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Environmental goods and services sector (env_egs)

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National Reference Metadata in Single Integrated Metadata Structure (SIMS)

Compiling agency: State Statistical Office

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The environmental goods and services sector (EGSS) accounts report on an economic sector that generates goods and services produced for environmental protection or the management of natural resources.

Products for environmental protection prevent, reduce and eliminate pollution or any other degradation of the environment. Examples are electric vehicles, catalysts and filters to decrease pollutant emissions, wastewater and waste treatment services, noise insulation works or restoration of degraded habitats.

Products for resource management safeguard the stock of natural resources against depletion. Examples are renewable energy production, energy-efficient and passive buildings, seawater desalinization or rainwater recovery, and materials recovery.

EGSS accounts provide data on output and export of environmental goods and services and on the value added of and employment in the environmental goods and services sector.

EGSS data are compiled following the statistical concepts and definitions set out in the UN System of Environmental-Economic Accounting 2012 – Central Framework.

17 October 2024

 

EGSS has the same system boundaries as the European System of Accounts (ESA 2010) and consists of all environmental products within this production boundary. ESA defines production as the activity carried out under the control and responsibility of an institutional unit that uses input of labour, capital, goods and services to produce output of goods and services.

Only goods and services produced for environmental purposes are included in the scope of the environmental goods and services sector.

'Environmental purpose' means that a good or service helps either 1) preventing, reducing and eliminating pollution and any other degradation of the environment or 2) preserving and maintaining the stock of natural resources and hence safeguarding against depletion.

The EGSS statistics aim at compiling data for the following economic variables:

Output: consists of products that become available for use outside of the producer unit, any goods and services produced for own final use and goods that remain in the inventories at the end of the period in which they are produced. Apart from market output, output for own final use and non-market output, EGSS statistics also include ancillary output, comprising output intended for use within an enterprise.

Market output is to be valued at basic prices, that is, the prices receivable by the producer from the purchaser minus taxes and plus subsidies on products.
Output for own final use is to be valued at basic prices of similar products sold on the market or by the total costs of production.
Non-market output is to be estimated by the total costs of production.
Ancillary output is measured as a total of recurrent production costs (such as intermediate consumption, compensation of employees and consumption of fixed capital) incurred by enterprises to: 1) reduce environmental pressures arising from their production process or 2) produce environmental goods or services not intended for use outside the enterprise, but instead supporting other (non-environmental) activities undertaken within the enterprise (e.g. waste management services carried out in-house). For market producers, a mark-up for net operating surplus is added to the value of the EGSS ancillary output.
Gross Value Added: represents the contribution made by the production of environmental goods and services to GDP. It is the difference between the value of the output and intermediate consumption.

Employment: is measured in full-time equivalent jobs engaged in the production of output of environmental goods and services. Full-time equivalent is defined as total hours worked divided by the average annual working hours in a full-time job.

Exports: consist of sales, barter, gifts, or grants, of environmental goods and services from residents to non-residents.

 

Council Regulation (EEC) No 696/93 of 15 March 1993 on the statistical units for the observation and analysis of the production system in the Community describes the different statistical units of the production system.

The recommended statistical unit for the collection and compilation of EGSS statistics (excluding general government) is the establishment. For general government, the recommendation is to use institutional units and groupings of units as defined in the European System of Accounts (ESA 2010).

 

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.

NTES 1 and 2 (Republic of North Macedonia)

The reference period for EGSS data is the calendar year.

Data accuracy is ensured by data comparisons and analysis.

Output, gross value added, and exports are measured in million units of national currency (MKD denars). Employment is measured in full time equivalents (i.e., full time equivalent jobs).

For the calculation of characteristic “Gross value added”, the data on BDP, divided by individual activities on 2-digit level of NACE Rev.2, from National Accounts Department were used.  The share of added value from the total production by separate activity were calculated as follows:

 Value added / Production = Share of value added                  

 

 For sector A (Agriculture) by NACE Rev.2

For calculation of environmental goods and services in sector A, data on standard output (SO), number of agricultural holdings, organic farms and number of employees were used.

Output were calculated using data on organic farms and average SO (standard output) value by agricultural holding. Number of employees were calculated using data on organic operators and factor full-time labour equivalents FTE (measured in annual work units (AWU) for agricultural holding). Gross value added were calculated using data on output and share of value added for sector A.

Calculated output, employees and GVA were classified in CEPA 4 under “Cleaner & resource efficient products”.

 For sectors B and C (Mining and quarrying and Manufacture) by NACE Rev.2

For calculation of environmental goods and services in sectors B and C data on total production, sales values in national currency (denars) and data on number of employees in sectors B and C were used.

Data were divided in the groupes according to the NACE Rev.2 classifications (by divisions).

The data on the sales value of the products were distributed according to the activity of the producers and united in the requested groups according to questionnaire EGSS.
Subsequently, the data on production of products were linked to the Eurostat’s table "EGSS List of environmental product". With this data were distributed to the group of products that are 100% environmental and to the group of products for which the environmental share still need to be determined.

 With the help of the Eurostat table mentioned above, those products that belong to connected goods were also defined. These products (connected goods) were excluded from the total value by individual activity, as their quantity was ultimately added only to the total value in the individual activity.The total calculated value of the products for each activity was then transferred to the table "OUTPUT" under the relevant purposes of CEPA and CReMA (defined in the Eurostat table).

Based on this pilot exercise, for those products that have less than a 6-digit designation in the table "EGSS list of environmental products", prepared a national list of products that are environmental in nature and will be (fully or partially) included in EGSS reporting in the future. Data for the table “GROSS VALUE ADDEED” were calculated using shares from table “OUTPUT” and share of value added for sector B and C.

 For the EMPLOYMENT table, it is necessary (for each eco product) to calculate the share of eco products in relation to the total amount of products. The number of employees for each activity (B and C divided into divisions) is then multiplied by the calculated share of eco products.
This calculated number of employees is then further divided according to the CEPA and CReMA classification.

 Calculated results were included in the tables »OUTPUT«, »GVA« and »EMPLOYMENT« in the appropriate CEPA and CReMA purposes, under »specific products« or »cleaner & resource efficiency«, depending on the distribution in table »EGSS list of environmental products«.

For sector D (Electricity, gas, steam and air-conditioning supply) by NACE Rev.2

For calculation of environmental goods and services in sector D data on electricity production, produced from renewable energy sources, data on electricity prices and data on number of employees in sector D were used.

Data on electricity production that are gathered from energy balance are in ktoe, so they should be transformed into GWh.

1 Mtoe  =  11630 GWh or 1 ktoe = 11,630 GWh

 For the price of electricity the average between prices for household and non-household electricity consumers on annual basis were used. For the calculation, the prices without all taxes were used.

Calculated output, GVA and employees were classified in CReMA 13 and 13A under market output, namely under “Cleaner & resource efficiency”.

In North Macedonia,  data on the export of electricity produced from renewable energy sources are not available.

For sector F (Construction) by NACE Rev.2

For calculation of environmental goods and services in sector F data on new buildings (residential and non-residential) constructed in the observed year and data on number of employees in section F were used. Because all new buildings are not eco-buildings only the share is used.

Since the information on how many new buildings in North Macedonia were built according to eco standards in the observed year 2020 could not be obtained an estimate of 10% was used for the calculation.

Calculated output, GVA and employees were classified in CReMA 13B under market output, namely under “Environmental specific services”.

Additional data for all sectors by NACE Rev.2, except for sectors O and part of E (E37-E39)

For calculation of additional environmental goods and services in all sectors (except in sector O and divisions E37 - E39) data on Expenditures on maintenance of assets for environmental protection from Survey on Environment Protection Expenditure, were used.

Data on Expenditures on maintenance of assets for environmental protection are already divided by different CEPA purposes. The sum of this data were included in the table “OUTPUT” in EGSS accounts under “Ancillary output”.

These data also serve for calculation of the shares according to environmental purposes, which were then used for the calculation of GVA and number of employees.

Data for “Gross value added” were calculated using data on incomes from table “OUTPUT”, shares on environmental purposes (CEPA) from the scheme for calculation of data for table “OUTPUT” and shares of value added for all sectors (except for sector O and divisions E37 - E39).

Data for Employess were calculated using data on Incomes from table “OUTPUT”, shares on environmental purposes (CEPA) from the scheme for calculation of data for table “OUTPUT” and income per person for the sector E (because this section is total environment). Income for sector E were calculated from table Payments and charges for environmental protection services from the Survey on Environment Protection Expenditures.

Number of employees were calculated for each sector with data on income for each sector and calculated Income per person for Sector E (see above).

 

Data on GVA and Employees were included in tables for EGSS accounts in appropriate CEPA and under “Ancillary output”.

 

 

Data sources are data from statistical surveys from the area of National Accounts, Energy Statistics, PRODCOM, Agricultural Statistics, Salaries.

It will be annual.

T+180

Due to the unity of principles, variables, definitions and classifications used there is a high degree of comparability between EU Member States with regard to the survey’s results.

EGSS data are produced at national level and are harmonized with the Regulatons for satelite economic accounts for environment. This ensures cmparability of national data with European data.

Data are comparable od NTES 1 and 2 (Republic of Macedonoa).

Time series are available beginning 2019.

The lenth of comparable time series is 4 reference periods.