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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: Central Statistical Bureau of Latvia

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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.

28 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 Latvia. 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.

Data is derived directly from survey "1-VA" ("Report on the Use of Resources for the Protection of Natural Resources and for Environmental Protection in 2022"), from National Accounts or other official statistics. 

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

Calculations of corporation data: We base data on supply table and information from survey on environmental expenditures. We used the combined approach that means combination of data from supply and use tables and data from survey on environmental expenditure for the companies of waste and waste-water management. Data on specialist producers and corporations other than specialist producers is obtained from the “1-va” survey and SUT

Calculations for general government and non-profit institutions serving households (NPISH): data are based on government expenditure statistics by COFOG 05 and Budget analyses of different government institutions.

Calculations for other macro economic data (trade, VAT etc.): Data source for imports and exports of EP services is foreign trade statistics. Foreign trade provide data about exports and imports of NACE 37, 38.1, 38.2, 38.3. Data source for VAT and other taxes less subsidies on EP services are supply table. Data on taxes less subsidies were distributed by CEPA 2 and CEPA3 by applying share of CEPA categories from market output.

Calculations for households: National aacounts use table is data source.

We base data on supply table and information from survey on environmental expenditures. We used the combined approach that means combination of data from supply and use tables and data from survey on environmental expenditure for the companies of waste and waste-water management. Household sector: National accounts use table is data source. Macro economic data: Data source for imports and exports of EP services is foreign trade statistics. Foreign trade provide data about exports and imports of NCAE 37, 38.1, 38.2, 38.3. Data source for VAT and other taxes less subsidies on EP services are supply table. Data on taxes less subsidies were distributed by CEPA 2 and CEPA3 by applying share of CEPA categories from market output.

26 month

24 month

Data are comparable between geographical areas.

No data found or it doesn't exist in Latvia about: CEPA 5 (Noise and vibration abatement) and CEPA 7 (Protection against radiation)

The overall data in the time series are calculated based on the same methodology and are largely comparable. The EPEA data for 2020-2022 were revised. CEPA3 export data (P6) for 2020-2022 cannot be compared with 2019 and earlier years due to a slight methodological change.