Definition: Current expenditure on environmental protection

Environment

Current expenditure on environmental protection generally occurs when investment is made in environmental equipment, it includes the compensation of employees, the payment of rents, consumption of goods and services (energy, materials, maintenance, transport, information, insurance, etc.) necessary to run, repair and maintain the environmental protection facilities and equipment. However, it may also occur when activities are undertaken which are not directly linked to the production process but aim at the provision of environmental services such as environmental co-ordination, research, soil sanitation, waste management, etc. The current expenditure figures include also the full cost of purchasing environmental services and of providing environmental control services using the unit's own staff as well as the extra costs of goods and services purchased from third parties having a positive environmental effect. The total amount should therefore be evaluated as the total of these shares and should be reported net of operational benefits which are specified by domain in "Environmental Protection Expenditure - data collection methods in the Public Sector and Industry", Eurostat, Series 8D, 1994.

The following items should be included:

Environmental control services:
- Current expenditure for all goods and services purchased by the unit for providing environmental control services using their own staff, including the labour cost of the staff;
- Payments to third parties for carrying out environmental control services.

Goods and services used in activities other than specifically for environmental control (production, administration, buying and marketing, research etc.):
- Current expenditure for relatively environmental friendly products used as raw materials or as ancillary consumables (only include the extra costs);
- Cost of tangible goods which are not capitalised (normally of low unit value and replaced on a regular basis) - include the full cost for connected products and the extra costs for adapted products.

The following items should be excluded:
- Depreciation;
- Interest;
- Fines and penalties for non-compliance with environmental Regulations or compensations to third parties as a result of loss or injury caused by environmental damage and similar related cost.

These investments can be broken down into four or more environmental domains such as:
- waste;
- air emissions;
- water protection and
- noise (and vibration).
Source:
Eurostat
Created:
Updated:

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