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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: National Institute of Statistics Romania

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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.

16 April 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.

Romania

The reference period for EGSS data is the calendar year.

All our data are already checked for accuracy. We ensured a high level of accuracy for the data reported through reassessment of data sources, performed by analysis and study of relevant methodological documents required in elaborating the EGSS and evaluation of the EP field in Romania. We analyzed the linkage between the Romanian NA system and the environmental accounts, according to the indicators requested by Eurostat (output, GVA, export and own final use). We carried out a comparative analysis between data collected from the three available data sources (NA, EPE survey and EPEA), we identified and we analyzed the differences.

We identified those variables, which cannot be collected from any of the three data sources used and we identified the estimation methods, based on data mention above, that ensuring a high level of accuracy for estimated data.

We analyzed the data sources and their quality, studying the data collection methods in order to harmonize the informations.

The cooperation with the NA, EPE and EPEA experts brought significant benefits.

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

We considered the share of environmental products/activities taking into account the life cycle of the product analyzing as cradle to grave approach:
-the row material of product
-the scope of product
-possibility of waste recycling/recovery after the product is out of use

 

PRODROM: (Industrial Products and Services) database was use for obtain data on the environmental output for environmental products; also, classification PRODROM covers NACE Rev.2 classes 35.1, 35.2, and 35.3, data on renewable energy. In addition, PRODROM data are used to estimate the investment for production of biofuels, and for calculate electric and more resource-efficient transport equipment.
Environmental Protection Expenditure Survey (EPE) - For calculate the end-of-pipe technologies investments and investments in integrated technologies for NACE Rev.2 26, 27, 28, 29+30, 41-43. In addition, we use data from EPE survey for calculate output of environmental protection services for NACE Rev2: 31-33, 35, 37-39, 41-43 and starting with 2017 (and for 2020 provisional data) for NACE Rev.2 7112, 72 and 7490. In addition, we use data from EPE Survey for summing-up of CEPA 7, CEPA 8 and CEPA 9. Also, we use data from EPE Survey for output services of energetic refurbishment and construction of new energy-efficient buildings
EPEA: are used for calculate output of environmental services for NACE Rev. 2 36. In addition, ancillary output EGSS was calculate based on EPEA ancillary output and National Accounts data according to EGSS Practical Guide formula.
National Accounts. We use National Accounts data on General Government Expenditure by function (COFOG) - Table 11 ESA 2010, for the period 2014-2019 (and for 2020 provisional data). The Supply-Use Balance provides the Final consumption of EP. The breakdown of total Final consumption of EP services by all CEPA domains was made according to the share of each CEPA domain in the total current internal expenditure. In addition, we used NA data for calculate GVA and Export for EGSS.
Forestry Accounts: for calculate output and employment of management of forest area (CReMA 11)
Agriculture Statistics: for calculate output, employment and GVA for organic farming (CEPA 4)
Labor force statistics: to calculate employment for EGSS.
Structural Busines Survey: for calculate intermediate consumption for specialized producers

National release calendar for EGSS data: 25 March 2025 TEMPO (NIS online database), 20 December 2024 annual publication on environmental economic accounts.

Data are disseminated annually.

Romania transmits the data to Eurostat every year in October covering the years 2014 - n-2 (n = current year).

The average production time for data is 12 months.

Data on EGSS are compiled according to harmonised guidelines provided by Eurostat and hence comparable across European countries reporting EGSS data to Eurostat.

The data are comparable between 2014-2022