Environmental transfers

1. Environmental transfers Environmental related transfers Subsidies Cor Graveland Environmental Accounts Statistics Netherlands, Environmental Accounts Cor Graveland TF Env. Related transfers, Luxembourg,

2. Development Env. Subsidies (extensions) Concept / Method / approach Classification Data Sources Present state, Env. Protection expenditures How to proceed? Problems encountered Plans 2010 Issues / questions / suggestions Environmental taxes Content TF Env. Related transfers, Luxembourg,

3. Concepts & methods  Attempt to implement C & M according to preliminary definition of Reflection Group / London Group Definition: Subsidy (SNA def. & add Subsidies to HH, etc. and off-budget subsidies)? Environmental subsidy (how about ‘sustainability’ ? Motive / objective of an Environmental subsidy (how to derive, sources?); a. determine ‘the main motive’ or b. find env. As one of the main motives?) Which actor determines the motive / objective? How to treat other governmental bodies, foreign transfers, direct payments for environmental services? Development ‘environmental subsidies’ TF Env. Related transfers, Luxembourg,

4. Distinction between subsidies: On-budget Subsidies Current transfers Capital transfers Off-budget subsidies Current transfers Capital transfers Special cases: 1.energy subsidies, 2.subsidies in agriculture, 3.subs. For nature & landscape preservation, 4.R&D and innovation subsidies; Development ‘environmental subsidies’ (2) TF Env. Related transfers, Luxembourg,

5. Subsidies, breakdown to industry level & hh Assignment to NACE rev1.1./ rev.2  quite difficult …, if possible? Connect the monetary data from external registers to the business register (micro level), so far only partly successful (about half), largest transactions Subsidy breakdown to ‘environmental domain’ Attribute to environmental domains, CEPA & extension (& evt. CRUMA in future?) Try to translate particular subsidy scheme to an environmental domain, by using the text of the particular subsidy (scheme)  or else? Preference to include Climate Change separate from ‘other ambient air’ How to attribute when multiple domains are served (main domain?) This is sometimes connected to a certain sector (transport or agric.) Classification TF Env. Related transfers, Luxembourg,

6. NSI: National Accounts (incl. COFOG...?) Accs. of government, government finance statistics (budget analysis?) Environmental protection expenditure statistics Environmental prot. expenditure statistics (EPE), industry with ‘Mining, Manufacturing Industry,& electricity’ Energy Statistics (monetary aspects) The business register (micro level) Budgets, annual reports, and accounts of government agencies Dedicated overview of environmental instruments Desk research on subsidy schemes Tax authorities (i.e. for Off-budget and capital subsidies) Ministries In touch with agencies responsible for environmental subsidies (for full inventory and try to get details of the transactions and indiv. recipients) Data TF Env. Related transfers, Luxembourg,

7. Env. Subsidies are part of EPE Statistics In there some broadly defined sectors (agriculture , transport, waterboards), and Industry detailed (by NACE 11-40) Breakdown 5 to 7 domains ‘Transfers’ being part of an integrated framework with 1.Investment, 2.costs, 3.transfers, and 4.net burden (costs II). CBS – SBS: support the JQ (OECD / Eurostat)  But: Not complete ! What’s missing? Doesn’t cover all individual Env. Subsidies (% missing?) Sectors: just aggregates no detailed NACE category Some sectors not fully covered (construction, service sectors) Has domains, but aggregates, not fully detailed CEPA 2000 (no CRUMA?) Present State: Env. Subsidies / Transactions TF Env. Related transfers, Luxembourg,

8. Alternative 1: ‘Bottom-up approach’ Start with the EPE Statistics at level of individual subsidy (On- and off-budget) and recipient Extend current subsidy inventory bottom-up and try to make it as ‘complete as …’ Try to get in touch with ‘donors’, ministries and agencies and try to get data at detailed level from their financial accounting systems, annual activity reports, budgetary documents or else Preferably data becomes available at level individual recipient (industry, households, else) Connect this data to the business register for industry breakdown and other registers (customer) Use titles and measure description to assign to domains for each individual subsidy or institutions are collected.some of the main responsible agencies for getting detailed data of individual subsidies; Try to get data at the level of individual transaction and individual recipients;  Pro’s: Allows for detailed analyses at the Micro level Valuable for the Env. Exp. Statistics  improvement of figures Easy to communicate with any user  Con’s: Poor result from connection to business register Lots of additional actions needed in order to get better (but still not sufficient) connection (maybe in future) Requires lot of work / actions  Labour-intensive process Difficult to get time series an consistency How to proceed? TF Env. Related transfers, Luxembourg,

9. Alternative 2: ‘Top-down approach’ Start with the NA – Sector Accounts – Sector general Government and with government statistics Look after the detailed data that comes from ministries’ financial systems Look after allocation of transactions (subsidies) from government to government classification of Function environment (COFOG) Look after allocation to sectors If needed enrich the existing data with detailed data from the ministries Use smart techniques to distribute certain subsidies over specific industry categories (NACE)  Pro’s: Only useful for meso / macro analysis Less labour intensive Quick result  Con’s: Exchange Env. Exp. Statistics not straightforward Lessons to learn for policy not very easy Requires lot of work / actions How to proceed? TF Env. Related transfers, Luxembourg,

10. Alternative 3: combine 1 and 2. Start with the EPE Statistics at level of individual subsidy (both On- and off-budget) Extend their subsidy inventory bottum-up and try to make it complete Confront the result with the figures in the NA / Sector Accounts – Sector general Government and evt. with government statistics Learn from both. Look to the connection between allocations for env. EPE Stats and to classification according to COFOG Maybe certain systematic can be developed for the future (demanding less effort) Result uncertain  Pro’s: Better reference Less demanding  Con’s: Maybe requires some extra work How to proceed? TF Env. Related transfers, Luxembourg,

11. Implementation of motive / objective Figures from g’ment account with CoFoG so far doesn’t compare to EPE! Preferable to strengthen the data and compilation of the EPE Statistics, this will result in more comprehensive statistics that can be used for Env. subsidy project and Env. Accounts as well Current env. subsidies in EPE, far from ‘complete’ but the bigger ones are in Complicated and at least delays of getting detailed data from ministries, agencies, etc. CoFoG classification in process right now (when ready?) How to attribute subsidies to households? Experiences? Risk for double counting by combining sources (not comparable) Env. Subsidies in EPE statistics gradually grows Problems encountered TF Env. Related transfers, Luxembourg,

12. Interest in concepts and definitions No serious effort for data in 2010 Why ‘potentially’ damaging not ‘actually’ damaging? Pilot studies done within the country on ‘Indirect subsidies’ One makes use of ‘expert judgements’ Another based on assessment of EFFECT on the environment uses Env. Performance Indicators (EPIs) Compares to global studies OECD Damaging subsidies TF Env. Related transfers, Luxembourg,

13. Make a more complete inventory of individual environmental subsidies Get in touch with the main ‘agency’ and get its data Connect to business register, breakdown Translate to domains Try to get in touch with the relevant ministries, other agencies, tax authority, etc. Combine detailed subs. data with NA - sector accounts Hope to learn from TF Env. Rel. Transfers Plans 2010 TF Env. Related transfers, Luxembourg,

14. Separate Energy and CC subsidies? How to deal with Cross-compliance in agric.? In other countries: are Env. subsidies in ‘EPE Statistics’ more or less complete? Which of proposed procedure is the best? Influence of issues of the day (sustainability) What type of analysis should be facilitated by the figures on environmental subsidies? How to treat ‘Budget neutral’ subsidies? Flows between governments? Guarantee funds? Has domains, but not full coverage Provides ES with figures via JQ Issues / Questions TF Env. Related transfers, Luxembourg,

15. Questions ? Answers ? Recommendations ? Thank you! TF Env. Related transfers, Luxembourg,

16. Constitues of 3 parts: Taxes: ‘Levies’: Env Contribution (Fee) connected to specified certain apparatus (HH): Time series available 1990 -2008 Based upon Monetary data NA and some additional sources Environmental taxes TF Env. Related transfers, Luxembourg,

17. Questions ? Contact: c.graveland@cbs.nl Thank you! TF Env. Related transfers, Luxembourg,