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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 Netherlands (CBS)

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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.

4 November 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.

The Netherlands

The reference period for EGSS data is the calendar year.

Most data is derived directly from National Accounts, COFOG or other official statistics.

The population of businesses is of lower quality. It is time consuming to keep the population up to date, furthermore the environmental share of businesss is constant so we do not measure (within company) development over time accurately. Furthermore allocating environmental shares (and CEPA/ CReMA distribution) to businesses is quite subjective and a rough estimate.

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).

Scope:

The scope of the Dutch EGSS has been determined in the past by identifying (16) different environmental activites, these still forms the basis of the Dutch EGSS. However, the EGSS has developed since and the EGSS operational lists and EGSS handbook have been developed and improved. The operational list of activities is used to identify missing activities. In some cases these activities are excluded on purpose, either because they are economically irrelevant and not worth the effort to include them (a lot of work for an insignificant improvement,  e.g. inspection of vehicles on air emissions), or we lack the data sources to estimate them. However, we continuously try to improve the EGSS by identifying new data sources and including new activities. 

Additional data is used to determine the share of environmental activities. For instance, for education data on the number of students enrolled in an environmental study was used (and compared to total number of students), for organic agriculture the SKAL-certification (i.e. organic farming certificate) was used which shows the hectares used for organic agriculture (compared to total hectares in agriculture). Furthermore, a business population is used to identify certain environmental activities (see source data paragraph). The environmental share of these businesses (and CEPA/CReMA subdivision) is based on company year reports, websites and is basically and expert guess.

No additional surveys are held to produce the Dutch EGSS data. Data is derived from existing data sources.

data compilation process:

National Account data forms that basis of the Dutch EGSS for all economic variables. Supply and use tables provide market output and gross value added figures for several NACE classes (e.g. NACE A01, E36, E37, E38, E39, M71.2, S94.996) while Labour Accounts data is used to provide employment figures. In some cases (e.g. A01 agriculture) additional sources (e.g. data on organic farming certificates) are used to estimate the environmental share (ha organic agriculture / ha total agriculture) of a specific NACE class.

COFOG data is used to derive economic variables (output, employment and gross value added) for environmentally related government activities. No export of environmentally related government activities is measured.

A part of the remaining environmental activities, that cannot be linked directly to NA data, is estimated by the so called micro-approach. A population of businesses (mainly activities related to sustainable energy, construction, consultancy and engineering) is set up and linked to the Dutch Business Register, statistics on employment (SWL) and International Trade Statistics.

For some environmental activities, such as education, additional data from external sources is used to provide more accurate estimates. In a few cases some other approaches were used, e.g. to estimate export figures of specific goods a selection of CN-codes was made and linked to international trade data.

Share:

In most cases the same environmental share is applied to all economic variables. CEPA/CReMA shares differ for each company, so does their corresponding NACE class.

It depends on the method used whether the share is fixed over time. E.g. education and agriculture have a changing share over time (and are updated yearly). However, the environmental share of the business population has been fixed over time. However, we are looking for a method to allow for changing environmental shares for companies over time. However, it is an impossible task (time consuming) to check and update the environmental shares of all companies (>2000) year-to-year.

Shares in the micro-approach are updated every 3 years. Shares related to other activities such as agriculture and education are updated annually.

Description:

OUTPUT

Most data is derived directly from National Accounts. Business population is not directly linked, but is based on sources that are used to produce the NA data.

GROSS VALUE ADDED (GVA)

NA-data uses supply and use tables which include data on GVA. When COFOG data is applied we calculate GVA by taking total output minus intermediate use. In some cases GVA is not available at the required level of detail ( e.g. NACE 7.1.2.x (DUTCH SBI 7.1.2.0.3), then a corresponding output/GVA ratio (of NACE 7.1.2) is used to calculate GVA. In case of the population of businesses, each business is linked to the Production Statistics which also includes GVA figures on a business level.

EXPORTS

We use several different methods. For some activities it is based on the total exports of the corresponding NACE-class. The population of businesses can be linked directly to export figures on business level. For some activities there is no (clear) export at all. For organic agriculture we use an external source.

EMPLOYMENT

In most cases we derive FTEs directly from the Labour Accounts or other source data on employment (e.g. linking the business population to employment data per business. In some cases an output/employment ratio is used of a corresponding/similar NACE class as best estimation available.

National Account data forms that basis of the Dutch EGSS for all economic variables. Supply and use tables provide market output and gross value added figures for several NACE classes (e.g. NACE A01, E36, E37, E38, E39, M71.2, S94.996) while Labour Accounts data is used to provide employment figures. In some cases (e.g. A01 agriculture) additional sources (e.g. data on organic farming certificates) are used to estimate the environmental share (ha organic agriculture / ha total agriculture) of a specific NACE class.

COFOG data is used to derive economic variables (output, employment and gross value added) for environmentally related government activities. No export of environmentally related government activities is measured.

A part of the remaining environmental activities, that cannot be linked directly to NA data, is estimated by the so called micro-approach. A population of businesses (mainly activities related to sustainable energy, construction, consultancy and engineering) is set up and linked to the Dutch Business Register, statistics on employment (SWL) and International Trade Statistics. 

The population of businesses has been revised and updated recently (as we try to do every 3 years). This was mainly done by using a webcrawl to identify environmental businesses that were not included before. As a result, the whole time series has been revised.

For some environmental activities, such as education, additional data from external sources is used to provide more accurate estimates. In a few cases some other approaches were used, e.g. to estimate export figures of specific goods a selection of CN-codes was made and linked to international trade data.

The environmental goods en services data for the Netherlands are released annually.

Statistics Netherlands disseminates data with a delay of about 12 months after the end of the reference year

Not applicable

Comparable time series are available starting with 2001 reference year.