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12/11/2013 Measuring the Environmental Goods and Services Sector (EGSS) Statistics ESCAP Expert Group Meeting on Strategies for Improving Environment Statistics Bangkok, Thailand, 2-4 December EGSS Accrording to SEEA •Environment Protection (EP): prevention, reduction and elimination of p pollution and other forms of degradation of the environment •Resource Management (RM): preserving and maintaining the stock of natural resources and hence safeguarding g g against g depletion p •EGSS are activities if the primary purpose of the activity is EP or RM. 1 12/11/2013 EGSS and the “green economy” EGSS may be considered the “green” portion of economic activities However, should be mindful of use of term, e.g. in comparision to: ◦ UNEP Green Economy, ◦ “Green GDP” Measuring.. Activity, which indicates the extent to which economic units – governments, governments enterprises, households – are undertaking activity which is beneficial to the environment Output, value added, exports, employment and investment 2 12/11/2013 3 types of EGSS producers in SEEA: 1. Specialist producers: primary activity is in EGSS 2. Non-specialist producers: EGSS is not primary activity 3. Own-account producers: Environmental Taxes & Subsidies Subsidies: Primary purpose of subsidy or transfer is EP or RM Tax: a tax whose tax base is a physical unit (or a proxy of it) of something that has a proven, specific, negative impact on the environment. 3 12/11/2013 Environmental Protection Expenditure • • • Likely a key source of information for understanding the scope of EGSS But EGSS statistics are fundamentally measures of supply (production of EGSS) Thus, need to adjust for fact that EPE show demand information Challenges for Producing Guidelines for EGSS statistics Lack of practical examples A wide range of goods and services that may be considered to be produced for EP or RM purposes This set of goods and services may change over time Large variety of businesses that may be involved in producing environmental goods and services No single, straightforward approach to the compilation of EGSS statistics Need to consider multiple possible approaches… 4 12/11/2013 Selection of activities Most feasible where detailed-level industry stats and national accounts data sets are available • Review complete list of activity classes and select those with clear relationship to an EP or RM purpose • May be helpful to prioritise (e.g): • – Market and non-market activities where primary activities such as water and wastewater management, protection of natural areas – Other market activities that produce non-capital EGSS – Production of capital/investment EGSS – Other Oth non-market k t activities ti iti – Ancillary activities – Need to make some assumptions about shares of activity relevant to EGSS; however, in principle EGSS statistics derived from existing data sources Ancillary activities Significant portion of environmental activities are ancillary, ancillary e.g. e g undertaken within enterprises for own-use However may be the most difficult portion of EGSS to measure Suggestion: Start by first considering activities with the most significant environmental impacts 5 12/11/2013 Selection of businesses • • • Rather than focus on activities, start with g and examination of business register Identify an EGSS register based on knowledge of activities by businesses Again, need for assumptions about shares of activities relevant to EGSS, though in this method EGSS shares can be identified specific to busineses (as feasible) rather than generally for industries Selection of products • • • • • In principle, this is the approach described in SEEA and other current guidelines Would be ideal starting point However, difficult in practice to identify products that truly fit the SEEA criteria for environmental Also, challenge to relate products to p y or value added? employment Useful to refer to existing relevant lists identified in context of legislation, or other 6 12/11/2013 Range of types of EGSS products Adapted Goods ◦ Goods that have been specifically adapted to be more environmentally friendly ◦ Example; mercury-free batteries ◦ EGSS includes only the extra costs paid for adapted goods in relation to a non-adapted reference point ((“normal normal good good”)) ◦ Continuously evolving yet likely to be significant portion of EGSS Range of EGSSEGSS-relevant products Adapted Goods ◦ Goods that have been specifically adapted to be more environmentally friendly ◦ Example; mercury-free batteries ◦ EGSS includes only the extra costs paid for adapted goods in relation to a non-adapted reference point (“normal good”) ◦ Continuously evolving yet likely to be significant portion of EGSS. 7 12/11/2013 EGSS Classification Challenges Maintaining stability in classification because the primary purpose may change over time – this has led to a stronger focus on the technical nature of products in determining appropriate classification. Di i i hi between Distinguishing b cultivated li d and d naturall resources iin the h context of resource management activity. Separating water supply activity (not included) from water management activities since these are generally undertaken by the same economic units Classifying recovered materials to classes within resource management. Ideally the classification of the materials should align with the type of material but this may be very difficult to apply. The treatment of energy gy sourced from waste material. Links to relevant existing lists and classifications, e.g from Government Finance Statistics according to government functions (COFOG) APEC List of Environmental Goods • • Very detailed and specific Probably not completely consistend with EGSS – http://www.apec.org/Meeting-Papers/LeadersDeclarations/2012/2012_aelm/2012_aelm_an nexC.aspx 8 12/11/2013 List of activities included in Netherlands EGSS Sewerage and refuse disposal services Wholesale in waste and scrap Environmental related inspection and control Government governance relate to the environment Organizations and associations on the environment Internal environmental activities at companies Renewable energy production Energy saving and sustainable energy systems Insulation activities Organic agriculture Recycling Second hand shops Water quantity control by waterboards Environmental advice, engineering and other services Industrial environmental equipment Environmental technical construction Environmental related education Conclusions Need to find ways to describe the scope of the EGSS within a country using a variety of means and various data sources. Unlikely that the data will be a perfect fit for the concepts outlined in the SEEA Central Framework But should be possible to provide sufficiently robust information for the analysis y of trends in the production of environmental goods and services and the general significance of this activity in the economy. 9 12/11/2013 THANK YOU Daniel Clarke, [email protected] Acknowledgement: prepared with inputs from Carl Obst, Obst former SEEA Editor and ESCAP Consultant 10