, waste management and remediation activities). In the EP investment survey, enterprises have to declare their in-house investments for EP according to environmental domains. Additionally, the investments are divided into end-of-pipe investments and investments in integrated technologies. The EP expenditure survey includes information on the following variables: Current expenditure on the running of plants for EP (depreciation, imputed interest, payroll costs, expenditure on raw materials and supplies, expenditure on external services and other expenditure), fees as well as other current expenditure not on the running of plant. The breakdown by environmental domains is closely similar to the breakdown in the EP investment survey. These surveys provide a lot of useful data for non-specialised producers with ancillary output. Unfortunately, the surveys are restricted to NACE sections B, C, D, and E and leave aside other maybe relevant areas like agriculture (NACE division 01), transport (NACE divisions 49 51) and other services (e.g. NACE sections G, H, N and O). To get consistent data for non-specialised producers with ancillary output in other NACE sections we would need the same information as given by the EP surveys. So, we assessed whether other statistics provide relevant data on EP expenditure. The official statistics in the field of agriculture is about agricultural holdings, their used areas and employed persons. We did not find relevant data for current expenditure on EP or investments in EP. The same is true for the branches transport and other services. For services, there exists structural business statistics but there is no information available if any and how much of the investments or current expenditure is used for EP activities. We also did an internet research looking at the corresponding associations. But neither the Association of German Transport Companies nor the German Farmers Association publish data on EP investment or EP expenditure. The only information Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

22 3 Research on data sources concerns investments in renewable energy but these are not directly needed for EPEA (only if the main purpose is EP which cannot be assumed in general) but for resource management expenditure accounts (ReMEA). Additionally, data research in environmental reports of big firms might help to get information. In the transport sector, we found some enterprises that publish sustainability reports on their websites. Some of them contain data on investments for environmental protection. But the definitions are not as strict as in the official statistics and we cannot be sure which kind of investments the enterprise is counting as environmental protection. Additionally, it would not be possible to doing research on each enterprise located in the transport industry in Germany. In 2010, there were around 82,000 enterprises counted in the business register in the NACE divisions 49 (Land transport and transport via pipelines), 50 (Water transport), and 51 (Air transport). We finally assessed what data sources are used in other countries for compiling EPEA in these sectors. In Sweden, a new survey was introduced for EP expenditure in the agricultural sector (Holmbom, Eberhardson, Steinbach, & Villner, 2010). In Austria, a sample survey on EP expenditure and investments in the service sector was conducted in 2012 (Aichinger, 2012). For Germany, a sample survey in the sectors agriculture, transport or other services is not possible because these sectors are not covered in the German Environmental Statistics Law ( Umweltstatistikgesetz, UStatG ) concerning EP surveys. Theoretically, a survey on a voluntary basis would be possible but these kinds of surveys are very rare in Germany. Additionally, an EP survey for the branches agriculture, transport and other services would not be possible within this project. Overall, it was not possible in this project to find data sources for non-specialised producers with ancillary output for the sectors agriculture, transport or other services. Nonetheless, we revised the data that we used so far for non-specialised producers with ancillary output to generate consistent data for EPEA. The compilation of EPEA tables for non-specialised producers is described in section 4.3. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

23 4 Methodology and compilation In this chapter, we explain how the compilation of EP expenditure in Germany is done for the years Before we start describing in detail the selection of the data sources and the compilation procedures 5, the tables for compiling EPE in Germany are presented. We use in principle the EPEA tables described in the 2002 EPEA compilation guide and the tables presented in the ESTP (European statistical training programme) course on EPE in March 2014 in Vienna. Why and how we modified the tables is shown in the next section. 4.1 Modification of the EPEA tables One important goal of this project is the fulfilling of the requirements of the EPE module of the EU Regulation on Environmental Accounts (Annex IV on Regulation 538/2014). So, we checked which variables are asked for in the Regulation and also the current draft tables corresponding to the EPE module. Additionally, we still want to be able to fill in the Joint Questionnaire concerning environmental protection expenditure and revenues in case the OECD (Organisation for Economic Co-operation and Development) and Eurostat will use the JQ for the time until the first data collection of the EPE module will take place in To obtain these goals and to have a consistent framework at the same time, we compared the variables asked for in the JQ, the EPE draft tables and the EPEA tables. We decided to modify the classic EPEA tables and work with these as a basis for our calculation tool that will allow in the end to fill in almost all essential data. In this way we have a consistent framework which allows us to determine the national EP expenditure and also the relevant variables for the requested data. Table B The first table is table B which describes the domestic production of EP services and gross fixed capital formation (GFCF) 6 of producers. The EP services produced are presented by type of output (market, non-market and ancillary output) and by main categories of producers of EP services: specialised and non-specialised producers (Eurostat, 2002, p. 19). The columns differ according to the types of producers. The upper part of table B (rows 0 to 8) lists current transactions: the cost structure is determined in rows 1 to 6, row 7 presents the output according to its nature, row 8 describe the receipts of EP producers corresponding to their production of EP services. The lower part of table B includes rows 9 to 12 that describe first capital transactions like GFCF in row 9. Row 10 is a calculated item: the financing by producers is calculated by adding up current and capital uses and subtracting all current and capital resources. Rows 11 and 12 list labour inputs and the stock of fixed assets. This description refers to the classic table B of the EPEA compilation guide (Eurostat, 2002, pp ). We modified this table B to fulfil the requirements of the JQ and the EPE module. To do so, we extended table B with some variables and renamed it further in extended table B (so that the difference to the classic table B of EPEA is evident). Table 3 (on page 24) presents the extended table B that we use for our calculations. The following modifications (marked in grey) have been made: Below row 1.1 the row fees and purchases is added. This row refers to the variable fees and purchases (B2) in the JQ and to the variable intermediate consumption of EP services (Pep) in the EPE draft tables. Additionally, we subdivide the variable fees and purchases in two more rows. This is done 5 Details on all compilation methods and estimations are recorded in an internal documentation (in German) which ensures the continuation of the calculations of EPE accounts for Germany. 6 GFCF also includes net acquisition of land. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

24

25

26 4 Methodology and compilation goods. Rows 2 and 3 specify the gross capital formation in EP services and products. In row 4 specific transfers are subdivided. Rows 1 to 4 add up to total uses of resident units (row 5). The national expenditure for environmental protection results by subtracting financing by the rest of the world. Table 5 shows table A that we use for our calculations. It corresponds almost completely to the classic table A of the EPEA compilation guide. Slight linguistic changes have been made in accordance with table A presented at the ESTP course on EPE. Table 5: Table A No. Components of national expenditure 1 Consumption of specific products 1.1 Final consumption of characteristic services market non-market 1.2 Intermediate consumption of characteristic services 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 characteristic activities 3 Gross capital formation in specific products 3.1 in connected products 3.2 in adapted products 3.3 in characteristic services (land improvement) 4 Specific transfers (not counterpart of items 1,2,3) 4.1 subsidies on production characteristic services connected products adapted products 4.2 other specific transfers current, including implicit subsidies capital 5 Total uses of resident units = current 5.2 capital 6 Financing by the rest of the world 6.1 current uses 6.2 capital uses 7 National expenditure for environmental protection = current 7.2 capital Producers Consumers Rest of the specialised other Government Households world Source: Eurostat (2002, p. 160). As described in chapter 2, there exist two more tables in the EPEA framework: table C concerning the financing of EP expenditure and table C1 describing the net cost burden of EP for the various sectors of the economy. During this project, it was not possible to fill in the tables C and C1. The project application focused on other working packages and there was no time devoted for the financing of EP expenditure. In addition, tables on financing are not part of the expenditure module of regulation 538/2014. So, we use the three (extended) tables B, B1, and A to build up our new calculation tool for environmental protection expenditure accounts. How we fill in the tables is described in the following sections. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

27 4 Methodology and compilation 4.2 Specifics on the compilation for specialised producers Assessment and selection of data sources After research on the different data that could be used for EPEA compilation we thoroughly tested the data sources. So, we got in-depth knowledge about the different official statistics. The next step was that we tested to fill in the extended EPEA table B for specialised producers for CEPA 2 and 3 because waste and waste water management services are the most important CEPA categories with the highest expected EP output. As reporting year we chose 2010 because all data were available for this year (we started data collection in 2013). First, we used data from public finance statistics, public enterprises statistics and SBS (NACE D and E). From public finance statistics we got an extra evaluation to obtain data for the government sector for CEPA 2 and 3. CEPA 2 refers to the function F 432 ( Abwasserbeseitigung ) and CEPA 3 refers to functions F 433 ( Abfallbeseitigung ) and also to F 434 ( Straßenreinigung ) in the public finance statistics. The extra evaluation reveals different kinds of expenditures and revenues that can be allocated to the transactions table B asks for. Data from the public enterprises statistics are usually published in a more aggregated way. But we also got an extra evaluation according to economic activities for the NACE division 37, 38 and 39. All data for NACE divisions from SBS are available from the published subject-matter series of the German NSO. We filled in most of the transaction in the extended table B with these data, e.g. intermediate consumption, compensation of employees, EP output, and gross fixed capital formation. We allocated data from public finance statistics to specialised producers government sector and data from SBS to specialised producers corporations sector. Problematic is the overlap between the units of the public enterprises statistics and the SBS. We assume that most of the enterprises covered in the public enterprises statistics are already included in the SBS. Due to the fact that the marking process of public enterprises in the business register is not yet completed it is not possible to separate the public enterprises from the private enterprises (see also section 3.1). Additionally, we would have to check if any of the public enterprises statistics should be allocated to the government sector according to the national accounts rules. Moreover, all basic data from the statistics would have to be adjusted to the NA concepts. Hence, we tried to use NA data for compiling the EPE tables instead of using data from primary statistics. For doing so, we have the following data sources provided by our NA department (see also section 3.1): i. National Accounts Domestic product, detailed annual results (Fachserie 18 Reihe 1.4) (Statistisches Bundesamt, continously.g), ii. Supply and use tables (SUT), in part at a more detailed level for NACE divisions 37, 38 and 39 than usually published, iii. Data on output and intermediate consumption (IC) for the corporations sector (NACE divisions 37, 38 and 39), iv. Data on market output of government sector for NACE divisions 37, 38 and 39, v. Government expenditure by function (COFOG) delivered to Eurostat, vi. Extra evaluation of the non-market output of government sector for COFOG division 05. With these data sources, we were able to fill in the extended tables B for the government and the corporations sector of specialised producers for the year Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

28 4 Methodology and compilation Links between classifications concerning EP Before we explain how we compiled the tables for specialised producers, an overview of the relevant classifications is given to demonstrate the connections of CEPA with other classifications used in national accounts. As shown in Table 6, the CEPA classification for EP activities exhibits links to other classifications. The classification of functions of government (COFOG) is used for organising the purposes of government activities. Division 05 deals with environmental protection and is directly comparable to the CEPA classification. Division 05 is divided into the groups 05.1 to Groups 05.1, 05.2, 05.4, 05.5 and 05.6 correspond to CEPA 3, 2, 6, 8 and 9. Only group 05.3 pollution management combines several CEPA classes and is the sum of CEPA The data by COFOG (see data sources v and vi) are used for compiling the governmental part of specialised producers. Table 6: Overview CEPA, COFOG, NACE Rev.2 CEPA 2000 COFOG NACE Rev. 2 / CPA Waste water management 05.2 Waste water management 37 3 Waste management 05.1 Waste management Protection of ambient air and climate 4 Protection and remediation of soil, groundwater and surface water 5 Noise and vibration abatement 7 Protection against radiation 05.3 Pollution management 6 Protection of biodiversity and landscape 05.4 Protection of biodiversity and landscape 8 Research and development 05.5 Research and development EP 9 Other EP activities 05.6 EP n.e.c. Source: Own table based on (Eurostat, 2007, p. 62). We already mentioned the linkage of CEPA to NACE divisions. Corporations located in NACE division 37 (sewerage) are designated as specialised producers in CEPA 2. Accordingly, corporations in NACE division 38 (waste collection, treatment and disposal activities; material recovery) are designated as specialised producers in CEPA 3. In accordance with the EGSS (environmental goods and services sector) practical guide, we assume that corporations of NACE division 39 also categorise as specialised producers in CEPA 3. NACE division 39 contains activities that fall under waste management (CEPA 3) or the protection and remediation of soil, groundwater and surface water (CEPA 4). [The EGSS practical guide] proposes to record all NACE E39 activities under CEPA 3 if the available information does not allow separating out activities to protect and remediate soil, groundwater and surface water (Eurostat, 2014c, p. 108). The same is done for the product groups which refer to the statistical classification of products by activity (CPA 2008). Output located in product group 37 (sewerage services; sewage sludge) is assigned to EP output of CEPA 2. Output located in product groups 38 (waste collection, treatment and disposal services; materials recovery services) and 39 (remediation services and other waste management services) are assigned to EP output of CEPA 3. This implies that we can think of table B similar to the supply table. The columns specify the NACE divisions, i.e. the column specialised producers in table B for one CEPA class refers to the Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

29 4 Methodology and compilation corresponding NACE division. The rows specify the product groups in the supply table and this corresponds to the row EP output in table B. One further assumption concerning ancillary output of specialised producers is made in accordance with the EGSS practical guide: Internal current expenditure by specialised producers (corporations and government) is not counted towards ancillary output (Eurostat, 2014c, p. 76). This is done because of the following reasons: In ESA (national accounts) all inputs consumed by ancillary activities are treated as inputs to the production of principal and secondary output which they support. Therefore output generated by ancillary activities is not a separately recorded output category in ESA, but its value may be implicitly included in total output through the application of the ESA valuation principles (basic prices or costs of production) (Eurostat, 2014c, p. 74). So, we already count ancillary EP output of specialised producers and therefore, we do not specify ancillary output of these producers in table B. 8 Compilation of upper part of table B for CEPA 2 and 3 Having in mind the previous remarks, we are able to compile the output categories of table B for specialised producers for CEPA 2 and 3. As described before, we only count the output of specialised producers as EP output that is produced in the same product group as the corporation is located in NACE division. That means, for example, the output in product group 37 (looking at the row in the supply table) of the corporations located in NACE division 37 (looking at the column) is counted as market EP output in CEPA 2. Output of producers in NACE division 37 in product groups 38 and 39 is recorded in row 7.1o (other EP output). Additionally, this output is recorded in table B of CEPA 3 in the column non-specialised producers with secondary output. We took this assumption because we did not find any hints in the handbooks how to deal with this problem. This problem has to be clarified before filling in the EPE tables for the regulation. Surely, the relevant output is EP output and it is also EP output of CEPA 3. But we define it to be produced by non-specialised producers because the NACE division 37 can only be specialised in product group 37 and not in 38 or 39. This assumption is mainly relevant for the corporations sector because government units only produce output in their corresponding product group. For government sector, we have to pay attention on the distinction between nonmarket and market output. Additionally, we have one more data source that we have to evaluate: government expenditure by COFOG. As described above, COFOG group 05.1 (waste management) corresponds to CEPA 3 and to product group 38 and 39. Likewise, COFOG group 05.2 (waste water management) corresponds to CEPA 2 and to product group 37. No government unit is located in NACE division 39. In the following, we only examine divisions 37 and 38. So, we compared output in the product groups 37 and 38 and other transactions like compensation of employees of government sector located in NACE 37 and 38 with the corresponding transactions in the COFOG groups. We found out that data by COFOG groups do not correspond exactly with data by product group. Figures by COFOG groups 05.1 and 05.2 are higher than figures by product groups 38 and 37. This might be explained by the different compilation of transactions according to COFOG and product groups. Compilation of transaction for government sector by product group is done using public finance statistics. Function F 432 ( Abwasserbeseitigung ) is the basis for NACE division 37 and function F 433 ( Abfallbeseitigung ) is the basis for NACE division 38. For transactions by COFOG groups also data by functions of public 8 In principle, we also have data concerning ancillary EP output of NACE divisions from the EPE survey (which includes NACE section E since reporting year 2010). However, the current expenditure of specialised producers for EP services is already included in the current uses of the producers in table B. That is because we use data of NA that use the ESA principle to treat these inputs as support for the production of the principal or secondary output. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

30 4 Methodology and compilation finance statistics are used but in addition, there is an assignment at the detailed budget-item level ( Haushaltsstelle ) for central government. Furthermore, function F 434 ( Straßenreinigung ) that should be considered as EP services is included among others in product group ( other cleaning services ) in NACE Rev. 2. But it is not possible to separate street cleaning from the other activities in this product group in the supply table. Advantageously, in COFOG division 05, function F 434 is included. For government sector, we adjust our compilation in principle to data by COFOG because these data are aligned to environmental protection domains. 9 The transactions that are needed for government expenditure by functions do not report output or consumption of fixed capital. The extra evaluation of the non-market output of government sector for COFOG division 05 that we got in addition from the NA department helps us to calculate EP output for government. With data from this evaluation we were able to fill in the column government sector - non-market for CEPA 2 and 3. The non-market output is not directly available by surveys but it is calculated by the cost of production (sum of intermediate consumption, compensation of employees, taxes less subsidies on production and consumption of fixed capital). The column government sector-market is filled in with data on market production in the product groups 37 and 38. Data on intermediate consumption are recorded in the use table but only the aggregation for NACE divisions We calculated intermediate consumption in total and intermediate consumption of EP services using the ratios from the use table at basic prices. The same ratios for government and corporations sector were assumed. The other variables for the corporations sector, like compensation of employees, taxes on production less subsidies on production and consumption of fixed capital, are estimated based on the published data for the aggregate of NACE division We derived the assumed ratios from the SBS (NACE D and E). Treatment of materials recovery One important improvement has been made concerning materials recovery. According to the 2002 EPEA compilation guide, the distinction between the production of recovered materials and waste treatment services is important in the EPEA framework. It describes that firms classified in classes and of NACE Rev. 1 (recycling) also produce EP services but only waste treatment services should be entered in the EPEA (Eurostat, 2002, p. 38). With the introduction of NACE Rev. 2 in 2008, these activities are now classified in NACE group 38.3 (materials recovery). The EGSS practical guide proposes to record the recovery of sorted materials under CEPA 3 if the available information does not allow separating it out of other activities of NACE E38. If, however, the recovery of sorted materials can be separated out, it may also be allocable to the respective RM activities (CReMA 11B, CReMA 13C or CReMA 14) based on information on the type of material. If such information is not available this practical guide proposes that recovery of sorted materials separated out of NACE 38 should be allocated to the main activity which may often be CReMA 14 (Eurostat, 2014c, p. 107). So, we assessed the NA data to get information concerning materials recovery activities. In the supply table, it was possible to get data on the product group 38.3 (materials recovery services; secondary raw materials) for corporations and government sector. So, we can subtract output in product group 38.3 from EP output in CEPA 3 (this holds also for EP output of non-specialised producers with secondary output). But we also have to consider the subtraction of materials recovery services in 9 There will be one exception from this principle: Data on waste management will be lower than in COFOG data shown because of the subtraction of material recovery (see chapter 5). Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

31 4 Methodology and compilation other transactions of specialised producers. For intermediate consumption we use the ratio that is given by the use table at basic prices; for compensation of employees and consumption of fixed capital we use the corresponding ratios given in the SBS (NACE D and E) for NACE group 38.3; for taxes on production less subsidies on production we use the turnover ratio of the SBS because there is no corresponding variable for NACE group Compilation of upper part of table B for other CEPA categories For all CEPA categories besides CEPA 2 and 3, we only record data for government sector as specialised producers. This can be explained by looking at these CEPA categories: CEPA 1 protection of ambient air and climate, CEPA 4 protection and remediation of soil, groundwater and surface water, CEPA 5 noise and vibration abatement, CEPA 7 protection against radiation, CEPA 6 protection of biodiversity and landscape, CEPA 8 research and development, and CEPA 9 other EP activities. Production in these EP domains is mainly done by government. Additionally, it is assumed that EP output in these CEPA classes is non-market. All relevant data for the transactions recorded in table B are derived from the extra evaluation of non-market output of government sector for COFOG division 05. We adjust the CEPA breakdown according to the COFOG groups, i.e. we group together CEPA because this corresponds to COFOG 05.3 and call it in the following pollution management (like the labelling of the COFOG group). Data from COFOG group 05.4 are assigned to CEPA 6, data from COFOG 05.5 are allocated to CEPA 8, and data from COFOG 05.6 are used for CEPA 9. In one definition we differ from the NA concepts for recording output of non-market producers. In row non-market EP output, we do not record the non-market output calculated by NA department but the non-market output minus sales (this corresponds to government final consumption in NA concepts). The sales (also called partial payments) are recorded in row market EP output. So the whole EP output for the column government sector-non-market is completely included. This approach is in line with the 2002 EPEA compilation guide. It is recommended because this compilation method facilitates setting up the supply-use table (Eurostat, 2002, p. 69). Compilation of lower part of table B Besides of the current transactions (upper part of table B), we also need data on investment (gross fixed capital formation). For the government sector, we use data by COFOG. In this data set, the transaction gross capital formation (P.5) is available. For our internal calculations, we split investments by non-market and market government sector according to output ratios for COFOG groups 05.1 and In the other COFOG groups, there is no distinction necessary because only column government sector non-market is filled in. For investment of corporations sector, we calculated the data for CEPA 2 and 3 starting from the data on gross fixed capital formation of NA. These data are available for the aggregate NACE divisions but only new (fixed) assets are recorded. We subtract gross capital formation of government sector (market production) from this sum and split the rest according to the investment ratios of NACE divisions 37, 38 and 39 in the SBS (NACE D and E). We also considered the subtraction of materials recovery services by reducing the GFCF of corporations sector in CEPA 3 according to the investment ratio of NACE group 38.3 given in the SBS. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

32 4 Methodology and compilation Compilation of time series data In principle, we also compiled data for specialised producers for further years following the 2010 approach. But not all data that were needed for the tables were available for the years 2000 to 2009 and Mostly, the breakdowns were not as detailed as in the data from For the years 2000, 2008 and 2009, SUT were available according to NACE Rev. 2. We estimated missing data by using the relevant shares of the year For the year 2011, SUT was no available because of the general revision of NA in Germany. 10 But we got NA data distinguished for government and corporations sector for NACE division We also conducted estimates for the missing data using the relevant shares of the year For the years 2001 till 2007, we used SUT according to NACE Rev This implies that waste water management and water management are grouped together in NACE Rev. 1.1 division 90 ( sewage and refuse disposal, sanitation and similar activities ). It is not possible to divide these data into the CEPA 2 and 3. So, we report CEPA 2 and 3 together in the tables for 2001 to The advantage in the SUT data according to NACE Rev. 1.1 is that materials recovery is not recorded in division 90. So, we do not have to calculate the split of materials recovery in CEPA Specifics on the compilation for non-specialised producers Compilation of table B for non-specialised producers with secondary EP output For non-specialised producers with secondary EP output, we use NA data in order to be consistent with data on specialised producers. So, the major data source is the supply table. The output of non-specialised producers (i.e. all producers that are not in the NACE divisions 37 39) in the product groups 37, 38 and 39 is specified in the published supply table. In Germany, non-specialised producers with secondary EP output can be found in the NACE divisions 35 (electricity, gas, steam and air conditioning supply) and 36 (water collection, treatment and supply). Additionally, as mentioned in section 0, we classified NACE division 37 as non-specialised producers in CEPA 3 and NACE division 38 as non-specialised producers in CEPA 2. We also considered the subtraction of materials recovery services (as we have done for specialised producers) for non-specialised producers with secondary output. With the supply table of NA department, we could subtract product group 38.3 of the output recorded in product group 38. So, secondary output in CEPA 3 includes only output in the product groups 38.1, 38.2, and 39. The other two output categories, non-environmental output and EP ancillary output, are not recorded in table B for non-specialised producers with secondary output. Likewise the other variables are not needed for completing the column non-specialised producers with secondary output. According to the 2002 EPEA compilation guide, the other cells in this row are left empty because the transactions are not relevant or zero by definition. For data for the years 2000 till 2009 and 2011, we use, in principle, the same compilation method. For 2000, 2008, and 2009, we could use data from SUT. For the year 2011, we estimated secondary output of non-specialised producers by using the shares of the product groups in the NACE divisions of the year For the years 2001 to 2007, we do not record any secondary output. The reason is obvious having a look in the data source for non-specialised producers with secondary output: For the 10 Input-output accounts for reporting year 2011 will be available in the spring of 2015 according to the concepts of ESA The consequences are discussed in chapter 6. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

33 4 Methodology and compilation product group 90 (sewage and refuse disposal services, sanitation and similar services) according to CPA 2002, all output is recorded in the NACE Rev. 1.1 division 90. Compilation of table B for non-specialised producers with ancillary output For non-specialised producers with ancillary output, we use SBS concerning EP investments and EP expenditure in industry. For SBS, there are data available at division level of NACE Rev. 2 for NACE sections B, C, D, and E. So, we can compile table B for non-specialised producers with ancillary output for each of these NACE divisions (05 to 36). 11 In the EP investment survey, the following environmental domains are covered and allocated to CEPA categories: Waste management ( Abfallwirtschaft ) CEPA 3 Waste water management ( Gewässerschutz ) CEPA 2 Noise and vibration abatement ( Lärmbekämpfung ) CEPA 5 Protection of ambient air ( Luftreinhaltung ) part of CEPA 1 Protection of biodiversity and landscapes ( Naturschutz und Landschaftspflege ) CEPA 6 Protection and remediation of soil ( Bodensanierung ) CEPA 4 Protection of climate ( Klimaschutz ) part of CEPA 1 The environmental domain protection of climate is split into three subdomains: o o o Prevention and degradation of (Kyoto) greenhouse gas emissions ( Vermeidung und Verminderung der Emissionen von Kyoto- Treibhausgasen ), Use of renewable energy ( Nutzung erneuerbarer Energien ), and Energy efficiency improvement and energy saving ( Energieeffizienzsteigerung und Energieeinsparung ). After cross-checking the classifications of CEPA and CReMA, we decided to consider just the first subdomain of climate protection: prevention and degradation of greenhouse gas emissions. The 2002 EPEA compilation guide defines: Activities like water supply or the saving of energy or raw materials are regarded as the management of natural resources and are excluded from environmental protection. However, such activities are considered environmental protection activities to the extent that they mainly aim at environmental protection (Eurostat, 2002, p. 15). We have no additional information whether the investments in actions designed to the use of renewable energy or to energy efficiency improvement and energy saving mainly aim at environmental protection or not. So, we classify investments in these categories in CReMA and exclude them from CEPA to avoid double counting in case the ReMEA framework is implemented in the future (see chapter 8). 12 So, in the EPEA table B, the subdomain prevention and degradation of greenhouse gas emissions is grouped together with protection of ambient air in CEPA 1. Investments in almost all environmental domains are divided into end-of-pipe investments and investments in integrated technologies. These data can directly be entered in rows and of table B. Only investments concerning climate protection are not asked in this distinction in the survey. We record the investments 11 This detailed compilation is only done in our internal tables. In this report, we add up all columns of non-specialised producers with ancillary output and display the sum in the column non-specialised producers with ancillary output total. 12 The ReMEA framework is very similar to EPEA concerning the concepts and tables but it aims at resource management instead of environmental protection. But both frameworks should be independent from one another in the context of environmental economic accounting and so double counting of expenditure should be avoided. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

34 4 Methodology and compilation designed to the prevention and degradation of greenhouse gas emissions as investments in integrated technologies. Investment data in these breakdowns (end-of-pipe/integrated and CEPA) are available for the years 2006 to For the years before 2006, the environmental domain protection of climate is not included. The distinction between end-of-pipe and integrated investments is not available for the years 2000 to The EPE survey provides all relevant data for current transactions of non-specialised producers with ancillary output in the upper part of table B. This survey includes corporations in NACE Rev. 2 sections B, C, D, and E with more than 50 employees. It asks the corporations for the following current expenditure for measures serving environmental protection: depreciation, imputed interest, compensation of employees, expenditures for operating supplies, expenditures for energy, expenditures for external services, and fees. For the reporting corporations, it is also possible to report just a total amount of expenditure if corporations are not able to report their expenditure for EP in the different categories. In these cases, we have to split the total for filling in the EPEA tables. From 1996 onwards the following environmental domains have been included in the survey: Protection of ambient air part of CEPA 1, Waste water management CEPA 2, Waste management CEPA 3, Protection and remediation of soil CEPA 4, Noise and vibration abatement CEPA 5, and Protection of biodiversity and landscapes CEPA 6. In 2006, the domain protection of climate (part of CEPA 1) has been added. The resulting data from this survey are classified for each type of expenditure, for each NACE Rev. 2 division and for each environmental domain. We use the following data for table B: expenditures for operating supplies and energy as other intermediate consumption in row 1.3, compensation of employees for row 2, depreciation as consumption of fixed capital in row In the additional inserted row fees and purchases government, data on fees are entered and in the row fees and purchases private sector, data on expenditures for external services are recorded. 14 Finally, ancillary output can be calculated by summing up the cost of production (as done for non-market output). Net operation surplus is zero by definition for ancillary output. Testing of estimation methods for missing data of current expenditure The EPE survey was conducted on a yearly basis till In 2006 the following data collection has taken place, followed by From 2010 onwards, the survey is available triennial (which is in line with Eurostat requirements). For 2007, estimation 13 We use depreciation as consumption of fixed capital even though these items do not exactly correspond to each other. As long as we do not calculate the stock of fixed assets for non-specialised producers with ancillary output, we have no better data for consumption of fixed capital. 14 In the EPE survey, it is asked for the variable expenditure on external services and other expenditure, in particular on measures carried out by the enterprise itself ( Aufwendungen für Fremdleistungen und andere Aufwendungen, insbesondere für selbst durchgeführte Maßnahmen ). This variable is listed twice, for plant-related expenditure and for expenditure not on the running of plant. Because we have no information how to split the external services from the expenditure carried out by the enterprise itself, we record the whole amount on fees and purchases private sector. This implies an underestimation of the intermediate consumption of non-specialised producers with ancillary output. But this problem will possibly be solved in the future (see chapter 6). Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

35 4 Methodology and compilation for the current expenditure was done by the environmental statistics unit. The estimation based on the development of the overall turnover data by industry. For the project, we need data on current expenditure from the year 2000 onwards. That means that we have to estimate the missing data for 2005, 2008, and 2009 and from 2011 to current reporting year. So, we have to solve two tasks. On the one hand, we have to estimate data for interim years that means we have to find the value between known observations; on the other hand, we have to estimate data for consecutive years for which no end point is available yet. One starting point is research on different estimation methods. We came up with the following ideas on methods for the estimation for missing reporting years: i. Linear interpolation/extrapolation, ii. Average growth rates, iii. Interpolation/extrapolation via the development of the overall cost variables of the SBS by industry, and iv. Trend-function via least squares method. We calculated data on depreciation, compensation of employees, expenditures for operating supplies, expenditures for energy, expenditures for external services, and fees for each NACE divisions. For the interim years, we tested methods i (linear interpolation) and ii (average growth rates) with the following formulas: For i.: y = y 0 + y n y 0 x n x 0 (x x 0 ) with y: value to be estimated, y 0 : initial value in year 0, y n : value in year n, x n : year n, x 0 : year 0, and x: relevant year. For ii.: y = y 0 y n y 0 with n: difference year n minus year 0. As can be seen in the formulas, we experience some implementing difficulties in using average growth rates (formula ii). If y 0 = 0, y cannot be calculated because of the division by zero. If y n = 0, y will also be zero. Besides these technical difficulties, we compared the results of the two methods for data on current EPE and checked on plausibility. We found the times series with data from linear interpolation shows smoother distributed values compared to the estimated data via average growth rates. So, we decided to use linear interpolation for the estimation of current EPE for interim years. For the consecutive years, we tested methods iii. (extrapolation via the development of the overall cost variables of the SBS by industry) and iv (trend-function via least squares method). The trend-function implies a linear trend (like the assumption for the linear interpolation) and considers all available data to calculate a line by using the method of least squares. Even though the assumption would be consistent with our estimation for interim years, we face the problem that negative values results for some variables and NACE divisions. So, we decided to use method iii for the estimation of current expenditure for the consecutive years. This is in line with the estimation for the year 2007 for which the development of the overall turnover by industry was used. We advanced this procedure by referring to the development of each cost variable by industry. For this, we use the 1 n Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

36

37

38 4 Methodology and compilation intermediate consumption of characteristic services-market and ancillary of other producers (rows and 1.2.2) are transferred from the corresponding rows in table B1. Row 3.3 gross capital formation in characteristic services (land improvement) corresponds to capital formation of table B1. Gross capital formation for characteristic activities (row 2) is filled in from row gross fixed capital formation of table B. Row other specific transfers current includes a special case. A possible negative net operating surplus for government sector in table B is balanced in this row by assuming an implicit subsidy. As recommended in the ESTP course on EPE, this implicit subsidy is divided between other producers and households according to their consumption shares in row 1. These are all data, we compiled for table A. Obviously, not all cells of table A are filled in. It was not possible during this project, to compile data on transfers and adapted and connected products. This may be done in future (see chapter 6). Overall, we were able to compile a complete set of EPEA table B, B1, and A for the years 2000 till For reporting year 2012, only data on non-specialised producers with ancillary output could be generated. Data for specialised producers and nonspecialised producers with secondary output were not available in the concepts that we used for the calculations in this report because of the general revision of NA in But this will change in the future (see chapter 6). In the next chapter we present the results of the compilation of EPEA in Germany. Additionally, a comparison to former calculations of EPE is given in section 5.3. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

39 5 Presentation and interpretation of the results First we present detailed data for reporting year 2010 in section 5.1. In the following section, time series data for the years 2000 to 2011 are described. In section 5.3, we compare data compiled in this project with former data on EPE for Germany. (Please note that all results refer to NA data before revision according to ESA 2010.) 5.1 EPE data for reporting year 2010 As described in chapter 4, we compiled a whole set of tables B, B1, and A for the reporting year We do not show the extended tables that we described in section 4.1, but we present a more aggregated version to facilitate the comprehension of the tables. Some variables are just included in the extended tables for calculating purposes and it is not necessary to present them. Moreover, we had to sum up some CEPA classes because a detailed breakdown sometimes was not possible. This is the case for the sum of CEPA for which we had detailed data for CEPA 1, 4, and 5 for non-specialised producers with ancillary output but not for government sector and for the sum of CEPA 8+9. Additionally, a set of EPEA tables showing the total over all CEPA is displayed. This means that we present a total of 18 tables (6 tables for each EPEA table) for the reporting year These tables are shown in Annex 2. In the production table (B), total output for environmental protection services amounts to 43,412 million Euros in 2010 (see Table 2.1 in Annex 2). 4,011 million Euros are allocated to non-market output, 4,761 million Euros to ancillary output, and the major share of 34,640 million Euros to market output. EP output can also be analysed by sectors: More than 80 per cent of the EP output is produced by specialised producers (around one third thereof is produced by government sector, two thirds are produced by corporations sector); around 7 per cent is produced by non-specialised producers with secondary output and around 11 per cent is produced by non-specialised producers with ancillary output. In the supply-use table (B1), imports, non-deductible VAT and other taxes less subsidies and trade margins are added to EP output so that total supply (at purchasers prices) is calculated to the amount of 53,125 million Euros. This equals total uses. Total uses are the sum of intermediate consumption, final consumption, capital formation and exports. The first three categories refer to uses of resident units that are needed for table A. In the uses table (A), national expenditure for EP is specified. It amounts to 58,483 million Euros. National expenditure equates to total uses of residents in our calculations because we do not have data for financing by the rest of the world that should be subtracted from total uses of residents. National expenditure is the sum of final consumption and intermediate consumption of EP services, gross capital formation for EP activities and specific transfers. The uses/expenditures can be allocated to sectors: Expenditure is almost equally split between producers and consumers. Around 14 per cent of national expenditure is consumed by specialised producers and around 37 per cent by other producers; almost 7 per cent of national expenditure is consumed by government and around 42 per cent by households. EPEA aggregates are closely comparable with main aggregates of national accounts because they follow the same concepts and definitions. So, we can calculate ratios between the aggregates that are true shares (Eurostat, 2002, p. 117). In 2010, national expenditure has a 2.3 per cent share in gross domestic product (GDP) (see Table 3.5 in Annex 3). Around 714 Euro per inhabitant are spent for EP activities in We calculated the ratio by dividing 58,483 million Euros by 81.8 million inhabitants (data according to former population estimations, not considering the results of the population census of 2011). Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

40 5 Presentation and interpretation of the results Focusing on investments, the following share is calculated: More than 2 per cent of gross fixed capital formation for all economic sectors is invested in EP activities. 17 We do not describe in detail the tables for the CEPA classes. These are presented in Annex 2 (Tables 2.4 to 2.18). Instead we highlight selected results concerning the distribution by environmental protection domains. EP output show the following proportions in CEPA classes in 2010: 46 per cent in waste management (CEPA 1), 40 per cent in waste water management (CEPA 2), 8 per cent in pollution management (CEPA ), around 2 per cent in protection of biodiversity and landscapes (CEPA 6), 1 per cent in R&D (CEPA 8), and 3 per cent in other EP activities (CEPA 9). This illustrates the importance of the two EP domains waste and waste water management for the compilation of EPEA in Germany. Slightly different proportions are found looking at national expenditure for environmental protection differentiated by CEPA classes (compare Table 3.6 in Annex 3): 44 per cent in waste water management, 42 per cent in waste management, 9 per cent in pollution management, 2 per cent in protection of biodiversity and landscapes, nearly 1 per cent in R&D, and 2 per cent in other EP activities. The reason for the higher share in waste water management in national expenditure compared to EP output of waste water management is the high investments for waste water management activities (6,147 million Euros). 5.2 Time series data We also compiled a whole set of tables B, B1, and A for the reporting years 2000 to 2009 and These tables are not presented in this report because this would expand our annex with more than 150 tables. Instead we present the EPEA tables B, B1, and A on time series data and summarised tables on national expenditure and EP output for the years 2000 to 2011 in Annex 3. The interpretation of time series data is to be taken with caution. We just calculated data in current prices which is in line with the requirements of the EPE module. But data in current prices are influenced by the effect of price changes which might lead to misinterpretations. To remove the effects of inflation, data have to be calculated in constant prices (values for each time period are expressed in terms of the prices in a base period) or price-adjusted with chain-linking (which is required by ESA and SNA and therefore is done in German NA). However, the compilation of price-adjusted EP data was not possible in the context of this project. Additionally, the compilation method for the years 2001 to 2007 differs from the years 2000, 2008 and the following. This concerns NA data and is mainly due to the fact that the supply and use tables for this time period are specified according to NACE Rev The effects of this are evident in time series data for 2001 to As explained above a number of details are missing, e.g. no distinction between waste and waste water management services, almost no non-environmental protection output for specialised producers, no secondary output of non-specialised producers, no trade margin of EP services, no exports of EP services, and fewer imports of EP services. Reasonable comparisons can only be done on the one hand for the time period 2001 to 2007 and on the other hand for the years 2000 and 2008 to Total EP output was 32,414 million Euros in 2000 and increased to 46,997 million Euros in 2011 (see Table 3.1 in Annex 3). Non-market EP output rose from 2,960 million to 4,010 million Euros in the time period with only moderate changes in between. Market EP output increased from 24,305 million Euros in 2000 to 37, We considered gross fixed capital formation of new (fixed) assets by economic sector according to NA to be consistent with our compilation of EP investments. 18 The comparability of the year 2000 with the years from 2008 onwards is due to the fact that a revised SUT following NACE Rev. 2 was available for 2000 (but not for the year in between). Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

41 5 Presentation and interpretation of the results million Euros in 2011, the only decrease was registered in 2009 when market output fell from 35,280 million Euros in 2008 to 32,569 million Euros. Ancillary output amounted to 5,149 million Euros in From 2002 to 2006 it declined continuously to 3,910 million Euros and then rose again to 5,293 million Euros in Looking at the total national expenditure for EP in Table 3.3 in Annex 3, rising national expenditure are recorded for the years 2000 to In 2000, total national expenditure amounted to 45,842 million Euros and increased to 63,735 million Euros in In the time series, a clear drop in 2009 is observable (which is in accordance with the overall decline in economic development in the year of the financial crisis). A detailed analysis of the times series on final consumption and intermediate consumption of EP services (rows 1.1 and 1.2 in Table 3.3) is not reasonable because the different compilation method for the years 2001 to 2007 leads to reallocation between both variables for the time period. 20 Table 3.5 in Annex 3 presents national expenditure as a share of GDP for the time series. This share remains relatively stable between 2.1 and 2.4 per cent for the years 2000 to The proportions of the environmental domains on total national expenditure for the time series is shown in table 3.6 in Annex 3. The domains waste and waste water management are clearly the most important ones with a share of 85 per cent and more. The allocation between the two EP domains is only possible for the years 2000 and 2008 to 2011 and varies for these years. The share for pollution management started from almost 10 per cent in 2000, dropped to 7.2 per cent in 2005 and increased to 10.2 per cent in The share of protection of biodiversity and landscapes fell from 2.8 per cent in 2000 to 1.7 per cent in Expenditure for R&D is relatively constant for the whole time series and amounts to less than one per cent of total expenditure. 21 The share of expenditure for other EP activities varies between 2 and 3 per cent. 5.3 Comparison to former data on EPE in Germany Comparison to 2004 project Our compilations of German EPEA for the years 2000 till 2011 are closely related to the EPEA compilation done in the 2004 project. We used the same theoretical concepts and similar tables to record national expenditure for environmental protection. But the data sources are very different. In the present project, we mainly use NA data for specialised producers. In the 2004 project, data from public enterprises statistics and public finance statistics were used and data for the corporations sector of specialised producers was not complete because private enterprises were missing. In addition, we now calculated data for non-specialised producers with secondary output for CEPA 2 and 3. This was not possible in the 2004 project. For non-specialised producers with ancillary output, the same data sources have been used. However, we changed the calculation method and made estimation for missing data. Additionally, since 2004 new environmental domains have been added. In the 2004 project, EPE data from 1995 to 2000 were recorded. This project affiliates the data and started a time series from 2000 onwards. The reporting year 2000 is compiled in both projects and enables a comparison. But we have to keep in mind that the data sources used in both projects differ a lot as described in the beginning of this 19 There is no drop observable in 2009 because of the available data sources. The EPE survey was not done for reporting year 2009 and the chosen method for estimation of the current expenditure does not reflect the overall decline in economic development because of the financial crisis. 20 This is due to the calculations of IC as a residual in table B1. 21 In German EPEA, CEPA 8 (R&D) includes only data from government sector. This explains the low share of R&D in total national expenditure for EP. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

42 5 Presentation and interpretation of the results section. For the year 2000, the 2004 project recorded 49,168 million Euros for national expenditure on EP. In the current project they amount to 45,842 million Euros; that is about 6.8 per cent less than in the former calculation. However, the single variables like intermediate consumption or final consumption differ considerably in both calculations. The main reasons lie in the choice of data sources. First of all, we used NA data for final consumption expenditure. In the 2004 project, an estimation based on physical quantities was done. In addition, we did not consider adapted and connected products in this project, but in the 2004 project final and intermediate consumption of connected products were estimated. Comparison to current German EPE calculations The current calculation of German EPE differs from the EPEA concepts and is not directly comparable with the results of this project. Current EPE calculations focus on investments and current expenditure for EP. As in the 2004 project, other data sources are used and data on private enterprises producing waste and waste water management services are missing in the aggregate. The focus on investments and current expenditure for EP implies that the use side is missing in the national expenditure for EP. Expenditure for EP according to the current calculations amounted to 35,770 million Euros in This is the sum of investments in EP which amount to 8,860 million Euros and of current expenditure for EP amounting to 26,910 million Euros. National expenditure according to EPEA concepts is a lot higher for 2010 (58,483 million Euros). The reasons were already presented in the previous paragraph. Current expenditure for EP cannot be compared with the compiled data in EPEA. However, investments can be directly compared. GFCF amounted to 10,324 million Euros in 2010 in the present project (see Table 2.3 in Annex 2). Investments include also investments from private enterprises in the new calculations. But investments of ancillary producers are smaller because we no longer consider investments in actions designed to the use of renewable energy or to energy efficiency improvement and energy saving in CEPA 1. This amounts to more than 1 billion Euros which are no longer accounted for in EPEA (but instead this amount would be accounted for in ReMEA - in case such a calculation is conducted). In the following chapter, developments concerning EPEA compilation that are expected in the future are described. This includes different areas like changes in national accounts or improvements in data sources. In addition, problems that occurred during this project and data lacks are noted. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

43 6 Future developments National accounts The main future developments concern national accounts data. Firstly, German EPEA has to be adjusted to the revised NA data (following ESA 2010). This was not possible in this project because we started data collection in the end of 2013 and revised data from NA were published in August/September 2014 when we had already finished our calculations. From the reporting year 2011 onwards, input-output-accounts according to the revised SNA/ESA will be available. Additionally, German NA department will calculate revised SUT for 2010 that can be used to revise EPEA data calculated in this project. For the years before 2010, it still has to be decided if a revision of the data is reasonable and possible. This depends on the level of detail that NA department will provide for backward time series data needed for the EPEA calculations. The revised NA data mainly result from changes in concepts because of the introduction of ESA 2010 (that replaced ESA 95). These changes of concepts have to be considered for EPEA as well. It has to be assessed whether the changes of concepts in ESA have additional impact of EPEA calculation (besides the change of the numerical values in NA data). For example this could be relevant for data on research and development which are regarded as investments in ESA 2010 instead of intermediate consumption. Possible impacts and changes resulting from ESA 2010 should be illustrated in a handbook for EPEA or at least in detailed instructions for the compilation of the tables for the EPE module. In addition, a revision of the EPEA compilation guide is necessary because of the revision of NACE and the following changes in recording enterprises in the sectors waste and waste water management. Moreover, we intensified the cooperation with the German NA department for the compilation of EPEA during this project. In Germany, we have the special situation that the environmental economic accounts (EEA) department is not in the same division as NA. But especially for the compilation of EPEA, data from national accounts are necessary as explained above. In addition, the cooperation may also lead to improvements in NA data if a regular exchange between the compilers of EPEA and of the relevant NA data will take place. EPEA compilers focus on a particular area of NA, i.e. on NACE divisions 37 39, the corresponding product groups and in addition on COFOG division 05. Overall, a close cooperation between the compilers of EPEA and NA department should be established and continued in the future. This is especially important regarding the future compulsory delivery of data according to the EPE module of the EU Regulation. Moreover, the cooperation could be expanded to explore data sources of NA for a possible compilation of resource management expenditure accounts. Recording of public enterprises In section 3.1, we described the overlap between the public enterprises statistics and the SBS (NACE 37 39) and the on-going action to mark public enterprises in the business register. The beginning of this action took place before this project started and was first designed to identify which enterprises from the public enterprises statistics are also included in the turnover tax statistics. At present, we use NA data and we do not need the marking of public enterprises in the business register to calculate EPE data for specialised producers. But it would be interesting to know if the corporations recorded in the corporations sector are private or formally privatised corporations. This would also help to compare data calculated now with the former EPE calculations done in Germany which based on the public enterprises statistics. Additionally, the 2002 EPEA compilation guide emphasises the importance to distinguish between general government and public sector. By adjusting our EPEA data to NA concepts, we consider the definitions and classify public enterprises to Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

44 6 Future developments government sector according to the NA. If we are able to split public enterprises from corporations sector, it will be possible to calculate an enlarged public sector as described in the compilation guide (Eurostat, 2002, p. 44). So far, the marking process of public enterprises in the business register is not satisfactory and we could not use results of this action in the project. If the marking process improves, it may be possible to separate public enterprises from the corporations sector in the future. For example, this could be done by calculating the ratios of public enterprises in total corporations in NACE divisions 37, 38, and 39 in the SBS (NACE 37 39) and using these ratios for a separation of the corporations sector in table B. Modification of the EPE survey questionnaire A further development expected in the future is the modification of the German EPE survey. There will be just a slight improvement in the German EPE accounts but it will contribute to more accuracy in data for non-specialised producers with ancillary output. As stated in footnote 14, it is not possible to split the expenditure for external services from the expenditure carried out by the enterprise itself in the EPE survey. So, we record the whole amount on fees and purchases private sector which implies an underestimation of intermediate consumption of the enterprises. The relevant variable is listed twice in the survey, for plant-related expenditure and for expenditure not on the running of plant. In the 2013 survey questionnaire, the variable for plant-related expenditure is specified. It is now stated that expenditure for further services are mainly expenditure for external services. But still a more precise definition of this variable in the survey would be desirable. In addition, it might be possible to improve or change the survey in line with the requirements of environmental economic accounting. Missing data in table A Moreover, table A should be completed with data on transfers and adapted and connected products in the future. We did not consider these two tasks in the project. Regarding adapted and connected products, an adjustment with EGSS may be possible in the future when the results of the project Developing the methodology, guidelines and requirements that are compatible with the new module EGSS are available. 22 But adapted and connected products are not relevant for the EPE module according to the regulation. Data on transfers are more important to compile because these data are needed for the EPE module. We already checked possible data sources for transfers while doing research on government data for this project. To be consistent with the other data used for German EPEA, it would be reasonable to use transfer data specified in government expenditure by function (COFOG). In this data source, current and capital transfers paid from government are recorded by environmental domain (COFOG ). But it is not possible to get data from NA to allocate these paid transfers to recipients (rest of the world, households, or producers). The transfers according to COFOG have to be analysed in detail which is rather time consuming and therefore was not possible during this project. Time series data For future reporting of German EPEA, it should be evaluated what time horizon is reasonable concerning the difficulties and differences in the compilation of EPEA in this project for the relevant years. The main change concerns the reporting year In this year, NACE Rev. 2 was introduced. The revision of NACE resulted in new NACE divisions for enterprises executing sewerage, waste management, and remediation activities. This enables a distinction between waste and waste water management services in the SUT since 2008 (compared to NACE Rev. 1 division 90 that combined enterprises executing sewage and refuse disposal, sanitation and similar activities). 22 This project is currently in action in the German NSO and will be finished in the middle of Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

45 6 Future developments The separation of CEPA 2 and 3 is important for EPEA because specialised producers mainly produce EP services concerning waste and waste water management. To reflect this important fact, it would be reasonable to report time series data for German EPEA from 2008 onwards. In doing so, breaks in time series data resulting of changes in compilation methods would be excluded. Improvements in timeliness In the future, results for EPEA will be available more timely. Data for non-specialised producers with ancillary output could be generated in t+23 months because of the developed estimation method for current expenditure (see section 4.3). Data for specialised producers and non-specialised producers with secondary output were not available in this time horizon because of the general revision in NA in The adjustment of German EPEA to revised NA data will allow compiling more timely results. NA data by COFOG are available in about t+20 months as well as NA data for the sum of NACE division German SUT are available at t+35 but estimations on the basis of the previous year SUT can be done to calculate EPEA data in t+24. Altogether, EPEA data will be available much more timely than in the past. Thus it will be possible to meet the deadlines given by EU Regulation 538/2014 (t+24 months). However, estimations providing data for all variables even earlier, e.g. in t+6 to t+12 months (now-casting), cannot be presented. The reason is that data quality would not be sufficient. Production of EPEA data needs detailed analyses within NA; this cannot be realised in short term as most basic data originate from two or three years back. In the following chapter, we show the results of a first test of the draft EPE tables for the EPE module of the EU Regulation. We did this testing in addition to the original working program of this project. A test of the draft tables is advantageous to identify possible missing data in the German EPEA compilation on one hand and to give hints to Eurostat on the applicability of the tables. Moreover, the consistency of the variables used in EPEA is compared with those in the draft EPE tables. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

46 7 EPE draft tables One underlying goal of this project was the filling in of the draft tables for the EPE module according to EU Regulation 538/2014 (in the following called EPE draft tables ) from the year 2017 onwards. Because of this we modified and extended the EPEA tables B and B1 in order to consider all relevant variables (see section 4.1). So, we started filling in the EPE draft tables which were presented on the working group meeting in March Because we did this just for testing reasons, we chose one year, the reporting year The year 2010 has the advantage that NA department provided us with detailed data for this year as described in chapter 4. Almost all EPE draft tables consist of a required part and a voluntary part. In this chapter we present the required parts of the EPE draft tables 1 to 6. In most cases we filled in the voluntary parts of the tables as well; these parts are shown in Annex 4 of this report. The first EPE draft table presents data on specialised producers government sector for CEPA classes 2, 3, 6, the sum of , and the sum of 8+9 (compare Table 9). Data on EP output and GCF are directly taken from table B, data on final consumption are provided by table B1. One exception concerns data on non-market EP output. In table B, we recorded non-market output without partial payments and we included partial payments in the variable market EP output as recommended in the 2002 EPEA compilation guide. In EPE draft table 1, non-market output should include payments for non-market output (partial payments). In view of this inconsistency, we decided to fill in the draft tables according to the proposed definition. The result is that numbers for non-market EP output and market EP output are not equal in the EPE draft tables and the EPEA tables. However, the sum of non-market and market output of EP services is identical to the EP output in table B. More data for government sector are shown in Table 4.1 in Annex 4. Table 9: EPE draft table 1 General government Country: DRAFT - QUESTIONNAIRE FOR EPE LEGAL MODULE background document for point 2 of agenda 21 February 2014 Germany Table 1. General government Data required by the draft legal act Expenditure MIO NAT CURRENCY Year Sum of CEPA Sum of CEPA CEPA 2 CEPA 3 CEPA 6 TOTAL ( O.1 ) EP output [P1] ( Onmk.1 ) + ( Omk.1 ) ( Omk.1 ) Market output [P11] Includes P.11 (market output) of government local KAUs that are market producers ( Onmk.1 ) Non market output [P13] Includes P.131 (payments for non-market output) , ,244 1,592 4,886 ( GCF.1 ) Gross capital formation and acquisition less disposals of non financial, non produced assets for the production of EP services [P5 + NP] ( A ) Investment expenditure , ,530 ( F.1 ) Final consumption of EP services [P3] ( Onmk.1 ) less P.131 (payments for non-market output) Source: Own calculations based on NA data. The second EPE draft table concerns non-specialised producers with ancillary output (compare Table 10). In this table the total sum of ancillary output and of GCF is recorded according to CEPA classes 1, 2, 3, and the sum of These data are compiled in table B. Data on further variables are shown in the voluntary part in Table 4.2 in Annex 4. Additionally, the EPE module requires the filling in of detailed data for a breakdown of NACE Rev. 2 divisions. These tables are not correctly provided in the draft tables so that we did not test the detailed tables for corporations with ancillary production. But we filled in the tables 2a (refers to NACE B), 2b (NACE C), 2c Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

47 7 EPE draft tables (NACE D), and 2d (NACE 36). These tables can be found in Annex 4 with the exception of table 2d because of confidentiality reasons. Table 10: EPE draft table 2 Corporations: ancillary production (total) Country: Germany Expenditure DRAFT - QUESTIONNAIRE FOR EPE LEGAL MODULE background document for point 2 of agenda 21 February 2014 MIO NAT CURRENCY Year Table 2. Corporations: ancillary production (total) Data required by the draft legal act Sum of CEPA CEPA 1 CEPA 2 CEPA 3 TOTAL ( Oa.2 ) Output of ancillary activities ,153 1, ,761 ( GCF.2 ) Gross capital formation and acquisition less disposals of non-financial, nonproduced assets for the production of EP services [P5 + NP] ( A ) Investment expenditure , ,318 Source: Own calculations based on (Statistisches Bundesamt, continously.f) and (Statistisches Bundesamt, continously.e). Oa.2: deviation in total due to rounding. The third EPE draft table requires data on specialised producers corporations sector and non-specialised producers with secondary output (compare Table 11). All required data can be taken from table B. But we have to keep in mind that corporations in this table cover specialised and secondary producers. This aggregation is not calculated in the EPEA tables for the variable EP output. A separate recording for both types of corporations would be easier for all countries which use EPEA tables as basis for their compilation. In contrast, data on GCF and on IC of EP services are just recorded for specialised producers in this table because both variables are not provided in table B for non-specialised producers with secondary output. More detailed data are shown in Table 4.3 in Annex 4. Table 11: EPE draft table 3 Corporations as secondary and specialist producers of market EP services Country: Germany Expenditure DRAFT - QUESTIONNAIRE FOR EPE LEGAL MODULE background document for point 2 of agenda 21 February 2014 MIO NAT CURRENCY Year Table 3. Corporations as secondary and specialist producers of market EP services Data required by draft legal act CEPA 2 CEPA 3 CEPA 4 TOTAL ( Omk.3 ) Total EP market output of corporations [P11] ( E ) Revenues (sales of EP products) ,397 15,748 27,145 ( Pep.3 ) Intermediate consumption of EP services by corporations' specialist producers ( B2 ) Fees and purchases ( GCF.3) Gross capital formation and acquisition less disposals of non-financial, non-produced assets for the production of EP services [P5 + NP] ( A ) Investment expenditure ,026 1,450 5,476 Source: Own calculations based on NA data. Total supply of EP services is recorded in the fourth EPE draft table (compare Table 12). Data on output are transferred from tables 1 to 3. Data on IC of EP services by specialised producers are derived from table B because in table 3 only IC of EP services of corporations sector is recorded. It would be easier to also include this variable in table 1 so that IC of EP services of government sector can be filled in. This would have the advantage of filling in these cells automatically like the other above mentioned variables. Data on imports, exports and VAT and other taxes less subsidies are inserted from table B1. Total EP output at purchasers prices is calculated at the end of this table. This variable cannot be compared directly with the EPEA tables because we only calculate total supply at purchasers prices. In table B1, we calculate uses of resident units at purchasers prices by subtracting exports from total supply which is similar to EP output at purchasers prices but includes IC of EP services by Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

48 7 EPE draft tables specialised producers. Additionally, we have to consider trade and transport margins in German EPEA because data exist for CEPA 3 (waste management). So far, we did not find a way to include these data in the EPE draft tables. As a consequence, the results for EPEA and EPE according to the module differ. How to deal with this inconsistency should be described in the instructions that come along with the EPE tables. Table 12: EPE draft table 4 Total supply of EP services DRAFT - QUESTIONNAIRE FOR EPE LEGAL MODULE background document for point 2 of agenda 21 February 2014 Table 4. Total supply of environmental protection services Country: Expenditure Germany MIO NAT CURRENCY Year Data required by the draft legal act Sum of CEPA CEPA 2 CEPA TOTAL 8+9 ( O.4 ) EP output (Omk.4 + Onmk.4 + Oa.4) Sum of market (incl. secondary), non-market and ancillary output ( Omk.4 ) Market output [P11] Total market output of corporations plus marekt output of government ( Oa.4 ) Ancillary output ( Onmk.4 ) Non-market output [P13] ( Pep.4 ) Intermediate consumption of EP services by specialist producers [P2] Intermediate consumption of EP services of corporations specialist producers and of general government maket producer of EP services ,429 20,013 5,970 43, ,647 18,118-33, , ,282 4, ,065 3,687 4, ( M.4 ) Imports of EP services [P7] ,190 7,190 ( X.4) Exports of EP services [P6] ,000 6,000 ( V.4 ) VAT and other taxes less subsidies on EP services [D221] ( Onu.4 ) EP output at purchasers' prices available for national uses ,395 20,693 5,970 44,058 EP output available for national uses: (O.4 - Pep.4 + M.4 - X.4 + V.4) Source: Own calculations based on various data sources. Data on final consumption of EP services by households is specified in EPE draft table 5 (compare Table 13). Only data for CEPA classes 2 and 3 have to be recorded. These data are taken from table B1. The voluntary part of table 5 is not very detailed but we filled in one additional variable concerning transfers which is shown in Table 4.5 in Annex 4. Table 13: EPE draft table 5 - Households Country: Expenditure DRAFT - QUESTIONNAIRE FOR EPE LEGAL MODULE background document for point 2 of agenda 21 February 2014 Germany MIO NAT CURRENCY Year Table 5. Households Data required by the draft legal act CEPA 2 CEPA 3 TOTAL ( F.5 ) Final consumption of EP services (B2) Fees and purchases ,900 16,982 23,882 Source: Own calculations based on NA data. EPE draft table 6 concerns transfers for EP (compare Table 14). This table refers to the part specific transfers in table A. In table A, transfers from government to other units are recorded by units which receive them. So far, we only included implicit subsidies in this part of table A because we did not analyse data on transfers in this project. The most promising data source is NA data classified by COFOG. But only current and capital transfers paid by government can directly be taken from these data. For using Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

49 7 EPE draft tables those in table A, we had to calculate transfers data distributed to beneficiaries. For implicit subsidies we used the simplifying assumption recommended by the EPEA compilation guide. In the instructions for the EPE tables, some recommendations for the use of transfer data by COFOG should be made concerning the distribution of those data to beneficiaries (which are also needed for EPE draft table 6). A detailed analysis of those data is rather time consuming (see also chapter 6). In addition, the connection between the transfers asked for in the voluntary parts of tables 1, 2, 3, and 5 and transfers asked for in table 6 should be made clearer. If these variables are identical, this should be marked with automatically filling in of the cells. Otherwise the labelling of the variables should be changed. In this test, we assumed that the variable subsidies/transfers in table 1 is identical to the variable (Tpg.6) General government: current and capital transfers paid in table 6. The same was assumed for the variables subsidies/transfers in table 5 and the variable (Trh.6) Households: transfers received in table 6. Table 14: EPE draft table 6 Transfers DRAFT - QUESTIONNAIRE FOR EPE LEGAL MODULE background document for point 2 of agenda 21 February 2014 Country: Germany Table 6. Transfers Data required by the draft legal act Expenditure MIO NAT CURRENCY Year CEPA 2 CEPA 3 CEPA 6 Sum of CEPA Sum of CEPA 8+9 TOTAL ( Tpg.6 ) General government: current and capital transfers paid Paid to corporations, households and rest of the world ,950 1,950 ( Trg.6 ) General government: current and capital transfers received Received from rest of the world 2010 ( Trc.6 ) Corporations: current and capital transfers received Received from GG and rest of the world ,171 1,171 ( Trh.6 ) Households: transfers received Received from GG and rest of the world ( Tpw.6 ) Rest of the world: current and capital transfers paid Paid to GG, corporations and households 2010 ( Trw.6 ) Rest of the world: current and capital transfers received Received from GG 2010 Source: Own calculations based on NA data. EPE draft tables 7.1 and 7.2 record sums of the previous tables for total economy and are filled in automatically. These tables are presented in Annex 4 (see tables 4.7a and 4.7b). Unfortunately, there is no sum at the end of the total tables indicating the national expenditure for EP. This might be changed in a future version of the draft tables. Overall, our first test of the EPE draft tables went well. We managed to fill in most of the required data based on using our version of the extended tables B, B1, and A for the calculation of German EPEA. Some gaps still exit, especially for transfers in EPE draft table 6. Further problems and inconsistencies between the EPEA concepts and the EPE tables as described above should be solved before entering in the regular data collection. For this, detailed instructions should come along with the EPE tables at least. A revision of the EPEA compilation guide or the development of a practical guide for the compilation of EPEA based on the data source available now would be very useful. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

50 7 EPE draft tables The following chapter describes a working package in the project that is not directly dealing with environmental protection expenditure. ReMEA is also one of the monetary modules of the system of environmental economic accounting (SEEA). During this project which focuses mainly on environmental protection expenditure accounts it was only possible to assess some parts of the ReMEA framework that are closely linked with the data that we used for EPEA. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

51 8 ReMEA In this project, we also assessed the possibility of developing resource management expenditure accounts for Germany. ReMEA uses in general the same concepts as the EPEA framework but focuses on resource management. This implies that the same tables (B, B1, A, C, and C1) are also used for ReMEA. These SERIEE-style tables can be found in Annex 1 of the draft ReMEA Guidelines (Eurostat, 2014d). Additionally, Eurostat developed a draft ReMEA questionnaire that includes the same tables as the draft questionnaire for the EPE module (Eurostat, 2014a). The classification concerning resource management is called CReMA (classification of resource management activities). The following resource management domains are listed in CReMA: Management of water (CReMA 10), Management of forest resources (CReMA 11), Management of wild flora and fauna (CReMA 12), Management of energy resources (CReMA 13), o o o Production of energy from renewable resources (CReMA 13A), Heat/energy saving and management (CReMA 13B), Minimisation of the use of fossil energy as raw materials (CReMA 13C), Management of minerals (CReMA 14), Research and development activities for resource management (CReMA 15), Other resource management activities (CReMA 16). First results of the assessment of ReMEA were described in the interim report with the following result (Statistisches Bundesamt, 2012): We investigated the possibilities for implementing ReMEA for renewable energy in Germany. First of all we assessed possible data sources: The physical data on the quantities of renewable energy produced in Germany is available from official statistics on a yearly basis. However, the economic information on energy production within the German national accounts (NA) is not detailed enough for identifying the resource management (RM) expenditure for renewable energy. We also tested SBS as a possible data source. The structural data on renewable energy expenditure collected for the energy statistics include expenditure of the electric power companies. However, due to legal requirements data from small renewable energy providers and private households are not collected. Thus, for ReMEA the expenditure of these small energy providers and private households must be estimated. For this purpose we reviewed other non-official statistical data and study results. We found some publications that could be helpful for these estimations. However, in most cases these results are not compatible with the data from official statistics, so more detailed analyses and calculations are needed before making use of the non-official data. Furthermore, most of this non-official data are not published on a regular basis, making compiling time series rather difficult. We also faced some difficulties with the breakdown of output, national expenditure etc. by the different producers/users of renewable energy. To identify the share of General Government we analysed NA data by COFOG. The German COFOG is compiled at 2-digit level, whereas for ReMEA purposes the 3-digit level is needed. While the renewable share of COFOG 4.3 at the central and Länder government level could be identified by budget analyses, this is not feasible for the RM expenditure of more than 11,000 German municipalities. Once again non-official statistics and research data Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

52 8 ReMEA revealed some information but further analysis would be needed. It is important to analyse municipal expenditure in detail, because available data show that a big share of the overall expenditure in COFOG 4.3 is carried out by municipalities. In summary, the result of our research work was that we will not be able to fill in the ReMEA questionnaire. German official statistics do not provide the necessary data on RM expenditure for renewable energy. A certain amount of information as a basis for estimations could be derived from other data sources such as study results and statistics from business associations. However, the compatibility of this data with the NA definitions must be checked and further research and compilation work is necessary. A detailed analysis whether ReMEA for other domains would be possible or not will follow at a later stage. However, the difficulties we were confronted with while testing ReMEA for renewable energy (in particular missing data or missing breakdown of data) will very likely occur also for other resource management aspects such as mineral and energy resources, water resources, aquatic resources, and biological resources. Possibly the situation might be somewhat better for timber resources as for timber a detailed data set is available in physical terms within environmental economic accounting and in monetary terms within SNA. Moreover, our compilation methods developed for EPEA also influence the possibilities of implementing ReMEA. In section 4.2, we described the exclusion of materials recovery from German EPEA. The EGSS practical guide recommends to record the recovery of sorted materials (that is separated out of NACE 38) to the main activity which may often be CReMA 14 but only if there is no further information on the type of material (an allocation to CReMA 11 or CReMA 13C is also possible) (Eurostat, 2014c, p. 107). So, we could use the data that were calculated for the exclusion of materials recovery for setting up a table B for CReMA 14 in the ReMEA framework. Our compilations of table B for CEPA 3 implied the calculation of a table B for product group This can directly be used for ReMEA. So far, Table B for CReMA 14 includes data for specialised producers of NACE group 38.3 and data on RM output for nonspecialised producers with secondary output. Additionally, specialised producers are divided into government and corporations sector. Any future change in the compilation of CReMA 14 will also have impacts on the compilation of CEPA 3 in EPEA. These codependencies have to be considered and a permanent adaption is needed when compilation methods of ReMEA or EPEA will be changed. In section 4.3, we described the exclusion of some investments for non-specialised producers with ancillary output in the domain climate protection. This concerns investments in actions designed to the use of renewable energy or to energy efficiency improvement and energy saving. Both parts can be classified in CReMA: Investments designed to produce renewable energy may be classified in CReMA 13 A (production of energy from renewable sources) and investments aiming at energy efficiency improvement and to energy saving may be classified in CReMA 13 B (heat/energy saving and management). If resource management expenditure accounts are developed in the future, also the current expenditure for non-specialised producers with ancillary output in these CReMA classes have to be compiled. For doing this, the EPE survey should be checked. So far, the EP domain climate protection is not subdivided corresponding to the EP investment survey. Perhaps an alignment to the EP domains of the EP investment survey will be possible. Otherwise, an estimation method could be developed to split the current expenditure in the EP domain climate protection into its three subdivisions. This estimation should also be used for EPEA. In the current compilation, the current expenditure for climate protection for nonspecialised producers with ancillary output is recorded completely. This implies an Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

53 8 ReMEA overestimation of the relevant expenditure but there is no double counting as long as resource management expenditure accounts are not compiled. These two aspects are just a starting point for ReMEA and should be further examined. In 2015, German NSO will start a new project supported by Eurostat on Feasibility Study on Reporting under the Classification of Resource Management Activities (CReMA) and on Resource Management Expenditure Accounts (ReMEA) according to the New Modules of Regulation 691/2011. Amongst others, it will deal with the examination of potential data sources for developing a reporting system for ReMEA. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

54 9 Conclusions This project started in 2012 with the goal to enlarge and modify the German environmental protection expenditure accounts in order to meet the requirements of the second stage of extension of the EU regulation. As Regulation (EU) No 538/2014 with Annex IV concerning environmental protection expenditure was adopted in April 2014 we considered the requirements of the EPE module explicitly in the project. This implied some changes compared to the original project application, for example the time period of the chosen reporting years and especially data sources. In this report we provide a set of EPEA tables B, B1, and A for the reporting years 2000 to 2011 in current prices. We chose the EPEA tables as a basis for our calculation tool because those represent a consistent framework which allows us to compile national expenditure of environmental protection. We modified and extended the classic EPEA tables B and B1 to consider the requirements of the JQ and the EPE draft tables as well as the characteristics of the German data sources. In accordance with the instructions and notes of the EPE draft tables, we changed the data sources used so far for the calculations of EP output of specialised producers to NA data. This has the great advantage of using data that are calculated with the concepts and definitions of ESA. These concepts are also the basis for EPEA. They ensure the compilation of aggregate expenditure indicators in a consistent and complete way without double counting. The fundamental changes in data sources for German EPEA lead to several changes in the calculation methods. Unfortunately, we could not consider the revision in NA based on the introduction of the ESA Detailed data according to ESA 2010 in Germany were first published in September 2014; revised SUT will follow in So, the timeline of the present project did not allow to compile the whole set of EPE tables thereafter. However, the German EPEA has to be adapted to the revised NA data in the coming years (2015/2016) as soon as revised SUT are available. In addition to the use of NA data for German EPEA, we reviewed data sources for ancillary producers. A main task was the development of an estimation method for missing data on current expenditure for selected years. Further important improvements achieved in this project are the inclusion of private corporations for waste and waste water management services, and the integration of the use side of German EPEA with data on EP expenditure for households, on imports and exports. All relevant environmental protection domains are covered in German EPEA. Our modifications and extensions of the classic EPEA tables B and B1 facilitate the filling in of the EPE draft tables. In addition to the outline of the project, we conducted a first test of the EPE draft tables for Germany and could fill in most of the required data based on using our version of the extended tables B, B1, and A. Nevertheless, some gaps still exit that have to be closed till the first required data delivery in 2017, for example data on current and capital transfers. In addition, the test showed where clarifications in the EPE draft tables are needed. An important outcome of the present project was the development of a compilation tool for the EPE module and a detailed internal documentation (in German) of the different computation steps. These two elements ensure that data on environmental protection expenditure according to EU Regulation 538/2014 (module IV) can be provided by German NSO. However, the compilation toll still has to be adapted to ESA 2010 (see above). In addition to the enlargement and modification of German EPEA, we assessed the development of resource management expenditure accounts for Germany. The developed compilation methods for EPEA also influenced the implementation of Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

55 9 Conclusions ReMEA. Some data could be gathered like data on material recovery and selected investments for ancillary producers in ReMEA. However, a full set of ReMEA tables cannot be provided for the time being. The connection between EGSS, EPEA, and ReMEA should be further assessed in German NSO. We started with this task during this project and defined the overlap between EP output of specialised producers that is accounted for in the EPE and EGSS modules of the Regulation. With the start of the mandatory data delivery according to the Regulation in 2017, we will report consistent data for EP output of specialised producers in NACE division for CEPA classes 2 and 3. Therefore, we developed the calculations for EP output of specialised producers in this project and will use these data for the EGSS reporting as well. Certainly, the results of the revised NA data should be considered for the future reporting of EPEA and EGSS data. A starting point to examine the overlap between EGSS and ReMEA might be done in the project on CReMA and ReMEA starting in 2015 in German NSO. Beside the need for modifications in the EPE draft tables mentioned above, we finally would recommend to revise the EPEA compilation guide or to develop a practical guide dealing with EPEA and the EPE module. Though the instructions coming along with the EPE draft tables are very useful because they consider the new data sources they do not cover a number of special questions detailed enough. During our work we found several issues in the available compilation handbooks that need clarification. For example, the 2002 EPEA compilation guide is based on NACE Rev. 1.1, the implementation of data by COFOG is not mentioned, and linkages between EPEA and EGSS accounting modules are not discussed. Major modifications resulting from the introduction of NACE Rev. 2 and also from the possibility to use NA data by COFOG should be considered for EPE compilation. Additionally, consequences from the implementation of ESA 2010 might be explained. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

56 10 References Regulation (EU) No 538/2014 of the European Parliament and of the Council of 16 April (2014, Mai 27). pp Aichinger, A. (2012). Umweltgesamtrechnungen Erhebung der Aufwendungen für Umweltschutz im Dienstleistungsbereich. Wien. ATT, BDWE, DBVW, DWA, & VKU. (2011). Branchenbild der deutschen Wasserwirtschaft Bonn. bvse. (2010). Überblick über die Recycling- und Entsorgungsbranche - Zahlen Daten Fakten. Retrieved from Daten Fakten_2010_zum_Download DWA. (2012). Wirtschaftsdaten der Abwasserbeseitigung. Von abgerufen Eurostat. (1994). SERIEE 1994 Version. Luxembourg: Office for Official Publications of the European Communities. Eurostat. (2002). SERIEE Environmental Protection Expenditure Accounts - Compilation Guide. Luxembourg: Office for Official Prublications of the European Communities. Eurostat. (2007). Environmental expenditure statistics - General Government and Specialised Producers data collection handbook. Luxembourg: Office for Official Publications of the European Communities. Eurostat. (2008). NACE Rev. 2 Statistical classification of economic activities in the European Community. Luxembourg: Office for Official Publications of the European Communities. Eurostat. (2014a). Draft ReMEA Questionnaire. Eurostat. (2014b). Draft-Questionnaire for the EPE legal module. Eurostat. (2014c). EGSS Practical Guide. Eurostat. (2014d). Resource Management Expenditure Accounts (ReMEA) Guideslines (draft). Friedrich Ebert Stiftung. (März 2000). Entsorgungsträger. Wegbeschreibung für die kommunale Praxis. Friedrich Ebert Stiftung. (Juli 2004). Die wirtschaftlichen Unternehmen der Gemeinde. Wegbeschreibung für die kommunale Praxis. Holmbom, S. B., Eberhardson, M., Steinbach, N., & Villner, M. (2010). Environmental Protection Expenditure new data collection and additional information. Ifo Institut. (2013). VR Branchen special - Entsorgungswirtschaft, Bericht Nr. 10. Wiesbaden: Deutscher Genossenschafts-Verlag. Kuhn, M., & Lauber, U. (1996). Ansätze zur Implementierung von SERIEE in Deutschland. Wiesbaden: Statistisches Bundesamt. Lauber, U. (2004). Nationales Handbuch Umweltschutzausgaben. Wiesbaden: Statistisches Bundesamt. Riege-Wcislo, W. (1999). Implementierung von SERIEE in Deutschland, Berichtsjahr Wiesbaden: Statistisches Bundesamt. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

57 10 References Statistisches Bundesamt. (2012). Economy-wide environmental expenditure accounts for Germany Interim report, not published. Statistisches Bundesamt. (2014a). Advance returns. Retrieved from axes/turnovertax/_doorpage/advancereturns_ol.html Statistisches Bundesamt. (2014b). Business register. Retrieved from erprisescrafts/businessregister/current.html Statistisches Bundesamt. (2014c). Funds, institutions, enterprises. Von ublicfinance/publicfinance.html abgerufen Statistisches Bundesamt. (2014d). Public finance. Von ublicfinancetaxes.html abgerufen Statistisches Bundesamt. (2014e, February). Public finance and taxes Terms of the statistics of public finance and public service personnel. Wiesbaden. Retrieved from ermspublicfinance.pdf? blob=publicationfile Statistisches Bundesamt. (continously.a). Fachserie 4 Reihe 6.1 Beschäftigte, Umsatz, Investionen und Kostenstruktur der Unternehmen in der Energieversorgung, Wasserversorgung, Abwasser- und Abfallentsorgung, Beseitigung von Umweltverschmutzungen. Wiesbaden. Statistisches Bundesamt. (continously.b). Fachserie 14 Reihe 3.1 Finanzen und Steuern Rechnungsergebnisse der öffentlichen Haushalte. Wiesbaden. Statistisches Bundesamt. (continously.c). Fachserie 14 Reihe 8.1 Finanzen und Steuern Umsatzsteuerstatistik (Voranmeldungen). Wiesbaden. Statistisches Bundesamt. (continously.d). Fachserie 18 Reihe 2 Volkswirtschaftliche Gesamtrechnungen - Input-Output-Rechnung. Wiesbaden. Statistisches Bundesamt. (continously.e). Fachserie 19 Reihe 3.1 Investitionen für den Umweltschutz im Produzierenden Gewerbe. Wiesbaden. Statistisches Bundesamt. (continously.f). Fachserie 19 Reihe 3.2 Laufende Ausgaben für den Umweltschutz im Produzierenden Gewerbe. Wiesbaden. Statistisches Bundesamt. (continously.g). Fachserie 18 Reihe 1.4 Volkswirtschaftliche Gesamtrechnungen Inlandsproduktberechnung, Detaillierte Jahresergebnisse. Wiesbaden. Statistisches Bundesamt. (continously.h). Fachserie 4 Reihe 4.3 Produzierendes Gewerbe Kostenstruktur der Unternehmen des Verarbeitenden Gewerbes sowie des Bergbaus und der Gewinnung von Steinen und Erden. Wiesbaden. VKU. (2012). Kommunale Versorgungs- und Entsorgungsunternehmen in Zahlen. Von abgerufen Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

58 Annex 1: CEPA PROTECTION OF AMBIENT AIR AND CLIMATE 1.1 Prevention of pollution through in-process modifications for the protection of ambient air for the protection of climate and ozone layer 1.2 Treatment of exhaust gases and ventilation air for the protection of ambient air for the protection of climate and ozone layer 1.3 Measurement, control, laboratories and the like 1.4 Other activities 2 WASTE WATER MANAGEMENT 2.1 Prevention of pollution through in-process modifications 2.2 Sewerage networks 2.3 Wastewater treatment 2.4 Treatment of cooling water 2.5 Measurement, control, laboratories and the like 2.6 Other activities 3 WASTE MANAGEMENT 3.1 Prevention of pollution through in-process modifications 3.2 Collection and transport 3.3 Treatment and disposal of hazardous waste Thermal treatment Landfill Other treatment and disposal 3.4 Treatment and disposal of non-hazardous waste Incineration Landfill Other treatment and disposal 3.5 Measurement, control, laboratories and the like 3.6 Other activities 4 PROTECTION AND REMEDIATION OF SOIL, GROUNDWATER AND SURFACE WATER 4.1 Prevention of pollutant infiltration 4.2 Cleaning up of soil and water bodies 4.3 Protection of soil from erosion and other physical degradation 4.4 Prevention and remediation of soil salinity 4.5 Measurement, control, laboratories and the like 4.6 Other activities Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

59 Annex 1: CEPA NOISE AND VIBRATION ABATEMENT (excluding workplace protection) 5.1 Preventive in-process modifications at the source Road and rail traffic Air traffic Industrial and other noise 5.2 Construction of anti noise/vibration facilities Road and rail traffic Air traffic Industrial and other noise 5.3 Measurement, control, laboratories and the like 5.4 Other activities 6 PROTECTION OF BIODIVERSITY AND LANDSCAPES 6.1 Protection and rehabilitation of species and habitats 6.2 Protection of natural and semi-natural landscapes 6.3 Measurement, control, laboratories and the like 6.4 Other activities 7 PROTECTION AGAINST RADIATION (excluding external safety) 7.1 Protection of ambient media 7.2 Transport and treatment of high level radioactive waste 7.3 Measurement, control, laboratories and the like 7.4 Other activities 8 RESEARCH AND DEVELOPMENT 8.1 Protection of ambient air and climate Protection of ambient air Protection of atmosphere and climate 8.2 Protection of water 8.3 Waste 8.4 Protection of soil and groundwater 8.5 Abatement of noise and vibration 8.6 Protection of species and habitats 8.7 Protection against radiation 8.8 Other research on the environment 9 OTHER ENVIRONMENTAL PROTECTION ACTIVITIES 9.1 General environmental administration and management General administration, regulation and the like Environmental management 9.2 Education, training and information 9.3 Activities leading to indivisible expenditure 9.4 Activities not elsewhere classified Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

60 Annex 2: EPEA tables for reporting year Table B: Production of EP services 2010 (total) EUR mn Specialised producers Non-specialised producers No. Transactions Government sector Corporations sector with with Total secondary output ancillary output 0 Current uses... 13,380 23,412 4,761 41,554 1 Intermediate consumption... 6,444 11,945 1,990 20, of which EP services of which ad. & con. products of which other intermediate consumption... 6,297 11,175 1,990 19,462 2 Compensation of employees... 2,429 5,863 1,343 9, Other taxes on production less other subsidies on production Consumption of fixed capital... 4,507 5,914 1,429 11,850 6 Net operating surplus... -1,875 3, ,586 7 Output (basic prices or cost of production)... 11,506 26,873 3,236 4,761 46, Non-environmental output ,964 2, Environmental protection output... 11,506 23,909 3,236 4,761 43, Non-market... 4,011 4, Market... 7,495 23,909 3,236 34, Ancillary... 4,761 4,761 8 Current EP resources... 9,445 23,909 3,236 36, Market output (sales, incl. partial payments)... 7,495 23,909 3,236 34, Current transfers incl. Implicit subsidies... 1,950 1,950 9 Capital transactions Gross fixed capital formation... 2,530 5,476 2,318 10, End-of-pipe investments... 1,295 1, Investments in integrated technologies... 1,024 1, Other capital uses (land) Investment grants received Other capital transfers received Financing by producers... 4,591 5, ,080 17, Table B1: Supply-uses of EP services 2010 (total) EUR mn No. Supply and uses Non-market EP services Market EP services Ancillary EP services Total 1 Uses of resident units (purchasers' prices)... 4,011 38,352 4,761 47, Intermediate consumption... 14,470 4,761 19, of which by specialised producers of which by other producers... 13,554 4,761 18, Final consumption... 4,011 23,882 27, Capital formation (land improvement)... 2 Exports... 6,000 6,000 Total uses = total supply... 4,011 44,352 4,761 53,125 3 Output (basic prices or costs of production)... 4,011 34,640 4,761 43, Specialised producers... 4,011 31,404 35, Other producers... 3,236 4,761 7,997 4 Imports (cif)... 7,190 7,190 5 Non-deductible VAT and other taxes less subsidies on products Trade and transport margin... 2,150 2,150 Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

61 Annex 2: EPEA tables for reporting year Table A: National expenditure for EP 2010 (total) EUR mn No. Components of national expenditure Producers Consumer Rest of the specialised other government households world Total 1 Consumption of specific products... 18,315 4,011 23,882 46, Final consumption of characteristic services... 4,011 23,882 27, Market... 23,882 23, Non-market... 4,011 4, Intermediate consumption of characteristic services... 18,315 18, Market... 13,554 13, Ancillary... 4,761 4, Final consumption of connected and adapted products Intermediate consumption of connected and adapted products... 2 Gross capital formation for characteristic activities... 8,006 2,318 10,324 3 Gross capital formation in specific products... 4 Specific transfers... 1, , Subsidies on production Other specific transfers... 1, , Current including implicit subsidies... 1, , Capital... 5 Total uses of resident units... 8,006 21,804 4,011 24,661 58, Current... 19,486 4,011 24,661 48, Capital... 8,006 2,318 10,324 6 Financing by the rest of the world... 7 National expenditure for environmental protection... 8,006 21,804 4,011 24,661 58, Current... 19,486 4,011 24,661 48, Capital... 8,006 2,318 10, Table B: Production of EP services 2010 (pollution management) EUR mn Specialised producers Non-specialised producers No. Transactions Government sector Corporations sector with with Total secondary output ancillary output 0 Current uses... 1,244 2,282 3,526 1 Intermediate consumption ,099 2, of which EP services of which ad. & con. products of which other intermediate consumption ,099 2,032 2 Compensation of employees Other taxes on production less other subsidies on production... 5 Consumption of fixed capital Net operating surplus Output (basic prices or cost of production)... 1,244 2,282 3, Non-environmental output Environmental protection output... 1,244 2,282 3, Non-market... 1,089 1, Market Ancillary... 2,282 2,282 8 Current EP resources Market output (sales, incl. partial payments) Current transfers incl. implicit subsidies... 9 Capital transactions Gross fixed capital formation ,273 2, End-of-pipe investments Investments in integrated technologies Other capital uses (land) Investment grants received Other capital transfers received Financing by producers... 1,869 3,555 5,424 Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

62 Annex 2: EPEA tables for reporting year Table B1: Supply-uses of EP services 2010 (pollution management) EUR mn No. Supply and uses Non-market EP services Market EP services Ancillary EP services Total 1 Uses of resident units (purchasers' prices)... 1, ,282 3, Intermediate consumption ,282 2, of which by specialised producers of which by other producers ,282 2, Final consumption... 1,089 1, Capital formation (land improvement)... 2 Exports... Total uses = total supply... 1, ,282 3,526 3 Output (basic prices or costs of production)... 1, ,282 3, Specialised producers... 1, , Other producers... 2,282 2,282 4 Imports (cif)... 5 Non-deductible VAT and other taxes less subsidies on products... 6 Trade and transport margin Table A: National expenditure for EP 2010 (pollution management) EUR mn No. Components of national expenditure Producers Consumer Rest of the specialised other government households world Total 1 Consumption of specific products... 2,437 1,089 3, Final consumption of characteristic services... 1,089 1, Market Non-market... 1,089 1, Intermediate consumption of characteristic services... 2,437 2, Market Ancillary... 2,282 2, Final consumption of connected and adapted products Intermediate consumption of connected and adapted products... 2 Gross capital formation for characteristic activities ,273 2,053 3 Gross capital formation in specific products... 4 Specific transfers Subsidies on production Other specific transfers Current including implicit subsidies Capital... 5 Total uses of resident units ,710 1,089 5, Current... 2,437 1,089 3, Capital ,273 2,053 6 Financing by the rest of the world... 7 National expenditure for environmental protection ,710 1,089 5, Current... 2,437 1,089 3, Capital ,273 2,053 Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

63 Annex 2: EPEA tables for reporting year Table B: Production of EP services 2010 (waste water management) EUR mn Specialised producers Non-specialised producers No. Transactions Government sector Corporations sector with with Total secondary output ancillary output 0 Current uses... 6,333 9,414 1,650 17,397 1 Intermediate consumption... 2,072 3, , of which EP services of which ad. & con. products of which other intermediate consumption... 2,061 3, ,321 2 Compensation of employees , , Other taxes on production less other subsidies on production Consumption of fixed capital... 3,820 3, ,272 6 Net operating surplus... -1,950 1, Output (basic prices or cost of production)... 4,383 10,590 2,565 1,650 19, Non-environmental output... 1,758 1, Environmental protection output... 4,383 8,832 2,565 1,650 17, Non-market Market... 4,252 8,832 2,565 15, Ancillary... 1,650 1,650 8 Current EP resources... 6,202 8,832 2,565 17, Market output (sales, incl. partial payments)... 4,252 8,832 2,565 15, Current transfers incl. Implicit subsidies... 1,950 1,950 9 Capital transactions Gross fixed capital formation... 1,260 4, , End-of-pipe investments Investments in integrated technologies Other capital uses (land) Investment grants received Other capital transfers received Financing by producers , ,510 5, Table B1: Supply-uses of EP services 2010 (waste water management) EUR mn No. Supply and uses Non-market EP services Market EP services Ancillary EP services Total 1 Uses of resident units (purchasers' prices) ,649 1,650 17, Intermediate consumption... 8,749 1,650 10, of which by specialised producers of which by other producers... 8,715 1,650 10, Final consumption ,900 7, Capital formation (land improvement)... 2 Exports... Total uses = total supply ,649 1,650 17,429 3 Output (basic prices or costs of production) ,649 1,650 17, Specialised producers ,084 13, Other producers... 2,565 1,650 4,215 4 Imports (cif)... 5 Non-deductible VAT and other taxes less subsidies on products... 6 Trade and transport margin... Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

64 Annex 2: EPEA tables for reporting year Table A: National expenditure for EP 2010 (waste water management) EUR mn No. Components of national expenditure Producers Consumer Rest of the specialised other government households world Total 1 Consumption of specific products... 10, ,900 17, Final consumption of characteristic services ,900 7, Market... 6,900 6, Non-market Intermediate consumption of characteristic services... 10,364 10, Market... 8,715 8, Ancillary... 1,650 1, Final consumption of connected and adapted products Intermediate consumption of connected and adapted products... 2 Gross capital formation for characteristic activities... 5, ,147 3 Gross capital formation in specific products... 4 Specific transfers... 1, , Subsidies on production Other specific transfers... 1, , Current including implicit subsidies... 1, , Capital... 5 Total uses of resident units... 5,286 12, ,679 25, Current... 11, ,679 19, Capital... 5, ,147 6 Financing by the rest of the world... 7 National expenditure for environmental protection... 5,286 12, ,679 25, Current... 11, ,679 19, Capital... 5, , Table B: Production of EP services 2010 (waste management) EUR mn Specialised producers Non-specialised producers No. Transactions Government sector Corporations sector with with Total secondary output ancillary output 0 Current uses... 3,360 13, ,187 1 Intermediate consumption... 2,596 8, , of which EP services of which ad. & con. products of which other intermediate consumption... 2,461 7, ,267 2 Compensation of employees , , Other taxes on production less other subsidies on production Consumption of fixed capital , ,566 6 Net operating surplus , ,360 7 Output (basic prices or cost of production)... 3,435 16, , Non-environmental output ,206 1, Environmental protection output... 3,435 15, , Non-market Market... 2,776 15, , Ancillary Current EP resources... 2,776 15, , Market output (sales, incl. partial payments)... 2,776 15, , Current transfers incl. Implicit subsidies... 9 Capital transactions Gross fixed capital formation , , End-of-pipe investments Investments in integrated technologies Other capital uses (land) Investment grants received Other capital transfers received Financing by producers , ,392 Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

65 Annex 2: EPEA tables for reporting year Table B1: Supply-uses of EP services 2010 (waste management) EUR mn No. Supply and uses Non-market EP services Market EP services Ancillary EP services Total 1 Uses of resident units (purchasers' prices) , , Intermediate consumption... 5, , of which by specialised producers of which by other producers... 4, , Final consumption ,982 17, Capital formation (land improvement)... 2 Exports... 6,000 6,000 Total uses = total supply , ,726 3 Output (basic prices or costs of production) , , Specialised producers ,853 18, Other producers ,501 4 Imports (cif)... 7,190 7,190 5 Non-deductible VAT and other taxes less subsidies on products Trade and transport margin... 2,150 2, Table A: National expenditure for EP 2010 (waste management) EUR mn No. Components of national expenditure Producers Consumer Rest of the specialised other government households world Total 1 Consumption of specific products... 5, ,982 22, Final consumption of characteristic services ,982 17, Market... 16,982 16, Non-market Intermediate consumption of characteristic services... 5,202 5, Market... 4,372 4, Ancillary Final consumption of connected and adapted products Intermediate consumption of connected and adapted products... 2 Gross capital formation for characteristic activities... 1, ,902 3 Gross capital formation in specific products... 4 Specific transfers Subsidies on production Other specific transfers Current including implicit subsidies Capital... 5 Total uses of resident units... 1,750 5, ,982 24, Current... 5, ,982 22, Capital... 1, ,902 6 Financing by the rest of the world... 7 National expenditure for environmental protection... 1,750 5, ,982 24, Current... 5, ,982 22, Capital... 1, ,902 Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

66 Annex 2: EPEA tables for reporting year Table B: Production of EP services 2010 (protection of biodiversity and landscapes) EUR mn Specialised producers Non-specialised producers No. Transactions with with Total Government sector Corporations sector secondary output ancillary output 0 Current uses Intermediate consumption of which EP services of which ad. & con. products of which other intermediate consumption Compensation of employees Other taxes on production less other subsidies on production... 5 Consumption of fixed capital Net operating surplus Output (basic prices or cost of production) Non-environmental output Environmental protection output Non-market Market Ancillary... 8 Current EP resources Market output (sales, incl. partial payments) Current transfers incl. Implicit subsidies... 9 Capital transactions Gross fixed capital formation End-of-pipe investments Investments in integrated technologies Other capital uses (land) Investment grants received Other capital transfers received Financing by producers Table B1: Supply-uses of EP services 2010 (protection of biodiversity and landscapes) EUR mn No. Supply and uses Non-market EP services Market EP services Ancillary EP services Total 1 Uses of resident units (purchasers' prices) Intermediate consumption of which by specialised producers of which by other producers Final consumption Capital formation (land improvement)... 2 Exports... Total uses = total supply Output (basic prices or costs of production) Specialised producers Other producers... 4 Imports (cif)... 5 Non-deductible VAT and other taxes less subsidies on products... 6 Trade and transport margin... Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

67 Annex 2: EPEA tables for reporting year Table A: National expenditure for EP 2010 (protection of biodiversity and landscapes) EUR mn No. Components of national expenditure Producers Consumer Rest of the specialised other government households world Total 1 Consumption of specific products Final consumption of characteristic services Market Non-market Intermediate consumption of characteristic services Market Ancillary Final consumption of connected and adapted products Intermediate consumption of connected and adapted products... 2 Gross capital formation for characteristic activities Gross capital formation in specific products... 4 Specific transfers Subsidies on production Other specific transfers Current including implicit subsidies Capital... 5 Total uses of resident units , Current Capital Financing by the rest of the world... 7 National expenditure for environmental protection , Current Capital Table B: Production of EP services 2010 (R&D and other EP activities) EUR mn Specialised producers Non-specialised producers No. Transactions Government sector Corporations sector with with Total secondary output ancillary output 0 Current uses... 1,592 1,592 1 Intermediate consumption of which EP services of which ad. & con. products of which other intermediate consumption Compensation of employees Other taxes on production less other subsidies on production... 5 Consumption of fixed capital Net operating surplus... 7 Output (basic prices or cost of production)... 1,592 1, Non-environmental output Environmental protection output... 1,592 1, Non-market... 1,408 1, Market Ancillary... 8 Current EP resources Market output (sales, incl. partial payments) Current transfers incl. Implicit subsidies... 9 Capital transactions Gross fixed capital formation End-of-pipe investments Investments in integrated technologies Other capital uses (land) Investment grants received Other capital transfers received Financing by producers... 1,478 1,478 Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

68 Annex 2: EPEA tables for reporting year Table B1: Supply-uses of EP services 2010 (R&D and other EP activities) EUR mn No. Supply and uses Non-market EP services Market EP services Ancillary EP services Total 1 Uses of resident units (purchasers' prices)... 1, , Intermediate consumption of which by specialised producers of which by other producers Final consumption... 1,408 1, Capital formation (land improvement)... 2 Exports... Total uses = total supply... 1, ,592 3 Output (basic prices or costs of production)... 1, , Specialised producers... 1, , Other producers... 4 Imports (cif)... 5 Non-deductible VAT and other taxes less subsidies on products... 6 Trade and transport margin Table A: National expenditure for EP 2010 (R&D and other EP activities) EUR mn No. Components of national expenditure Producers Consumer Rest of the specialised other government households world Total 1 Consumption of specific products ,408 1, Final consumption of characteristic services... 1,408 1, Market Non-market... 1,408 1, Intermediate consumption of characteristic services Market Ancillary Final consumption of connected and adapted products Intermediate consumption of connected and adapted products... 2 Gross capital formation for characteristic activities Gross capital formation in specific products... 4 Specific transfers Subsidies on production Other specific transfers Current including implicit subsidies Capital... 5 Total uses of resident units ,408 1, Current ,408 1, Capital Financing by the rest of the world... 7 National expenditure for environmental protection ,408 1, Current ,408 1, Capital Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

69 Annex 3: Time series data 3.1 Production of EP services (total)* EUR mn No. Transactions Current uses... 33,014 34,518 34,896 34,276 35,051 36,393 1 Intermediate consumption... 14,441 17,711 17,979 17,861 18,457 19, of which EP services , of which connected and adapted products of which other intermediate consumption... 14,121 16,993 17,286 17,031 17,556 18,775 2 Compensation of employees... 8,773 8,043 7,989 7,868 7,858 7, Other taxes on production less other subsidies on production Consumption of fixed capital... 10,409 9,265 9,388 8,957 9,087 9,100 6 Net operating surplus ,340 1,610 2,070 7 Output (basic prices or cost of production)... 34,397 35,248 35,546 35,616 36,661 38, Non-environmental output... 1, Environmental protection output... 32,414 35,248 35,536 35,616 36,661 38, Non-market... 2,960 2,950 3,010 3,110 3,020 3, Market... 24,305 27,159 27,287 28,149 29,160 31, Ancillary... 5,149 5,139 5,238 4,357 4,481 4,143 8 Current EP resources... 25,315 27,944 28,127 28,928 29,880 32, Market output (sales, incl. partial payments)... 24,305 27,159 27,287 28,149 29,160 31, Current transfers incl. implicit subsidies... 1, ,056 9 Capital transactions Gross fixed capital formation... 10,769 10,025 9,370 9,077 9,668 8, End-of-pipe investments... 1,017 1, Investments in integrated technologies Other capital uses (land) Investment grants received Other capital transfers received Financing by producers... 17,868 17,330 16,779 15,765 16,449 15,062 * Break in times series data because of different compilation method for the years 2001 to 2007 (see chapter 4). Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

70 Annex 3: Time series data 3.1 Production of EP services (total)* EUR mn No. Transactions Current uses... 39,043 40,102 39,192 39,073 41,554 44,768 1 Intermediate consumption... 22,097 22,954 19,141 18,440 20,378 22, of which EP services... 1,394 1, , of which connected and adapted products of which other intermediate consumption... 20,703 21,499 18,230 17,651 19,462 21,658 2 Compensation of employees... 7,758 7,533 9,016 9,444 9,635 10, Other taxes on production less other subsidies on production Consumption of fixed capital... 9,328 9,766 11,280 11,600 11,850 12,124 6 Net operating surplus... 2,240 2, ,586 2,062 7 Output (basic prices or cost of production)... 41,283 42,132 44,318 43,096 46,375 50, Non-environmental output ,361 2,118 2,964 3, Environmental protection output... 41,283 42,122 42,957 40,978 43,412 46, Non-market... 3,270 3,120 3,460 3,920 4,011 4, Market... 34,103 35,057 35,280 32,569 34,640 37, Ancillary... 3,910 3,945 4,217 4,489 4,761 5,293 8 Current EP resources... 35,397 36,656 37,270 34,629 36,590 39, Market output (sales, incl. partial payments)... 34,103 35,057 35,280 32,569 34,640 37, Current transfers incl. implicit subsidies... 1,294 1,599 1,990 2,060 1,950 1,970 9 Capital transactions Gross fixed capital formation... 9,888 10,317 10,866 10,380 10,324 11, End-of-pipe investments... 1,028 1,215 1,664 1,281 1,295 1, Investments in integrated technologies ,256 1,300 1,062 1,024 1, Other capital uses (land) Investment grants received Other capital transfers received Financing by producers... 15,775 15,783 16,553 16,729 17,147 18,824 * Break in times series data because of different compilation method for the years 2001 to 2007 (see chapter 4). 1 Preliminary results. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

71 Annex 3: Time series data 3.2 Supply-uses of EP services total* EUR mn No. Supply and uses Uses of resident units (purchasers' prices)... 34,383 36,494 36,631 36,741 37,809 39, Intermediate consumption... 11,940 19,466 20,070 20,340 21,590 23, of which by specialised producers , of which by other producers... 11,620 18,748 19,377 19,510 20,689 22, Final consumption... 22,443 17,028 16,561 16,401 16,219 16, Capital formation (land improvement)... 2 Exports... 3,264 Total uses = total supply... 37,647 36,494 36,631 36,741 37,809 39,676 3 Output (basic prices or costs of production)... 32,414 35,248 35,536 35,616 36,661 38, Specialised producers... 24,985 30,109 30,297 31,259 32,180 34, Other producers... 7,429 5,139 5,238 4,357 4,481 4,143 4 Imports (cif)... 3, Non-deductible VAT and other taxes less subsidies on products Trade and transport margin... 1,683 No. Supply and uses Uses of resident units (purchasers' prices)... 42,156 43,151 46,774 42,941 47,124 51, Intermediate consumption... 25,227 26,321 20,007 15,428 19,231 23, of which by specialised producers... 1,394 1, , of which by other producers... 23,833 24,866 19,095 14,640 18,315 22, Final consumption... 16,929 16,830 26,767 27,513 27,893 28, Capital formation (land improvement)... 2 Exports... 5,752 4,275 6,000 7,000 Total uses = total supply... 42,156 43,151 52,526 47,216 53,125 58,328 3 Output (basic prices or costs of production)... 41,283 42,122 42,957 40,978 43,412 46, Specialised producers... 37,373 38,177 33,479 33,182 35,415 38, Other producers... 3,910 3,945 9,478 7,795 7,997 8,692 4 Imports (cif) ,796 3,990 7,190 8,389 5 Non-deductible VAT and other taxes less subsidies on products Trade and transport margin... 2,304 1,914 2,150 2,508 * Break in times series data because of different compilation method for the years 2001 to 2007 (see chapter 4). 1 Preliminary results. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

72 Annex 3: Time series data 3.3 National expenditure for EP (total)* EUR mn No. Components of national expenditure Consumption of specific products... 34,063 35,776 35,938 35,911 36,908 38, Final consumption of characteristic services... 22,443 17,028 16,561 16,401 16,219 16, Market... 19,483 14,078 13,551 13,291 13,199 13, Non-market... 2,960 2,950 3,010 3,110 3,020 3, Intermediate consumption of characteristic services... 11,620 18,748 19,377 19,510 20,689 22, Market... 6,471 13,609 14,138 15,153 16,208 17, Ancillary... 5,149 5,139 5,238 4,357 4,481 4, Final consumption of connected and adapted products Intermediate consumption of connected and adapted products... 2 Gross capital formation for characteristic activities... 10,769 10,025 9,370 9,077 9,668 8,915 3 Gross capital formation in specific products... 4 Specific transfers... 1, , Subsidies on production Other specific transfers... 1, , Current including implicit subsidies... 1, , Capital... 5 Total uses of resident units... 45,842 46,586 46,148 45,767 47,296 48, Current... 35,073 36,561 36,778 36,690 37,628 39, Capital... 10,769 10,025 9,370 9,077 9,668 8,915 6 Financing by the rest of the world... 7 National expenditure for environmental protection... 45,842 46,586 46,148 45,767 47,296 48, Current... 35,073 36,561 36,778 36,690 37,628 39, Capital... 10,769 10,025 9,370 9,077 9,668 8,915 * Break in times series data because of different compilation method for the years 2001 to 2007 (see chapter 4). Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

73 Annex 3: Time series data 3.3 National expenditure for EP (total)* EUR mn No. Components of national expenditure Consumption of specific products... 40,762 41,696 45,862 42,153 46,208 50, Final consumption of characteristic services... 16,929 16,830 26,767 27,513 27,893 28, Market... 13,659 13,710 23,307 23,593 23,882 24, Non-market... 3,270 3,120 3,460 3,920 4,011 4, Intermediate consumption of characteristic services... 23,833 24,866 19,095 14,640 18,315 22, Market... 19,923 20,921 14,878 10,151 13,554 16, Ancillary... 3,910 3,945 4,217 4,489 4,761 5, Final consumption of connected and adapted products Intermediate consumption of connected and adapted products... 2 Gross capital formation for characteristic activities... 9,888 10,317 10,866 10,380 10,324 11,490 3 Gross capital formation in specific products... 4 Specific transfers... 1,294 1,599 1,990 2,060 1,950 1, Subsidies on production Other specific transfers... 1,294 1,599 1,990 2,060 1,950 1, Current including implicit subsidies... 1,294 1,599 1,990 2,060 1,950 1, Capital... 5 Total uses of resident units... 51,945 53,612 58,718 54,592 58,483 63, Current... 42,056 43,295 47,852 44,213 48,158 52, Capital... 9,888 10,317 10,866 10,380 10,324 11,490 6 Financing by the rest of the world... 7 National expenditure for environmental protection... 51,945 53,612 58,718 54,592 58,483 63, Current... 42,056 43,295 47,852 44,213 48,158 52, Capital... 9,888 10,317 10,866 10,380 10,324 11,490 * Break in times series data because of different compilation method for the years 2001 to 2007 (see chapter 4). 1 Preliminary results. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

74 Annex 3: Time series data 3.4 Environmental protection output by producers* EUR mn Producers Specialised producers... 24,985 30,109 30,297 31,259 32,180 34,310 Government sector... 11,866 11,363 11,056 11,105 11,037 10,700 Corporations sector... 13,119 18,746 19,241 20,154 21,143 23,610 Non-specia ised producers... 7,429 5,139 5,238 4,357 4,481 4,143 with secondary output... 2, with ancillary output... 5,149 5,139 5,238 4,357 4,481 4,143 Total... 32,414 35,248 35,536 35,616 36,661 38,453 Producers Specialised producers... 37,373 38,177 33,479 33,182 35,415 38,305 Government sector... 10,941 10,635 10,867 11,213 11,506 11,717 Corporations sector... 26,433 27,543 22,612 21,969 23,909 26,588 Non-specialised producers... 3,910 3,945 9,478 7,795 7,997 8,692 with secondary output ,261 3,306 3,236 3,398 with ancillary output... 3,910 3,945 4,217 4,489 4,761 5,293 5,295 Total... 41,283 42,122 42,957 40,978 43,412 46,997 * Break in times series data because of different compilation method for the years 2001 to 2007 (see chapter 4). 1 Preliminary results. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

75 Annex 3: Time series data 3.5 National expenditure for EP by users* EUR mn Users Producers... 22,949 29,187 29,205 29,025 30,772 31,597 Specialised... 9,183 8,438 7,720 7,609 8,038 7,662 Other... 13,766 20,750 21,485 21,416 22,735 23,934 Consumer... 22,893 17,399 16,943 16,742 16,524 16,945 Government... 2,960 2,950 3,010 3,110 3,020 3,060 Households... 19,933 14,449 13,933 13,632 13,504 13,885 Rest of the world... Total... 45,842 46,586 46,148 45,767 47,296 48,542 Share of GDP (%) Users Producers... 34,515 36,180 31,139 26,258 29,810 34,787 Specialised... 8,261 7,846 7,902 8,037 8,006 8,868 Other... 26,253 28,334 23,237 18,220 21,804 25,919 Consumer... 17,430 17,432 27,579 28,335 28,672 28,948 Government... 3,270 3,120 3,460 3,920 4,011 4,010 Households... 14,160 14,312 24,119 24,415 24,661 24,938 Rest of the world... Total... 51,945 53,612 58,718 54,592 58,483 63,735 Share of GDP (%) * Break in times series data because of different compilation method for the years 2001 to 2007 (see chapter 4). 1 Preliminary results. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

76 Annex 3: Time series data 3.6 National expenditure for EP per domain* EUR mn Domain EUR mn % EUR mn % EUR mn % EUR mn % EUR mn % EUR mn % Waste water management... 21, , , , , , Waste management... 17, Pollution management... 4, , , , , , Protection of biodiversity and landscapes... 1, , , Research and development Other environmental protection activities , , , , , Total... 45, , , , , , Domain EUR mn % EUR mn % EUR mn % EUR mn % EUR mn % EUR mn % Waste water management... 45, , , , , , Waste management... 26, , , , Pollution management... 4, , , , , , Protection of biodiversity and landscapes , , , Research and development Other environmental protection activities... 1, , , , , , Total... 51, , , , , , * Break in times series data because of different compilation method for the years 2001 to 2007 (see chapter 4). 1 Preliminary results. Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

77 Annex 4: EPE draft tables for reporting year EPE draft table 1 General government EUR mn DRAFT QUESTIONNAIRE FOR EPE LEGAL MODULE background document for point 2 of agenda 21 February 2014 e ma able 1 General government Data requ red by the draft egal act Expend ture M AT ea m A m +9 A ( O 1 ) EP output [P1] ( Onmk.1 ) ( Omk.1 ) 20 0,383 3, , ,506 ( Omk 1 ) Market output [P11] Includes P.11 (market output) of government ocal KAUs that are market producers 20 0,250 2, ,620 ( Onmk 1 ) Non market output [P13] Includes P.131 (paymen s or non-market output) , , ,886 ( GCF 1 ) Gross capital formation and acquisition less disposals of non financial non produced assets for the production of EP services [P5 NP] ( A ) Investment expenditure , ,530 ( F 1 ) Final consumption of EP services [P3] ( Onmk.1 ) ess P.131 (paymen s for non-market output) ,089 1, 08,011 YOUR FOO NO ES (End of pr nt-zone. Footnotes below this l ne w ll be loaded into the database by the Excel reader, but wi l not appear on the print-outs of this sheet!) (End of footnote range. Footnotes below this l ne w ll not be read into the database by the "Excel reader"!) Country: Germany ENVIRONMEN AL PRO EC ION EXPENDI URE MIO NA CURRENCY ab e 1 General government More detai ed voluntary table please fill in as much as poss ble (draft version: voluntary tables to be discussed by he Working Group) Expend ture ea A 2 a 2 2 ma e a e A 2 A A 4 A A A 7 A A 9 T TA ( GCF 1 ) Gross capital formation and acquisition less disposals of non financial non produced assets for the production of EP services [P5 NP] ( A ) Investment expenditure , ,530 ( Pnep 1 ) Intermediate consumption (excluding EP serv ces) [P2] ,061 2, ,297 ( D 1 ) Compensation of employees [D1] , 29 ( B1 ) Internal current expenditure ( Pnep.1) D ,165 2,501 2, ,092 8,727 ( P2ext ) Intermed ate consumption of EP services ( B2 ) Fees and purchases ( S 1 ) Other taxes less subsid es on production [D29 D39] ( K 1 ) Consumption of fixed capital [K1] , ,507 ( O 1 ) EP output [P1] ( Onmk.1 ) ( Omk.1 ) ,2,383 3, ,151 11,506 ( Omk 1 ) Market output [P11] Includes P.11 (market output) of government ocal KAUs that are market producers ,250 2, ,620 ( Onmk 1 ) Non market output [P13] Includes P.131 (paymen s or non-market output) , , ,151,886 ( C ) Receipts from by products ( D ) Subsidies/transfers Paid to other sectors ,950 1,950 ( F 1 ) Final consumption of EP services [P3] ( Onmk.1 ) ess P.131 (paymen s for non-market output) , ,051,011 ( L 1) Labour nput Full time equ valents T T Co umn CE A 1 nc udes he sum o CE A End o p n -zone oo no es be ow h s ne w be oaded n o he da abase by he Exce eade bu w no appea on he p n - ou s o h s shee ) Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

78 Annex 4: EPE draft tables for reporting year EPE draft table 2 Corporations: ancillary production (total) EUR mn DRAFT QUESTIONNAIRE FOR EPE LEGAL MODULE background document for point 2 of agenda 21 February 2014 Country: Germany ab e 2 Corporations: anc llary production (total) Data required by the draft legal act Expenditure MIO NA CURRENCY Year CEPA 1 CEPA 2 CEPA 3 Sum f CEPA O AL ( Oa 2 ) Output of anci lary activities ,153 1, ,761 ( GCF 2 ) Gross capital formation and acquisition less disposals of non financial non produced assets for the production of EP services [P5 NP] ( A ) Investment expenditure , ,319 YOUR FOO NO ES (End of print-zone. Footnotes below this line w ll be loaded nto the database by the Excel reader, but will not appear on the print-outs of this sheet!) Country: Germany DRAF QUES IONNAIRE FOR EPE LEGAL MODULE background document for point 2 of agenda 21 February 2014 able 2 Corporations: ancillary production (total) More detailed voluntary table please fill in as much as possible (draft version: vo untary tables to be discussed by the Working Group) Expenditure MIO NA CURRENCY Year CEPA 1 f hich CEPA and C imate change CEPA 2 CEPA 3 CEPA 4 CEPA 5 CEPA 6 CEPA 7 CEPA 8 CEPA 9 O AL ( GCF 2 ) Gross capital formation and acquisition less disposals of non financial non produced assets for the production of EP services [P5 NP] ( A ) Investment expenditure , ,319 ( A1 ) End-of-pipe investments ,295 ( A2 ) Investments in ntegrated technologies ,02 ( Pnep 2 ) Intermediate consumption (excluding EP services) [P2] , ,990 ( D 2 ) Compensation of employees [D1] ,3 3 ( Oa 2 ) Output of anci lary activities (legally acceptable approximation of output) (B1) Internal current expendi ure: ( Pnep.2 ) ( D.2 ) , , ,333 ( Pep 2 ) Intermediate consumption of EP services [P2] ( B2 ) Fees and purchases , ,135 2, ,178 ( S 2 ) Other taxes less subsidies on production [D29 D39] 2010 ( K 2 ) Consumption of fixed capital [K1] , 29 ( Oaa 2 ) Output of ancillary activities (ESA compatib e output) (Pnep.2) ( D.2 ) ( K.2 ) ( S.2 ) , , ,761 ( C ) Receipts from by-products 2010 ( D ) Subsidies/transfers Received from the public sector 2010 ( L 2 ) Labour input Full t me equivalents 2010 YOUR FOO NO ES Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

79 Annex 4: EPE draft tables for reporting year a EPE draft table 2 Corporations: ancillary production of NACE B EUR mn DRAFT QUESTIONNAIRE FOR EPE LEGAL MODULE background document for point 2 of agenda 21 February 2014 Country: Germany able 2a Corporations: ancillary production of NACE B Data required by the draft egal act Expenditure M O NA CURRENCY Year CEPA 1 CEPA 2 CEPA 3 Sum of CEPA O AL ( Oa 2a ) Output of ancillary activ t es ( GCF 2a ) Gross capital formation and acquisition less disposals of non financial non produced assets for the production of EP serv ces [P5 NP] ( A ) Investment expend ture YOUR FOO NO ES (End of pr nt-zone. Footnotes below this ine w ll be loaded nto the database by the Excel reader, but wi l not appear on the print-outs of this sheet ) Country: Germany DRAF QUES IONNA RE FOR EPE LEGAL MODULE background document for point 2 of agenda 21 February 2014 able 2a Corporations: anci lary production of NACE B More deta led voluntary table please fi l in as much as possible (draft version: voluntary tables to be discussed by the Working Group) Expenditure M O NA CURRENCY Year CEPA 1 of which CEPA and Cl mate change CEPA 2 CEPA 3 CEPA 4 CEPA 5 CEPA 6 CEPA 7 CEPA 8 CEPA 9 O AL ( GCF 2a ) Gross capital formation and acquisition less disposals of non financial non produced assets for the production of EP serv ces [P5 NP] ( A ) Investment expend ture ( A1 ) End-of-pipe investments ( A2 ) Investments in integrated technologies ( Pnep 2a ) Intermediate consumption (excluding EP services) [P2] ( D 2a ) Compensation of employees [D1] ( Oa 2a ) Output of ancillary activ t es (legally acceptab e approximation of output) (B1) Internal current expenditure: ( Pnep.2a ) ( D.2a ) ( Pep 2a ) Intermediate consumption of EP services [P2] ( B2 ) Fees and purchases ( S 2a) Other taxes less subs dies on production [D29 D39] 2010 ( K 2a ) Consumption of fixed capital [K1] ( Oaa 2a ) Output of anci lary activities (ESA compat ble output) ( Pnep.2a ) ( D.2a ) ( K.2a ) ( S.2a ) ( C ) Receipts from by-products 2010 ( D ) Subsidies transfers Received from the pub ic sector 2010 ( L 2a ) Labour nput Full time equ valents 2010 YOUR FOO NO ES Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

80 Annex 4: EPE draft tables for reporting year b EPE draft table 2 Corporations: ancillary production of NACE C EUR mn DRAFT QUESTIONNAIRE FOR EPE LEGAL MODULE background document for point 2 of agenda 21 February 2014 Country: Germany able 2b Corporations: ancillary production of NACE C Data required by the draft legal act Expenditure MIO NA CURRENCY Year CEPA 1 CEPA 2 CEPA 3 Sum f CEPA O AL ( Oa 2b ) Output of anc llary activities ,522 1, , 21 ( GCF 2b ) Gross capital formation and acquisition less disposals of non financial non produced assets for the production of EP services [P5 NP] ( A ) Investment expendi ure ,173 YOUR FOO NO ES (End of print-zone. Footnotes below this line will be loaded into the database by the Excel reader, but will not appear on the print-outs of this sheet!) Country: Germany DRAF QUES IONNAIRE FOR EPE LEGAL MODULE background document for point 2 of agenda 21 February 2014 ab e 2b Corporations: anc llary production of NACE C More detailed voluntary table please fill n as much as possible (draft version: voluntary tables to be discussed by the Working Group) Expenditure MIO NA CURRENCY Year CEPA 1 of which CEPA and Climate change CEPA 2 CEPA 3 CEPA 4 CEPA 5 CEPA 6 CEPA 7 CEPA 8 CEPA 9 O AL ( GCF 2b ) Gross capital formation and acquisition less disposals of non financial non produced assets for the production of EP services [P5 NP] ( A ) Investment expendi ure ,173 ( A1 ) End-of-pipe investments ( A2 ) Investments in ntegrated technologies ( Pnep 2b ) Intermediate consumption (excluding EP services) [P2] ,555 ( D 2b ) Compensation of employees [D1] ( Oa 2b ) Output of anc llary activities (legally acceptab e approximation of output) (B1) Internal current expend ture: ( Pnep.2b ) ( D.2b ) , , 6 ( Pep 2b ) Intermediate consumption of EP services [P2] ( B2 ) Fees and purchases , , 58 ( S 2b ) Other taxes less subsidies on production [D29 D39] 2010 ( K 2b ) Consumption of fixed capital [K1] ( Oaa 2b ) Output of ancillary activities (ESA compat ble output) (Pnep.2b) ( D.2b ) ( K.2b ) ( S.2b ) , , 21 ( C ) Receipts from by-products 2010 ( D ) Subsidies/transfers Received from the public sector 2010 ( L 2b ) Labour input Full t me equivalents 2010 YOUR FOO NO ES Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

81 Annex 4: EPE draft tables for reporting year c EPE draft table 2 Corporations: ancillary production of NACE D EUR mn DRAFT QUESTIONNAIRE FOR EPE LEGAL MODULE background document for point 2 of agenda 21 February 2014 Country: Germany able 2c Corporations: anc llary production of NACE D Data required by the draft legal act Expenditure MIO NA CURRENCY Year CEPA 1 CEPA 2 CEPA 3 Sum of CEPA O AL ( Oa 2c ) Output of ancillary activities ,061 ( GCF 2c ) Gross cap tal formation and acquisition less disposals of non financ al non produced assets for the production of EP services [P5 NP] ( A ) Investment expendi ure YOUR FOO NO ES (End of print-zone. Footnotes below this line will be loaded into the database by the Excel reader, but w ll not appear on the print-outs of this sheet!) Country: Germany DRAF QUES IONNAIRE FOR EPE LEGAL MODULE background document for point 2 of agenda 21 February 2014 able 2c Corporations: ancillary production of NACE D More detailed voluntary table please fill in as much as possible (draft version: voluntary tables to be discussed by the Working Group) Expenditure MIO NA CURRENCY Year CEPA 1 of wh ch CEPA and Clima e change CEPA 2 CEPA CEPA CEPA 5 CEPA 6 CEPA CEPA 8 CEPA 9 O AL ( GCF 2c ) Gross cap tal formation and acquisition less disposals of non financ al non produced assets for the production of EP services [P5 NP] ( A ) Investment expendi ure ( A1 ) End-of-pipe investments ( A2 ) Investments in ntegrated technologies ( Pnep 2c ) Intermed ate consumption (excluding EP services) [P2] ( D 2c ) Compensation of employees [D1] ( Oa 2c ) Output of ancillary activities (legally acceptable approximation of output) (B1) Internal current expend ture: ( Pnep.2c ) ( D.2c ) ( Pep 2c ) Intermed ate consumption of EP services [P2] ( B2 ) Fees and purchases , 26 ( S 2c ) Other taxes less subsidies on production [D29 D39] 2010 ( K 2c ) Consumption of f xed capital [K1] ( Oaa 2c ) Output of ancillary activities (ESA compatible output) (Pnep.2c) ( D.2c ) ( K.2c ) ( S.2c ) ,061 ( C ) Receipts from by-products 2010 ( D ) Subsidies/transfers Received from the public sector 2010 ( L 2c ) Labour input Fu l t me equivalents 2010 YOUR FOO NO ES Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

82 Annex 4: EPE draft tables for reporting year d EPE draft table 2 Corporations: ancillary production of NACE 36 EUR mn DRAFT QUESTIONNAIRE FOR EPE LEGAL MODULE background document for point 2 of agenda 21 February 2014 Country: Germany MIO NA CURRENCY Expenditure Year able 2d Corporations: ancillary production of NACE division 36 Data required by the draft legal act Sum of CEPA CEPA 1 CEPA 2 CEPA O AL ( Oa 2d ) Output of ancillary activities ( GCF 2d ) Gross capital formation and acquisition less disposals of non financial non produced assets for the production of EP services [P5 NP] ( A ) Investment expendi ure YOUR FOO NO ES (End of pr nt-zone. Footnotes below this line will be loaded into the database by the Excel reader, but will not appear on the print-outs of this sheet!) Country: Germany DRAF QUES IONNAIRE FOR EPE LEGAL MODULE background document for point 2 of agenda 21 February 2014 able 2d Corporations: ancillary production of NACE division 36 More detailed voluntary table please fill n as much as possible (draft version: vo untary tables to be discussed by the Working Group) Expenditure MIO NA CURRENCY Year CEPA 1 of which CEPA and Climate change CEPA 2 CEPA 3 CEPA 4 CEPA 5 CEPA 6 CEPA 7 CEPA 8 CEPA 9 O AL ( GCF 2d ) Gross capital formation and acquisition less disposals of non financial non produced assets for the production of EP services [P5 NP] ( A ) Investment expendi ure ( A1 ) End-of-pipe investments ( A2 ) Investments in ntegrated technologies ( Pnep 2d ) Intermediate consumption (exclud ng EP services) [P2] ( D 2d ) Compensation of employees [D1] ( Oa 2d ) Output of ancillary activities (legally acceptab e approximation of output) (B1) Internal current expend ture: ( Pnep.2d ) ( D 2d ) ( Pep 2d ) Intermediate consumption of EP services [P2] ( B2 ) Fees and purchases ( S 2d ) Other taxes less subsidies on production [D29 D39] 2010 ( K 2d ) Consumption of fixed cap tal [K1] ( Oaa 2d ) Output of ancillary activities (ESA compat ble output) (Pnep.2d) ( D.2d ) ( K.2d ) ( S.2d ) ( C ) Receipts from by-products 2010 ( D ) Subsidies/transfers Received from the public sector 2010 ( L 2d ) Labour input Full t me equivalents 2010 YOUR FOO NO ES Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

83 Annex 4: EPE draft tables for reporting year EPE draft table 3 Corporations as secondary and specialist producers of market EP services EUR mn Country: DRAFT QUESTIONNAIRE FOR EPE LEGAL MODULE background document for point 2 of agenda 21 February 2014 Germany able 3 Corporations as secondary and specialist producers of market EP services Data required by draft legal act Expenditure M O NA CURRENCY Year CEPA 2 CEPA 3 CEPA 4 O AL ( Omk 3 ) otal EP market output of corporations [P11] ( E ) Revenues (sales of EP products) ,397 15,7 8 27,1 5 ( Pep 3 ) Intermediate consumption of EP services by corporations' specia ist producers ( B2 ) Fees and purchases ( GCF 3) Gross capital formation and acquisition less disposals of non financial non produced assets for the production of EP services [P5 NP] ( A ) Investment expend ture 2010,026 1, 50 5, 76 YOUR FOO NO ES (End of print-zone. Footnotes below this ine w ll be loaded into the database by the Excel reader, but w ll not appear on the pr nt-outs of this sheet!) Country: Germany DRAF QUES IONNAIRE FOR EPE LEGAL MODULE background document for point 2 of agenda 21 February 2014 able 3 Corporations as secondary and specialist producers of market EP services More detailed vo untary table please fill n as much as possib e (draft version: voluntary tables to be discussed by the Working Group) Expenditure M O NA CURRENCY Year CEPA 1 of wh ch CEPA and Clima e change CEPA 2 CEPA 3 CEPA 4 CEPA 5 CEPA 6 CEPA 7 CEPA 8 CEPA 9 O AL ( GCF 3) Gross capital formation and acquisition less disposals of non financial non produced assets for the production of EP services [P5 NP] ( A ) Investment expend ture 2010,026 1, 50 5, 76 ( P 3 ) Intermed ate consumption [P2] ,636 8,309 11,9 5 ( Pep 3) Intermediate consumption of EP services by coprorations' specialist producers [P2] ( B2 ) Fees and purchases ( D 3 ) Compensation of employees [D1] ,088 3,775 5,863 (B1 ) Internal current expenditure: ( P.3 )- (Pep 3) (D.3) ,701 11,337 17,038 ( S 3 ) Other taxes less subsid es on production [D29 D39] ( K 3 ) Consumption of f xed capital [K1] ,958 1,956 5,91 ( NOS 3 ) Net operat ng surplus ( Omk.3 )- (P.3) - (D.3) - ( K.3 ) - (S.3) ,176 2,285 3, 61 ( Omkm 3 ) EP market output from main activities (specialist producers) [P11] ,832 15,077 23,909 ( Omks 3 ) EP market output from secondary activities (non spec alist producers) [P11] , ,236 ( Omk 3 ) otal EP market output of corporations [P11] (Omkm.3) (Omks.3.) (Omk.3 (P.3) (D.3) (K 3) (S.3) (NOS.3) ( E ) Revenues ( C ) Rece pts from by-products ,397 15,7 8 27, ( D ) Subsidies/transfers Rece ved from the public sector 2010 ( L 3 ) Labour input Full time equivalents 2010 YOUR FOO NO ES Federal Statistical Office, Economy-wide environmental protection expenditure accounts,

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