Type and source of data

3.211 Turnover

Environmental protection expenditures (EPE) as defined and reported in Eurostat’s New Cronos Database were used as the primary source for approximating turnover from a demand-side perspective.

Environmental protection expenditures are defined as “the money spent on all purposeful activities directly aimed at the prevention, reduction and elimination of pollution or nuisances resulting from the production processes or consumption of goods and services. Excluded are activities that, while beneficial to the environment, primarily satisfy technical needs or health and safety

requirements.” Further detailed information about that definition can be found in The Industry Data Collection Handbook (Environmental expenditure statistics, ISSN 1725 – 0218). An example on how to calculate the environmental expenditures is given in Appendix 4.

Environmental protection expenditures are reported by each member state and cover mainly the sectors related to pollution management activities: air pollution control, waste water

treatment, solid waste management, remediation and clean up of soil and groundwater, noise and vibration control, environmental research & development, public environmental administration, private environmental management and nature protection.

Environmental protection expenditures for the “public environmental administration” and the “private environmental management” sectors are included in the broader category “Other secondary sectors” in the New Cronos Database. This category covers multiple other activities such as consultancy, education, training, information and others. It is not possible to make a complete breakdown between all of the sub-sectors due to the structure of available statistical data. The figures presented for “public environmental administration” and the “private

environmental management” sectors also include other sub-sectors, so turnover and employment figures for these two categories might be overestimated.

Given their definition, environmental protection expenditures are not relevant and do not exist for resource management activities except for the nature protection sector. Other source data were therefore used to approximate the turnover of the corresponding sectors.

• For the water supply and recycled materials sectors, updated expenditures were derived from 1999 expenditures (from the 2002 ECOTEC study for DG Environment) by applying the growth rates of the production value for the corresponding Eurostat NACE codes of industry: NACE 41 for water supply and NACE 37 for recycled materials. Production value data were extracted from Eurostat’s New Cronos Database/ Economy.

Production value “measures the amount actually produced […], based on sales, including changes in stocks and the resale of goods and services. The production value is defined as turnover, plus or minus the changes in stocks of finished products, work in progress and goods and services purchased for resale, minus the purchase of goods and services for resale, plus capitalised production, plus other operating income”. (European Business, Facts and Figures, ISSN1681-2050).

• No NACE code corresponds to the renewable energy sector so far. Updated

expenditures were derived from 1999 figures (ECOTEC study) using a multiplication factor (2.5) which corresponds to the sector’s growth in Europe since 199926 (this is equivalent to an average growth of 20% per year).

As no 1999 homogenous expenditures exist for the new member states, the share of these countries in the global turnover of resource management activities is estimated using their relative weight in EU-25 total production value for 2004.

Unless explicitly mentioned (Figure 22), the figures in this report have never been corrected by purchasing power parities27.

The following table summarizes the information used to assess the turnover of the eco- industries:

26 _{Renewable Energy World, Volume 8, Number 6, November-December 2005: Global revolution: A status report on renewable} energy worldwide

27

Purchasing power parities (PPPs) are the rates of currency conversion that eliminate the differences in price levels between countries. Per capita volume indices based on PPP converted data reflect only differences in the volume of goods and services produced. Comparative price levels are defined as the ratios of PPPs to exchange rates. They provide measures of the differences in price levels between countries. The PPPs are given in national currency units per US dollar. The price levels and volume indices derived using these PPPs have been rebased on the OECD average.

Table 6: Main information sources used to assess the turnover of the eco-industries

Sectors Available input data Final data

All Pollution Management Nature Protection

Environmental protection

expenditures from Eurostat’s New Cronos Database

Same as available data

Water Supply Recycled Materials (Resource Management)

Production value data from Eurostat’s New Cronos Database/Economy for NACE codes 41 (Water Supply) and 37 (Recycled Materials).

Updated expenditures derived from 1999 expenditures by applying the production value growth rate for the corresponding NACE codes Renewable Energy No available data in Eurostat’s New

Cronos Database

Updated expenditures derived from 1999 expenditures by applying the sector’s average growth rate.

3.212 Employment

The employment figures presented in this chapter are calculated figures (and not reported figures). The figures are calculated using the calculation methodology used in the previous Commission study (Analysis of the EU Eco-Industries, their Employment and Export Potential, a study by ECOTEC for DG Environment, 2002) in order to ensure the best possible comparability. This calculation model requires multiple input data including:

•

Environmental expenditure for each sector with breakdown between operating expenditure (OPEX) and capital expenditure (CAPEX),

•

Wage costs,

•

Gross domestic product,

•

Number of inhabitants,

•

Consumer price index,

•

Exchange rates/

All source data were taken from Eurostat databases. Environmental expenditures data in particular are the ones described in the “Turnover” section above (Extracted from the New Cronos database). The uncertainties and limits linked to the data quality therefore also affect the employment figures.

Input data were revised where necessary in order to obtain best possible estimates. The main changes concern the update of wage rates, taking inflation and wage growth into account. On the other hand, labour intensity ratios (expenditures on wage cost per total expenditures of the sector) of the previous study (Analysis of the EU Eco-Industries, their Employment and Export Potential, a study by ECOTEC for DG Environment) have been maintained, although rising energy prices have probably impacted the share of labour costs in total expenditure for some sectors and that labour intensity ratios may differ in the new member states (as these

countries account for 16% of the EU-25 population, it is believed that the results will not be significantly affected)28_.

3.213 Trade

The data processed for the analysis of the eco-industries trade movements are extracted from the Eurostat database “COMEXT; database for environmental technology trade” using the trade codes associated with the eco-industries by the OECD29_{. This dataset seemed to be quite difficult}

to use in the framework of the present study however (see section below on completeness).

In document European Commission DG Environment (Page 66-69)