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Environmental protection expenditure accounts (env_ac_epea)

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National Reference Metadata in Single Integrated Metadata Structure (SIMS)

Compiling agency: Statistical Office of the Slovak Republic

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Environmental protection expenditure accounts (EPEA) describe transactions related to preventing, reducing and eliminating pollution and any other degradation of the environment. The main aggregate resulting from EPEA is national expenditure on environmental protection (NEEP), which measures the resources dedicated by resident businesses, households and government to protecting the natural environment. This aggregate covers uses of environmental protection services, investment (gross fixed capital formation) for environmental protection activities, and net transfers to the rest of the world for environmental protection.

Countries are required to report on: output, consumption, imports and exports of environmental protection services, investment (gross fixed capital formation and acquisitions less disposals of non-produced non-financial assets) for the production of EP services, transfers for environmental protection.

30 December 2024

The construction of the EPEA closely follows the concepts, definitions and accounting rules of the core national accounts. The SEEA-CF 2012 (section 4.2) identifies environmental protection activities as those activities whose primary purpose is the prevention, reduction and elimination of pollution and other forms of degradation of the environment.

These activities include, but are not limited to, the prevention, reduction or treatment of waste and wastewater; the prevention, reduction or elimination of air emissions; the treatment and disposal of contaminated soil and groundwater; the prevention or reduction of noise and vibration levels; the protection of biodiversity and landscapes, including of their ecological functions; monitoring of the quality of the natural environment (air, water, soil and groundwater); research and development on environmental protection; and the general administration, training and teaching activities oriented towards environmental protection proposes to use the primary purpose criterion, recognising that many economic activities are undertaken for a variety of purposes, environmental and non-environmental ones.

EPEA present data, in a way that is compatible with the data reported under ESA, on the expenditure for environmental protection, i.e. the economic resources devoted by resident units to environmental protection. EPEA use statistical units from national accounts. National accounts define and use various statistical units and groupings of units that interact economically (see ESA 2010, §§ 1.54-1.56, 2.01-2.03).

The statistical population is the national economy as defined in SEEA CF 2012 and the European System of Accounts (ESA 2010). It includes all economic activities undertaken by resident units to produce environmental protection specific services. While some economic activities may be undertaken only for a single purpose, many activities are undertaken for a variety of purposes. Following general principles of classification, activities are deemed to be environmental activities only if the primary purpose of the activity is consistent with the definitions of the environmental protection.

The reference area of the statistics is Slovakia.

The reference area is the economic territory as defined in the European System of Accounts (ESA 2010). A unit is said to be a resident unit of a country when it has its centre of economic interest in the economic territory of that country, that is, when it engages for an extended period (1 year or more) in economic activities in that territory.

The reference period for EPEA data is the calendar year.

Overall, the accuracy of EPEA data for Slovakia is considered as satisfactory. Sufficient quality of this statistical product is ensured by using source data and information from reliable national data sources.

Data from national accounts that are used for compiling EPEA tables are subjected to multi-step checks and validations. Data reported in EPEA are consistent with balanced annual national accounts.

Data from the statistical survey on business statistics - module 527 (used for compilation of table 3 and sub-tables) are checked and validated within the data collection process.

As regards further enhancement of EPEA reporting, it is slowed down by lack of resources/staff working on the EPEA at national level.

Macro economic variables (output, intermediate consumption, investment etc.) are measured in million units of national currency.

The source data listed in the concept 18.1 "Source data" are compiled into respective EPEA tables.

The following data sources are applied for compiling EPEA for Slovakia:

  • Data on general government (GG) and NPISH: table T1100 "Expenditure of general government by function" within ESA transmission program; statistical survey on municipalities - module 528 “Environmental protection - financial indicators".
  • Data on corporations - specialist and secondary producers of market EP services: supply and use tables (SUT); statistical survey on business statistics - module 527 “Environmental protection - financial indicators”.
  • Data on corporations - other: statistical survey on business statistics - module 527 “Environmental protection - financial indicators”.
  • Data on households (HH): SUT - matrix for final consumption of households.
  • Data on imports, exports, VAT: SUT (input-output analysis).
  • Data on transfers: revenues and expenditures of general government.

Source data - detailed:

Other environmental accounts: Other environmental accounts are not used as a data source for compiling EPEA for Slovakia.
COFOG: The main source used for compiling data on GG is COFOG table T1100 "Expenditure of general government by functions", COFOG division 05. Data for COFOG 05 are not complemented with other COFOG functions and data for NPISH.
Output split for GG and NPISH: Market output - revenues of municipalities related to provision of EP services (statistical survey conducted on municipalities ZP 6-01, module 528 “Environmental protection - financial indicators"); non-market output - estimated as equal to values for final consumption (P3_EPS.1).
NPISH data: NPISH data are not included in table "S13_S15".
Transfers: The data source used for compiling data on transfers is dataset on revenues and expenditures of GG. Sectors to/from which are transactions paid/received by GG (counterparties of transactions paid or received by GG) are specified on the basis of ECBC codes (Economic classification of the budget classification) - respective sectors (CORP, HH, ROW) are assigned to the particular ECBC categories. NPISH transfers are included in the dataset, but the value for NPISH transfers is not significant. GG transfers are reported as “consolidated” - transfers within GG sector are not included. Subsidies on specific EP goods and cleaner EP products are not specifically monitored at national level. This information is not available within source data.
Corporations - specialist and secondary producers of market EP services The main source used for compiling data on corporations - specialist and secondary producers of market EP services are national accounts SUT, specifically matrices for market output (for variable P.11) and intermediate consumption (for variable P2.EPS) for sector S.11. Auxiliary information applied for distributing data to CEPA categories is from modules 527 “Environmental protection - financial indicators”, 182 “Specification of selected items of gross turnover” (by CPA codes) and 183 "Specification of consumption of services" (by CPA codes). All these modules are included in the statistical survey on business statistics (Roc 1-01). As regards the variable P51G, the source of data is not SUT but the above mentioned module 527 “Environmental protection - financial indicators” and specifically data on indictor "Investments in the EP" collected in that module.
Corporations - other: The main source used for compiling data on corporations - other is SBS. EPER data for business sector are collected in the national statistical survey on business statistics (Roc 1-01) that includes individual module 527 “Environmental protection - financial indicators” (data on selected EPER indicators broken down by CEPA domains are obtained in that module). Ancillary output is estimated by using data on internal current environmental expenditures of companies collected in module 527 (the simplified approach is applied where the ancillary output is approximated by the amount of in-house expenditures).
HH sector: The source used for compiling data on HH is national accounts SUT - matrix for final consumption of HH. Specifically values for final consumption of HH (P3) for CPA 37, 38, 39 are selected from the matrix.
Other macro economic data (trade, VAT): a) The source used for compiling data on exports and imports of EP services are national accounts SUT - matrix for exports (T2), matrix for imports (T1). Data on exports and imports are compiled in SUT on the basis of foreign trade statistics and balance of payments. Data on exports and imports reported in EPEA for Slovakia cover EP services included under CPA 37, 38 and 39. b) The source used for compiling data on VAT and other taxes less subsidies on EP services are national accounts SUT - matrix for VAT (values for VAT for CPA 37, 38, 39 are selected). Data on VAT in SUT are calculated by applying the standard approach on the basis of VAT rates. Note: Data compiled in the EPEA for Slovakia are based on balanced SUT.
National expenditure on environmental protection NEEP: Automatic proxy calculations built-in the questionnaire were applied for calculation of NEEP aggregates for mandatory years 2018-2022.
Resource management (RM): Data on voluntary RM domains are not reported.

 

 

EPEA data are not disseminated at national level.

EPEA results that are available 24 month after the end of reference year (in accordance with the transmission deadline set in the regulation) are considered as provisional. The reason is that the source data from national accounts for given reference year may be additionally revised.

Final EPEA results are than available 36 months after the end of reference year (final data after possible revisions).

EPEA results are provided to national user - Slovak Environmental Agency 24 months after the end of reference year.

EPEA are compiled in compliance with the Regulation 691/2011 on European environmental economic accounts and according to harmonized guidelines provided by Eurostat, thus comparability with other EU countries is ensured.

Consistent methodology and data sources have been applied in data compilation for the whole available time series. There is no discontinuity in the time series.