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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: Statistics Iceland

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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 December 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:

  • TOT_EGSS - Total EGSS product and services (*)
  • ANC - Ancilary activities (a sub-value of TOT_EGSS)
  • NMKT - Non-market output (a sub-value of TOT_EGSS)
  • OWN_USE - Activities for own final use (a sub-value of TOT_EGSS)
  • MKT - Market output (a sub-sector of TOT_EGSS) (*)
  • ES_CS - Environmental specific services (a sub-value of MKT)
  • C_REP - cleaner and resource efficient products (as sub-value of MKT)

The EGSS reports four main findings: Output of EGSS products and services, Gross Value Added (GVA) of the products and services, employment (EMP) engaged in the manufacture or services and export of EGSS products and services.

The EGSS output consists of products that become available for use outside of the producer unit (NMKT + MKT), any goods and services produced for own final use (OWN_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 (ANC), comprising output intended for use within an enterprise. The ANC, NMKT and OWN_USE values are reported on voluntary basis, which means that TOT_EGSS may vary from MKT value depending on data availability. The monitary values for the variables are calculated as follows:

  • Market output (NKT) 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 (OWN_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 (NMKT) is to be estimated by the total costs of production.
  • Ancillary output (ANC) 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 (GVA): 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 (see also sections 3.2, 3.3 and 3.4 above).

The reference area is the economic territory as defined in SEEA CF 2012 and 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 EGSS data is the calendar year.

The primary estimation of accuracy was done by comparing the total EGSS output value with the reported total output of the sector reported at this website.

Outside waste management (CEPA-2), wastewater management (CEPA-3) and generation of heat and electricity from renewable sources (CReMA-13B), EG services are only a fraction of the total output by industries. EG services play a minor role in the national exports (are non-zero) whereas imports of architectural and other specialized services is important.

Allegorically, issues requiring envrionmental services have been growing in the recent years with increased focus on material recycling, technologies that reduce material use, maintenance of flora, fauna and green spaces, as well as concerns about air and sound quality. 

This sets up an expected boundary of how the data should be shaped on a timeline and allows a simple plausibility check on the collected values. 

Output, gross value added, and exports are measured in millions of Icelandic Krónur (iskr) for each year. Employment is measured in full time equivalents (i.e., full time equivalent jobs).

The EGSS data for all available years is compiled using an R-script that sources multiple sub-processes (here called pipeline). Any adjustments to the data and changes in methodologies (break in series) is coded into this pipeline, meaning that the entire process is run each time (takes approximately 5 minutes). The compilation stack does not do the statistical processing for the EG-share survey (this is done separately), but consumes the data stored in the survey database.

The process collates, aggregates and summarizes the data in accordance with the structure of the EGSS questionnaire and then copies the aggregated into a Eurostat questionnaire, or a document with identical cell structure. Following this the Eruostat built check-macros are run and the data reviewed and revised as needed. Footnotes and comments are inserted at this time. 

After the questionnaire is completed the datafiles and footnotes are inserted back into the environmental division database as a submitted data. If the pipeline is re-run for the same reference year, the new compilation is automatically compared to this submitted data and the footnotes transferred if the data is unchanged.

A few datasources act as primaries for the EGSS compilations:

  • The Business Register: Contains identities of all registered companies in Iceland, the company revenue, property holdings, dept, income that has value-added-taxes, registered employee headcount, persons employed and FTE for each year. The database also identifies the sector and NACE category of the company,
  • Tax returns database: Contains all mandatory operation information that companies file in their annual report. This includes property holdings and write-offs, income by activity, employee compensation by activity, grants received and grants awarded, taxes encurred by activity. Activity here is a non-harmonized text-field chosen by companies, but this information can be mined to identify environmental and non-environmental activities.
  • SBS database: Contains all information and processing data used to produce the Structured Business Statistics data. This, in addition to income and expenses, includes information on property and construction projects, improvement to properties, training cost of employees and other microdata that can be used to augment the Business Register information. This data is first and foremost a processed output of the tax returns database.
  • Trade database: Contains transactions for physical imports and exports as well as service exports and imports

EGSS data are published at least once a year, after data for a new reference year have become available.

Deadline for the reporting of EGSS data and quality reports is 31 October each year. Eurostat disseminates the data with a delay of 3 months, after their validation.

Comparability of EGSS accounts compiled by EU Member States, EFTA countries, candidate countries, and the UK is ensured by a common conceptual framework and through Implementing Regulation 2174/2015 that provides an indicative compendium of environmental goods and services and thus determines the perimeter of the EGSS sector. 

Iceland is a member of EFTA and follows the ESA 2010 standard in producing its National Accounts. Iceland is not included in the EU-27 aggregates

The EGSS comiplation pipeline along with database structural integrity of the processing database ensures that consistent imputation and estimation methods are used for different years. Fluctuations in output value between years commonly arise from changes in a few companies given the small size of the Icelandic Economy. Designation of companies between economic sectors may also affect the apparent comparability over time of the data.