Environmental Protection Expenditure Accounts (EPEA)

Summary:

EPEA is a statistical framework that quantifies environmental protection activities in monetary terms, aligning with the structure of national accounts. It provides insights into the allocation of resources, the effectiveness of environmental policies, and the burden placed on different economic sectors. EPEA is an integral part of the System of Integrated Environmental and Economic Accounting (SEEA), adopted by the United Nations Statistical Commission in 2012.

Components:

EPEA consists of five interrelated tables that cover various aspects of environmental protection:

  • Production of environmental protection services
  • Use of environmental protection services
  • Financing of environmental protection
  • Supply and use of environmental protection
  • Net cost of environmental protection

Scope:

EPEA focuses on activities that aim to prevent, reduce, or eliminate pollution and environmental degradation. It excludes hygiene, security measures, and natural resource management.

Data Collection:

Data for EPEA is sourced from existing national accounts, business statistics, and government finance statistics. For missing information, specialized investigations may be conducted.

Types of Producers:

EPEA differentiates between different types of environmental protection producers:

  • Specialized producers: Entities primarily focused on providing environmental protection services, such as waste management and wastewater treatment.
  • Secondary non-specialized producers: Entities that perform environmental protection activities as a secondary activity, such as businesses selling excess energy to the grid.
  • Ancillary non-specialized producers: Businesses that voluntarily report environmental protection investments and outlays, usually through surveys.

Interpretation:

EPEA statistics reveal the total expenditure on environmental protection, its sources, and the sectors responsible for pollution remediation. By comparing investments to environmental burden, it helps identify areas where pollution reduction measures are most needed.

History:

EPEA was developed in the 1990s under the European System for the Collection of Economic Information on the Environment (SERIEE). The SEEA 2003 manual adopted EPEA as a framework for environmental protection expenditure statistics.

Implementation:

Implementing EPEA is challenging due to the need for various data sources and the potential for uncertainty in results. However, some countries, such as Italy and Belgium, have successfully compiled EPEA accounts. Others typically focus on reporting investments and current expenditure for specific environmental domains.

Significance:

EPEA provides valuable information for policymakers, industry stakeholders, and the general public:

  • Supports decision-making on environmental protection investments and policies
  • Assesses the effectiveness of environmental regulations
  • Identifies sectors where additional attention is required to mitigate environmental impact
  • Enhances transparency and accountability in environmental protection efforts