Federal Planning Bureau Economic analyses and forecasts The Belgian environment industry (1995-2005)...

Federal Planning BureauEconomic analyses and forecasts

The Belgian environment industry (1995-2005)

Lies Janssen & Guy Vandille21 May 2008

Outline

Definition Database (sources) Results

Demography Economic impact

Conclusion

Definition (1)

OECD (1999), The Environmental Goods and Services Industry: Manual for Data Collection and Analysis

Definition (1)

OECD (1999), The Environmental Goods and Services Industry: Manual for Data Collection and Analysis :

Activities which produce goods and services to Measure Prevent Limit Minimise Correct

Definition (1)


Activities which produce goods and services to Measure, prevent, limit, minimise or correct

Damage to Water Air soil

Problems related to Waste Noise ecosystems

Definition (1)



Damage to water, air and soil Problems related to waste, noise and ecosystems

Includes cleaner technologies, products and services that Reduce environmental risk Minimise pollution Minimise resource use

Definition (1)



Damage to water, air and soil Problems related to waste, noise and ecosystems

Includes cleaner technologies, products and services that Reduce environmental risk, minimise pollution and resource use

Includes Specialised producers Secondary producers Ancillary producers

Definition (2)

3 activity classification levels

Definition (2)

3 classification levels

Level 1: type of environmental activity

Level 2 : type of economic activity

Level 3 : environmental domain

Definition (2)



Pollution management Cleaner technologies and products Resource management



Definition (2)



Pollution management Cleaner technologies and products Resource management


Production of equipment and specific materials Provision of services Construction and installation


Database

All environmental activities need to be classified according to this classification scheme => build database of environmental activities

Database


Database organised according to organisations that conducted environmental activity in Belgium in period 1995-2005

Database



For each organisation: Turnover (linked to environmental activity) Employment (linked to environmental activity) NACE Environmental activity according to classificiation

Database




Objective = analyse Belgian environment industry Demography of environment industry

Economic importance of the environment industry

Database





Number and size of firms share of NACE categories Share of environmental domains

Economic importance of the environment industry

Database





Number and size of firms share of NACE categories Share of environmental domains

Economic importance of the environment industry Share in output Share in employment

Database: sources environmental activity

National sector accounts : NACE 37 and 90


National sector accounts : NACE 37 and 90 Regional government administrations and agencies publish lists of

companies engaged in environmental activities



companies engaged in environmental activities Umbrella organisations and sectoral employer federations

Coberec : Belgian recycling federation FEBEM/FEGE : Federation of enterprises active in environmental

management Agoria : Federation for the Technology industry (list of members

performing environmental activities) FEBELAUTO : car recycling firms VVS : processors of building and dismantling debris



companies engaged in environmental activities Umbrella organisations and sectoral employer federations

Coberec : Belgian recycling federation FEBEM/FEGE : Federation of enterprises active in environmental

management Agoria : Federation for the Technology industry (list of members

performing environmental activities) FEBELAUTO : car recycling firms VVS : processors of building and dismantling debris

For every firm activities were checked on basis of the Crossroad Bank of Enterprises of the FPS for Economic Affairs and the Central Enterprises Database of Flanders => assigned to environmental category

Database : sources economic data

For every firm economic data were collected on:



NACE

Turnover

Employment in fulltime equivalents (used to categorize firms by size)



NACE : classification of enterprises of National Accounts

Turnover





Turnover : Specialised producers: Central Balance Sheet Office or tax registers





Turnover : Specialised producers: Central Balance Sheet Office or tax registers Secondary producers: in detailed production data of the Structural

Business Survey production of environmental goods and services was identified => for each NACE determine average share of environmental goods and services in total production => apply this share to total turnover of individual secondary producers not in the SBS





Turnover : Specialised producers: Central Balance Sheet Office or tax registers Secondary producers: in detailed production data of the Structural

Business Survey production of environmental goods and services was identified => for each NACE determine average share of environmental goods and services in total production => apply this share to total turnover of individual secondary producers not in the SBS


Specialised producers: Central Balance Sheet Office Secondary producers: share of environmental employment in total =

share of environmental production in total

Results : demography of Belgian environment industry (1)

Number of firms Size of firms Share of NACE categories Share of environmental domains



Number of firms : 2437 identified over period 1995-2005



Number of firms : 2437 identified over period 1995-2005, of which

1820 specialized producers 617 secondary producers





1995: 1585 -- 2005: 2340





1995: 1585 -- 2005: 2340

average annual growth: 4% (higher than growth rate of total number of VAT contributors) => share of environmental firms in total increased from 0.27% to 0.33%.


Size of firms (1995-2005 average)

Specialised producers

Secondary producers

All firms



Specialised producers Small firms (0-9 employees) : Medium-sized firms (10-99 employees): Large firms (100+ employees):

Secondary producers Small firms (0-9 employees) : Medium-sized firms (10-99 employees): Large firms (100+ employees):

All firms Small firms (0-9 employees) : Medium-sized firms (10-99 employees): Large firms (100+ employees):



Specialised producers Small firms (0-9 employees) : 65 % Medium-sized firms (10-99 employees): Large firms (100+ employees):

Secondary producers Small firms (0-9 employees) : 46 % Medium-sized firms (10-99 employees): Large firms (100+ employees):

All firms Small firms (0-9 employees) : 60 % Medium-sized firms (10-99 employees): Large firms (100+ employees):



Specialised producers Small firms (0-9 employees) : 65 % Medium-sized firms (10-99 employees): Large firms (100+ employees): 8 %

Secondary producers Small firms (0-9 employees) : 46 % Medium-sized firms (10-99 employees): Large firms (100+ employees): 18 %

All firms Small firms (0-9 employees) : 60 % Medium-sized firms (10-99 employees): Large firms (100+ employees): 10 %



Specialised producers Small firms (0-9 employees) : 65 % Medium-sized firms (10-99 employees): 27 % Large firms (100+ employees): 8 %

Secondary producers Small firms (0-9 employees) : 46 % Medium-sized firms (10-99 employees): 36 % Large firms (100+ employees): 18 %

All firms Small firms (0-9 employees) : 60 % Medium-sized firms (10-99 employees): 30 % Large firms (100+ employees): 10 %


Share by NACE (1995-2005 average)



Specialised producers NACE 90 (sewage and refuse disposal, sanitation and similar activities):

25% (avg annual growth:7.6%)




25% (avg annual growth:7.6%) NACE 74 (other business activities, among which environmental study

bureaus): 23% (a.a.g.:6.9%)





bureaus): 23% (a.a.g.:6.9%) NACE 37 (recycling): 19% (a.a.g.:3.4%)





bureaus): 23% (a.a.g.:6.9%) NACE 37 (recycling): 19% (a.a.g.:3.4%) NACE 50-51 (mainly 51.57 sellers of second hand goods): 8% NACE 45 (mainly builders of waste treatment plants): 8%





bureaus): 23% (a.a.g.:6.9%) NACE 37 (recycling): 19% (a.a.g.:3.4%) NACE 50-51 (mainly 51.57 sellers of second hand goods): 8% NACE 45 (mainly builders of waste treatment plants): 8%

Other 16% of primary producers spread over many different NACE categories => limiting study of environment industry to NACE categories considered in general as environmental categories (NACE 37 and 90) would lead to serious underestimate of environmental activities in the economy


Secondary producers


Secondary producers NACE 50-51 (wholesale and retail trade): 16% NACE 28-36 (among others fabricated metal products and machinery):

12% NACE 74 (other business activities): 11% NACE 45 (construction): 10%


Share by environmental domain (1995-2005 average)


Secondary producers



Specialised producers Solid waste: 45% (of which 92% services)

Secondary producers Solid waste: 39% (of which 81% services)



Specialised producers Solid waste: 45% (of which 92% services) Wastewater management and water supply: 18% (70% services)

Secondary producers Solid waste: 39% (of which 81% services) Wastewater management and water supply: 20% (52% services)



Specialised producers Solid waste: 45% (of which 92% services) Wastewater management and water supply: 18% (70% services) R&D, monitoring, engineering and analysis: 15% (92% services)

Secondary producers Solid waste: 39% (of which 81% services) Wastewater management and water supply: 20% (52% services) R&D, monitoring, engineering and analysis: 17% (86% services)



Specialised producers Solid waste: 45% (of which 92% services) Wastewater management and water supply: 18% (70% services) R&D, monitoring, engineering and analysis: 15% (92% services) Air pollution control and noise and vibration abatement only 2

environmental domains for which production, construction and installation of equipment was almost as important as services

Secondary producers Solid waste: 39% (of which 81% services) Wastewater management and water supply: 20% (52% services) R&D, monitoring, engineering and analysis: 17% (86% services) For air pollution control and noise and vibration abatement the share of

production, construction and installation activities exceeded the share of services considerably

Results: economic impact of the Belgian environment industry (1)

Number of firms involved in environmental activities has clearly increased => has environmental industry become more important to Belgian economy ?



Production


Secondary producers



Production

Specialised producers 1995: 6.5 billion euros - 2005: 9.6 billion euros

Secondary producers 1995: 3.2 billion euros - 2005: 6.6 billion euros



Production

Specialised producers 1995: 6.5 billion euros - 2005: 9.6 billion euros average yearly nominal output growth 4% < growth rate of total output =>

share in total output dropped from 1.57 to 1.50 %

Secondary producers 1995: 3.2 billion euros - 2005: 6.6 billion euros average yearly nominal output growth 7.5% > growth rate of total output =>

share in total output increased from 0.77 to 1.02 %



Production




share in total output increased from 0.77 to 1.02 % Share in total environmental output 1995: 33% 2005: 40%



Production




share in total output increased from 0.77 to 1.02 % Share in total environmental output 1995: 33% 2005: 40% Share in total number of environmental firms: 29% 27% => average

output increased by 41% ( fall of 4% for specialised)


Specialised and secondary producers together


Specialised and secondary producers together Share in total output

1995 : 2.34 % 1999 : 2.20 % 2004 : 2.77 % 2005 : 2.52 %



1995 : 2.34 % 1999 : 2.20 % 2004 : 2.77 % 2005 : 2.52 %

Ancillary producers



1995 : 2.34 % 1999 : 2.20 % 2004 : 2.77 % 2005 : 2.52 %

Ancillary producers Data from EPEA on wage cost (intermediate consumption not taken into

account in order to exclude double-counting)



1995 : 2.34 % 1999 : 2.20 % 2004 : 2.77 % 2005 : 2.52 %

Ancillary producers Data from EPEA on wage cost (intermediate consumption not taken into

account in order to exclude double-counting) Only 1.23 % of environmental output by specialised and secondary producers

on average in the period 1997-2002


Employment (fulltime equivalents)




Number of employees 1995: 39108

Share in total employment 1995: 1.02 %




Number of employees 1995: 39108 2005: 47371

Share in total employment 1995: 1.02 % 2005: 1.12 %


Secondary producers


Secondary producers Number of employees

1995: 23772




1995: 23772 2005: 27176




1995: 23772 2005: 27176


Share in environmental employment decreased from 38% in 1995 to 36% in 2005 ( share in environmental output)



1995: 23772 2005: 27176



Specialised and secondary producers together



1995: 23772 2005: 27176



Specialised and secondary producers together Number of employees

1995: 62880




1995: 23772 2005: 27176



Specialised and secondary producers together Number of employees

1995: 62880 2005: 74547


Conclusions

Study of the environment industry is labour-intensive

Conclusions

Study of the environment industry is labour-intensive firm level data need to be analysed in detail

Conclusions

Study of the environment industry is labour-intensive firm level data need to be analysed in detail numerous sources need to be consulted and combined

Conclusions


Results are instructive

Conclusions


Results are instructive Environmental production in many NACE categories (also specialised

producers)

Conclusions



producers) Could be used as input to complete EPEA (production of environmental

services)

Conclusions



producers) Could be used as input to complete EPEA (production of environmental

services) Can lead to detection of misclassification of enterprises in National

Accounts enterprise register (secondary producers belonging to NACE 90 => double counting problem)

Federal Planning Bureau Economic analyses and forecasts The Belgian environment industry (1995-2005)...

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