Energy Flow Accounts in Denmark
- the whys and hows
Thomas Olsen, Statistics Denmark
Prepared for the 7th meeting of the Oslo Group on Energy Statistics
23 – 26 October 2012, Helsinki, Finland
Outline
• What is Energy Flow Accounts?
• The whys – reasons for wanting energy accounts
• The hows - compilation in practice
• Quality control
• Applications
• Cooperation with Energy Agency
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What is Energy Flow Accounts?
• Supply and use of energy organised within the System of
National Accounts framework
– Based on the same concepts, definitions and classifications as
National Accounts
– Described in SEEA – Energy
• Supply and use of energy within the national economy
(not the territory)
– Described by ISIC/NACE industries
– Transportation activities are also broken down by industries
• This way of describing the flow of energy is fully
consistent with the way economic activities are described
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Residence principle vs. territory principle
Residents
Abroad
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Energy accounts
Territory
Energy balance
Non-residents
The whys
• Statistics Denmark has a long tradition for publishing
energy statistics e.g.
– Energy supply of Denmark 1900 – 1958
The Statistical Department, Copenhagen (1959)
• Long tradition for compiling supply and use tables and
IO-tables as part of the work with national accounts
• First oil crisis – focus on energy and security of supply
– Data needed for analysis of effects on the economy
• Energy Agency founded in 1976
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The whys, cont.’
• Improvement of the national accounts
– Wanted to have a close link with physical flows
– Improve fixed price calculations
• Link to economy, input-output tables – enables analysis
of the link between economy and use of energy
– at the macro as well as the industry level
• Allows for a series of quality checks that cannot be
carried out if only either physical or monetary data are
available
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The Danish Energy Flow Accounts
• Supply and use of 40 types of energy broken down by
117 industries
– The same types of energy as in the energy balance
• Time series 1966 – 2010
• Physical as well as monetary energy flow accounts
• Monetary accounts part of the supply use tables of the
National Accounts
– Approx. 40 commodities out of a total of 2350 commodities
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The hows - compilation in practice
• Compilation strategy
– Product by product
– First, supply and use in physical (specific) units and monetary
values (basic prices) simultaneously
– Secondly, uses in other price levels
– Finally, common units and calculation of net use of energy
Specific
units
Common
units
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Basic
prices
Net use
of energy
Trade
margins
Energy,
CO2, SO2
taxes
VAT
Market
prices
Compilation strategy and data sources
• Step 1: What is available for economic activities?
– Production + Imports – Exports – Changes in inventories
• Step 2: What is used according to the data sources?
– Data sources, e.g.
• Basic energy statistics – energy balance
• Census on the industrial companies’ use of energy
• Administrative data. Reimbursement of energy taxes
• Residual is broken down by data on employment
• Step 3: Supply and use is balanced
• Step 4: Rearrangement into a supply and use table
• Please see spreadsheet for an example
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Trade margins
• Based on a percentage of the basic price
– Wholesale trade margins
– Retail trade margins
• Trade margins include transportation costs
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Environmental taxes
• Energy taxes, CO2-tax, SO2-tax
• Quantity * ‘specific energy product tax rate’
• Balanced to the actual revenue recorded in the public
finances account
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Value added tax (VAT)
• (Basic price +
wholesale margins + retail trade margins +
energy taxes + CO2-taxes + SO2-taxes) *
‘specific yearly VAT - rate’
• The standard VAT-rate is adjusted in order to take into
account the VAT-legislation
• Basic prices + Trade margins + Taxes + VAT
= Market prices
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Quality control
• Development in the time series
• Development in the industry specific intensities
– Use of energy compared to output at fixed prices
• Internal checks:
– Conversion losses
– Input-output ratio in refineries
– Contribution to Gross Value Added
• Market unit prices in relation to observed prices
• Value of energy input compared to total input
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The Danish Energy Flow Accounts
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Possible applications when organised in
an integration framework like SEEA/SNA
• Hybrid accounts
– Links between energy, economy, employment etc. and other
environmental domains
• Energy intensities / energy productivity
• Analysis of the relationship with the economy
– Input-Output table based analysis
– Input in extended macroeconomic models
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Hybrid Accounts: Link to the Economy
Gross use of energy, CO2 emissions, CO2 permits and the link to the economy. Denmark, 2007.
Industries
Gross use
CO2
of energy emissions
TJ
Total
Households
1
2
3
4
5
6
7
8
Total industries
Agriculture, fishing and quarrying
Manufacturing
Electricity, gas and water supply
Construction
Wholesale and retail trade; hotels, rest.
Transport, storage and communication
Financial intermediation, business active.
Public and personal services
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Surren- CO2 permits
dered allocated
permits
Energy
related
taxes
1 000 tonnes CO2 / allowances
2 015 575
265 835
1 749 739
117 428
13 797
101 522
81 790
476 806
362 684
20 946
45 428
700 879
18 623
42 582
4 836
8 574
29 549
1 539
1 401
53 877
498
1 247
29 407
0
27 915
0
29 407
2 187
5 662
21 559
0
0
0
0
0
27 915
2 292
5 601
20 022
0
0
0
0
0
Energy Gross value
related
added
subsidies
Mill. Dkk
36 409
21 179
15 230
984
2 260
108
1 314
2 256
3 328
1 454
3 526
Employment
Persons
202 1 218 064 2 897 520
85
117 1 218 064 2 897 520
11
46
3
2
21
9
8
17
85 714
51 895
186 376
396 153
16 410
12 430
72 701
192 422
170 092
564 496
109 403
186 800
303 273
456 839
307 914 1 002 666
Energy Intensities by industries
10
9
TJ / Mill Dkk output, at
2000-prices
8
7
6
5
4
3
2
1
0
1 agriculture,
fishing and
quarrying
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2 manufacturing 3 electricity, gas 4 construction 5 ws. and retail 6 transport, post
and water
trade; hotels, and telecomm.
supply
restaurants
7 finance and
business
activities
8 public and
personal
services
Other applications: Modelling and
compilation of air emissions accounts
• Input-output analysis
– Indirect flows
– What are the drivers? Which types of final demand?
– Consumption perspective rather than production perspective
• Energy embodied in imports
• The energy accounts are used as input in macroeconomic models
–
–
–
–
Ministry of Climate, Energy and Building
Danish Economic Councils
Ministry of Finance
Business associations, banks, consultants etc.
• Input in the compilation of air emissions accounts
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IO modelling results
• Use of energy by causing final demand
• Can be broken down by industries
– Direct and indirect. In Denmark and globally
• Private consumption can
be broken down by
consumption categories
– e.g. type of food or
services
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Investments etc.
6 pct.
Government
consumption
6 pct.
Private consumption
38 pct.
Exports
50 pct.
Close cooperation with Energy Agency
September
Energy
Agency
Statistics
Denmark
November
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Contact information
Thomas Olsen
Senior Adviser
Statistics Denmark
National Accounts Division
Tol@dst.dk
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