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Federal Statistical Office of Germany

© Federal Statistical Office of Germany, Environmental-Economical Accounting, 2006

London Group Meeting – New York, 19-21 June 2006

Calculation of direct and indirect material inputs by type of raw material and economic activities

Karl SchoerFederal Statistical Office Germany, Environmental-Economic Accounting



Overview1. Introduction2.The political and methodological context3.Direct use of primary material4. Indirect use of raw material5.Raw material equivalents6.The state of the project



The political and methodological context



Exports(physical units)

Physical trade Balance (PTB)

Direct material input(DMI)

Raw material productivityGDP / DMI

DMI by type of material

Exports(physical units)by type of rawmaterial

PTB by type of rawmaterial

DMI byeconomicactivities andtype of material

Raw material productivityGDP / DMI bytype of material

Raw material productivity byeconomicactivities andtype of material

Original values

Raw material equivalents

Decomposition analysis IOT-analysis(indirect effects)

Monetaryvariables(GDP, GVA, MIOT)

DMI and related indicators



Direct use of primary material by economic activities



Supply and Use of products, raw materials and residuals by economic activities and the environment

Final use

PB1 PB2 ... PBn RS1 RS2 ... RSnHomogeneous branches

PB1

PB2

...

PBn

Input of raw materials from the environment

RM1

RM2

...

RMn

Supply (domestic production and imports)

Intermediary use Output of residuals to the environment



Domesticenvironment

Rest ofthe world

Domestic economy

Primaryproduc-tion

PB1 ... PBn Finaluse

Domestic extractionby type of raw material

Imports by type of raw material and products thereof

Option 1

Domesticenvironment

Rest ofthe world

Domestic economy

Primaryproduc-tion

PB1 ... PBn Finaluse

Domestic extractionby type of raw material

Imports by type ofraw material and products thereof

Option 2

Disaggregation of direct use of primary material by economic activities and type of raw material



Direct use of primary materials by economic activities and type of material

Type of material

PB1 PB2 ... PBn Consumption of private

households

Public consumtion

Capital formation

Exports

DRM1

DRM2...DRMn

IRM1

IRM2...IRMn

IP1

IP2...

IPnDRM1 + IRM1 + IP1

DRM2 + IRM2 + IP2

...

DRMn + IRMn + IPn

Total raw material and products thereof

Homogeneous production branches Final use categories

Imported semi-finished and finished products assigned to the main type of raw material

Imported raw materials

Domestically extracted raw materials

Economic activities



Indirect use of raw material



Calculation of indirect effects of the use of an individual raw material

Homogeneous branchesHomoge-neous product groups

Input-output matrix

(physical, monetary or hybrid)

Indirect use of raw material (RMi) for interme-diary and final use in tons

Direct use of raw material (RMi) in tons



IOT-matrixes available for calculation of the indirect use of raw materialsby type of product

Type of use structure

Description

Monetary IOT

Monetary Standard MIOT is applied for each type of raw material

Physical IOT Full Physical Standard PIOT is applied for each type of raw material

Simplified Physical Simplified PIOT is applied for each type of raw material

Hybrid IOT Simple Mixed monetary and physical

1. Special IOT-matrix for each type of raw material 2. The use structure for the first step of the production chain (use of raw material after extraction) is replaced by physical information

Expanded Mixed monetary and physical

1. Special IOT-matrix for each type of raw material 2. The use structures for the first steps (usually more than one) of the production chain are replaced by physical information 3. Symmetrical disaggregation of relevant homogeneous branches of the standard IOT classification

Type of IOT matrix



Monetary IOT

Physical IOT

Expanded hybrid IOT

Environment Raw materialextraction

Primaryprocessing ofraw material

Other branches

RMi

RMi1

RMi2

RMi3

RMi1

RMi2

RMi3

Ei

Ei

Ei1

Ei2

Ei3

PPi

PPi

PPi1

PPi2

PPi3

OB2

OB1

OB1

OB2

OB1OB2

OB3

OBn

OB3

OBn

OBnOB3

...

...

...

OB1

OBn

OBn

OB2OB3

RMi1

RMi2

RMi3

PPi

OB1

OB2OB3

...

...Simple hybrid IOT

Ei1

Ei2

Ei3

Depiction of the flow of a domestic raw material category through the first stages of the production chain by different types of IOT-matrixes



+

=

Monetary IOTSupply Final Use

PB1 PB2 PB3 PB4 PB5 PB6 PB7 PB8 ... PBnPG1PG2PG3PG4PG5PG6PG7PG8...PGn

Intermediary use

Type of raw material

Final use

PB11 PB12 ... PB1n PB31 PB32 ... PB3n OhersSupply

PG11PG12...PG1nPG31PG32..PG3n

UsePG11PG12...PG1nPG31PG32..PG3n

Intermediary use

Physical flow table for a material category

Hybrid IOT for a material categorySupply Final Use

PB11 PB12 .. PB1n PB2 PB31 PB32 PB3 ... PB3n PB4 PB5 PB6 PB7 PB8 ... PBnPG11PG12...PG1nPG2PG31PG32...PB3n

PG4PG5PG6PG7PG8...PGn

Intermediary use

The elements for the construction of an expanded hybrid IOT



MIOTSupply

… Mining of metal ores

Primary processing of metal ores

…

… monetary monetary monetary monetary

Mining of metal ores

monetary monetary monetary monetary


monetary monetary monetary monetary

… monetary monetary monetary monetary

Use



Physical use table for copperMaterial

… …Copper Other

metalsCopper Other

metalsCopper physical physical physical physical physical physical

Other metals physical physical physical physical physical physicalCopper physical physical physical physical physical physical

Other metals physical physical physical physical physical physical

Metal ores after primary processing

UseMining of metal ores Primary processing of

Metal ores



HIOT (expanded)Supply

… …

Copper Other metals

Copper Other metals

… monetary monetary expanded

monetary expanded

monetary expanded

monetary expanded

monetary

Copper physical physical physical physical physical physical

Other metals

physical physical physical physical physical physical

Copper physical physical physical physical physical physical

Other metals

physical physical physical physical physical physical

… monetary monetary expanded

monetary expanded

monetary expanded

monetary expanded

monetary

UseMining of metal ores Primary processing of

metal ores


Mining of meta ores



Approaches for calculating indirect effects for imported products

Type of approach

Description Type of product

IOT-approach

Assumption: production process is represented sufficiently by a domestic process

Some raw materials, most finished and semi-finished products

Coefficient-approach

Production process is not represented by a domestic process

Products that are not produced in the domestic economy

Coefficient-approach

Production process is not represented sufficiently by a domestic processes

Products that are produced under climatic, geo-physical or other conditions that are considerably different from the domestic conditions (especially many agricultural and mining products)



Raw material equivalents



Raw material equivalents for imported products by type of raw material

Total raw materials

RM1 RM2 ... RMnRM1RM2...RMnRM1RM2...RMnPG1PG2...PGn

Total raw material equivalents for imports

Total

Type of raw materialType of product

Indirect imports of raw materials related to the directly imported raw materials

Indirect imports of raw materials related to the direct imports of semi-finished and finished products

Direct imports of raw materials



The state of the project



Category of material Status Disaggregation

Agricultural products Under preparation 46 agricultural production processes, disaggregation of food industry and chemical production (only monetary disaggregation)

Wood Available Standard IOT classification

Other biotic materials Planned

Energy carriers Available 30 energy carriers and disaggregation of important energy users

Construction and industrial minerals

Planned

Iron Under preparation Disaggregation of iron, steal production and semi-finished iron products

Aluminium Under preparation Disaggregation of aluminium production and semi-finished aluminium products

Other metals Planned

The German system of physical material flow tables for raw material categories



Thank you!



Supply

Products (units) Forestry & logging

Manufacture of wood products

Manufacture of pulp

Manufacture of paper

Printing Recycling Other

Standing timber (1000 m3 over bark) 90.244 90.244 90.244 Saw logs (1000 m3) 41.113 0 41.113 2.251 43.365 Fuel wood (1000 m3) 12.501 0 12.501 120 12.621 Pulp wood (1000 m3) 5.445 0 5.445 54 5.499 Sawnwood and wood-based panels (1000 m3) 37.222 37.222 9.606 46.828 Other wood products (1000 m3) 17.044 17.044 4.459 21.503 Pulp (1000 t) 13.956 13.956 4.473 18.429 Paper (1000 t) 20.392 20.392 10.574 30.966 Wood waste as a product (1000 t) 17.869 1.399 19.268 1.017 20.285 Paper waste as a product (1000 t) 1.200 0 13.149 0

14.349 2.566 16.915

Use

Products (units) Forestry & logging

Manufacture of wood products

Manufacture of pulp

Manufacture of paper

Printing Recycling Other

Standing timber (1000 m3 over bark) 73.925 73.925 16.319 90.244 Saw logs (1000 m3) 38.730 38.730 4.634 43.365 Fuel wood (1000 m3) 2.504 2.504 10.084 32 12.621 Pulp wood (1000 m3) 4.504 4.504 995 5.499 Sawnwood and wood-based panels (1000 m3) 21.305 13.995 35.299 0 0 11.529 46.828 Other wood products (1000 m3) 0 18.531 18.531 0 0 2.972 21.503 Pulp (1000 t) 17.762 17.762 667 18.429 Paper (1000 t) 9.705 0 9.737 19.442 0 11.524 30.966 Wood waste as a product (1000 t) 15.643 2.470 18.113

2.172 20.285

Paper waste as a product (1000 t) 13.219 80 13.299

3.616 16.915

Exports Total

Output of industries Total Imports Total

Intermediate consumption by industries Total Final consumpti

on

Capital formation

Physical flow tables for wood and wood products for Germany 2004

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