CBS Environmental Accounts of the Netherlands

8/3/2019 CBS Environmental Accounts of the Netherlands

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Environmental accounts of the

Netherlands 2010


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Environmental accounts o the Netherlands 2010 3

Table o contents

Foreword 5

Summary 7

1 Introduction 15. Environmental accounting 18. The Dutch environmental accounts 21

2 Energy 23. Energy consumption 26

. Oil and natural gas reserves 31

3 Water 37. Water use 40. Emissions to water 47

. Regional water accounts 52

4 Materials 57. Material lows 60

5 Green house gas emissions and air pollution 65. Greenhouse gas emissions according to dierent rameworks 68. Greenhouse gas emissions rom production 73

. CO emissions on quarterly basis 77. Air pollution 80

6 Policy instruments and economic opportunities 87. Environmental taxes and ees 90. CO emission permits 93

. Environmental protection expenditure 105. Economic opportunities or the Environmental Goods and 108

Services Sector

7 Economy o the North Sea 117. Introduction 120. System boundaries, deinitions and methodology or data 121

compilation

. Results 126.. Conclusions and recommendations 133


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4 Statistics Netherlands

8 Valuation o wind energy resources 135. Introduction 138

. Concepts and methods 139. Results 141

. Discussion 148. Conclusions 150

9 Estimating the size and beneiciaries o environmental subsidies and 153transers. Introduction 156

. Concepts and scope 157. Data sources and methods 160

. Results 162. Discussion and conclusions 169

Annex I: Overview o main subsidy / transer schemes 171

Reerences 173

Glossary 177

Acknowledgements 183


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Foreword

The economic recovery in had direct consequences or the pressure on the environment.

While in all environmental indicators showed improvement due to the economicrecession, the pressure on the environment rom economic activities increased in . For

instance, the increase in greenhouse gasses exceeded the rate o economic growth. Also, theuse o energy had never been as high as in . This was also due to the relative cold winter,

resulting in more use o natural gas or heating purposes. The remaining reserves o naturalgas decreased by percent due to high production rates. The impact o economic growth on

the emission o acidiying substances and ine dust was reduced by eiciency improvementso production processes.

The Environmental Accounts of the Netherlands by Statistics Netherlands (CBS) present a broadquantitative overview o important economic-environmental developments. The environmentalaccounts provide a systematic description o the relationship between the environment and

the economy and can be used or in depth analyses o various types. Key indicators that canbe derived rom the environmental accounts provide an insight into the interrelation between

the environment and the economy, and into the issues o sustainability and green growth. Theinternational interest in environmental accounting has been growing in recent years. In

this will culminate in the adaptation o the System o integrated Environmental and EconomicAccounting (SEEA) as an international statistical standard.

The irst part o the Environmental accounts of the Netherlands provides an overview o

the most recent developments in the relationship between the environment and the economy.Part two presents three articles that provide more in-depth analyses o speciic topics. In the

irst article the direct and indirect economic impact o activities related to the North Seaare quantiied in terms o employment, production and value added. One o the important

outcomes o this study was that almost thousand Dutch employees are dependent onthe North Sea economy. The inormation rom this study will be used in the evaluation o

the European Unions Marine Strategy Framework Directive. The second article examines themethodology to valuate renewable energy resources and provides a comprehensive overview

into the economy behind wind energy production. It shows that wind energy production isnot yet proitable without government support schemes. The third article presents the irst

results o a study on environmental subsidies. The results indicate that environmentallymotivated subsidies are used extensively by only ew industries, such as agriculture, electricity

companies, and the chemical industry. It also shows that environmentally motivated subsidiesare predominantly aimed at reducing emissions o greenhouse gases and other air pollutants.

The Director General o Statistics Netherlands

G. van der Veen

Heerlen/The Hague, November


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Summary

Economic developments have a major impact on the environment. Environmental

accounts describe the relationship between the economy and the environment. Becausethe environmental accounts are integrated with concepts rom the national accounts,

developments in the ield o the environment and macro-economic developments in theNetherlands can be compared directly (see Statline and the CBS website). Key indicators

can be derived rom the environmental accounts that provide an insight into sustainabilitywith respect to environmental and economic developments. The integrated system makes it

possible to quantiy and analyse the underlying causes o changes in environmental indicators.The eects o changes in such aspects as economic growth, environmental eiciency and

international trade can thereore be expressed in igures. This publication presents the results

o the environmental accounts developed by Statistics Netherlands.

1 Development GDP and environmental indicators

Index (1990 =100)180

160

140

120

100

8060

40

20

0

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010*

Domestic Product (gross, market prices, price level 2005 )Greenhouse gasesMineral reserves gas Tap water useFine dustHeavy metals to water

Net energy use

Strong increase net energy use and greenhouse gas emissions Dutch economy in

Energy use by Dutch economic activities has never been as high as in . Overall, net energy

consumption (including households) increased by . percent in . This means thateconomic growth increased ar less (. percent) than energy consumption. Particularly the use

o natural gas increased, while the use o other energy products increased only slightly (oilproducts, coal and coal products). The total greenhouse gas emissions by economic activities

equalled . Mton CO eq. in , which was . percent higher than the previous year. Thereare two main reasons or the increase in energy consumption and greenhouse gas emissions: the

low average temperatures during the winter months and the economic recovery. In agriculture,greenhouse gas emissions rose percent, primarily due to higher combustion o natural gas

in horticulture. In manuacturing, emissions increased in most industries. Particularly in the


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chemical industry, basic metal and the reineries, where the production processes are veryemission intensive, emissions rose ast. In the transport sector the increased emissions closely

ollow the higher transport activities.

2 Change o key economic and environmental indicators, 20092010

10 5 0 5 10

GDP

Population

Labour input o employed persons

Mineral reserves gas

Net energy use

Tapwater use

Greenhouse gas emissions

Acidiying emissions

Revenues green taxes

% Change

Highest natural gas production since

In , the production o natural gas rom the Dutch gas ields amounted to billion standard

cubic metres (Sm) compared to billion Sm in . The last time the annual production onatural gas was this high was in . The increase is due to the cold winter and the large supply

in spring. At the same time, the export o gas increased by about percent compared to ,while imports remained more or less constant. At the end o , the remaining expected

reserves o natural gas in the Netherlands were estimated at billion Sm. Assuming thatthe net annual production remains constant at its level, Dutch natural gas will last about

another years. The value o the reserves o natural gas amounted to billion euro. This is adecrease o percent compared to when the reserves were estimated at billion euro.

The decrease in value is caused by the decrease in the expected reserves due to extraction andrevaluation due to lower prices or natural gas and oil.


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Tap water use intensity slightly increased in

The tap water use intensity decreased rom . litres in to . litres in (excludinghouseholds). Compared to , however, the intensity slightly increased in . The

contraction o the economy was not accompanied by a corresponding reduction o water use.The electricity industry more than tripled its use o tap water, due to the establishment o a

new plant or steam production in a combined heat and power plant. A disaggregation o waterabstraction by river basins showed that abstraction o surace water is largest in the Rhine-

West (sub-) river basin ( percent o total). In the Rhine-West river basin, electricity supply isresponsible or percent, while the second largest user, the chemical industry together with

reineries, uses percent.

Reduced water emissions in due to the economic crisis

The net discharge o heavy metals and nutrients to water by the Dutch economy decreasedin compared to . Emissions to surace water and sewer systems decreased as aresult o production cuts due to the economic crisis. In the environmental perormance o

the Dutch economy (including households) improved with regard to the emission o nutrientsto water, since the nutrient emissions to water decreased more than the economy shrank. But

with regard to the emission o heavy metals in the environmental perormance o theDutch economy got worse. Although emission o heavy metals by producers and other domestic

sources decreased, the economic decline exceeded the reduction in emission o heavy metalsto water. This interrupted the trend observed since . Households are responsible or this

tempered eect as they have a percent share in total emitted heavy metals and increasedtheir emissions o heavy metals by . percent.

Imports o energy carriers mainly rom European countries

The Netherlands have a physical trade deicit or energy carriers and their derived products. Atthe same time there is a monetary trade surplus indicating that the export value is higher than

the import value. The reason or this monetary surplus is that imports consist mainly o crudeoil while exports consist o more expensive oil products, like petrol, and domestically extracted

natural gas. Energy carriers are mainly imported rom European countries like Norway (naturalgas) and Russia (crude oil).

Environmental tax revenues back at level o

Revenues rom environmental taxes increased by . percent in , ater a decline in the yearbeore. In government received . billion euro rom environmental taxes was, which was

million euro more than in . More revenues came in rom the two main environmentaltaxes: motor vehicle tax and excise duty on petrol and other mineral oils. Motor vehicle tax

increased since government raised motor vehicle tax rates or cars depending on the type ocombustion engine. As part o the same transition plan or mobility, the Dutch government

urther lowered the tax rate on the purchase o motor vehicles (BPM). Despite the reducedrate, revenues rom the tax on passenger cars and motorcycles ell by only . percent. This

was due to higher sales igures or new motor vehicles. The proportion o environmental tax


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in total tax revenues remained stable at percent which means that the green tax reorm isstill stagnating.

Stagnation in Environmental Goods and Services Sector due to the inancial and economiccrisis

The economy o the Environmental Goods and Services Sector (EGSS) has come to a halt due

to the inancial crisis and the recession in . Value added in current prices decreased by. percent in compared to , as did production in current prices. Looking in more detail

at the EGSS it turns out that two activities were hit very hard. Firstly, value added o recyclingell sharply in . The recycling industry received less waste in than in , so it could

not recycle as much waste as in previous years. Secondly, the role o wholesale in waste andscrap as an intermediate between sellers and buyers came under pressure due to the diicult

market conditions. In the Dutch EGSS accounted or . percent o total GDP (value added

was . billion euro) and employed thousand FTE. The sustainable energy sector is part othe environmental goods and service sector, and consists o all companies and institutions thatphysically produce renewable energy (exploitation phase) as well as companies active in the

value chains that come beore it (pre-exploitation phase). The labour volume in the sustainableenergy sector is approximately thousand FTE while value added equals . billion euro.

Nearly quarter o a million employees depend on the North Sea economy

There is increasing recognition o the capacity o the environment to render services. Themarine system provides beneits or the Dutch economy. Statistics Netherlands has executed a

study commissioned by the Ministry o Inrastructure and Environment in order to analyse theuse o the marine environment o the Dutch Continental Shel (DCS) in terms o value added,

employment and other key economic indicators. This study is motivated by the EuropeanUnions Marine Strategy Framework Directive. The economic activities taking place on the

Dutch Continental Shel, in seaports and in the coastal zone, which are dependent on thepresence o the North Sea, including their spillover eect on rest the Dutch economy, employed

thousand employees (FTE) in . Value added reached billion and production billionin . The contribution to value added o the North Sea economy by selected industries and

their spillover eect equalled . percent in . The share o the relevant activities in totalemployment o the Netherlands in equalled . percent. On average the activities selected

are characterized by a below average labour intensity.

Decrease in gas reserves not compensated by wind energy

Production o wind power without government intervention results in losses or companies

producing wind energy, so the market-based value o wind is equal to zero in the Netherlands.So rom a narrow economic point o view, these economic agents produce goods and services

that generate losses instead o proits. These agents nevertheless produce wind energy thanksto implicit subsidy schemes or renewable energy production. When we do take subsidies into

account, there results a positive value o wind rom onwards. This socially-based valueo wind relects the beneits related to renewable energy production or both the renewable

energy producer and society as a whole. In the socially-based value o wind was estimated


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at around billion euro. This is still very low in comparison to the Dutch natural gas resources.Figures on ossil and non-ossil reserves in physical terms show that the increase in wind stock

cannot compensate or the decrease in oil and gas reserves.

The electricity and gas supply industry receives most environmental transers

Environmental subsidies are an important economic instrument or achieving national

environmental policies. A recent study by Statistics Netherlands presents the experimentalresults o the size and beneiciaries o environmental subsidies and transers granted by the

Dutch Government. The applied methodology combines an analysis o annual budget data othe relevant ministries and main subsidy agencies, with micro data o actual payments. This

allows urther disaggregation o the results according to beneiciaries, as a result to industryand to environmental domain. We also compile data on implicit environmental subsidies such

as tax exemptions or green investments. It is ound that environmental transers expressed as

percentage o total central government expenditure remained more or less constant between and at . percent. They increased rom to , million euro. The electricity andgas supply industry receives most environmental transers. This is mainly due to the MEP/SDE

and other schemes to acilitate a transition towards more sustainable energy production. Thesecond largest beneiciary is agriculture, orestry and isheries. Total environmental transers

that are environmentally motivated appear to be much smaller than a recent estimate o therange o environmental damaging subsidies by PBL ().


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Environmental accounts, key igures1)

Unit 1990 1995 2000 2005 2008 2009* 2010*

Economy

Domestic product (gross, market prices, price level 2005) million euro 352,065 394,332 480,825 513,407 561,597 541,735 550,888Final consumption expenditure households (price level 2005) 2) million euro 174,629 190,608 235,168 245,996 252,358 245,782 246,749

Investments in ixed assets (gross, price level 2005) million euro 67,050 73,446 100,979 97,016 114,962 103,231 98,714Population x 1,000 14,893 15,424 15,864 16,306 16,405 16,486 16,575

Labour input o employed persons x 1,000 fte 5,536 5,774 6,534 6,478 6,832 6,760 6,725

Environmentally adjusted aggregates

Adjusted national income or depletion o mineral resreves (net) % 1.0 0.8 0.8 1.2 2.2 1.1 1.2

Energy

Net domestic energy use petajoules 2,935 3,231 3,389 3,630 3,593 3,500 3,723

Energy intensity GJ / euro 8.3 8.2 7.0 7.1 6.4 6.5 6.8Extraction natural gas billion Sm3 72 78 68 73 80 74 86

Mineral reserves gas 3) billion Sm3 2,113 1,952 1,777 1,510 1,364 1,390 1,304Valuation mineral reserves gas 3) million euro 69,236 60,742 64,444 99,846 166,749 161,182 151,953

Water

Groundwater extraction million m3 . . . 1,021 1,000 1,037 .Tapwater use million m3 1,166 1,171 1,127 1,087 1,093 1,093 1,089Tapwater use intensity litre / euro 3.3 3.0 2.3 2.1 1.9 2.0 2.0

Heavy metals to water 4) 1,000 eq. 149 111 83 53 47 46 .Nutrients to water 4) 1,000 eq. 26,813 14,803 10,647 7,824 6,877 6,267 .

MaterialsMaterial consumption biomass million kg . . 49,574 47,209 49,697 . .

Material consumpton metals million kg . . 7,766 5,426 9,980 . .Solid waste production million kg 52,450 53,983 64,013 61,213 64,474 . .

Landilled waste million kg 14,982 9,209 4,907 2,137 2,147 . .

Greenhouse gas emissions and air pollution

Greenhouse gas emissions and air pollution million CO2-eq. 230,376 246,662 242,332 242,340 238,350 233,392 245,836Greenhousegas emission intensity CO2 eq / 654 626 504 472 424 431 446

1,000 euroAcidiying emissions million ac-eq. 45 33 29 26 23 22 22

Fine dust emissions million kg 77 60 51 45 41 39 39

Policy instruments and economic opportunities

Environmental taxes and ees million euro 5,824 9,249 13,973 17,270 19,757 19,285 19,877Share Environmental taxes and ees in total taxes % 9.4 13.1 14.1 13.9 13.8 14.0 13.9

Environmental costs million euro 3,864 6,601 9,116 10,105 . . .Labour input environmental goods and services sector x 1,000 fte . 100 118 127 134 137 .

Value added environmental goods and services sector (basic prices) million euro . 6,613 9,233 10,772 13,512 13,249 .

1) Intensities in this table are based upon use/ emissions o both households and industries.2) Excluding non-proit institutions.3) Balance as o 31st o December.4) Net approach.


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Recent environmentaleconomicdevelopments


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Introduction


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Introduction

1.1Environmental accounting

The System o integrated Environmental and Economic Accounting (SEEA)

Environment statistics and environmental accounts

SEEA building blocks

1.2The Dutch environmental accounts

This publication

Future work


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1.1 Environmental accounting

The economy and the environment are closely interconnected. First, the economy depends on

the environment as a source o all kinds o raw materials, such as energy, biological and mineralresources that are essential inputs into economic production processes. Non-renewable

resources, such as crude oil and natural gas, are becoming increasingly scarce, which mayhave signiicant economic consequences. Renewable resources, such as wood and ish, are

oten exploited in a non-sustainable way which may have detrimental eects on ecosystemsand hamper uture production possibilities. Secondly, economic activities also depend on

the environment as a sink or their residuals in the orm o waste, and emissions to air andwater. Pollution contributes to several environmental problems, such as climate change,

acidiication, local air pollution, and water pollution which may give rise to public health

concerns. A consistent statistical description o the interactions between the economy andthe environment is thereore important to determine the sustainability o our society. For thispurpose the System o Environmental and Economic Accounting (SEEA) has been developed.

1.1.1 Economy and the impact on the environment

Foreign environment

Foreign economies

Dutch environment

Dutch economy

Production Consumptionproductsservices

Emissions towater, air andsoil, waste andwaste water

Imports Exportstransboundary

pollution

Physical input Physical output

Raw materials


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The System o integrated Environmental and Economic Accounting (SEEA)

The System o integrated Environmental and Economic Accounting (SEEA) is an internationalstatistical system that brings together economic and environmental inormation in a common

ramework to measure the contribution o the environment to the economy and the impacto the economy on the environment (UN et al., ; reerred to as SEEA ). Environmental

accounts are satellite accounts to the System o National Accounts (SNA; UN et al, ;reerred to as SNA). Satellite accounts are extensions to the National Accounts that allow

or conceptual variations in order to acilitate the analysis o the wider impact o economicchange. Environmental accounts use similar concepts (such as residence) and classiications

(e.g. or economic activities and products) to those employed in the SNA but at the same timeenlarge the asset boundary to include also non-SNA assets, such as ecosystems, in recognition

o the services they provide that oten lie outside the market mechanism. They also introduceadditional classiications (e.g. or residuals) and deinitions (e.g. environmental subsidies).

By using common concepts, deinitions and classiications, the SEEA provides a transparentinormation system or strategic planning and policy analysis which can be used to identiymore sustainable paths o development. Because the environmental accounts are integrated

with concepts rom the national accounts, developments in the ield o the environmentand macro-economic developments can be directly compared. Key indicators can be derived

rom the environmental accounts that provide insight into sustainability with respect tothe development o the environment and the economy. The integrated nature o the system

makes it possible to quantiy and analyse the underlying causes o changes in environmentalindicators.

The SEEA is currently being revised and is scheduled to be released in . The revised SEEA

will be the statistical standard or environmental-economic accounting in the same way asthe System o National Accounts is the statistical standard or economic accounts. It will

provide an internationally agreed set o recommendations expressed in terms o concepts,deinitions, classiications, accounting rules and standard tables in order to obtain international

comparability o environmental-economic accounts and related statistics.

Environment statistics and environmental accounts

One o the main dierences between environmental statistics and environmental accounts

is that environmental accounts ollow the residence concept that underlies the SNA. Aninstitutional unit is said to be resident within the economic territory o a country i it maintains

a centre o predominant economic interest in that territory ( SNA). GDP is an aggregatemeasure o production by all resident units. However, some o this production may occur

abroad and as a result GDP diers rom the sum o all production that takes place within thegeographic boundaries o the national economy. Likewise, the environmental accounts record,

or instance, air emissions as a result o activities o residents which dier rom the emissionsoccurring on Dutch territory normally recorded in environment statistics. Dierences thereore

primarily arise as a result o international transport and tourism. One o the tasks o theenvironmental accounts is to integrate source statistics based on territory principles, such as

energy statistics, into residence-based accounts. At the same time bridging tables are compiledthat link environment statistics to the environmental accounts.


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SEEA building blocks

The SEEA comprises our categories o accounts:

. Physical flow accountsPhysical low accounts show the origin and destination o materials in the economy and/or

the environment, in a similar way to the supply and use tables o the National Accounts. Theytake into account three types o material lows: natural inputs, products and residuals. Natural

resources, such as crude oil, iron ore or wood, are the required inputs or economic productionprocesses and thus low rom the environment to the economy. Products are materials that are

produced or purchased within the economy; or example, energy products, ood products andchemical products. Residual lows are materials that low rom the economy to the environment.

These include emissions to air (carbon dioxide, sulphur oxides, ine dust), emissions to water(heavy metals, nutrients), emissions to soil (nutrients, etc.) and the production o waste and

wastewater. Physical low accounts make it possible to monitor the pressures the national

economy exerts on the environment, in terms o both inputs o natural resources and outputso residuals.

. Asset accountsAsset accounts describe the natural resources that are important or the economy. They show

the opening and closing stocks and the changes that occur within the accounting period.These assets are accounted or in both physical and monetary terms. Examples are the asset

accounts or natural gas and crude oil (subsoil accounts) or renewable resources, such as ishand timber stocks. Asset accounts make it possible to assess whether these natural assets are

being depleted or degraded, or are being used in a sustainable way.

. Economic accounts for environmental transactionsIn these accounts, all sorts o monetary transactions with an environmental aspect are

identiied separately rom within the National Accounts. Examples are environmental taxes,environmental subsidies and the emission trading system. They also include accounts or

environmental protection and resource management that provide or the identiication andmeasurement o societys response to environmental concerns. In addition, the environmental

goods and services sector consists o a separate grouping o all economic activities with theintent o relieving pressure on the environment. With the aid o economic accounts we can

monitor the eectiveness and costs o environmental and climate policies as well as determinehow important the environmental sector has become in terms o employment and output.

4. Accounts for extended SNA aggregates

The ourth category covers the valuation techniques or measuring environmental depletiono natural resources, as well as degradation o natural assets. These accounts urther address

ways to adjust standard National Accounts aggregates (net income, net savings) or depletionand degradation.


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1.2 The Dutch environmental

accountsStatistics Netherlands has a long history in environmental accounting (de Haan, ;Schenau et al., ). The bureau irst presented an illustrative NAMEA (National accounting

matrix including environmental accounts) in . The original design contained a completesystem o national low accounts, including a ull set o income distribution and use accounts,

accumulation accounts and changes in balance sheet accounts. Statistics Netherlands hasgradually extended the Dutch system o environmental accounts. Initially, accounts were

developed or air emissions, water emissions, waste, energy and water. Recently, new accounts

have been added on material lows, the environmental goods and service sector, and emissionpermits.

The Dutch environmental accounts are compiled ollowing the general concepts, deinitionsand classiications as described in SEEA and the SNA. More speciic inormation

on the methodology can be ound on Statistics Netherlands website (www.cbs.nl). For somesubjects speciic methodological reports are available. The data o the Dutch environmental

accounts are published in StatLine, the electronic database o Statistics Netherlands(http://statline.cbs.nl/StatWeb/dome/?LA=NL). Data by industry are classiied according to

NACE rev., unless indicated otherwise.

This publication

The environmental accounts of the Netherlands consists o two parts. Part one provides a

general overview o the most recent developments in the area o environment and economyby presenting all accounts or which Statistics Netherlands currently produces data. These are

clustered in the ollowing chapters:

Energy

Energy consumption

Oil and natural gas reserves

Water

Water abstraction and use Emissions to water

Regional water accounts

Materials

Material lows

Greenhouse gas emissions and air pollution

Greenhouse gas emissions according to dierent rameworks

Greenhouse gas emissions rom production

Quarterly CO emissions

Local and transboundary air pollution


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Policy instruments and economic opportunities

Environmental taxes and ees

CO emission permits

Environmental protection expenditure

Economic opportunities o the environmental goods and services sector

Part two presents three studies that provide more in-depth analyses or speciic subjects. Inthe irst study the direct and indirect economic activities that are related to the North Sea are

quantiied in terms o employment, production and value added. The inormation rom thisstudy is used in the evaluation o the European Unions Marine Strategy Framework Directive.

The second article examines the methodology to valuate renewable energy resources andprovides a comprehensive overview into the economy behind wind energy production. It shows

that wind energy production is not yet proitable without government support schemes. Thethird article presents experimental results on the size and beneiciaries o environmental

subsidies and transers granted by the Dutch Government. It is ound that environmental

transers expressed as percentage o total central government expenditure remain more orless constant between and .

Future work

The Dutch environmental accounts are still being developed. New projects will be initiated in

the coming years to expand and improve the system. Among other things, projects are underway to urther improve and extend existing parts o the accounts, or instance by compiling

a longer time series or greenhouse gases as well as asset accounts or renewable resourcessuch as water. Other envisaged additions are adaptation expenditure and resource use and

management. Lastly, the data rom the environmental accounts will be used to conductdetailed environmental-economic analyses. Future publications will report on the results o

these projects.


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Energy


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Energy

2.1Energy consumption

Record high energy use in

Signiicant increase in net energy use since

Energy intensity increases in

Energy dependency decreasing

Energy use per capita stable

2.2Oil and natural gas reserves

Production o natural gas highest since

Exploration potential airly constant

Depletion o oil and gas reserves reduces net national income by . percent


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2.1 Energy consumption

Energy is essential to all economies, both as input or production processes and as a consumer

commodity. There are two main channels through which energy enters the economy. Theirst is by extraction o ossil and nuclear energy resources rom the stocks deposited in the

environment or through the capture o energy rom renewable resources. The second isby imports o energy products. Use o ossil uels is directly related to the depletion o non-

renewable energy resources like crude oil and natural gas. Consumption o ossil uel energy oreconomic activities also has negative impacts on the environment. Combustion o oil products,

natural gas and coal causes emissions o the greenhouse gas CO and many other pollutants.Improvement o energy eiciency and decoupling energy consumption rom economic growth

are important goals or green growth. The energy accounts provide an overview o energy

production and consumption by dierent industries and by households. The data are ullyconsistent with the concepts o the National Accounts. The energy accounts can be used todetermine how energy use by economic activities changes over time, which industries are most

energy intensive, how eiciently energy is used in production processes and how dependentthe economy is on energy imports.)

The methodology o the energy accounts is described in the report The Dutch energy accounts

(Schenau, ). The data o the energy accounts can be ound in StatLine, the online databaseo Statistics Netherlands.

Record high energy use in

Energy use by Dutch economic activities has never been as high as in . Overall, net energyuse increased by . percent on . This means that economic growth increased ar less

(. percent) than energy consumption. Particularly the use o natural gas increased, while theuse o other energy products increased only slightly (oil products, coal and coal products). There

are two main reasons or the increase in energy consumption: the economic recovery and thelow average temperatures during the winter months.

Ater the economic downturn in , value added in manuacturing increased by . percent

in . Due to the economic recovery more energy was used or production processes inalmost all industries. The chemical industry, the largest energy user in manuacturing, used

percent more energy as a result o the increase in demand or Dutch chemical products. Thebasic metal industry recovered rom the low production levels o the recession, but energy use

levels are still below the pre recession level. The oil industry used more energy, as the level oproduction also increased.

Domestic electricity use did not increase in . However, energy companies still increased

their production o electricity as exports increased by percent. They used more natural gas

1) In this chapter energy use is equal to all net energy use, which is defined as final energy use for energetic and non- energetic purposes by residents plustransformation losses by residents.


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and biomass, but less coal. Construction did not show a recovery yet in . The volume oconstruction output ell by more than percent, as the construction o both buildings and

civil engineering decreased. This resulted in a lower use o energy products or constructionactivities, such as bitumen, and uel or mobile equipment. The transport sector shows a mixed

picture. More goods were transported by road, increasing uel consumption by . percent.Inland water transport also transported more goods, resulting in a higher use o gasoline.

Dutch sea transport, by contrast, showed a production decrease. This is mainly explained byoreign takeovers, which decreased the consumption o diesel and uel oil by Dutch residents.

In aviation, inally, uel use increased. Despite inancial setbacks such as the closure o airspaceover Europe during ive days, there was more air traic in than in .

The months January, February, November and December o were much colder than

in . The wintry cold was comparable with the slightly colder year . As a result morenatural gas was consumed to heat homes and oices. In agriculture energy use increased with

percent while production levels remained more or less the same as in the previous year. In

horticulture, more natural gas was needed to heat the greenhouses due to the cold weather.Also, the energy use increased sharply in the service sector with limited increase in value added.Without the cold weather conditions, total energy use would not have increased by percent,

but by percent.

2.1.1 Change in value added and net energy use, 20092010

20 15 10 5 0 5 10 15

Agriculture and fsheries

Oil industry

Chemical industry

Other manuactering

Electricity, gas and water supply

Waste management

Construction

Transport

Services

Households

Total economy

% changeValue addedNet energy use

Signiicant increase in net energy use since

The net energy use o the Dutch economy has increased by percent since . Energy

use increased in particular by the aviation sector, chemical sector, reineries and electricityproducers. The largest increase was in air transport, where the use o jet uel doubled. In ishery

and textile manuacturing energy use has decreased as the economic signiicance o thesesectors has declined.


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Energy intensity increases in

Energy intensity, deined as energy use per unit o value added (ixed price level), is an indicatoror the energy eiciency o the economy or dierent industries. A decrease in energy intensity

can be caused by more eicient energy use in production processes, or example by energyconservation, or by systematic changes in the economy. Variation in temperature also eects

the year-on-year changes o the energy intensity, particularly or the service industries andagriculture. Figure .. shows the igures corrected or this eect. Since the energy

intensity o the Dutch economy has decreased by percent. Agriculture and manuacturingparticularly contributed to this improvement. The energy intensity in the transport and services

sectors did not decrease signiicantly in this period. In , the energy intensity o the economyas a whole increased by . percent on the previous year. This increase was mainly caused by

the manuacturing industry.

2.1.2 Energy intensity o industries and the economy

Index (1990 = 100)120

110

100

90

80

70

60

50

1990 1995 2000 2005 2010

Agriculture and fsheries Manuacturing TransportServices Dutch economy

Energy dependency decreasing

Energy sources such as oil, coal or natural gas can be either extracted rom a countrys ownterritory or imported rom other countries. I a large amount o these resources has to be

imported, a national economy will become dependent on other countries. Energy dependencycan be calculated as the share o net domestic energy consumption originating rom imported

energy products. In the energy dependency o the total Dutch economy was percent).This means that more than hal o net energy consumption originates rom outside the

Netherlands, while the remainder was extracted within its own borders. The Netherlandshas substantial stocks o recoverable natural gas beneath the surace. Since its discovery in

2) In the calculation of the energy dependency it is assumed that the imported energy cannot be substituted by energy extracted from the nationalterritory. If complete substitution is assumed, the energy dependency would be lower. For example, the Netherlands extract more natural gas than isneeded for domestic use. If this surplus gas could be substituted for crude oil or oil products (which have to be imported), the energy dependency wouldbe around 25 percent.


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the s and s, natural gas has been extracted or the beneit o the Dutch economy.Accordingly, the Netherlands is sel-supporting with respect to natural gas. For oil and coal,

however, the situation is quite the opposite. The ew oilields on Dutch territory do not supplyenough crude oil to meet the large domestic and oreign demand or Dutch oil products. Since

the closure o the coal mines in the province o Limburg, all coal has been imported.

More than half of the energy we

consume comes from abroad

2.1.3 Energy dependency o the Dutch economy

%61

59

57

55

53

51

49

47

0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Between and the Dutch economy became increasingly dependent on imported

sources o energy. The share o imported energy rose rom percent in to percentin . The increase in dependency was mainly caused by the growing demand or oil products.

In the s the growing demand or crude oil products was compensated by the increasinguse o natural gas supplied by domestic sources, or the production o electricity. The domestic

demand or natural gas has remained stable since . As a side eect o the inancial crisis,energy dependency decreased between and as the domestic demand or gas

increased in relative terms, while the domestic demand or oil products decreased. saw aurther decrease o the energy dependence. This is mainly due to the increased use o natural

gas or heating as a result o the lower temperatures during the winter months.


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Energy use per capita stable

In households used PJ o energy, which is percent o the total energy use by economicactivities. This energy use mainly consists o the use o natural gas ( percent) or heating,

cooking and hot water production, electricity ( percent) or all kind o electric equipment, andmotor uels ( percent) or driving cars and other motor vehicles. Energy use o households

increased by percent on . This is mainly the result o the increased use o natural gas orheating purposes. Fuel consumption or driving cars remained stable.

Since the energy use o households has increased by percent). On a per capita basis

energy use remained more or less the same, indicating that the overall energy use per personhas not increased. The use o natural gas per capita decreased by percent. All kinds o energy

saving measures, such as isolation o houses and the application o high eiciency boilers,have signiicantly reduced the relative energy use or heating houses. The use o electricity

per capita increased by percent, which is related to the more intensive use o all kind o

electric equipment. Also, the use o motor uels per capita has gone up by percent due to theincreased mobility in this period. Energy use can also be compared with household consumptionexpenditure (in constant prices). Here we see a gradual decrease since .

2.1.4 Changes in the energy use by households

Index (1990=100)

120

110

100

90

80

70

60

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

energy use/euro energy use/capita

3) Corrected for average annual temperature variations.


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2.2 Oil and natural gas reserves

The Netherlands has signiicant quantities o natural gas as well as some smaller oil deposits.

Since the discovery o these natural reserves in the nineteen ities and sixties they have beenexploited or the Dutch economy. The extraction o natural gas makes a signiicant contribution

to the Dutch treasury and to economic growth. The revenues rom oil and gas extraction inrecent years contributed on average about percent to the total government revenue. These

resources are not inexhaustible however. Although new reserves are discovered occasionally,more than two thirds o the initial gas reserves has been extracted already, as ar as current

knowledge goes. This chapter addresses the physical and monetary aspects o oil and naturalgas reserves. The methodology or the valuation and compilation o stock accounts or the oil

and natural gas reserves is described in the report Valuation o oil and gas reserves in the

Netherlands (Veldhuizen et al., ). The physical data o the oil and naturalgas reserves can be ound in the annual reports Oil and gas in the Netherlands / Naturalresources and geothermal energy in the Netherlands (), (TNO / Ministry o Economic

Aairs, ; TNO/EL&I ).

Production o natural gas highest since

In , the production o natural gas) rom the Dutch gas ields amounted to billion Sm

compared to billion Sm in . The last time the annual production o natural gas wasthis high was in . The increase is due to the cold winter and the large supply in spring. For

instance, in January the production rom the Groningen ield reached its highest valuesince . At the same time, the export o gas increased by about percent compared to ,

while imports remained more or less constant.

2.2.1 Physical balance sheet o natural gas

1990 1995 2000 2005 2006 2007 2008 2009 2010

billion Sm3

Opening stock 1,865 1,997 1,836 1,572 1,510 1,439 1,390 1,364 1,390

Reappraisal 248 45 59 62 71 49 26 26 86New discoveries 33 15 25 15 9 5 3 3 5

Re-evaluation o discovered resources 287 18 17 46 9 14 52 95 5Gross Extraction 72 78 68 73 71 68 80 74 86Underground storage 1 0 0 1 1 0 2

Other adjustments 0 0 0 42 0 2 2 1 2

Closing stock 2,113 1,952 1,777 1,510 1,439 1,390 1,364 1,390 1,304

Source: TNO / Ministry o Economic Aairs (1988-2010); TNO/EL&I (2011)

1) In 1997 natural has been injected in one o the underground storage acilities or the irst time.

4) The production equals the gross extraction at the expense of the reserve, which excludes the use of natural gas from underground storage facilities, asthese are considered inventories that have been produced already.


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At the end o , the remaining expected reserves o natural gas in the Netherlands wereestimated at billion standard cubic metres (Sm).) This corresponds to , PJ. The

Dutch economy used , PJ o net energy in , part o which was imported. Assuming thatthe net annual production remains constant at its level, Dutch natural gas will last about

another years.

Exploration potential airly constant

The expected reserves consist o the remaining amount o gas or oil based on geological

surveys which is supposed to be extractable with existing technology. The expected reservecorresponds to a so-called best estimate, which includes the proven plus probable reserves, as

well as inventories.) The expected reserves, however, exclude so-called uture reserves. Theseconsist o ields that have not been conirmed by actual drilling, but may potentially yield

reserves based on geological considerations. As Figure .. shows, the exploration potential)

has remained airly constant in recent years with an average (o the minimum and maximumrange) o billion standard cubic metres (Sm) as o January . This amounts to anadditional percent compared to the expected reserves.

2.2.2 Exploration potential o natural gas

billion Sm3

600

500

400

300

200

100

02004 2005 2006 2007 2008 2009 2010 2011

Maximum

Source: TNO / Ministry o Economic Afairs (1988-2010); TNO/EL&I (2011).

Minimum Exploration potential (average)

5) The standard cubic meter (Sm) indicates a cubic metre of natural gas or oil under standard conditions corresponding with a temperature of 15 C anda pressure of 101.325 kPa.

6) The best estimate is obtained from the probability distributions from individual fields which are probabilistically summed.7) The exploration potential is defined as a subset of the prospect portfolio that satisfies certain minimum conditions.


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Production o oil declining

The expected oil reserves were estimated at . million Sm at the end o , which is areduction o . percent compared to . This is caused by the production o . million

Sm o oil, but more importantly due to a revaluation o . million Sm. The production o oildeclined by percent on , although the production rom land showed an increase o

. percent. The latter is due to the irst production rom the Beijerland-Noord ield.

2.2.3 Dutch Reserves o oil

milion Sm3 Oil80

70

60

50

40

30

20

10

0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Remainder o expected reserve o oil on 1 January

Value o gas reserves decreased by percent

On January , the value o the reserves o natural gas) amounted to billion euro. This isa decrease o percent compared to when the reserves were estimated at billion euro.

The decrease in value is caused by the decrease in the expected reserves due to extraction andrevaluation due to lower prices or natural gas and oil.

8) In the absence of market prices, the value of oil and gas reserves has been derived with the net present value methodology (Veldhuizen et al., 2009;CBS, 2007 & 2009) in which assets are valued as discounted streams of expected resource rent which is calculated using the operating surplus of theoil and gas industry. Main assumptions used in the calculation are that the unit resource rent is calculated as the average of the past three years, andfor the future is supposed to increase according to the existing inflation rate. Furthermore, a constant decline in the extraction rate has been applieduntil the point of exhaustion.


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Value remaining gas reserves

billion euro

2.2.4 Natural gas reserves in physical and monetary units

billion Euro2,500

2,000

1,500

1,000

500

0

200

160

120

80

40

0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Opening stock values o gas reserves (let axis) Remainder o expected reserve o natural gas on 1 January (right axis)

billion Sm3

Around percent o the rents earned with the extraction o oil and gas reserves areappropriated by the government through ees and royalties. The remainder lows to the oil

and gas industry. In government revenues rom oil and gas amounted billion euro.This implies a percent contribution to general government revenues. Over the last twenty

years, the beneits arising rom oil and gas extraction, contributed on average percent to totalrevenue o the Dutch Government. The share in revenues increased rom . percent in to

. percent in with a peak o . percent in .


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2.2.5 Share o oil and gas revenues in governments revenues

%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009* 2010*

6

5

4

3

2

1

0

Depletion o oil and gas reserves reduces net national income by . percent

The total value generated by the exploitation o the oil and natural gas reserves is regarded

as income in the national accounts. The System o National Accounts (SNA) does in actrecord the depletion o natural resources in the balance sheets but not in the production or

income generation accounts. From a perspective o sustainability, it is not correct to regard thecomplete receipts rom exploitation o oil and natural gas reserves as income. The extraction

hampers uture opportunities or production and income. So the depletion costs should beproperly oset against income, just as the depreciation o produced assets is treated via the

consumption o ixed capital). This would constitute equal treatment o natural and producedcapital used in production.

In SEEA balancing items o the current accounts, such as net income and savings, are adjusted

or depletion in addition to consumption o ixed capital. The depletion o the Dutch oiland natural gas reserves causes a downward adjustment to net national income in

o . percent. This is a slight increase compared to when the correction was close to. percent. The combination o a lower return to capital in due to the decrease in value o

the mineral reserves, and a higher value o extraction, caused the absolute value o depletionto increase by almost percent compared to .

9) The depletion is calculated as the value of the extraction less the return to natural capital.


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Water


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Water

3.1Water use

Abstraction o ground and surace water by the Dutch economy increased in

Household use o tap water per capita continues to decline

Tap water use by industries stable

Water in livestock production predominantly used or drinking purposes

Tap water use intensity slightly increased

Regional water use

Fresh water abstraction concentrated in Rhine West and Meuse

3.2Emissions to water

Reduced water emissions in due to economic downturn, but interruption oenvironmental perormance by Dutch economy or heavy metals

Reduction o phosphorus and nitrogen emissions by sewage and reuse disposal services andthe ood industry

Households and manuacture o chemicals and chemical products increased copperemissions

Manuacturing succeeded in improving emission intensity

3.3Regional water accounts

A lot o emissions to water in the Rhine West river basin

Low emission intensity in Rhine West and Meuse


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3.1 Water use

Water plays a key role in the Dutch economy. Water is abstracted rom the environment and

can be used as a direct input in production processes, or instance or cooling purposes. Thewater supply industry abstracts a large amount o water to produce tap water o drinking

water quality that is subsequently used by industries and households. Depending on itssource, water can be distinguished into surace water, groundwater, supplied tap water and

supplied other kinds o water). Given the importance o water or society, policies are in placeto reduce water pollution and protect ground and surace water bodies. The water accounts

provide inormation on water abstraction, water supply and use by dierent industries andhouseholds. Integrating water data with economic inormation makes it possible to monitor

water conservation policies.

The methodology or compiling the water accounts is described in the report Dutch waterflow accounts (Graveland, ). The data o the water accounts can be ound on StatLine, the

electronic database o Statistics Netherlands.

Abstraction o ground and surace water by the Dutch economy increased in

The total abstraction o groundwater by the Dutch economy in amounted to million

m, which is an increase o percent compared to . This is primarily caused by theincreased demand rom agriculture due to dry conditions in spring and summer and the need

or extra irrigation as a result. Abstraction rom surace water amounted to . billion m

in , an increase o percent compared to . This is to a large extent caused by an

increase in demand by the electricity supply companies. Also the chemical industry showedan increase o percent in surace water use, returning to a level o abstraction similar to the

period .

Household use o tap water per capita continues to decline

In around . percent o the water abstracted rom ground and surace water was turned

into tap water as supplied by the water supply industry. Total tap water use in amountedto . billion m. Households account or nearly two thirds ( percent) o overall tap water

use in the Netherlands). Since , the total annual amount o water used by householdsincreased by only a hal percent, despite population growth. Through eiciency measures such

as water saving toilets and shower heads as well as new and improved household appliancessuch as dishwashers and washing machines, household water use per capita has been reduced

rom . m in to . m in . This is a decrease o percent in twenty years.

1) Other water is water of different, superior or inferior quality compared to tap water. One can think of unfiltered and filtered water, or distilled anddemineralised water. This water is produced by water companies and delivered to other companies particularly in the chemical industry. This categoryof other water on average compares to 67 percent of the total use of tap water (VEWIN, 2011B). The delivery of other water by the water companiesis excluded from tap water.

2) Due to a break in the data in 2007, as a result of a shift from business use to residential use, the figures provided here for households and industriesdiffer slightly from the VEWIN figures. (See VEWIN water statistics 2007, 2008, 2010, and 2011A).


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Daily tap water use per household has dropped by percent rom litres in to litresin , which equals m per year. This drop can be explained by the strong increase in the

number o households. This is due to the smaller size o the average household, partly due tothe increased number o one-person households. In years with hot and dry summers, as was

the case in and , water use is usually a ew percent above average as more water isused or showering and watering the gardens.

3.1.1 Development o tap water use by households, size o population and number o households

Index (1990=100)

Source: VEWIN, 2010; 2011A, 2011B; Statistics Netherlands 2011.

125

120

115

110

105

100

95

90

85

1990 1995 2000 2005 2010

Tapwateruse households Population Number o householdsWater use per capita

Tap water use by industries stable

Industries have progressively used less tap water since , but rom onwards the water

use is more or less stable. In tap water use by businesses decreased by . percent. Thechemical industry, ood and beverage manuacturers and agriculture are extensive users o

tap water. In addition, oil-reineries, and the health and social welare sectors use signiicantamounts as well.


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3.1.2 Volume change GDP, employment and tap water used or production

index (1990=100)

Source: VEWIN, 2010; 2011A; 2011B; Statistics Netherlands 2011.

1990 1995 2000 2005 2010

Tap water use by industry GDPEmployment

160

150

140

130

120

110

100

90

80

70

Water in livestock production predominantly used or drinking purposes

Agriculture and horticulture have an average percent share in the total amount o tap water

used in the Netherlands, which shows a slight downward trend. However, there is an evidentialinluence o the weather in warm and dry years, when use is generally higher. A major category

o tap water use in agriculture is drinking by cattle and other livestock. As igure .. shows,this covers on average over percent o the tap water used in livestock production. One o the

main causes o the reduction in tap water use is thereore the smaller herd. In , percentless tap water was required or drinking by cattle compared with . Switching rom tap

water to ground water and/or surace water or drinking by livestock oers an opportunity tourther reduce tap water use in livestock production. On the other hand, the constant quality

o tap water is valuable or livestock.


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3.1.3 Water used in livestock production

million m3

2001 2002 2003 2004 2005 2006 2007 2008 2009

Ground- and surace water to water livestock Ground- and surace water or other purposes

Tap water or l ivestock drinking Tap water or other purposes

120

100

80

60

40

20

0

Besides tap water, livestock also drink ground and surace water. In the livestock sector close to

two-thirds o ground- and surace water abstracted was used or drinking in the period to (Meer, van der R, and H. van der Veen (); LEI, ; Veen, van der, et al. ). The

remaining use o ground and surace water is mainly or irrigation o crops such as (green)maize and pastures. In agriculture in general, groundwater is mainly used or irrigation and or

watering livestock. In agriculture had an percent share in total groundwater abstraction.Crops in the Netherlands are predominantly grown under rain-ed conditions.

Tap water use intensity slightly increased

Water use intensity or an industry can be deined as the use o water in litres divided by itsvalue added.) Figure .. shows the water use intensities o tap water or selected industries

or the years and . On average, nearly one litre o tap water is used or every euroo value added generated by the Dutch economy. This water use intensity decreased rom

. litres in to . litres in . Compared to , however, the intensity slightlyincreased. The contraction o the economy was not accompanied by a corresponding reduction

o water use.

The manuacturing o basic metals has the highest water use intensity rate or tap water,ollowed by the manuacturing o petroleum products, cokes, and nuclear uel, other mining,

and livestock. The industries with the highest use intensity rates use to times more waterto earn a euro than the average level or the Dutch economy. As depicted in Figure .. the

water use intensity or tap water in was less than in or most sectors, with theexception o the electricity sector and other mining industry. The electricity sector more than

tripled its use o tap water. This can be explained by the establishment o a new plant or steam

3) Value added is expressed in constant year 2000 prices.


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production in a combined heat and power (CHP) plant. This plant generates both electricity andsteam, and or the latter it makes use o tap water. The steam is produced or external parties.

3.1.4 Industries with the highest use intensities or tap water

0 2 4 6 8 10 12 14 16 18 20

Total o Dutch economy

Manuacture o basic metals

Manuacture o petroleum products;cokes, and nuclear uel

Other mining

Livestock

Sewage and reuse disposal services

Manuacture o ood products,beverages and tobacco

Manuacture o basic pharmaceuticalproducts and pharmaceutical preparations

Manuacture o basic chemicals,chemical products, and man-made fbres

Other agriculture

Manuacture o rubberand plastics products

Electricity, gas, steam andair conditioning supply

Horticulture

Manuacture o paperand paper products

Manuacture o othernon-metallic mineral products

Arable arming

litre / euro value added

20092003

The largest reductions were achieved by horticulture ( percent), and the pharmaceutical

industry ( percent). Tap water-intensive industries, like the manuacture o basic metals( percent), manuacture o petroleum products ( percent), and livestock ( percent) also

showed signiicant reductions in tap water use intensity rates.

Regional water use

There is increasing interest in obtaining regional data on water use and abstraction, in

particular according to river basins). Such data is relevant or analysis or and reporting to theWater Framework Directive. The methodology or compiling regional water abstraction and

use is described in a special report or Eurostat Water abstraction and use at River Basin Level(Baas and Graveland, ). It should be noted that the data presented in this section reer to

and have not been disaggregated to NACE rev.

4) The Netherlands is divided into 4 river basins: Ems, Meuse, Scheldt and Rhine. The Rhine basin is divided into 4 sub-basins: Rhine West, Rhine North,Rhine Centre and Rhine-East.


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Fresh water abstraction concentrated in Rhine West and Meuse

Table .. demonstrates that abstraction o surace water is largest in the Rhine-West (sub-)river basin, which is responsible or percent o total abstraction. The second largest user is

the Meuse area with percent. Most power plants are located in these (sub-) river basins, aswell as major industries. In the Rhine-West, electricity supply is responsible or percent, while

the second largest user, chemical industry together with reineries, uses percent. Besidesthe amounts presented in table .., it must be mentioned that in regions like Rhine-West,

Scheldt and Ems also signiicant amounts o (salt) marine water are used by power plants andby major industrial sites.

Rhine-West river basin

responsible for almost half of

total water abstraction

3.1.5 Abstraction o resh surace water per (sub-)River Basin, 2008

Total NL Ems Rhine-North Rhine-East Rhine-Central Rhine West Meuse Scheldt

NACE rev.1 million m3

Fresh surface water

Total 9,639.8 43.6 430.6 276.3 64.5 4,437.5 3,888.1 499.1

o which:agriculture, orestry, ishing 0105 24.4 1.6 5.4 3.2 5.2 6.4 2.3 0.3

o whicharable arming (irrigation) 0111 3.5 0.8 0.4 0.0 1.2 0.5 0.6 0.0horticulture 0112 1.2 0.0 0.1 0.0 0.1 0.2 0.8 0.0

livestock drinking 012 16.0 0.7 4.7 2.8 2.8 4.8 0.0 0.2other or combined 3.6 0.0 0.2 0.3 1.0 0.9 1.0 0.1

mining and quarrying 1014 1.1 0.1 0.1 0.1 0.1 0.3 0.3 0.0manuacturing industry, total 1537 2,998.6 34.5 28.8 80.2 57.3 1,506.6 793.4 497.8

o which used byood processing 15 153.3 17.1 20.0 7.3 3.1 69.6 32.6 3.8

textiles, clothing and leather 1719 4.5 0.0 0.0 0.9 0.2 0.6 2.6 0.1paper and paper products 21 106.5 4.1 2.4 5.2 4.5 67.4 20.7 2.2chemicals, reined petroleum 2324 2,683.0 12.9 5.3 55.9 46.6 1,345.7 725.2 491.4

basic metals 27 29.7 0.2 0.3 2.0 1.7 18.9 6.5 0.1other manuacturing industry 21.7 0.3 0.8 8.9 1.2 4.3 5.9 0.3

production o electricity 40 5,695.1 0.0 395.2 189.6 0.6 2,231.8 2,877.9 0.0public Water supply 41 489.8 6.9 0.0 0.0 0.0 278.1 204.8 0.0waste processing 9002 430.8 0.5 1.2 3.2 1.4 414.3 9.3 0.9

other activities (excl. 9002) 4593private Households 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Source: Baas and Graveland (2011).


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As shown in Table .., the abstraction o groundwater is distributed more evenly thanthe distribution o surace water across river basins. This is because groundwater is used

predominantly by the water supply industry, which is present in each river basin. The Meuseregion is the largest abstractor o ground water, which is responsible or percent o total

groundwater abstraction. In the Meuse region, percent is abstracted by the water supplyindustry.

3.1.6 Abstraction o ground water per (sub-)River Basin, 2008


NACE rev.1 million m3

Fresh ground water

Total 966.5 42.9 70.4 181.0 115.8 230.2 303.4 22.8o which:

agriculture, orestry, ishing 0105 46.7 0.8 3.0 16.4 5.6 1.1 19.3 0.5

o whicharable arming (irrigation) 011 7.7 0.0 1.1 1.1 3.2 0.0 2.3 0.0horticulture 013 9.2 0.0 0.0 0.9 1.3 0.5 6.5 0.1livestock drinking 012 26.6 0.7 1.8 13.4 1.0 0.7 8.6 0.3

other or combined 01 3.2 0.0 0.0 1.0 0.0 0.0 2.0 0.1mining and quarrying 1014 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0

manuacturing industry, total 1537 154.5 4.3 6.8 28.8 15.1 57.5 39.1 2.9o which:

ood processing industry 15 50.9 2.5 4.1 11.7 6.3 10.1 14.3 1.9

textile, clothing and leather 1719 2.7 0.0 0.0 1.1 0.2 0.4 0.9 0.0paper and paper products 21 18.6 0.5 0.4 2.0 5.7 8.3 1.5 0.2

chemicals, reined petroleum 2324 25.5 0.3 0.1 2.5 0.6 15.4 6.6 0.1basic metals 27 17.4 0.0 0.0 0.8 0.4 14.4 1.6 0.0

other manuacturing industry 39.4 0.9 2.2 10.7 1.9 8.9 14.2 0.6production o electricity 40 1.7 0.0 0.0 0.1 0.0 1.4 0.2 0.0public Water supply 41 762.4 37.8 60.6 135.2 94.9 169.9 244.7 19.4

waste processing 9002 1.2 0.0 0.1 0.5 0.1 0.4 0.1 0.0

other activities 4593private Households 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Source: Baas and Graveland (2011).

It is useul to make a comparison between the initial abstracted amounts o resh water (both

ground and surace water) by water supply industries and their inal supply o drinking waterper river basin. Such data illustrate the existing practices o transport o water between river

basins).

Table .. shows that the total abstraction by water supply companies is usually higherthan total supply. The dierence stems rom production losses, changes in stocks, artiicial

iniltration, quantities o water supplied but not accounted or, and supply o other water toend users. Analyzing the individual basins as presented in table .. shows that abstraction

in the Meuse region is much higher than use in this region. This is because large quantitieso Meuse water are transported by pipe-line to the dunes in the Rhine-West region where it

is artiicially iniltrated or puriication purposes. Subsequently, the water supply companiesin the Rhine-West region abstract the water rom the dunes or the production o drinking

5) Data on total abstraction have been disaggregated to (sub-)river basin based on data on individual abstraction locations of the water supply industry(VEWIN 2011). The distribution of the final supply across (sub-)river basins is based on an analysis of customer files obtained from the individual watersupply companies (Baas and Graveland (2011).


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water.) Moreover, water supply companies responsible or the supply in the Scheldt region uselarge quantities o water abstracted in the Meuse region. For other river basins similar relations

exist but on a smaller scale. Part o the water abstracted in the Ems river basin is destined orthe water supply company in the Rhine-North region. The same holds or abstraction in the

Rhine-Center region in conjunction with the water supply company in the Rhine-East region.

3.1.7 Abstraction by water supply companies versus inal supply o tap water, 2008


million m3

Activities

Abstraction by water supply companies 1,252.1 44.7 60.6 135.2 94.9 447.9 449.5 19.4

Total drinking water supplied 1,093.1 35.9 66.3 143.0 68.2 486.8 245.1 47.8

Source: national totals: VEWIN (2010). Regional aggregates: Baas and Graveland (2011).

The seven (sub-)river basin aggregates on ground- and surace abstractions presented here,next to the (sub-)river basin igures on tap water allows or the compilation o intensities or

the seven (sub-)river basins separately. Disaggregated intensities can be calculated or tapwater use and or ground- and surace water extractions.

3.2 Emissions to water

The availability o clean water is essential or both humans and nature. However, everydaysurace waters are exposed to discharges o harmul substances by industries and households

that could cause severe damage to ecosystems in ditches, rivers and lakes. The European WaterFramework Directive (WFD) was introduced to meet European environmental quality standards

in the uture. The Water Framework Directive states that all domestic surace waters should meetcertain speciic targets by , in qualitative and quantitative terms. Two important groups o

substances causing water pollution are heavy metals and nutrients. Heavy metals naturallyoccur in the environment, but are toxic in high concentrations. An excess amount o nutrients

in the surace water causes algae and duckweed to grow disproportionally, which can causecertain species o ish, aquatic plants and other organisms to disappear. Economic activities

are oten directly linked to the emission o pollutants into the environment. Improvements inthe emission intensity o production processes and decoupling between water emissions and

economic growth are essential to guarantee a good water quality or the uture.

6) In the data on total abstraction by water supply companies, only initial abstractions are included. Likewise, abstractions of surface water destined forartificial infiltration is included in the data, while abstractions of artificially infiltrated water from dunes are not included.


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The water accounts provide inormation about the emissions to water by industries andhouseholds and are ully consistent with the concepts o the national accounts. Indicators or

the pollution o surace water by heavy metals and the eutrophication o the surace waterare derived rom the water accounts. Because it is consistent with the national accounting

ramework, this physical inormation on the emissions to water could be directly comparedwith economic inormation like value added. This consistency also suits environmental-

economic modelling. For a description o the methodology used to compile the water accountssee Statistics Netherlands (). The data o the water accounts can be ound on StatLine, the

electronic database o Statistics Netherlands.

Reduced water emissions in due to economic downturn, but interruption o

environmental perormance by Dutch economy or heavy metals

The net discharge o heavy metals and nutrients to water by the Dutch economy decreased

in compared to ))

. Expressed in heavy metal equivalents, emission o heavy metalsto water decreased by . percent). Emission o nutrients to water, expressed in nutrientequivalents, declined by . percent. At the same time the economic growth o the Netherlands

declined by . percent in . As a result o production cuts due to the economic downturn,emissions to surace water and sewer systems decreased.

Regarding the emission o nutrients to water, the environmental perormance o the Dutch

economy improved in . Emission o nutrients to water by producers ( percent) and otherdomestic sources ( percent) ell much more than economic growth (. percent) while the

discharge by households remained more or less constant. Accordingly, the nutrient emissionsto water decreased more than the economy shrank.

Regarding the emission o heavy metals in the environmental perormance o the Dutch

economy got worse. Although emission o heavy metals by producers and other domesticsources decreased, economic decline was larger than the reduction in emission o heavy metals

to water. This is an interruption o the trend that has been observed since . Households areresponsible or this tempered eect. Their share in total emitted heavy metals is percent

and they increased their emissions o heavy metals by . percent. The population grew by. percent in which means that population growth is just one reason or this increase or

households. The major reason is the increase in the consumer ireworks displayed at New YearsEve. These ireworks contain signiicant amounts o copper. Via deposition on streets and other

paved areas, the copper lushes into the sewer system due to run-o o precipitation.

7) Run-off and seepage by agriculture are excluded in this analysis.8) The damaging nature of different heavy metals varies, which is expressed in different weights for each heavy metal in the equivalent. For example,

mercury and cadmium have a more damaging effect on water bodies than chromium and lead. The same applies for the nutrients phosphorus andnitrogen. The weight of phosphorus in the equivalent is ten times that of nitrogen (see Adriaanse, 1993).


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3.2.1 Economic growth and contribution o the Dutch economy to water emissions

index (1995=100)

160

140

120

100

80

60

40

20

01995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Gross domestic product (market prices, price level 2 005)Emission o heavy metals to water, net approachEmission o nutrients to water, net approach

In the period emissions were substantially reduced: heavy metals by percent

and nutrients by percent. This reduction is mainly caused by a reduction in the emissionintensity by producers and reduced emissions by other domestic sources like atmospheric

deposition. Economic growth equalled percent in this period (igure ..). The environmentalperormance o companies and institutions has improved substantially in the period

. In contrast, the discharge o nutrients to water by households has increased, partly dueto the population increase. Another explanation is the increased use o dishwasher tablets

containing relatively much phosphate. In the emission o heavy metals and nutrients(measured in heavy metal equivalents and nutrient equivalents) was almost equal or producers

and households. However, in households emitted almost three times more nutrients towater than producers did. Households emitted almost two and a hal times more heavy metals

than producers.

Reduction o phosphorus and nitrogen emissions by sewage and reuse disposal services andthe ood industry

Although emissions o nutrients and heavy metals to surace water and sewer systemsdecreased in , the individual nutrients and heavy metals show dierent emission levels

and trends. Emission o nutrients to water decreased or both phosphorus and nitrogen by .and . percent respectively between and . Phosphorus had the highest share in the

total decrease in emitted nutrient equivalents by the Dutch economy. Besides the higher weightor phosphorus in the equivalents, this is the result o reduced phosphorus emissions by the

manuacture o ood products, beverages and tobacco, by sewage and reuse disposal services,and by electricity and gas supply. In the latter case, the trend in the emission o phosphorus is

inluenced by an incidental peak discharge in . Nitrogen emission decreased especiallyin manuacturing chemicals and chemical products, basic pharmaceutical products and

pharmaceutical preparations, textiles, wearing apparel and leather products and by sewageand reuse disposal services. The treatment eiciency o sewage treatment plants improved or

both nutrients.


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3.2.2 Emissions to water 2008-2009, net approach

30 25 20 15 10 5 0 5

Economic growth

Heavy metal equivalents

Zinc

Copper

Mercury

Nickel

Chromium

Lead

Cadmium

Arsenic

Nutrient equivalents

Phosphorus

Nitrogen

% change

Households and manuacture o chemicals and chemical products increased copper emissions

Regarding heavy metals percentage changes vary rom minus . percent or cadmium to plus

. percent or zinc and plus . percent or copper. Cadmium and mercury had the highestshare in the total decrease in emitted heavy metal equivalents by the Dutch economy. Both

o these heavy metals have a relatively big damaging eect on water bodies. This was partlythe result o reduced cadmium emissions in manuacturing basic metals and chemicals

and chemical products, and sewage treatment plants that reduced mercury emissions. Thetreatment eiciency o sewage treatment plants improved or both cadmium and mercury.

Consumer fireworks result in

high copper emissions

Although percentage change is not that big or copper, the impact o this increase or copper on

total change o emitted heavy metal equivalents is quite high. First o all the absolute emissiono copper by the Dutch economy is considerable. Second reason is the relatively big damaging

nature o copper on water bodies. Thereore the weight or copper in the equivalents is relativelyhigh. Copper emissions increased especially by increased emissions by households and by

manuacturing chemicals and chemical products. In the irst case, increased copper emissionsare caused by the increase in the consumer ireworks displayed at New Years Eve. In the latter

case, increased copper loads are caused by a higher additional estimate o emissions within


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3.3 Regional water accounts

Water pollution is primarily a local environmental problem. For this reason the water quality

targets that have been deined within the European Water Framework Directive weredetermined at river basin level (PBL, ). There are large dierences between river basins in

emissions to water and economic activity. Usually, a river basin with many economic activitieswill have more emissions to water than a river basin with less economic activities. In addition,

a river basin that is characterised by many manuacturing activities will generally cause moreemissions than a river basin that only houses service industries. These relationships can be

determined by making use o the regional water accounts.

The water accounts, also known as NAMWA (National Accounting Matrix including Water

Accounts), describe the relationship between the physical water system and the economy atnational and river basin scale (see also chapter .). NAMWARIB is developed in order to provideinormation at river basin level and provides economic and environment related inormation

at the level o the our main river basin districts in the Netherlands: Rhine, Meuse, Scheldtand Ems. As the Rhine basin covers approximately percent o the

Documents

CBS Environmental Accounts of the Netherlands