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Employment, production and value added in the environmental economy
The environmental economy can also be analysed with a view on production units, using the statistical classification of economic activities (NACE). Because units producing environmental goods and services can engage in a range of activities, an analysis by economic activity provides a complementary picture to the analysis by environmental domain. Table 1 follows this alternative approach. It shows that most employment within the EU environmental economy in 2019 was related to energy and water supply, sewerage, waste management and remediation activities (NACE Sections D and E) with 1.5 million full-time equivalents followed by construction (NACE Section F) with 1.2 million full-time equivalents. The environmental economy also provides 0.9 million full-time equivalent jobs related to other services activities, 0.5 million full-time equivalent jobs in agriculture, forestry and fishing, and 0.5 million full-time equivalent jobs in mining, quarrying and manufacturing.
Source: Eurostat (env_ac_egss3)
Table 1 also depicts total output and gross value added. In 2019, energy and water supply, sewerage, waste management and remediation activities generated some €131 billion, or 40 % of the value added of the environmental economy (see Figure 3). Construction contributed €73 billion of value added or 22 % to the total gross value added of the environmental economy. This activity includes energetic refurbishment of existing buildings and the construction of new energy-efficient buildings as well as noise insulation work, maintenance and repair of water networks, construction work for wastewater and waste treatment plants and sewerage systems. Miscellaneous services generated together €61 billion of value added (19 % of the total) for the environmental economy. The remaining activities contributed 11 % (mining, quarrying and manufacturing) and 7 % (agriculture, forestry and fishing) to the gross value added of the environmental economy.
Labour productivity expressed as value added per full-time equivalent is highest for energy and water supply, sewerage, waste management and remediation activities, generating on average €86 500 per full-time equivalent job (generating 40 % of the value added of the environmental economy with 33 % of the labour input). Labour productivity is lowest in agriculture and forestry, which generated on average €45 100 per full-time equivalent (generating 7 % of the value added of the environmental economy with 12 % of the labour input). For more information on productivity, please refer to the article on material flow accounts and resource productivity.
Source: Eurostat (env_ac_egss3)
Evolution of gross value added of the environmental economy
Gross value added of the environmental economy increased from €129 billion in 2000 to €326 billion in 2019 (Figure 4; note that the trend is based on current prices as chain-linked volumes for all environmental and resource management activities are not available). Also the contribution of the environmental economy to GDP increased, namely from 1.6 % in 2000 to 2.3 % in 2019. Gross value added of the environmental economy rose steadily between 2000 and 2008, reaching €213 billion. It declined in 2009 as a result of the financial crisis but showed robust growth in 2010 and 2011, and in all years after 2014.
Gross value added of environmental protection activities increased from €98 billion in 2000 to €177 billion in 2019. The contribution of environmental protection to GDP remained stable over this period at 1.2-1.3 %. Gross value added of resource management activities had a lower baseline value in 2000, namely €31 billion (or 0.4 % of GDP) but grew faster to reach €149 billion (or 1.1 % of GDP) in 2019, largely due to growth in the renewable energy sector.
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Source: Eurostat (env_ac_egss2)