Dataset: Environment Database - Environmental Protection Expenditure Accounts
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Last updated: October 5, 2020

Contact: ENV.Stat@oecd.org

Data is expressed in million national currency.

Environmental protection (EP) includes all activities and actions which have as their main purpose the prevention, reduction and elimination of pollution as well as any other degradation of the environment. The scope of environmental protection expenditure is defined according to the Classification of Environmental Protection Activities (CEPA 2000). CEPA distinguishes nine environmental domains.

The Environmental Protection Expenditure Account (EPEA) is a monetary description of environmental protection activities in accordance with the System of Environmental-economic Accounting (SEEA) central framework. It is coherent with the European System of Accounts (ESA 2010) which applies to national accounts and related satellite accounts.

Because the full EPEA framework is quite expensive in terms of resources to be set up, this EPEA module significantly simplifies the full framework while it still allows compiling a measure of environmental protection expenditure for the whole economy comparable with national accounts aggregates.

This data focuses on the production and uses of environmental protection services. Output of these services can be output of market, non-market and ancillary activities. EPEA is directly linked to the three definitions of GDP, the production measure, the expenditure measure and the income measure of GDP.

EPEA covers (1) expenditure on EP products by resident units; (2) expenditure related to the production of EP products, including the gross capital formation, and (3) transactions related to the financing of EP expenditure. It covers both the supply and demand side. Demand equals supply:

Final consumption + Gross fixed capital formation (GFCF for characteristic environmental activities) + Exports - Imports =

Output - Intermediate consumption + VAT plus taxes less subsidies on products

That is, the final uses of a product equal the supply of that product. The terms can be reorganised as follows:

Final consumption + GFCF + Intermediate consumption = Output + Imports - Exports + VAT plus taxes less subsidies on products

The left side is the sought sum of expenditure on EP products by resident units. The right side proposes an alternative calculation approach, which indeed EPEA follows instead of the left side approach. There are several reasons for this choice, including that (a) output is simpler to measure than final consumption, intermediate consumption and capital formation (capital formation in EP products is rare; one instance is soil decontamination leading to land improvement); (b) imports and exports are small; and (c) output is also relevant by itself for analysis of production.

For more details see the Eurostat "Environmental protection expenditure accounts handbook":

https://ec.europa.eu/eurostat/web/products-manuals-and-guidelines/-/KS-GQ-17-004

Data is collected jointly with Eurostat, which collects data for OECD Europe countries.

Country metadata

Canada) Data for the public sector refers only to the general government, for there is no data for non-profit institutions serving households. Data for specialist and ancillary producers is estimates sourced from a business expenditure survey. GFCF (gross fixed capital formation) for manufacture of chemicals and chemical products and of basic pharmaceutical products and pharmaceutical preparations are combined, as well as for manufacture of motor vehicles and of other transport equipment. Furthermore, the Canadian industrial classification does not correspond exactly to ISIC/NACE (it includes larger industrial groupings).

Costa Rica) Data for the public sector refers only to the central goverment

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Millions
Dataset: Environment Database - Environmental Protection Expenditure AccountsContact person/organisation

Last updated: October 5, 2020

Contact: ENV.Stat@oecd.org

Data is expressed in million national currency.

Environmental protection (EP) includes all activities and actions which have as their main purpose the prevention, reduction and elimination of pollution as well as any other degradation of the environment. The scope of environmental protection expenditure is defined according to the Classification of Environmental Protection Activities (CEPA 2000). CEPA distinguishes nine environmental domains.

The Environmental Protection Expenditure Account (EPEA) is a monetary description of environmental protection activities in accordance with the System of Environmental-economic Accounting (SEEA) central framework. It is coherent with the European System of Accounts (ESA 2010) which applies to national accounts and related satellite accounts.

Because the full EPEA framework is quite expensive in terms of resources to be set up, this EPEA module significantly simplifies the full framework while it still allows compiling a measure of environmental protection expenditure for the whole economy comparable with national accounts aggregates.

This data focuses on the production and uses of environmental protection services. Output of these services can be output of market, non-market and ancillary activities. EPEA is directly linked to the three definitions of GDP, the production measure, the expenditure measure and the income measure of GDP.

EPEA covers (1) expenditure on EP products by resident units; (2) expenditure related to the production of EP products, including the gross capital formation, and (3) transactions related to the financing of EP expenditure. It covers both the supply and demand side. Demand equals supply:

Final consumption + Gross fixed capital formation (GFCF for characteristic environmental activities) + Exports - Imports =

Output - Intermediate consumption + VAT plus taxes less subsidies on products

That is, the final uses of a product equal the supply of that product. The terms can be reorganised as follows:

Final consumption + GFCF + Intermediate consumption = Output + Imports - Exports + VAT plus taxes less subsidies on products

The left side is the sought sum of expenditure on EP products by resident units. The right side proposes an alternative calculation approach, which indeed EPEA follows instead of the left side approach. There are several reasons for this choice, including that (a) output is simpler to measure than final consumption, intermediate consumption and capital formation (capital formation in EP products is rare; one instance is soil decontamination leading to land improvement); (b) imports and exports are small; and (c) output is also relevant by itself for analysis of production.

For more details see the Eurostat "Environmental protection expenditure accounts handbook":

https://ec.europa.eu/eurostat/web/products-manuals-and-guidelines/-/KS-GQ-17-004

Data is collected jointly with Eurostat, which collects data for OECD Europe countries.

Country metadata

Canada) Data for the public sector refers only to the general government, for there is no data for non-profit institutions serving households. Data for specialist and ancillary producers is estimates sourced from a business expenditure survey. GFCF (gross fixed capital formation) for manufacture of chemicals and chemical products and of basic pharmaceutical products and pharmaceutical preparations are combined, as well as for manufacture of motor vehicles and of other transport equipment. Furthermore, the Canadian industrial classification does not correspond exactly to ISIC/NACE (it includes larger industrial groupings).

Costa Rica) Data for the public sector refers only to the central goverment

Unit of measure usedNational currencyPower codeMillions