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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: Statistics Finland

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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.

15 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.

Environmental protection expenditure accounts 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 Finland. 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.

Corporations of NACE B, C, D and E36 are reported based on a sample and subsequent questionnaire to the sampled units, and as such the results involve statistical uncertainties. However, with the sample design used, Statistics Finland aims to ensure that the environmental expenditure of large industrial enterprises, which are the highest, can be entered in the statistics in a comprehensive and reliable manner. The questionnaire is sent to approximately 2,000 establishments and over the past few years, the response rate has been between 70 and 80 per cent. The responses are inspected at Statistics Finland to minimise measurement errors. Non-response is taken into account when the data are weighted to apply to the sampling frame (all industrial activities in Finland).

In other respects, the statistics comprise statistics derived from other sources, e.g. from National Accounts or registers. Therefore, the quality of the source statistics is crucial for the reliability of the statistics.

Million Euros

Using weighting, responses to the survey are weighted to correspond to the industry as a whole.

Briefly: A questionnaire sent directly to approximately 2,000 establishments engaged in industrial activities. Final central government accounts, local government operational and financial statistics, and separate reports.

In detail:

GG, NPISH and Transfers

For general government the government budget data and the local government budget data are used. COFOG is not used. For NPISH we use business register data (SBS) and the results are combined with GG. In total output (P1.1) about 6 % is from NPISH sector. NPISH sector doesn't have reported capital formation (P51G NP.1). GG output is based on transaction codes and all NPISH is non market

Transfers are based on environmental subsidies and similar transfers (ESST). Consolidation rules are following ESST framework.

Resource Management data is based on ESST calculations and government budget data.

Corporations

The compilation of NACE B, C, D and E are based on a survey which is done for EPEA purposes. Salary + other costs for production ancillary EP output is asked in the survey. Other NACE is done with SUT.

Households

CEPA 02 and 03 are based household budget survey and finance of housing companies. CEPA 01 is based on first registration of electric vehicles and fixed prices suggested by Eurostat.

Trade, VAT etc.

Export and imports are from SUT based on CPA codes of services. VAT is clculated with simpilfied method based on consumption.

NEEP

More transfers are added to NEEP calculation than proxy since these actions funded by transfers are not included elsewhere mostly.

 

Yearly

The statistics on environmental protection expenditure accounts are produced each year 22 months after the end of the statistical year.

Due to compliance with uniform statistical principles prepared by Eurostat, the statistics are comparable with statistics of other EU Member States. Comparability between statistics compiled by OECD member countries has also improved in recent years.

As the data for all reference periods are compiled according to the uniform statistical principles prepared by Eurostat, Finnsh EPEA data are fully comparable over time. Also, in the case of fundamental changes to methods or classifications, revisions of long time series are performed, usually going far back into the past.