Reference metadata describe statistical concepts and methodologies used for the collection and generation of data. They provide information on data quality and, since they are strongly content-oriented, assist users in interpreting the data. Reference metadata, unlike structural metadata, can be decoupled from the data.
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 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 exportds 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.
3.2. Classification system
Data are reported cross-classified by 1) the type of environmental protection or resource management activity and 2) economic activity. Environmental protection activities are classified by environmental domain as set out in the Classification of Environmental Protection Activities - CEPA. Resource management activities are classified as set out in the Classification of Resource Management Activities - CReMA. see the revised CEPA and CReMA explanatory notes for detail. Economic activity is classified according to the Statistical Classification of Economic Activities in the European Community, Rev. 2 (2008).
3.3. Coverage - sector
EGSS comprises a sector of the economy that produces goods and services aimed at environmental protection and resource management (see SEEA CF 2012 chapter 4). Environmental goods and services either reduce environmental pressures or help maintaining the stock of natural resources or they are designed to be cleaner and more resource efficient than conventional products. Environmental goods and services can be produced by corporations, households, governments and non-profit institutions. The list of environmental activities and products has been set out in the Commission Implementing Regulation (EU) 2015/2174 ('the indicative compendium of environmental goods and services').
3.4. Statistical concepts and definitions
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.
3.5. Statistical unit
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).
3.6. Statistical population
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.
3.7. Reference area
Estonia
3.8. Coverage - Time
EGSS is available for years 2014 - 2021
3.9. Base period
Not requested for this metadata collection.
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).
The reference period for EGSS data is the calendar year.
6.1. Institutional Mandate - legal acts and other agreements
EGSS accounts are compiled and reported in accordance with Regulation (EU) No. 691/2011 on European environmental economic accounts (EEEA).
The EEEA follow internationally agreed concepts and definitions set out in the SEEA Central Framework (2012), the international statistical standard adopted by the UN Statistical Commission. They present data in a way that is compatible with National Accounts (ESA, 2010).
6.2. Institutional Mandate - data sharing
In order to receive necessary input data drom data producing agencies mainly contracts have been signed some data are received via data inquiry.
7.1. Confidentiality - policy
Data is considered confidential in Estonia if there are less than three producers under any given category or if one producer accounts for more than 90% of the production
7.2. Confidentiality - data treatment
Data is considered confidential in Estonia if there are less than three producers under any given category or if one producer accounts for more than 90% of the production. This applies both for micro and macrodata.
8.1. Release calendar
EGSS data is published in Statistics Estonia database (https://andmed.stat.ee/en/stat) once a year in the end of October or in the beginning of November. The calendar is published in the beginning of year on Statistics Estonia website and is publicly accessible.
The date when data is published is released in the beginning of year and is publicly accessible on Statistics Estonia website.
Yearly
10.1. Dissemination format - News release
Press releases linked to EGSS has not been published over the past year, but is published this year (on the 1st of November, 2024).
10.2. Dissemination format - Publications
EGSS data are disseminated nationally. There are no annual publications but there has been an article in the quarterly bulletin of Statistics Estonia on the methodology of EGSS. The publishing of blog articles and press releases are planned in the future.
10.3. Dissemination format - online database
EGSS data are published on Statistics Estonia website:
Micro-data is accesible to researchers if used anonymization so that the data provider/enterprice is not detectable.
Legal persons and organisations can use for research confidential data held by Statistics Estonia. The data can be used on a workstation computer in the office of Statistics Estonia or remotely, depending on the nature of the data and contract conditions.
Information how to inquire data from Statistics Estonia can be seen here: Request statistics.
The methodology is published in Statistics Estonia database at these websites (1) and website (2).
10.6.1. Metadata completeness - rate
Not requested for this metadata collection.
10.7. Quality management - documentation
The database of EGSS enterprises and products has been reviewed by field experts in Estonia which should ensure that all relevant products in Estonia have been taken into account. A high level of accuracy is ensured by using a multitude of methodologies for different EGSS products. National account are used as a data source and as a means for validation - this should ensure compliance with the rules of national accounts. Our methods have been discussed with and approved by the experts of other NSI -s (Austria, Sweden and Netherlands).
11.1. Quality assurance
We don't have national quality documentation. There are checks in place to make sure that the EGSS output in any NACE does not exceed the total output of national accounts in that NACE categories. An analogous rule is in place for exports, GVA and employment as well.
11.2. Quality management - assessment
No
12.1. Relevance - User Needs
The main users are environmental institutions, Ministry of Environment, Ministry of Rural Affairs. National indicator sets are being developed in collaboration with Ministry of environment. The Ministry of Rural Affairs uses the indicator: share of organic farming output in total agricultural output to assess organic farming policy targets. The same indicator is also a part of the sustainable development indicator set in Estonia.
12.2. Relevance - User Satisfaction
User satisfaction has not been measured but regular meetings are held with the main data users to consider their needs and thoughts.
12.3. Completeness
The reporting obligations have been filled, all obligatory data for EGSS are reported.
12.3.1. Data completeness - rate
Not requested for this metadata collection.
13.1. Accuracy - overall
The database of EGSS enterprises and products has been reviewed by field experts in Estonia which should ensure that all relevant products in Estonia have been taken into account. A high level of accuracy is ensured by using a multitude of methodologies for different EGSS products. National account are used as a data source and as a means for validation - this should ensure compliance with the rules of national accounts. Our methods have been discussed with and approved by the experts of other NSI -s (Austria, Sweden and Netherlands).
13.2. Sampling error
EGSS accounts are compiled using a range of primary statistical sources. The sampling and non-sampling errors are described in the metadata of the underlying statistical data.
13.2.1. Sampling error - indicators
Not requested for this metadata collection.
13.3. Non-sampling error
EGSS accounts are compiled using a range of primary statistical sources. The sampling and non-sampling errors are described in the metadata of the underlying statistical data.
13.3.1. Coverage error
Not requested for this metadata collection.
13.3.1.1. Over-coverage - rate
Not requested for this metadata collection.
13.3.1.2. Common units - proportion
Not requested for this metadata collection.
13.3.2. Measurement error
Not requested for this metadata collection.
13.3.3. Non response error
Not requested for this metadata collection.
13.3.3.1. Unit non-response - rate
Not requested for this metadata collection.
13.3.3.2. Item non-response - rate
Not requested for this metadata collection.
13.3.4. Processing error
Not requested for this metadata collection.
13.3.5. Model assumption error
Not requested for this metadata collection.
14.1. Timeliness
Data is published T+22 annually.
14.1.1. Time lag - first result
It takes 22 months from reference year to publish results at the moment but we had grant project in 2021-2023 to develop methodologies to compile EGSS earlier and we saw that it was possible to publish first results 15 months from reference period but it had initial results and had to be updated later when all necessary data sources were available. However, conclusions from the grant project, where the first attempt to compile EGSS account in Estonia in T+15 wast made, were that this is rather time consuming (and therefore labor intensive). This is so, because benchmarks based on national accounts data on output by economic activities are not suitable for EGSS in Estonia, as the structures of output in whole economy do not represent the structures in EGSS. Reason behind this is that the market of environmental services and goods in Estonia is small and heterogenous: few enterprises can affect totals significally and production of some environmental services and goods is often for enterprises secondary activity. Hence, the same logic and methodology used for the compiling EGSS T+22 were also used for EGSS T+15. Using the same methods both for EGSS T+22 and T+15 is more time consuming, but the results were more accurate than using general benchmarks. The biggest difficulty of compiling EGSS T+15 as the same w
14.1.2. Time lag - final result
Final results can be compiled when National Accounts have compiled SUT table. SUT is available T+36 months.
14.2. Punctuality
The data were delivered to Eurostat on 30 October. The reporting deadline for EGSS to Eurostat is 31 October.
14.2.1. Punctuality - delivery and publication
1 day
15.1. Comparability - geographical
The reporting obligations have been filled, all obligatory data for EGSS are reported and therefore data should be geographically comparable.
15.1.1. Asymmetry for mirror flow statistics - coefficient
2 Supporting services to organic agriculture - According to expert it is difficult to distinguish organic supporting services from traditional agriculture in Estonia
5 Organic aquaculture products - According to expert opinion no producers in Estonia
6 Supporting services to organic aquaculture - No relevant producers according to experts
7 Rehabilitation of mining sites services - Rehabilitation of mining sites is usually project-based and made by the government sector or is already taken into account at construction projects according to expert.
9 Drainage water capturing services to prevent groundwater contamination - No service providers in Estonia. Only applicable in emergency situations on-site
10 Electric and more resource efficient transport equipment - According to experts not applicable.
15 Perforated buckets and similar articles used to filter water at the entrance to drains - Not relevant because there are no producers for such specific goods in Estonia according to experts
17 Vehicles for wastewater treatment, vehicles for sewer cleaning, trucks for waste collection - Not relevant because we have no producers.
18 Activated carbon for water filtering purposes - According to expert opinion not applicable in Estonia.
24 Lead containers for radioactive waste - According to experts we don't have any specific producers for this category.
26 Specific equipment for the production of energy from renewable sources: storage systems for biogas made from high tech textiles - According to expert opinion we do not have such producers
33 Goods for thermal and noise insulation mainly in buildings: cork products - Not relevant in Estonia because there is no raw material and no producers
36 Reconditioned wooden containers - wooden containers are produced but not reconditioned.
37 Specific equipment produced for environmental protection and resource management products: thermostats for heating and cooling regulation - According to expert not produced in Estonia.
38 Specific equipment produced for environmental protection and resource management products: thermostatic valves - Not relevant because there are no producers according to expert opinion
40 Specific equipment produced for environmental protection and resource management products: condensing boilers - According to expert not applicable
49 Desalinated water and collection of rainwater; maintenance of water mains for reducing water losses - Not relevant because there are no enterprises who collect rainwater or desalinate water since there is a stock of natural water available.
57 Remediation and clean-up services for air - According to experts we do not have any specific producers for this category.
15.1.3. Comparability - geographical - products not present in Indicative compendium - included
15.2. Comparability - over time
Methodology for output of energy efficient renovation was improved in collaboration of experts from Tallinn University of Technology. Methodology developed for output of energy efficient renovation is still based on top-down approach, but the different methods were used for output estimations by the type of buildings (respectively small residential buildings, apartment buildings and non-residential buildings). For energy efficient renovation of apartment buildings, data on project’s total costs financed from European Union Structural Funds and data on state funding by KredEx were used to estimate the size of the output. Regarding small residential buildings and non-residential buildings, the approach was diferent: using renovated square meters data from building permits and multiplying this with unit cost of energy efficient renovation give an estimation for output. Revision in time series can be done after the contracts with the data holders are signed and their data of earlier years are transmitted to Statistics Estonia and calculations for output are made. Energy efficient renovation data for the years 2020-2022 are transmitted to Eurostat according to the new improved methodology. Improved data are tansmitted for the year 2020-2022 and previous years data on CREMA 13B (and aggregates that includes CREMA 13B) are not comparable.
Also methodology for calculations of employment related to environmental R&D (CEPA 8, CREMA 15) has been improved, which apply to the data for the years 2020-2022, therefore earlier years data are not comparable.
Other years and methodologies are comparable and does not have breaks in time series.
15.2.1. Length of comparable time series
EGSS is available and comparable for the years 2020-2022 as there are break in time series mainly according to the improvement of the methodology for energy efficient renovation.
15.2.2. Comparability - over time detailed
15.3. Coherence - cross domain
So far comparisons of EGSS results with business, energy, agricultural and foreign trade statistics have not been made. Business, energy and foreign trade statistics are used as data sources for EGSS. EGSS results are compared with national accounts and SUT data.
15.3.1. Coherence - sub annual and annual statistics
So far comparisons of EGSS results with business, energy, agricultural and foreign trade statistics have not been made. Business, energy and foreign trade statistics are used as data sources for EGSS. EGSS results are compared with national accounts and SUT data.
15.3.2. Coherence - National Accounts
National accounts are one of the data sources for the compilation of EGSS. There are checks in place to make sure that the EGSS output in any NACE does not exceed the total output of national accounts in that NACE categories. An analogous rule is in place for exports, GVA and employment as well.
National accounts measurement rules are followed and adjustments are made based on these rules.
EGSS results should be coherent with EPEA data. as parts of both of these datasets are compiled using same data sources and methods.
15.3.4. Coherence - other statistics
15.4. Coherence - internal
National accounts are used as a data source in many cases and in the case of data from business register and SBS turnover is transformed to output using the same formulas as national accounts uses. Consistency with national accounts data is checked for output, GVA, exports and employment.
National accounts measurement rules are followed and adjustments are made based on these rules.
0,6 full-time equivalents of work are required to compile the EGSS account.
16.1. Cost and Burden - other accounts
The costs and burden to compile EGSS data is comparable to those of other accounts.
17.1. Data revision - policy
Data are revised when new national accounts data are available. Data are final when SUT data are available for a given year.
17.2. Data revision - practice
The data for 2020 has been revised according to finalised SUT tables for 2020. The data for 2021 has been revised according to updated national accounts tables. Some environmental shares of EGSS producers have been updated whch also causes some changes in the size of output etc. Methodology for output of energy efficient renovation was improved in collaboration of experts from Tallinn University of Technology. Methodology developed for output of energy efficient renovation is still based on top-down approach, but the different methods were used for output estimations by the type of buildings (respectively small residential buildings, apartment buildings and non-residential buildings). For energy efficient renovation of apartment buildings, data on project’s total costs financed from European Union Structural Funds and data on state funding by KredEx were used to estimate the size of the output. Regarding small residential buildings and non-residential buildings, the approach was diferent: using renovated square meters data from building permits and multiplying this with unit cost of energy efficient renovation give an estimation for output. Revision in time series can be done after the contracts with the data holders are signed and their data of earlier years are transmitted to Statistics Estonia and calculations for output are made. Also methodology for calculations of employment related to environmental R&D (CEPA 8, CREMA 15) has been improved, using detailed R&D survey information on employment engaged in R&D.
17.2.1. Data revision - average size
Has not been measured.
17.2.2. Status of data
Year 2020 and previous years are final, 2021-2022 will be updated next year. If possible then the output of energy efficient renovation will be updated for previous years also in future.
18.1. Source data
Data from Statistics Estonia: data on national accounts (e.g. GDP and its components, GFCF, employment), financial statistics of enterprises - output of EGSS goods and services; production statistics - output of EGSS goods; energy statistics - output of renewable energy foreign trade statistics - export of goods and services; employment statistics; R&D survey; Environmental Subsidies Account; Different price indexes; survey on fish and crayfish farming; data from Purchasing Power Parity - foroutput of engineering services; Environmental Taxes Account - data on environmental fee for waste disposal; EPEA - for ancillary output.
Data from other institutions: Business Register - output of EGSS goods and services; Estonian Agricultural Board and Farm Accountancy Data Network - organic farming output, GVA, employment; Estonian Road Administration - data on the construction of noise barriers and pedestrian; Estonian Environmental Agency - data on waste and wastewater management; Building Register; Estonian State Forest Management Centre - expenditures data on forest protection and fish farming.
The list of EGSS enterprises in Estonia is used to determine the relevant enterprises. E-mail survey has been used to specify environmental shares of secondary EGSS producers in case other information sources are not exhaustive.
18.1.1. Source data - detailed - environmental accounts
18.1.2. Source data - detailed - other statistics
18.1.3. Source data - survey
18.1.4. Source data - detailed - other macro economic data (trade, VAT etc.)
18.2. Frequency of data collection
Annual data is used as input to compile EGSS
18.3. Data collection
Dedicated survey is not used. An e-mail survey has been used in the past to specify environmental shares of secondary EGSS producers in case other information sources are not exhaustive. Administrative data are mainly used.
18.4. Data validation
Yes, there are validation rules in place. There are checks in place to make sure that the EGSS output in any NACE does not exceed the total output of national accounts in that NACE categories. An analogous rule is in place for exports, GVA and employment as well. Another check that is performed is to make sure that exports do not exceed output in any given methodology block. The usual sums checks are also made automatically.
There is no dedicated regular survey to enterprises regarding environmental goods and services. Administrative data or data from other statistical surveys and activities are mostly used for EGSS compilation. The quality of these already collected data are not checked separately as it is assumed that the quality of these data is assured in other statistical departments or other institutions. We do compare SBS data with business register data. If the outputs from these two sources are different, SBS data is preferred.
18.5. Data compilation
Output: There are over 30 different methodological blocks to calculate the data for EGSS output. These methods use different basic data. Some methods are top-down, some are bottom-up. Formulas from national accounts are used for output calculations - for example turnover from SBS data is turned to output based on national accounts formulas. There are validation checks in place to make sure the output of EGSS does not exceed NA output in any economic activity. The methodologies have been developed on the basis of the nature of the environmental activity (for example construction services, organic goods, waste management service etc.). For example energy saving construction services output is calculated with a top-down method. Some other services (consultation services etc.) were calculated by bottom-up method: enterprise output data from SBS or business register. The same applies for products. For example the output of organic farming products is calculated using FADN data on the output of an average organic farm multiplied by the number of organic farms in Estonia. For other cleaner goods SBS or business register data of specific enterprises were used. There is no clear difference in the calculation of output of environmental specific services, cleaner and resource efficient products and other (connected) products. In the cases where detailed enterprise information is available, it is possible to assign each enterprise to market and non-market activity based on information of the institutional sector of the enterprise. Usually enterprises belonging to S.11, S.12, S.14 are market producers and S.13, S.15 are non-market producers. For top-down methodologies it is assumed based on the kind of activity whether the activity is market or non-market.The breakdown by NACE is reported mostly based on the NACE of the enterprise that produces EGSS goods and services. For top-down methodologies NACE is reported based on product classification and on expert information. For example, construction activities are reported under NACE F41-43 and engineering activities under M71.
The scope of EGSS products and activities is determined based on the EGSS operational list from Eurostat and also consultations with national experts. The scope is not reviewed regularly. New products are added when there is information available on these products (for example information on the Internet and other media, information from specialised associations etc.). If it is not possible to determine the environmental share on the basis of business register yearly reports or information available on internet we used a telephone/e-mail survey. At first a telephone survey is preferred but an e-mail survey turned out to be more convenient for the respondents. The survey is conducted with EGSS enterprises and they were asked the shares of their environmental output and exports by environmental products. For example, if an enterprise produced both pipes for wastewater and water management they were asked the shares of these products separately for an easier split to CEPA/CREMA categories. The environmental share is determined separately for the CEPA and CREMA output of an enterprise. The share is enterprise-based so there is no separate share for NACEs. The share is fixed only for a certain period of time and is updated every 3-5 years using data from available data sources.
Value added: The Eurostat formula for calculating gross value added presented in the EGSS practical guide is used to calculate GVA - using calculated EGSS output data and macroeconomic variables. GVA is calculated separately for market, non-market output, output for own final use and ancillary output.
Exports: The approach is mainly enterprise-based. Enterprises producing environmental goods and services are matched to foreign trade statistics. As these enterprises also may produce other kinds of goods, it is necessary to determine which exported goods are environmental. The CN product classification is used to determine which products in foreign trade statistics to take into account in EGSS calculations. In some cases the CN product may be only partly environmental.
Employment: For the calculation of employment of EGSS in general the assumption is made that for each economic activity the EGSS-related employment in total employment makes up the same share as the output of a specific EGSS product in the total output in national accounts by each economic activity. Coefficients for transforming employment data from the number of employees to full time equivalents were calculated. Coefficients are calculated as a ratio between full time equivalents and number of employees (FTE/PER). In national accounts employment data are available in full time equivalents only for A*21 activities level (the number of employees is available even on A*64 activities level). For that reason coefficients are calculated on A*21 activities level. Only exemptions in calculation of employments are related to methodology for organic farming and environmental R&D. Employment (FTE) data of average organic farm is taken from FADN data and then this average number is multiplied by the number of organic farms active in Estonia. Also methodology for calculations of employment related to environmental R&D (CEPA 8, CREMA 15) has different approach, using detailed R&D survey information on employment (FTE) engaged in R&D.
MEMO ITEM_CReMA 13B - energy efficiency related measures for NEARLY ZERO ENERGY BUILDINGS: The memo item covers construction of new buildings, specifically new more resource-efficient buildings. The share of resource-efficient buildings is estimated using 20% and share of new A-energy level buildings from all new buildings the method was suggested by expert on the field.
18.5.1. Imputation - rate
Not requested for this metadata collection.
18.5.2. Data compilation - by variable and type of output
Methodology changes are described under 17.2. Data revision - practice
18.5.3. Data compilation - by NACE
18.5.4. Data compilation – CReMA 13B memo item
The memo item covers construction of new buildings, specifically new more resource-efficient buildings. The share of resource-efficient buildings is estimated using 20% and share of new A-energy level buildings from all new buildings the method was suggested by expert on the field.
18.6. Adjustment
National accounts measurement rules are followed and adjustments are made based on these rules.
18.6.1. Seasonal adjustment
Not requested for this metadata collection.
No further comments.
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 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 exportds 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.
30 October 2023
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.
Estonia
The reference period for EGSS data is the calendar year.
The database of EGSS enterprises and products has been reviewed by field experts in Estonia which should ensure that all relevant products in Estonia have been taken into account. A high level of accuracy is ensured by using a multitude of methodologies for different EGSS products. National account are used as a data source and as a means for validation - this should ensure compliance with the rules of national accounts. Our methods have been discussed with and approved by the experts of other NSI -s (Austria, Sweden and Netherlands).
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).
Output: There are over 30 different methodological blocks to calculate the data for EGSS output. These methods use different basic data. Some methods are top-down, some are bottom-up. Formulas from national accounts are used for output calculations - for example turnover from SBS data is turned to output based on national accounts formulas. There are validation checks in place to make sure the output of EGSS does not exceed NA output in any economic activity. The methodologies have been developed on the basis of the nature of the environmental activity (for example construction services, organic goods, waste management service etc.). For example energy saving construction services output is calculated with a top-down method. Some other services (consultation services etc.) were calculated by bottom-up method: enterprise output data from SBS or business register. The same applies for products. For example the output of organic farming products is calculated using FADN data on the output of an average organic farm multiplied by the number of organic farms in Estonia. For other cleaner goods SBS or business register data of specific enterprises were used. There is no clear difference in the calculation of output of environmental specific services, cleaner and resource efficient products and other (connected) products. In the cases where detailed enterprise information is available, it is possible to assign each enterprise to market and non-market activity based on information of the institutional sector of the enterprise. Usually enterprises belonging to S.11, S.12, S.14 are market producers and S.13, S.15 are non-market producers. For top-down methodologies it is assumed based on the kind of activity whether the activity is market or non-market.The breakdown by NACE is reported mostly based on the NACE of the enterprise that produces EGSS goods and services. For top-down methodologies NACE is reported based on product classification and on expert information. For example, construction activities are reported under NACE F41-43 and engineering activities under M71.
The scope of EGSS products and activities is determined based on the EGSS operational list from Eurostat and also consultations with national experts. The scope is not reviewed regularly. New products are added when there is information available on these products (for example information on the Internet and other media, information from specialised associations etc.). If it is not possible to determine the environmental share on the basis of business register yearly reports or information available on internet we used a telephone/e-mail survey. At first a telephone survey is preferred but an e-mail survey turned out to be more convenient for the respondents. The survey is conducted with EGSS enterprises and they were asked the shares of their environmental output and exports by environmental products. For example, if an enterprise produced both pipes for wastewater and water management they were asked the shares of these products separately for an easier split to CEPA/CREMA categories. The environmental share is determined separately for the CEPA and CREMA output of an enterprise. The share is enterprise-based so there is no separate share for NACEs. The share is fixed only for a certain period of time and is updated every 3-5 years using data from available data sources.
Value added: The Eurostat formula for calculating gross value added presented in the EGSS practical guide is used to calculate GVA - using calculated EGSS output data and macroeconomic variables. GVA is calculated separately for market, non-market output, output for own final use and ancillary output.
Exports: The approach is mainly enterprise-based. Enterprises producing environmental goods and services are matched to foreign trade statistics. As these enterprises also may produce other kinds of goods, it is necessary to determine which exported goods are environmental. The CN product classification is used to determine which products in foreign trade statistics to take into account in EGSS calculations. In some cases the CN product may be only partly environmental.
Employment: For the calculation of employment of EGSS in general the assumption is made that for each economic activity the EGSS-related employment in total employment makes up the same share as the output of a specific EGSS product in the total output in national accounts by each economic activity. Coefficients for transforming employment data from the number of employees to full time equivalents were calculated. Coefficients are calculated as a ratio between full time equivalents and number of employees (FTE/PER). In national accounts employment data are available in full time equivalents only for A*21 activities level (the number of employees is available even on A*64 activities level). For that reason coefficients are calculated on A*21 activities level. Only exemptions in calculation of employments are related to methodology for organic farming and environmental R&D. Employment (FTE) data of average organic farm is taken from FADN data and then this average number is multiplied by the number of organic farms active in Estonia. Also methodology for calculations of employment related to environmental R&D (CEPA 8, CREMA 15) has different approach, using detailed R&D survey information on employment (FTE) engaged in R&D.
MEMO ITEM_CReMA 13B - energy efficiency related measures for NEARLY ZERO ENERGY BUILDINGS: The memo item covers construction of new buildings, specifically new more resource-efficient buildings. The share of resource-efficient buildings is estimated using 20% and share of new A-energy level buildings from all new buildings the method was suggested by expert on the field.
Data from Statistics Estonia: data on national accounts (e.g. GDP and its components, GFCF, employment), financial statistics of enterprises - output of EGSS goods and services; production statistics - output of EGSS goods; energy statistics - output of renewable energy foreign trade statistics - export of goods and services; employment statistics; R&D survey; Environmental Subsidies Account; Different price indexes; survey on fish and crayfish farming; data from Purchasing Power Parity - foroutput of engineering services; Environmental Taxes Account - data on environmental fee for waste disposal; EPEA - for ancillary output.
Data from other institutions: Business Register - output of EGSS goods and services; Estonian Agricultural Board and Farm Accountancy Data Network - organic farming output, GVA, employment; Estonian Road Administration - data on the construction of noise barriers and pedestrian; Estonian Environmental Agency - data on waste and wastewater management; Building Register; Estonian State Forest Management Centre - expenditures data on forest protection and fish farming.
The list of EGSS enterprises in Estonia is used to determine the relevant enterprises. E-mail survey has been used to specify environmental shares of secondary EGSS producers in case other information sources are not exhaustive.
Yearly
Data is published T+22 annually.
The reporting obligations have been filled, all obligatory data for EGSS are reported and therefore data should be geographically comparable.
Methodology for output of energy efficient renovation was improved in collaboration of experts from Tallinn University of Technology. Methodology developed for output of energy efficient renovation is still based on top-down approach, but the different methods were used for output estimations by the type of buildings (respectively small residential buildings, apartment buildings and non-residential buildings). For energy efficient renovation of apartment buildings, data on project’s total costs financed from European Union Structural Funds and data on state funding by KredEx were used to estimate the size of the output. Regarding small residential buildings and non-residential buildings, the approach was diferent: using renovated square meters data from building permits and multiplying this with unit cost of energy efficient renovation give an estimation for output. Revision in time series can be done after the contracts with the data holders are signed and their data of earlier years are transmitted to Statistics Estonia and calculations for output are made. Energy efficient renovation data for the years 2020-2022 are transmitted to Eurostat according to the new improved methodology. Improved data are tansmitted for the year 2020-2022 and previous years data on CREMA 13B (and aggregates that includes CREMA 13B) are not comparable.
Also methodology for calculations of employment related to environmental R&D (CEPA 8, CREMA 15) has been improved, which apply to the data for the years 2020-2022, therefore earlier years data are not comparable.
Other years and methodologies are comparable and does not have breaks in time series.
