Analysis and quantification of a new fiscally neutral …...Analysis and quantification of a new...

European Economic and Social Committee

© S

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Analysis and quantification of a new fiscally neutral European tax

STUDY

Analysis and quantification of

a new fiscally neutral European tax

Authors: Univ. Prof. i.R. Dipl.-Ing. Dr. Mikuláš Luptáčik and Peter Luptáčik

This study was carried out by Industriewissenschaftliches Institut (IWI) following a call for tenders

launched by the European Economic and Social Committee. The information and views set out in this

study are those of the authors and do not necessarily reflect the official opinion of the European

Economic and Social Committee. The European Economic and Social Committee does not guarantee

the accuracy of the data included in this study. Neither the European Economic and Social Committee

nor any person acting on the Committee’s behalf may be held responsible for the use which may be

made of the information contained therein.

EN

Abstract

The present study contributes to the discussion on the new European tax or fee, which would be based

on taxing end consumption (taxing the products and not the production) according to how much CO2

is emitted during the production of particular commodities, irrespective of whether all or a part of this

process takes place inside or outside the EU. The analysis is based on the input-output model, which

provides an appropriate and unique approach for measuring the total CO2 content of the various

commodities taking the entire production chain into account. The calculation by products can be the

basis for the estimation of product specific CO2 taxes. The model calculations based on the Input-

Output Table for the EU-27 for the year 2011 leads to the tax rate of EUR 40.69 per tonne of CO2

emissions, which could have generated fiscal revenue in the amount of 1% of EU GDP. In line with

the principle of fiscal neutrality, a reduction of the labour costs by -2.03 % could compensate the

introduction of a CO2 tax by the amount of EUR 40.69 per tonne of CO2. The results for different

Member States differ significantly from the "European average".

Table of Contents

1 Introduction ..................................................................................................................................... 1

2 Objectives and grounds for the study .............................................................................................. 2

3 Methodology ................................................................................................................................... 4

3.1 The Leontief demand side model ............................................................................................ 4

3.2 The Leontief price model ........................................................................................................ 8

3.3 Input-Output modelling of environmental impact .................................................................. 9

3.4 Modelling of the compensation mechanism for the new European tax ................................ 11

4 Results of the simulation ............................................................................................................... 13

4.1 Estimation of the CO2 tax rate .............................................................................................. 13

4.2 Cost push effect of the new CO2 taxes .................................................................................. 19

4.3 Fiscal neutrality of the new European CO2 tax ..................................................................... 23

4.4 Comparison of the cost-push effects for particular EU countries ......................................... 29

5 Conclusions and recommendations, and proposals for action ...................................................... 39

6 Complete bibliography and References ........................................................................................ 41

7 Annex ............................................................................................................................................ 42

Figures

Figure 1: The basic structure of the make and use system ...................................................................... 4

Figure 2: Symmetric input-output-table – product-by-product ............................................................... 6

Figure 3: Estimation of the CO2 tax rate ............................................................................................... 17

Figure 4: EUA price and trading volumes, 2008-2014 ......................................................................... 18

Figure 5: Estimation of the CO2 tax rate (year 2010) ........................................................................... 29

Tables

Table 1: Leontief inverse for EU-27 (year 2011).................................................................................... 7

Table 2: Direct and indirect CO2 emissions .......................................................................................... 14

Table 3: CO2 emissions generated by final use ..................................................................................... 16

Table 4: Estimation of the share of CO2 tax payments on output value ............................................... 20

Table 5: Cost-push effects of introducing CO2 tax ............................................................................... 22

Table 6: Data for the labour costs related to the particular commodities ............................................. 24

Table 7: Price effects of the reduction of labour costs .......................................................................... 26

Table 8: Price effects of the simultaneously introducing a CO2 tax and reducing labour costs ........... 28

Table 9: Direct CO2 emission coefficients for 8 countries (Part 1) ...................................................... 30

Table 10: Direct CO2 emission coefficients for 8 countries (Part 2) .................................................... 31

Table 11: Cost-push effects for 8 countries (Part 1) ............................................................................. 33

Table 12: Cost-push effects for 8 countries (Part 2) ............................................................................. 34

Table 13: Price effects of reducing the labour costs for 8 countries (Part 1) ........................................ 35

Table 14: Price effects of reducing the labour costs for 8 countries (Part 2) ........................................ 36

Table 15: Overall price effects for 8 countries (Part 1) ........................................................................ 37

Table 16: Overall price effects for 5 countries (Part 2) ........................................................................ 38

Table 17: Cumulative CO2 emission coefficients for 8 countries (Part 1) ............................................ 42

Table 18: Cumulative CO2 emission coefficients for 8 countries (Part 2) ............................................ 43

Table 19: Total CO2 emissions for 8 countries in physical units (Part 1) ............................................. 44

Table 20: Total CO2 emissions for 8 countries in physical units (Part 2) ............................................. 45

Table 21: Total CO2 emissions generated through final use for 8 countries in physical units (Part 1) 46

Table 22: Total CO2 emissions generated through final use for 8 countries in physical units (Part 2) 47


1

The budget of the European Union is financed by own resources, other revenue and the surplus

carried over from the previous year. According to the First Assessment Report of the High Level

Group on Own Resources (Brussels, 17 December 2014) own resources are defined as “revenue

accruing irrevocably to the EU in order to finance its budget without being conditional to a decision

by national authorities” (p. 8). Current Own Resources Decision defines 1,23 % of the Gross National

Income (GNI) as of the EU as the ceiling of own resources. Criticism of the present system is coming

primary from the European Parliament and the Commission, the Court of Auditors and the European

Economic and Social Committee (EESC) initiate the discussion on this system by considering new

types of own resources that would change the current way of funding the budget of the EU.

The following study contributes to the discussion on the new European tax or fee, which would be

based on taxing end consumption (taxing the products and not the production) according to how much

CO2 is emitted during the production of particular commodities, irrespective of whether all or a part of

this process takes place inside or outside the EU. In line with the principle of fiscal neutrality,

consumption in the form of reduction of labour costs should be taken into account. Due to this

principle, the prices for products with relatively high CO2 content will increase whereas prices for

products with lower CO2 content will decrease and as a result the environmentally friendly behaviour

of consumers can be supported.

Compensation in the form of reducing the labour cost stimulates the demand for labour and increases

employment. Positive effects for the environment as well as for the employment (double dividend)

can be expected as shown in the paper by Conrad – Schmidt (1998) [1].

Aiming at taxing final consumption according to CO2 emissions generated along the entire production

chain of the particular commodities the input-output model provides the adequate instrument. The

input-output model permits to calculate the total CO2 emissions generated in the entire production

chain of the particular commodities delivered to final consumption. Evidence on the total CO2 content

is a prerequisite for taxing the various commodities according environmental considerations. The

necessary data describing the production and the use of different commodities in the economy are an

integral part of national accounts (the supply and use tables). On the basis of model assumptions the

information included in the supply and the use tables at basic prices is then converted into symmetric

input-output tables. The objective is to arrive at parameters describing structural relationships, to

estimate the input coefficients which represent the value of particular products used as an input per

unit of output of other products. Subsequently the input-output methodology allows us to take all

indirect effects generated by the production activities and in this way consider the entire production

chain into account.

The study is organized as follows. In the next section the objectives and grounds for the study are

described. The methodology used in the study is subject of Section 3 followed by results of the

1 Introduction


2

simulation, which are discussed in Section 4. The last section is devoted to conclusions,

recommendations and proposals for further actions.

The EU cannot function properly, if it does not have enough own resources. The present system of

financing the EU budget is based on own resources, other revenue and surplus carried over from the

previous year. The components of the current own resources system are traditional own resources,

VAT based own resources and GNI-based own resources (resulting from the application of a uniform

call rate to total EU GNI to match the total volume of resources to the total volume of expenditure)

and correction mechanisms, which grant particular Member States a reduction of their contribution to

the EU budget. Criticism of this system coming from the European Parliament, the Commission, the

Court of Auditors and the EESC can be summarized into four points (EESC, 2015) [3]:

the current own resources system is too complex and lacking in transparency, especially

regarding contributions from gross national income and harmonised value added tax.

own resources do not originate with the EU, but are in fact contributions from national

budgets that account for as much as 83 % of the European budget in the year 2013.

national fiscal deficits also lead to more contributions making late payments into the budget,

as the Commission has noted

reforming the own resources system requires the agreement of all Member States.

According to the preliminary draft opinion of the Section for Economic and Monetary Union and

Economic and Social Cohesion on “A European tax as an EU own resource” discussed at the

meeting on June 1st, 2015 the following three elements are desirable for a new own resources system:

simplification of Member States’ contributions, presentation of a new own resources system and

reformation of the corrections system.

The European Economic and Social Committee defines the following criteria from which as many as

possible should be fulfilled: equity and fairness, efficiency, stability, transparency and simplicity,

accountability and budgetary discipline (see Section 5: Criteria for the new system of EU own

resources of the Preliminary Draft Opinion (2015) [3]). The important requirement for the new EU tax

is the fiscal neutrality: introducing an EU tax paid directly into EU budget will reduce payments from

Member State budgets and Member States will therefore reduce other fiscal revenue by the same sum.

One proposal of the EESC (see [3]) is to tax energy consumption and CO2 emissions generated

through the entire production chain. End use of goods and services on the European Market will be

taxed. Exported goods and services will not be taxed in order not to burden domestic producers when

exporting to third countries.

2 Objectives and grounds for the study


3

The introduction of an EU environmental tax along these lines will lead – through cost push effects –

to changes of relative prices in favour of environmentally friendly produced goods and services and in

this way to increasing environmental protection. The following question arises: having data on

emissions generated – directly and indirectly – by the production of particular products, how to

estimate the charge for one tonne of CO2 in order to generate revenue for the EU budget in the amount

of 1 % GNI?

Taking into account the requirement of fiscal neutrality e.g. by reducing the labour cost, the next

question is coming up: which reduction of labour cost is needed in order to compensate the higher

cost caused by introducing a product-specific CO2 tax? Depending on the availability of data different

possibilities of the combination of energy and CO2 tax and of the reduction of other taxes, charges and

other costs can be considered.

Previous studies dealing with the economic effects of introducing taxes aiming at reducing CO2

emissions in the EU (Conrad-Schmidt, (1998) [1]) show the positive effects for the environment as

well as for the labour market (so called “double dividend”).


4

3.1 The Leontief demand side model

Competitiveness of an economy is not given by simple adding of the activities of the particular

industries, but by the complex relationships between them is argued in the study of the European

Commission in 2005 [2]. In order to analyse the relationships between the industries in the economy

we need data on their outputs (goods and services) and intermediate outputs (goods and services from

other industries) as well as about primary inputs (imports, labour and capital and production taxes

net). Such data is collected in the account-system of the national accounting – make and use system –

as a system of interlinked commodity and production accounts.

Figure 1: The basic structure of the make and use system

Source: IWI

An element of 𝑉, 𝑣𝑖𝑗, describes the value of the output of commodity 𝑗 that is produced by industry 𝑖.

Thus the dimensions of 𝑉 are industry-by-commodities. In other words, matrix 𝑉 shows the outputs of

the economy (it is also called the output matrix).

An element of the Use-matrix domestic goods 𝑈𝑑 , 𝑢𝑖𝑗 , shows the value of inputs of domestic

commodity 𝑖 by industry 𝑗. Industries use commodities to make commodities (𝑈 is sometimes called

the absorption or input matrix). In the same way the elements of the Use-matrix imported goods 𝑈𝑚

can be interpreted. They give us the value of imported commodity (or product) transformed by

industry 𝑗 in the production process.

domestic

commodities

imported

commodities industries final demand total output

domestic

commodities

Use-matrix

domestic goods

Ud

final demand matrix

domestic goods

Yd

of domestic goods

qd

imported

commodities

Use-matrix

imported goods

Um

final demand matrix

imported goods

Ym

of imported goods

qm

industriesMake-matrix

V

of industries

g

imports Imports m'

value addedvalue added

W

sum

domestic goods-

production

qd

imported goods

qm

production-costs

gfinal demand

primary input

3 Methodology


5

The matrices 𝑌𝑑 and 𝑌𝑚 describe the final demand, which is the part of production, which is for

given period (usually for the particular year) not used as an input for production of other commodities.

The following categories of final demand have to be distinguished:

Final consumption expenditure by product and by

o households

o by non-profit organisations serving households (NPISH)

o by government

Gross capital formation by product and by

o Gross fixed capital formation

o Changes in valuables

o Changes in inventories

Exports

The matrix 𝑊 contains valued added by industry and components. The standard disaggregation by

components is:

Compensation of employees:

o Wages and salaries

o Employers’ social contribution

Other taxes less subsidies on production:

o Other taxes on production

o Other subsidies on production

Consumption of fixed capital

Operating surplus, net

Using these data the symmetric input-output tables in the classification commodity × commodity or

activities × activities can be constructed.


6

Figure 2: Symmetric input-output-table – product-by-product

Source: IWI

In the table intermediate consumption the term 𝑥𝑖𝑗 represents the use of product 𝑖 used by the

production of product 𝑗. In other words, 𝑧𝑖𝑗 (𝑗 = 1, 2, … , 𝑛) describe the deliveries of commodity 𝑖 for

production of all other commodities. The deliveries of the output of each of the products can be

described by the following set of equations:

𝑥11 + 𝑥12 + 𝑥13 + 𝑥14 + ⋯ + 𝑥1𝑛 + 𝑦1 = 𝑥1

𝑥21 + 𝑥22 + 𝑥23 + 𝑥24 + ⋯ + 𝑥2𝑛 + 𝑦2 = 𝑥2

𝑥31 + 𝑥32 + 𝑥33 + 𝑥34 + ⋯ + 𝑥3𝑛 + 𝑦3 = 𝑥3

⋮ ⋮

𝑥𝑛1 + 𝑥𝑛2 + 𝑥𝑛3 + 𝑥𝑛4+. . . +𝑥𝑛𝑛 + 𝑦𝑛 = 𝑥𝑛

Dividing the elements 𝑥𝑖𝑗 by the output value of product 𝑗 the so called technical or input coefficients

can be estimated. Denoting the input coefficients matrix by 𝐴 = {𝑎𝑖𝑗}, the element 𝑎𝑖𝑗 describes the

direct input of product 𝑖 (expressed in monetary units) per unit of output of the product 𝑗. Using the

input coefficients 𝑎𝑖𝑗 as a set of fixed technical coefficients the following kind of question can be

asked: How much output of each commodity would be necessary to produce in order to fulfil

exogenously given final demand. This can be done by solving the following set of linear equations in

𝑛 unknowns 𝑥 = (𝑥1, 𝑥2, … , 𝑥𝑛) denoting the total output vector of the commodities:

(𝐼 − 𝐴)𝑥 = 𝑦

where 𝐼 denotes the 𝑛 × 𝑛 identity matrix and 𝑦 = (𝑦1, 𝑦2, … , 𝑦𝑛) is the vector of final demand. The

solution is given as:

𝑥 = (𝐼 − 𝐴)−1𝑦

Products

CPA

Intermediate

consumption

Fin

al c

on

sum

pti

on

Gro

ss c

apit

al f

orm

atio

n

Exp

ort

s

Tota

l Use

Value Added

Supply

Final

Uses

Products

CPA


7

where (𝐼 − 𝐴)−1 = 𝑅 = {𝑟𝑖𝑗} is known as the Leontief inverse or the total (or cumulative)

requirements matrix. The element 𝑟𝑖𝑗 of this matrix describes the input of commodity 𝑖 which is

necessary to deliver one unit of commodity 𝑗 for final demand. In other words, the elements of the

Leontief inverse describe the direct and indirect requirements of commodity 𝑖 for one unit of output of

commodity (𝑖, 𝑗 = 1, 2, … , 𝑛).1

Table 1: Leontief inverse for EU-27 (year 2011)

Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2011 for EU-27

The elements of the Leontief inverse provide deeper insights into structural interdependencies in the

production of commodities. The sum of the columns in this matrix (for the domestic matrix A) shows

the total production in the economy which is necessary for delivering of one unit of product 𝑗 for final

demand. They are called output multipliers. It is obvious that – because of the indirect effects – the

elements of the Leontief inverse are higher than the elements of the matrix 𝐴.

For the illustration in the Table 1 a part of the Leontief inverse (including the first 24 products for the

year 2011) is provided. For example, we can see in column 1 that for delivering of products of

agriculture, hunting and related services in monetary value of 1 million euros for final demand the

product chemicals and chemical products (domestic and imported) in value of 89.700 euros and

electricity, gas, steam and air-conditioning (domestic and imported) in the value of 50.800 and so on

are needed. In this way all elements of the Leontief inverse matrix can be interpreted.

The elements in the last row of the table show the output multipliers. For producing 1 million euros of

the commodity of agriculture, hunting and related services for final demand products (domestic and

imported) in the amount of 2,253 million euros had to be produced. The output multipliers show

significant differences between particular products, due to the intensity of the inter-industrial

relationships. For the foundations and extensions of the static Leontief model, see e.g. Miller, Blair

(2009) [5].

1 For the foundations and extensions of input-output analysis see Miller, Blair (2009)

Products

of

agricultu

re,

hunting

and

related

services

Products

of

forestry,

logging

and

related

services

Fish and

other

fishing

products

;

aquacult

ure

products

; support

services

Mining

and

quarryin

g

Food

products

,

beverag

es and

tobacco

products

Textiles,

wearing

apparel

and

leather

products

Wood

and of

products

of wood

and

cork,

except

furniture;

articles

of straw

Paper

and

paper

products

Printing

and

recordin

g

services

Coke

and

refined

petroleu

m

products

Chemica

ls and

chemical

products

Basic

pharmac

eutical

products

and

pharmac

eutical

preparati

ons

Rubber

and

plastics

products

Other

non-

metallic

mineral

products

Basic

metals

Fabricat

ed metal

products

, except

machine

ry and

equipme

nt

Compute

r,

electroni

c and

optical

products

Electrical

equipme

nt

Machine

ry and

equipme

nt n.e.c.

Motor

vehicles,

trailers

and semi-

trailers

Other

transport

equipme

nt

Furnitur

e; other

manufact

ured

goods

Repair

and

installatio

n

services

of

machine

ry and

equipme

nt

Electricit

y, gas,

steam

and air-

condition

ing

CPA_A0

1

CPA_A0

2

CPA_A0

3CPA_B

CPA_C1

0-C12

CPA_C1

3-C15

CPA_C1

6

CPA_C1

7

CPA_C1

8

CPA_C1

9

CPA_C2

0

CPA_C2

1

CPA_C2

2

CPA_C2

3

CPA_C2

4

CPA_C2

5

CPA_C2

6

CPA_C2

7

CPA_C2

8

CPA_C2

9

CPA_C3

0

CPA_C3

1_C32

CPA_C3

3

CPA_D3

5

CPA_A01 Products of agriculture, hunting and related services 1,1905 0,0250 0,0186 0,0022 0,2847 0,0230 0,0091 0,0078 0,0047 0,0044 0,0160 0,0093 0,0149 0,0041 0,0045 0,0039 0,0046 0,0044 0,0040 0,0047 0,0042 0,0053 0,0039 0,0043

CPA_A02 Products of forestry, logging and related services 0,0026 1,1974 0,0023 0,0014 0,0027 0,0017 0,1399 0,0393 0,0086 0,0016 0,0022 0,0015 0,0033 0,0023 0,0021 0,0020 0,0015 0,0016 0,0014 0,0017 0,0021 0,0126 0,0016 0,0019

CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing0,0007 0,0003 1,0432 0,0001 0,0055 0,0002 0,0001 0,0002 0,0001 0,0001 0,0007 0,0002 0,0002 0,0001 0,0001 0,0001 0,0001 0,0001 0,0001 0,0001 0,0001 0,0002 0,0001 0,0001

CPA_B Mining and quarrying 0,0483 0,0275 0,0822 1,1224 0,0424 0,0375 0,0409 0,0658 0,0342 0,7056 0,1430 0,0376 0,0636 0,1301 0,1773 0,0568 0,0359 0,0471 0,0416 0,0447 0,0386 0,0366 0,0381 0,2719

CPA_C10-C12 Food products, beverages and tobacco products 0,1417 0,0071 0,0550 0,0047 1,2492 0,0295 0,0083 0,0158 0,0085 0,0095 0,0346 0,0218 0,0147 0,0083 0,0089 0,0067 0,0086 0,0076 0,0070 0,0078 0,0075 0,0084 0,0070 0,0065

CPA_C13-C15 Textiles, wearing apparel and leather products 0,0058 0,0045 0,0300 0,0026 0,0058 1,4520 0,0096 0,0255 0,0097 0,0039 0,0093 0,0070 0,0238 0,0065 0,0058 0,0066 0,0069 0,0066 0,0068 0,0186 0,0109 0,0329 0,0078 0,0030

CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials0,0067 0,0108 0,0100 0,0053 0,0076 0,0059 1,2589 0,0253 0,0094 0,0073 0,0070 0,0046 0,0094 0,0125 0,0111 0,0101 0,0073 0,0076 0,0075 0,0095 0,0134 0,0788 0,0088 0,0069

CPA_C17 Paper and paper products 0,0115 0,0054 0,0102 0,0049 0,0320 0,0203 0,0204 1,3195 0,2337 0,0088 0,0271 0,0206 0,0264 0,0188 0,0111 0,0110 0,0148 0,0163 0,0110 0,0115 0,0110 0,0207 0,0104 0,0083

CPA_C18 Printing and recording services 0,0037 0,0025 0,0039 0,0026 0,0068 0,0081 0,0053 0,0186 1,1024 0,0041 0,0087 0,0093 0,0072 0,0057 0,0056 0,0055 0,0073 0,0064 0,0059 0,0067 0,0064 0,0086 0,0055 0,0041

CPA_C19 Coke and refined petroleum products 0,0498 0,0331 0,1022 0,0253 0,0320 0,0263 0,0306 0,0318 0,0199 1,1903 0,0949 0,0247 0,0420 0,0415 0,0505 0,0239 0,0202 0,0236 0,0208 0,0230 0,0211 0,0213 0,0206 0,0472

CPA_C20 Chemicals and chemical products 0,0897 0,0231 0,0600 0,0267 0,0565 0,1062 0,0744 0,1210 0,0797 0,0959 1,3932 0,1367 0,3206 0,0700 0,0703 0,0545 0,0523 0,0679 0,0458 0,0725 0,0502 0,0625 0,0413 0,0440

CPA_C21 Basic pharmaceutical products and pharmaceutical preparations0,0080 0,0006 0,0046 0,0005 0,0050 0,0018 0,0013 0,0019 0,0014 0,0015 0,0122 1,1357 0,0044 0,0011 0,0012 0,0010 0,0017 0,0012 0,0010 0,0013 0,0014 0,0028 0,0011 0,0008

CPA_C22 Rubber and plastics products 0,0160 0,0077 0,0189 0,0088 0,0303 0,0363 0,0227 0,0361 0,0239 0,0166 0,0363 0,0231 1,1393 0,0232 0,0188 0,0264 0,0369 0,0464 0,0397 0,0801 0,0395 0,0393 0,0332 0,0125

CPA_C23 Other non-metallic mineral products 0,0108 0,0051 0,0084 0,0154 0,0138 0,0085 0,0235 0,0089 0,0061 0,0144 0,0177 0,0111 0,0153 1,1547 0,0225 0,0167 0,0149 0,0168 0,0129 0,0187 0,0138 0,0144 0,0166 0,0127

CPA_C24 Basic metals 0,0164 0,0123 0,0192 0,0201 0,0181 0,0182 0,0271 0,0255 0,0202 0,0302 0,0382 0,0188 0,0477 0,0411 1,4876 0,2675 0,0759 0,1778 0,1630 0,1555 0,1268 0,0752 0,1187 0,0299

CPA_C25 Fabricated metal products, except machinery and equipment 0,0220 0,0150 0,0268 0,0256 0,0283 0,0231 0,0373 0,0268 0,0208 0,0321 0,0333 0,0184 0,0471 0,0361 0,0810 1,2288 0,0589 0,0921 0,1552 0,1250 0,1354 0,0608 0,1068 0,0301

CPA_C26 Computer, electronic and optical products 0,0071 0,0059 0,0111 0,0068 0,0090 0,0093 0,0100 0,0116 0,0156 0,0104 0,0138 0,0114 0,0138 0,0122 0,0154 0,0173 1,2784 0,0793 0,0390 0,0321 0,0656 0,0342 0,0548 0,0169

CPA_C27 Electrical equipment 0,0072 0,0051 0,0109 0,0082 0,0082 0,0079 0,0099 0,0119 0,0089 0,0107 0,0114 0,0076 0,0138 0,0125 0,0184 0,0218 0,0611 1,1740 0,0461 0,0481 0,0402 0,0182 0,0502 0,0309

CPA_C28 Machinery and equipment n.e.c. 0,0206 0,0198 0,0186 0,0187 0,0169 0,0131 0,0185 0,0220 0,0172 0,0223 0,0184 0,0118 0,0221 0,0211 0,0321 0,0375 0,0369 0,0439 1,1731 0,0895 0,0697 0,0192 0,0762 0,0209

CPA_C29 Motor vehicles, trailers and semi-trailers 0,0071 0,0080 0,0053 0,0046 0,0069 0,0062 0,0088 0,0072 0,0055 0,0070 0,0073 0,0059 0,0128 0,0086 0,0106 0,0131 0,0172 0,0225 0,0504 1,3698 0,0267 0,0104 0,0192 0,0061

CPA_C30 Other transport equipment 0,0022 0,0020 0,0229 0,0032 0,0025 0,0023 0,0028 0,0032 0,0025 0,0042 0,0033 0,0028 0,0032 0,0031 0,0050 0,0055 0,0075 0,0059 0,0062 0,0052 1,3020 0,0040 0,0482 0,0031

CPA_C31_C32 Furniture; other manufactured goods 0,0021 0,0024 0,0034 0,0016 0,0029 0,0052 0,0108 0,0034 0,0095 0,0022 0,0037 0,0043 0,0045 0,0044 0,0045 0,0048 0,0121 0,0049 0,0058 0,0065 0,0080 1,0693 0,0083 0,0029

CPA_C33 Repair and installation services of machinery and equipment 0,0171 0,0116 0,0293 0,0248 0,0155 0,0126 0,0205 0,0286 0,0208 0,0257 0,0203 0,0102 0,0162 0,0226 0,0335 0,0248 0,0247 0,0267 0,0297 0,0296 0,0834 0,0172 1,0616 0,0218

CPA_D35 Electricity, gas, steam and air-conditioning 0,0508 0,0212 0,0638 0,0604 0,0644 0,0623 0,0650 0,1365 0,0646 0,0722 0,0899 0,0451 0,0757 0,1045 0,1127 0,0613 0,0420 0,0532 0,0502 0,0547 0,0489 0,0451 0,0457 1,3621

… …

… …

Output multipliers 2,2529 1,7713 2,1944 1,7706 2,6956 2,6448 2,5119 2,7277 2,3768 2,8812 2,8142 2,3455 2,6174 2,4369 2,9905 2,5151 2,5960 2,6124 2,5728 2,9500 2,8576 2,3226 2,3940 2,4894

Leontief inverse for EU-27 for the year 2011


8

3.2 The Leontief price model

Leontief originally developed the input-output model in physical units (bushels of wheat, yards of

cloth, man-years of labour etc.). He assumed that direct input coefficients, 𝐴, are based on physical

quantities of inputs divided by physical quantities of outputs. These data were then converted to a

table of (base year) transactions in value terms by using (base year) unit prices.

As already noted, input-output data are usually assembled and input-output studies are generally

presented in monetary (value) units. As we see in Figure 2, when all inputs are accounted for in the

processing industry, then the 𝑗th column sum (total outlays) is equal to the 𝑗-th row sum (total output).

Thus, summing up the 𝑗-th column in Figure 2, we can write:

𝑥′ = 1′𝑋 + 𝑤′

where 1′ = (1,1, … ,1) and 𝑤′ is the vector of value added by each product.

Substituting 𝑋 = 𝐴𝑥, where 𝑥 is the diagonal matrix of the total outputs, and postmultiplying by 𝑥−1

yields:

𝑥′𝑥−1 = 1′𝐴𝑥𝑥−1 + 𝑤′�̂�−1

or

1′ = 1′𝐴 + 𝑎′𝑤

where 𝑎′𝑤 = (𝑤1

𝑥1, … ,

𝑤𝑛

𝑥𝑛) is the vector of value added coefficients. The right side of this equation

describes the cost of inputs per unit of output. Output prices are set equal to total cost of production,

so each price is equal to 1. This illustrates the unique measurement units in the base year table,

amounts that can be purchased for 1 euro. Denoting the base year index prices by 𝑝𝑗 and 𝑝′ =

(𝑝1, 𝑝2, … , 𝑝𝑛) the Leontief price model (cost-push) can be written as:

𝑝′ = 𝑝′𝐴 + 𝑎′𝑤

For given value added coefficients 𝑎𝑤 the index prices for products can be estimated:

𝑝′ = 𝑎′𝑤(𝐼 − 𝐴)−1

The logic is that changes in the prices of a primary factors of production lead to changes in unit costs

and therefore output prices via the fixed production recipes in 𝐴. For example, cost increases are

passed along completely as intermediate input price increases to all purchasers, who in turn pass on

these increases by raising their output prices accordingly, etc. For further readings on the price model,

see, e.g. Miller, Blair (2009) [5].


9

3.3 Input-Output modelling of environmental impact

With the emergence of energy and environmental concerns, extension of the Leontief model were

developed, in which economic transactions are expressed in monetary terms and ecological and/or

energy transactions are recorded in physical terms (tonnes, BTUs, joules, etc.). In order to estimate

the total CO2 emissions requirements of particular commodities we use data from integrated sets of

accounts for economic and environmental information (NAMEA system from Eurostat) where the

CO2 emissions generated by the production of particular commodities can be found.

Let 𝑎𝑗𝑒 =

𝑒𝑗

𝑥𝑗 (𝑗 = 1, 2, … , 𝑛) denote CO2 emissions per unit of output of commodity 𝑗 . Then

multiplying the vector 𝑎𝑒 by the Leontief inverse 𝑅 the total emission coefficients 𝑟𝑒 can be

estimated:

𝑟𝑒 = 𝑎𝑒𝑅

They describe the emissions generated by the production of one unit of a particular commodity

delivered to final demand. In this way the total amount of CO2 emission generated through the entire

production chain of the particular commodities can be estimated and serves as the crucial parameter

for the quantification of the environmental tax rate.

Knowing the total CO2 requirements per unit of commodity and the amount of final demand the CO2

emissions can be estimated:

𝑒(𝐶𝑂2) = 𝑟𝑒𝑦𝐷

where 𝑦𝐷 denotes final demand excluding exports, according to the requirements on the EU tax (no

taxation of goods and services exported from the EU).

The CO2 tax rate bringing 1 % of GNI of EU can be calculated from the following equation:

1% 𝑜𝑓 𝐺𝑁𝐼 = 𝑡 × 𝑒(𝐶𝑂2)

𝑡 =1% 𝑜𝑓 𝐺𝑁𝐼

𝑒(𝐶𝑂2)

Another possibility for EU taxes as genuine own resource to finance the EU budget is to tax on energy

consumption. For the modelling point of view the procedure is similar to the CO2 taxation, where the

vector of emissions 𝑎𝑒 is replaced by the vector of energy coefficients 𝑎𝑗𝛼 (𝑗 = 1,2, … , 𝑛) . The

elements of this vector describe the total amount of energy (measured in British Thermal Units

[BTU]) required to produce a euro’s worth of product 𝑗’s output:

𝑎𝑗𝛼 =

𝛼𝑗

𝑥𝑗


10

where 𝛼𝑗 is the total amount of energy needed for production of commodity 𝑗 in the value of 𝑥𝑗. Then

multiplying the vector 𝑎𝛼 by the Leontief inverse 𝑅 the total energy coefficients 𝑟𝛼 can be estimated:

𝑟𝛼 = 𝑎𝛼𝑅

They represent the total amount of energy required to produce one unit of product 𝑗 for the final

demand. In other words, they describe the total content of energy (direct and indirect) for production

of particular commodity. In the case of availability of data with respect to different type of energy

technologies the model can be extended as be done by Herendeen (1974) [4].

Knowing the total energy requirements per unit of commodity and the amount of final demand the

energy needed for the production of commodities for the final demand (excluding exports) can be

estimated:

𝛼𝑑 = 𝑟𝛼𝑦𝐷

where 𝑦𝐷 denotes final demand excluding exports, according to the requirements on the EU tax (no

taxation of goods and services exported from the EU).

The energy tax rate bringing 1 % of GNI of EU can be calculated from the following equation:

1% 𝑜𝑓 𝐺𝑁𝐼 = 𝑡𝛼 × 𝛼𝑑

𝑡𝛼 =1% 𝑜𝑓 𝐺𝑁𝐼

𝛼𝑑


11

3.4 Modelling of the compensation mechanism for the new European tax

As mentioned above the new European tax on own resources should be fiscally neutral. One

possibility proposed by EESC is to reduce the labour costs. In the input-output table we can find the

data on compensation of employees such that we can ask to which extent these should be reduced in

order to match the increasing cost of products due to the introducing of the CO2 tax.

Let us denote the vector of compensation of employees which is made up of the following

components (ESA 2010, 402)

(a) wages and salaries

(b) employers’ social contributions

by 𝑤 = (𝑤1, 𝑤2, … , 𝑤𝑛), 𝑤𝑗 = (𝑗 = 1, 2, … , 𝑛) denotes the compensation of employees needed for the

production of commodity 𝑗 in a given year. The total amount of the compensation is given by

𝑤 = ∑ 𝑤𝑗

𝑛

𝑗=1

The following question arises: how the compensation of employees should be changed such that the

total amount of fiscal revenue generated by reducing of labour cost is equal to the fiscal revenue

generated by CO2 taxes (or 1 % of GNI)2?

1% 𝐺𝑁𝐼 = 𝑡𝑤𝑤 and 𝑡𝑤 =1% 𝐺𝑁𝐼

𝑤

where 𝑡𝑤 is the rate of reducing the compensation of employees. A reduction of labour cost – e.g. by

lowering employers’ social contributions – increases the competitiveness of firms and consequently

can promote labour demand and increase employment. The reduction of the labour cost by reducing

taxes on labour increases the net income of employees and stimulates consumer demand and

subsequently promotes the economic growth.

The compensation mechanism based on the reduction of labour cost can be formalised as follows. Let

us denote by:

𝑎𝑗𝑤 =

𝑤𝑗

𝑥𝑗 (𝑗 = 1, 2, … , 𝑛)

the compensation of employees per unit of output value of commodity 𝑗. Then the compensation of

employees can be expressed as a function of commodity output:

𝑤𝑗 = 𝑎𝑗𝑤𝑥𝑗 (𝑗 = 1, 2, … , 𝑛)

2 Because only GDP is directly available from input-output data, GDP was used instead of GNI. In a later stage of the analysis the

calculations need to be refined.


12

Using the basic relation of the input-output model we can rewrite these equations as:

𝑤 = �̂�𝑤𝑥 = �̂�𝑤(𝐼 − 𝐴)−1𝑦

where �̂�𝑤 is the diagonal matrix of the compensation of employees’ coefficients. The expression

�̂�𝑤(𝐼 − 𝐴)−1 denoted by 𝑟𝑤 represents the cumulative (total) coefficients of employees’

compensation. The element 𝑟𝑗𝑤 of this vector describes the compensation of employees per unit of

final use of product 𝑗. Then the total compensation of employees in the economy is given by:

∑ 𝑤𝑗

𝑗

= 𝑎𝑤(𝐼 − 𝐴)−1𝑦 = 𝑟𝑤𝑦

The condition on fiscal neutrality on a European tax as an EU own resource can be described by the

following equation:

𝑡𝑒𝑟𝑒𝑦𝐷 = 𝑡𝑤𝑟𝑤𝑦

where 𝑦𝐷 is the final demand excluding exports (as required in the conditions for the determination of

the CO2 tax rate). The rate 𝑡𝑤 by which the total amount of fiscal revenue generated by the imposing

CO2 tax 𝑡𝑒 will be compensated can be estimated as:

𝑡𝑤 = 𝑡𝑒

𝑟𝑒𝑦𝐷

𝑟𝑤𝑦

As can be seen the reduction rate must be higher with a higher ratio of final demand excluding export

and with higher total emission coefficients.

By applying energy tax the necessary reduction rate will be estimated straight forward by replacing

CO2 tax 𝑡𝑒 in the above equation by the calculated energy tax 𝑡𝛼. Having both tax rates 𝑡𝑒 and 𝑡𝛼, a

combination of both charges can be considered and the resulting cost-push effects compared.


13

4.1 Estimation of the CO2 tax rate

Using the symmetric input-output table for EU-27 for the year 2011 and the matrix of input

coefficients in the dimension commodity × commodity including imports (as required for the

production of commodities it is irrelevant whether all or part of this process takes place inside or

outside the EU) and the direct emission coefficients provided by Eurostat and the first results of the

calculations are presented in Table 2.

The data in the first column of Table 2 describe the direct emission of CO2 per unit of output of

particular products. The highest CO2 emission show electricity, gas, steam and air conditioning, air

transport services, other non-metallic mineral products with more than 1 kg of CO2 emission per euro

of production.

The data in the fourth column show the total CO2 emission coefficients expressing the CO2 emissions

induced by a delivery of 1 euro to final demand of the particular commodities. They are estimated by

multiplication of direct emission coefficients by the Leontief Inverse.

4 Results of the simulation


14

Table 2: Direct and indirect CO2 emissions


direct CO2

emissions

coefficients

(kg/EUR)

Output at basic

prices

(in million euros)

Total CO2

emissions

(in 1000 tonnes)

total CO2

coefficients

(kg/EUR)

indirect CO2

content

(kg/EUR)

CPA_A01 Products of agriculture, hunting and related services 0,22203 345.895 76.798 0,4916 0,2696

CPA_A02 Products of forestry, logging and related services 0,09189 33.205 3.051 0,2238 0,1319

CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 0,53328 12.216 6.515 0,8344 0,3011

CPA_B Mining and quarrying 0,35143 152.046 53.433 0,5877 0,2363

CPA_C10-C12 Food, beverages and tobacco products 0,07012 898.708 63.014 0,4063 0,3362

CPA_C13-C15 Textiles, wearing apparel, leather and related products 0,04799 213.617 10.252 0,3242 0,2762

CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials0,06013 109.699 6.597 0,3637 0,3036

CPA_C17 Paper and paper products 0,19999 163.028 32.605 0,6860 0,4860

CPA_C18 Printing and recording services 0,04067 87.822 3.571 0,3206 0,2799

CPA_C19 Coke and refined petroleum products 0,39120 368.854 144.294 0,9686 0,5774

CPA_C20 Chemicals and chemical products 0,28831 494.219 142.490 0,7727 0,4844

CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 0,04446 181.677 8.077 0,2791 0,2346

CPA_C22 Rubber and plastic products 0,06124 235.239 14.407 0,4465 0,3852

CPA_C23 Other non-metallic mineral products 1,00447 188.596 189.440 1,5266 0,5221

CPA_C24 Basic metals 0,50114 362.734 181.780 1,1739 0,6727

CPA_C25 Fabricated metal products, except machinery and equipment 0,04556 440.268 20.058 0,4210 0,3755

CPA_C26 Computer, electronic and optical products 0,01498 240.051 3.596 0,2508 0,2358

CPA_C27 Electrical equipment 0,02674 256.871 6.870 0,3467 0,3200

CPA_C28 Machinery and equipment n.e.c. 0,02317 521.800 12.089 0,3160 0,2928

CPA_C29 Motor vehicles, trailers and semi-trailers 0,01862 619.468 11.538 0,3425 0,3239

CPA_C30 Other transport equipment 0,01647 177.821 2.929 0,2955 0,2791

CPA_C31_C32 Furniture and other manufactured goods 0,03995 181.587 7.254 0,2847 0,2448

CPA_C33 Repair and installation services of machinery and equipment 0,03895 223.746 8.715 0,2935 0,2546

CPA_D35 Electricity, gas, steam and air conditioning 1,75303 656.116 1.150.191 2,5990 0,8459

CPA_E36 Natural water; water treatment and supply services 0,14110 50.209 7.085 0,4405 0,2994

CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services0,25366 209.417 53.120 0,5065 0,2529

CPA_F Constructions and construction works 0,04889 1.699.591 83.089 0,3158 0,2669

CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 0,04365 356.490 15.562 0,2040 0,1604

CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 0,04892 1.137.200 55.627 0,2314 0,1825

CPA_G47 Retail trade services, except of motor vehicles and motorcycles 0,04572 779.347 35.633 0,1974 0,1516

CPA_H49 Land transport services and transport services via pipelines 0,36738 552.501 202.976 0,5868 0,2194

CPA_H50 Water transport services 0,61901 162.968 100.879 1,0388 0,4198

CPA_H51 Air transport services 1,04768 118.617 124.273 1,3939 0,3462

CPA_H52 Warehousing and support services for transportation 0,06723 406.148 27.304 0,2823 0,2151

CPA_H53 Postal and courier services 0,06092 85.404 5.203 0,2119 0,1510

CPA_I Accommodation and food services 0,03324 661.924 22.000 0,2136 0,1804

CPA_J58 Publishing services 0,01554 150.208 2.334 0,1661 0,1505

CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services0,01883 155.203 2.923 0,1797 0,1609

CPA_J61 Telecommunications services 0,01154 352.501 4.067 0,1402 0,1287

CPA_J62_J63 Computer programming, consultancy and related services; Information services 0,02296 446.720 10.255 0,1315 0,1085

CPA_K64 Financial services, except insurance and pension funding 0,00558 764.064 4.263 0,0765 0,0709

CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 0,00328 298.410 978 0,0918 0,0885

CPA_K66 Services auxiliary to financial services and insurance services 0,00943 196.988 1.859 0,0913 0,0819

CPA_L68B Real estate services 0,01404 1.141.706 16.031 0,0922 0,0781

CPA_L68A Of which: imputed rents of owner-occupied dwellings 0,00400 710.547 2.846 0,0671 0,0631

CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 0,03179 622.681 19.794 0,1306 0,0988

CPA_M71 Architectural and engineering services; technical testing and analysis services 0,04153 323.514 13.435 0,1748 0,1333

CPA_M72 Scientific research and development services 0,05295 144.262 7.638 0,2297 0,1768

CPA_M73 Advertising and market research services 0,02101 171.888 3.612 0,1603 0,1393

CPA_M74_M75 Other professional, scientific and technical services and veterinary services 0,06048 116.847 7.067 0,1974 0,1370

CPA_N77 Rental and leasing services 0,06838 282.555 19.320 0,2014 0,1330

CPA_N78 Employment services 0,02504 160.719 4.024 0,0851 0,0600

CPA_N79 Travel agency, tour operator and other reservation services and related services 0,01471 96.464 1.419 0,3059 0,2911

CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services0,03351 383.739 12.859 0,1585 0,1250

CPA_O84 Public administration and defence services; compulsory social security services 0,02656 1.071.057 28.452 0,1318 0,1052

CPA_P85 Education services 0,03061 727.104 22.258 0,0955 0,0649

CPA_Q86 Human health services 0,01973 892.310 17.607 0,1178 0,0981

CPA_Q87_Q88 Residential care services; social work services without accommodation 0,03334 366.271 12.212 0,1192 0,0858

CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services0,02421 170.056 4.117 0,1400 0,1158

CPA_R93 Sporting services and amusement and recreation services 0,04036 100.575 4.059 0,1926 0,1523

CPA_S94 Services furnished by membership organisations 0,02695 116.410 3.137 0,1342 0,1073

CPA_S95 Repair services of computers and personal and household goods 0,08512 34.674 2.951 0,2181 0,1330

CPA_S96 Other personal services 0,04392 140.274 6.160 0,1429 0,0990

CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 0,01763 54.671 964 0,0866 0,0689

Total 23.577.515 3.128.955

Results for EU-27 for the year 2011


15

The results show the highest cumulative CO2 content for the products electricity, gas, steam and air

conditioning, other non-metallic mineral products, air transport services, basic metals and fish and

other fishing products, aquaculture products, support services to fishing. One million euros of

electricity, gas, steam and air conditioning generates (directly and indirectly) 2.599 tonnes of CO2

emissions. The direct CO2 emissions per million euros of the products electricity, gas, steam and air

conditioning equal 1.753 tonnes. It is the product with the highest content of CO2. The total CO2

emissions generated by product electricity, gas, steam and air conditioning in 2011 have been

1.150.191 thousand tonnes. Interpreting this result we have to take into account that electricity is a

product that is produced in different ways with significantly different environmental impacts.

Therefore for further and deeper analysis we will urgently need more disaggregated data than they

were to our disposal from Eurostat for the current analysis.

Other products with high cumulative CO2 content are other non-metallic mineral products, air

transport services (product with a high direct emission), water transport services, Coke and refined

petroleum products, basic metals, chemicals and chemical products and paper and paper products

with high indirect CO2 content, as can be seen in column 5.

From the total emissions’ point of view (described in column 3 of Table 2) CO2 intensive products are

land transport services and transport services via pipelines, other non-metallic mineral products,

basic metals, coke and refined petroleum products, chemicals and chemical products, air transport

services and water transport services with total amount of CO2 emissions more than 100.000

thousand tonnes.

Following the definition of the EU tax in the Preliminary Draft Opinion (2015) [3] it is irrelevant

whether all or part of the production process takes place inside or outside the EU. For this reason we

use the input-output table including imports assuming that the imported goods are produced with the

same technology as in the EU. For deeper analysis we would need additional and more disaggregated

data like world input-output database. For estimation of the total emission generated by the final use

and for the enumeration of the tax rate we excluded– following the definition of the EU tax – the

goods and services exported from the EU from our computation. The total emissions generated by

final demand including imported goods, but excluding exports are given in Table 3.


16

Table 3: CO2 emissions generated by final use


Total final use

(incl. imports)

at basic prices

(in million euros)

Total final use

(excl. exports)

at basic prices

(in million euros)

Total CO2 emissions

generated through

final use including

imports

(excl. exports)

(in 1000 tonnes)

CPA_A01 Products of agriculture, hunting and related services 132.055 115.552 83.394

CPA_A02 Products of forestry, logging and related services 11.353 10.715 3.096

CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 8.734 7.938 8.093

CPA_B Mining and quarrying 40.610 16.905 161.728

CPA_C10-C12 Food, beverages and tobacco products 601.649 535.217 62.746

CPA_C13-C15 Textiles, wearing apparel, leather and related products 215.643 171.572 15.003

CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials 24.405 14.763 6.614

CPA_C17 Paper and paper products 42.108 19.724 29.568

CPA_C18 Printing and recording services 5.717 4.486 3.432

CPA_C19 Coke and refined petroleum products 192.910 129.774 148.118

CPA_C20 Chemicals and chemical products 195.283 66.019 124.837

CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 160.013 80.084 6.828

CPA_C22 Rubber and plastic products 59.194 27.553 13.658

CPA_C23 Other non-metallic mineral products 31.326 14.843 184.768

CPA_C24 Basic metals 86.391 12.063 170.465

CPA_C25 Fabricated metal products, except machinery and equipment 107.595 67.246 18.547

CPA_C26 Computer, electronic and optical products 267.513 152.933 5.457

CPA_C27 Electrical equipment 153.142 79.223 6.399

CPA_C28 Machinery and equipment n.e.c. 394.200 196.998 9.093

CPA_C29 Motor vehicles, trailers and semi-trailers 445.124 291.133 9.134

CPA_C30 Other transport equipment 154.511 68.224 2.483

CPA_C31_C32 Furniture and other manufactured goods 184.790 145.748 8.251

CPA_C33 Repair and installation services of machinery and equipment 82.495 75.482 8.461

CPA_D35 Electricity, gas, steam and air conditioning 207.349 189.557 1.131.862

CPA_E36 Natural water; water treatment and supply services 25.483 25.470 7.080

CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services82.369 70.529 51.330

CPA_F Constructions and construction works 1.106.875 1.100.956 82.719

CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 236.446 220.548 14.636

CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 512.862 401.625 50.430

CPA_G47 Retail trade services, except of motor vehicles and motorcycles 637.905 607.235 34.135

CPA_H49 Land transport services and transport services via pipelines 205.317 181.441 194.897

CPA_H50 Water transport services 86.713 27.929 62.626

CPA_H51 Air transport services 90.638 56.298 108.551

CPA_H52 Warehousing and support services for transportation 78.029 49.970 26.897

CPA_H53 Postal and courier services 13.802 9.827 5.027

CPA_I Accommodation and food services 569.674 556.891 22.072

CPA_J58 Publishing services 81.915 74.693 2.268

CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services79.872 73.739 2.801

CPA_J61 Telecommunications services 162.670 147.326 3.965

CPA_J62_J63 Computer programming, consultancy and related services; Information services 197.354 152.454 9.364

CPA_K64 Financial services, except insurance and pension funding 222.222 156.445 3.980

CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 195.919 170.763 921

CPA_K66 Services auxiliary to financial services and insurance services 38.915 15.137 1.585

CPA_L68B Real estate services 653.774 650.040 15.769

CPA_L68A Of which: imputed rents of owner-occupied dwellings 710.547 710.547 2.846

CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 87.819 51.341 18.853

CPA_M71 Architectural and engineering services; technical testing and analysis services 98.613 71.247 12.503

CPA_M72 Scientific research and development services 61.214 37.387 7.267

CPA_M73 Advertising and market research services 14.672 1.639 3.443

CPA_M74_M75 Other professional, scientific and technical services and veterinary services 34.686 21.720 6.882

CPA_N77 Rental and leasing services 62.777 34.831 18.837

CPA_N78 Employment services 8.798 4.822 3.888

CPA_N79 Travel agency, tour operator and other reservation services and related services 38.562 36.315 1.362

CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services58.953 30.046 12.273

CPA_O84 Public administration and defence services; compulsory social security services 1.007.395 1.004.913 28.368

CPA_P85 Education services 656.848 653.771 22.124

CPA_Q86 Human health services 836.560 836.136 17.619

CPA_Q87_Q88 Residential care services; social work services without accommodation 338.756 338.708 12.206

CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services146.912 139.673 4.188

CPA_R93 Sporting services and amusement and recreation services 72.159 71.654 4.054

CPA_S94 Services furnished by membership organisations 87.717 87.651 3.120

CPA_S95 Repair services of computers and personal and household goods 20.079 19.102 2.929

CPA_S96 Other personal services 109.420 108.621 6.183

CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 52.029 51.996 961

TOT_HH Total 13.587.380 11.555.189 3.112.995



17

The results in column 3 of Table 3 show again the highest total emissions generated by final demand

(excluding exports) by products electricity, gas, steam and air conditioning, followed by land

transport services and transport services via pipelines (a product without very high emission

coefficients), other non-metallic mineral products, basic metals, mining and quarrying and coke and

refined petroleum products. They all show an amount of more than 140.000 thousand tonnes of CO2

emissions in the year 2011.

The total amount of CO2 emissions generated by final demand (excluding exports) in the EU-27 was

3.112.995 thousand tonnes.

Using the input-output table for EU-27 (Version A – including imports) and the results from Table 3

for the year 2011 the tax rate yielding 1 % of GDP (using as proxy for GNI)3 is given as follows:

Figure 3: Estimation of the CO2 tax rate


In order to generate a total revenue from the CO2 tax yielding 1 % of GDP of the European Union we

would need a tax rate in the amount of 40,69 euros per tonne of CO2.

It is interesting and useful to compare this result with the price of emission certificate from Figure 4.

The current price of 8 euros per tonne of CO2 is the result of the problems in the emission trading

system (caused by very high initial allocation of CO2 certificates). According to Stefan Schleicher

from the University of Graz the price per CO2 certificate should be at least 30 euros per tonne CO2 in

order to be functional.4

3 Because only GDP is directly available from input-output data, GDP was used instead of GNI. In a later stage of the analysis the

calculations need to be refined. 4 Der Standard, January 22th 2016

Total CO2 emissions

generated through final

use including imports

(excl. exports)

(in 1000 tonnes)

GDP of EU-27

in million euros

1% of GDP

in million euros

price per

tonne CO2

in euros

3.112.995 12.667.016 126.670 40,69


18

Figure 4: EUA price and trading volumes, 2008-20145

Source: KfW & ZEW (2014) using Thomson Reuter Datastream

It is worth to mention, that taking the exports in our simulation the tax rate in the amount of

approximately 30 euro per tonne of CO2 would result from our computations. Therefore the new CO2

tax can be a useful alternative for the CO2 emission trading system.

5

http://www.managingnaturalresources.com/#!The-role-of-CO2-for-European-and-international-climate-policy-/c106n/805A5340-1446-

4B90-B8E0-4437312C503B

http://www.managingnaturalresources.com/#!The-role-of-CO2-for-European-and-international-climate-policy-/c106n/805A5340-1446-4B90-B8E0-4437312C503B

http://www.managingnaturalresources.com/#!The-role-of-CO2-for-European-and-international-climate-policy-/c106n/805A5340-1446-4B90-B8E0-4437312C503B


19

4.2 Cost push effect of the new CO2 taxes

Levying the environmental tax on CO2 emissions will increase the cost of primary inputs for the

production of commodities which generates cost-push effects for the prices of all commodities

produced in the economy. For further discussion on introducing the CO2 tax it is useful to see the

share of CO2 tax payments on output value which can be computed as follows:

𝑆ℎ 𝑇(𝐶𝑂2)𝑗 =𝑒𝑗𝑡

𝑥𝑗= 𝑎𝑗

𝑒𝑡

where 𝑒𝑗 denotes the CO2 emitted by the production of commodity 𝑗, 𝑡 is the CO2 tax rate, 𝑥𝑗 the

output value of commodity 𝑗 and 𝑎𝑗𝑒 the direct emission coefficient.

The results of the share of CO2 tax payments can be seen in the second column of Table 4. The

highest share in the amount of 7,13 % is generated by product electricity, gas, steam and air

conditioning, 4,26 % for air transport services and other non-metal mineral products. For most

commodities the share is less than 1 %.


20

Table 4: Estimation of the share of CO2 tax payments on output value


direct CO2

emissions

coefficients

(kg/EUR)

share of CO2

tax payments

on output value

CPA_A01 Products of agriculture, hunting and related services 0,22203 0,90%

CPA_A02 Products of forestry, logging and related services 0,09189 0,37%

CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 0,53328 2,17%

CPA_B Mining and quarrying 0,35143 1,43%

CPA_C10-C12 Food, beverages and tobacco products 0,07012 0,29%

CPA_C13-C15 Textiles, wearing apparel, leather and related products 0,04799 0,20%

CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials0,06013 0,24%

CPA_C17 Paper and paper products 0,19999 0,81%

CPA_C18 Printing and recording services 0,04067 0,17%

CPA_C19 Coke and refined petroleum products 0,39120 1,59%

CPA_C20 Chemicals and chemical products 0,28831 1,17%

CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 0,04446 0,18%

CPA_C22 Rubber and plastic products 0,06124 0,25%

CPA_C23 Other non-metallic mineral products 1,00447 4,09%

CPA_C24 Basic metals 0,50114 2,04%

CPA_C25 Fabricated metal products, except machinery and equipment 0,04556 0,19%

CPA_C26 Computer, electronic and optical products 0,01498 0,06%

CPA_C27 Electrical equipment 0,02674 0,11%

CPA_C28 Machinery and equipment n.e.c. 0,02317 0,09%

CPA_C29 Motor vehicles, trailers and semi-trailers 0,01862 0,08%

CPA_C30 Other transport equipment 0,01647 0,07%

CPA_C31_C32 Furniture and other manufactured goods 0,03995 0,16%

CPA_C33 Repair and installation services of machinery and equipment 0,03895 0,16%

CPA_D35 Electricity, gas, steam and air conditioning 1,75303 7,13%

CPA_E36 Natural water; water treatment and supply services 0,14110 0,57%

CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services0,25366 1,03%

CPA_F Constructions and construction works 0,04889 0,20%

CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 0,04365 0,18%

CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 0,04892 0,20%

CPA_G47 Retail trade services, except of motor vehicles and motorcycles 0,04572 0,19%

CPA_H49 Land transport services and transport services via pipelines 0,36738 1,49%

CPA_H50 Water transport services 0,61901 2,52%

CPA_H51 Air transport services 1,04768 4,26%

CPA_H52 Warehousing and support services for transportation 0,06723 0,27%

CPA_H53 Postal and courier services 0,06092 0,25%

CPA_I Accommodation and food services 0,03324 0,14%

CPA_J58 Publishing services 0,01554 0,06%

CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services0,01883 0,08%

CPA_J61 Telecommunications services 0,01154 0,05%

CPA_J62_J63 Computer programming, consultancy and related services; Information services 0,02296 0,09%

CPA_K64 Financial services, except insurance and pension funding 0,00558 0,02%

CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 0,00328 0,01%

CPA_K66 Services auxiliary to financial services and insurance services 0,00943 0,04%

CPA_L68B Real estate services 0,01404 0,06%

CPA_L68A Of which: imputed rents of owner-occupied dwellings 0,00400 0,02%

CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 0,03179 0,13%

CPA_M71 Architectural and engineering services; technical testing and analysis services 0,04153 0,17%

CPA_M72 Scientific research and development services 0,05295 0,22%

CPA_M73 Advertising and market research services 0,02101 0,09%

CPA_M74_M75 Other professional, scientific and technical services and veterinary services 0,06048 0,25%

CPA_N77 Rental and leasing services 0,06838 0,28%

CPA_N78 Employment services 0,02504 0,10%

CPA_N79 Travel agency, tour operator and other reservation services and related services 0,01471 0,06%

CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services0,03351 0,14%

CPA_O84 Public administration and defence services; compulsory social security services 0,02656 0,11%

CPA_P85 Education services 0,03061 0,12%

CPA_Q86 Human health services 0,01973 0,08%

CPA_Q87_Q88 Residential care services; social work services without accommodation 0,03334 0,14%

CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services0,02421 0,10%

CPA_R93 Sporting services and amusement and recreation services 0,04036 0,16%

CPA_S94 Services furnished by membership organisations 0,02695 0,11%

CPA_S95 Repair services of computers and personal and household goods 0,08512 0,35%

CPA_S96 Other personal services 0,04392 0,18%

CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 0,01763 0,07%



21

In the Leontief price model6 changes in the cost of primary inputs are carried forward in the chain of

transactions taking into account all the interdependencies in an economy. As shown in Section 3 in

our study by applying this model the cost-push effects can be estimated:

∆𝑝 = ∆𝑘(𝐼 − 𝐴)−1

where ∆𝑘 denotes the change in the cost of primary inputs caused by introducing of CO2 tax:

∆𝑘 = 𝑡𝑒(𝐶𝑂2)�̂�−1

where 𝑥 is the diagonal matrix of the commodity outputs and ∆𝑝 describes the changes of the

commodity prices:

∆𝑝 = 𝑡𝑎𝑒(𝐼 − 𝐴)−1 = 𝑡𝑟𝑒

In accordance with economic intuition the price changes are determined by the total CO2 coefficients

(or requirements). Consequently the highest cost-push effect can be observed for the products

electricity, gas, steam and air conditioning (10,58 %), other non-metal mineral products (6,21 %),

and air transport services with more than 5 % (see Table 5). Summarising the introduction of CO2

taxes will lead to significant changes of the relative prices.

6 see Miller Blair (2009) [5]


22

Table 5: Cost-push effects of introducing CO2 tax


total CO2

coefficients

(kg/EUR)

Cost push

effects

CPA_A01 Products of agriculture, hunting and related services 0,4916 2,00%

CPA_A02 Products of forestry, logging and related services 0,2238 0,91%

CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 0,8344 3,40%

CPA_B Mining and quarrying 0,5877 2,39%

CPA_C10-C12 Food, beverages and tobacco products 0,4063 1,65%

CPA_C13-C15 Textiles, wearing apparel, leather and related products 0,3242 1,32%

CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials 0,3637 1,48%

CPA_C17 Paper and paper products 0,6860 2,79%

CPA_C18 Printing and recording services 0,3206 1,30%

CPA_C19 Coke and refined petroleum products 0,9686 3,94%

CPA_C20 Chemicals and chemical products 0,7727 3,14%

CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 0,2791 1,14%

CPA_C22 Rubber and plastic products 0,4465 1,82%

CPA_C23 Other non-metallic mineral products 1,5266 6,21%

CPA_C24 Basic metals 1,1739 4,78%

CPA_C25 Fabricated metal products, except machinery and equipment 0,4210 1,71%

CPA_C26 Computer, electronic and optical products 0,2508 1,02%

CPA_C27 Electrical equipment 0,3467 1,41%

CPA_C28 Machinery and equipment n.e.c. 0,3160 1,29%

CPA_C29 Motor vehicles, trailers and semi-trailers 0,3425 1,39%

CPA_C30 Other transport equipment 0,2955 1,20%

CPA_C31_C32 Furniture and other manufactured goods 0,2847 1,16%

CPA_C33 Repair and installation services of machinery and equipment 0,2935 1,19%

CPA_D35 Electricity, gas, steam and air conditioning 2,5990 10,58%

CPA_E36 Natural water; water treatment and supply services 0,4405 1,79%

CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services0,5065 2,06%

CPA_F Constructions and construction works 0,3158 1,28%

CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 0,2040 0,83%

CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 0,2314 0,94%

CPA_G47 Retail trade services, except of motor vehicles and motorcycles 0,1974 0,80%

CPA_H49 Land transport services and transport services via pipelines 0,5868 2,39%

CPA_H50 Water transport services 1,0388 4,23%

CPA_H51 Air transport services 1,3939 5,67%

CPA_H52 Warehousing and support services for transportation 0,2823 1,15%

CPA_H53 Postal and courier services 0,2119 0,86%

CPA_I Accommodation and food services 0,2136 0,87%

CPA_J58 Publishing services 0,1661 0,68%

CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services0,1797 0,73%

CPA_J61 Telecommunications services 0,1402 0,57%

CPA_J62_J63 Computer programming, consultancy and related services; Information services 0,1315 0,53%

CPA_K64 Financial services, except insurance and pension funding 0,0765 0,31%

CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 0,0918 0,37%

CPA_K66 Services auxiliary to financial services and insurance services 0,0913 0,37%

CPA_L68B Real estate services 0,0922 0,38%

CPA_L68A Of which: imputed rents of owner-occupied dwellings 0,0671 0,27%

CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 0,1306 0,53%

CPA_M71 Architectural and engineering services; technical testing and analysis services 0,1748 0,71%

CPA_M72 Scientific research and development services 0,2297 0,93%

CPA_M73 Advertising and market research services 0,1603 0,65%

CPA_M74_M75 Other professional, scientific and technical services and veterinary services 0,1974 0,80%

CPA_N77 Rental and leasing services 0,2014 0,82%

CPA_N78 Employment services 0,0851 0,35%

CPA_N79 Travel agency, tour operator and other reservation services and related services 0,3059 1,24%

CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services0,1585 0,65%

CPA_O84 Public administration and defence services; compulsory social security services 0,1318 0,54%

CPA_P85 Education services 0,0955 0,39%

CPA_Q86 Human health services 0,1178 0,48%

CPA_Q87_Q88 Residential care services; social work services without accommodation 0,1192 0,48%

CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services0,1400 0,57%

CPA_R93 Sporting services and amusement and recreation services 0,1926 0,78%

CPA_S94 Services furnished by membership organisations 0,1342 0,55%

CPA_S95 Repair services of computers and personal and household goods 0,2181 0,89%

CPA_S96 Other personal services 0,1429 0,58%

CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 0,0866 0,35%



23

4.3 Fiscal neutrality of the new European CO2 tax

A change in the labour cost (as a part of primary cost) leads to price changes which can be estimated

by using the Leontief price model in a similar way as for the introduction of the CO2 tax.

The condition on fiscal neutrality on a European tax as an EU own resource has been formulated by

the following equation:

1% 𝐺𝐷𝑃 (𝐸𝑈27) = 𝑡𝑒𝑟𝑒𝑦𝐷 = 𝑡𝑤𝑟𝑤𝑦

where 𝑦𝐷 is the final demand excluding exports (as required in the conditions for the determination of

the CO2 tax rate). The rate 𝑡𝑤 by which the total amount of fiscal revenue generated by the imposing

CO2 tax 𝑡𝑒 will be compensated can be estimated as:

𝑡𝑤 = 𝑡𝑒

𝑟𝑒𝑦𝐷

𝑟𝑤𝑦

Using the input-output data for EU-27 for the year 2011 the reduction of the labour costs by -2,03 %

will compensate the tax revenue generated by the CO2 tax of 40,69 euros per tonne of CO2 with a

positive effect for the environment and the labour market.

Using the data from the input-output tables for EU-27 for the year 2011 and our results from the

previous section with the tax rate of 40,69 per tonne of CO2 emissions the necessary reduction rate for

labour costs can be estimated (see Table 6). The compensation of employees for EU-27 sums up to

6.226.326 million euros. Then

𝑡𝑤 =1% 𝐺𝐷𝑃

6.226.336=

126.670

6.226.326= 0,0203

The labour cost (compensation of employees) should be reduced by -2,03 % in order to match the

imposing of a CO2 tax of 40,69 euros per tonne of CO2. This result is related to the average of all 27

countries of European Union and to the proportional reduction of wages and salaries as well as

employers’ social contributions by the same rate of -2,03 %. Due to lack of appropriate data and the

time given for our disposal, we were not able to simulate the different scenario of this compensation

mechanism. In any case, the decreasing labour costs would stimulate the demand for labour and

contribute to decreasing unemployment rate, which with imposing of CO2 tax supporting the

improvement of environmental quality will result in “double dividend” (see the result by Conrad &

Schmidt (1998) [1]).


24

Table 6: Data for the labour costs related to the particular commodities


Compensation

of employees

(in million euros)

Wages and

salaries

(in million euros)

employers'

social

contributions

(in million euros)

CPA_A01 Products of agriculture, hunting and related services 41.552 33.889 7.663

CPA_A02 Products of forestry, logging and related services 6.276 5.083 1.193

CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 2.482 2.075 407

CPA_B Mining and quarrying 24.265 19.104 5.160

CPA_C10-C12 Food, beverages and tobacco products 130.360 104.125 26.236

CPA_C13-C15 Textiles, wearing apparel, leather and related products 41.619 32.724 8.894

CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials 20.728 16.674 4.054

CPA_C17 Paper and paper products 26.199 20.888 5.311

CPA_C18 Printing and recording services 22.507 18.006 4.501

CPA_C19 Coke and refined petroleum products 12.906 10.057 2.849

CPA_C20 Chemicals and chemical products 61.796 46.335 15.461

CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 28.900 22.576 6.324

CPA_C22 Rubber and plastic products 49.907 39.783 10.124

CPA_C23 Other non-metallic mineral products 39.773 31.104 8.669

CPA_C24 Basic metals 44.270 34.574 9.696

CPA_C25 Fabricated metal products, except machinery and equipment 110.518 87.567 22.951

CPA_C26 Computer, electronic and optical products 52.079 41.240 10.838

CPA_C27 Electrical equipment 52.782 41.773 11.008

CPA_C28 Machinery and equipment n.e.c. 115.956 92.241 23.715

CPA_C29 Motor vehicles, trailers and semi-trailers 93.036 72.442 20.594

CPA_C30 Other transport equipment 33.178 25.589 7.589

CPA_C31_C32 Furniture and other manufactured goods 46.844 37.660 9.184

CPA_C33 Repair and installation services of machinery and equipment 59.290 46.898 12.392

CPA_D35 Electricity, gas, steam and air conditioning 64.368 47.496 16.872

CPA_E36 Natural water; water treatment and supply services 10.457 8.045 2.412

CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services46.044 36.131 9.913

CPA_F Constructions and construction works 379.525 303.436 76.089

CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 117.006 95.581 21.425

CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 318.057 253.162 64.895

CPA_G47 Retail trade services, except of motor vehicles and motorcycles 285.428 232.368 53.060

CPA_H49 Land transport services and transport services via pipelines 154.728 124.125 30.603

CPA_H50 Water transport services 12.810 11.019 1.791

CPA_H51 Air transport services 22.599 18.019 4.580

CPA_H52 Warehousing and support services for transportation 100.048 79.325 20.723

CPA_H53 Postal and courier services 45.444 34.445 11.000

CPA_I Accommodation and food services 179.454 149.620 29.834

CPA_J58 Publishing services 43.227 34.597 8.630

CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services29.001 22.749 6.253

CPA_J61 Telecommunications services 55.862 43.797 12.065

CPA_J62_J63 Computer programming, consultancy and related services; Information services 169.164 135.198 33.966

CPA_K64 Financial services, except insurance and pension funding 211.962 163.589 48.373

CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 50.685 39.539 11.147

CPA_K66 Services auxiliary to financial services and insurance services 57.860 43.658 14.202

CPA_L68B Real estate services 80.074 63.941 16.134

CPA_L68A Of which: imputed rents of owner-occupied dwellings 24.298 19.645 4.653

CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 191.988 153.074 38.914

CPA_M71 Architectural and engineering services; technical testing and analysis services 99.710 80.477 19.233

CPA_M72 Scientific research and development services 56.589 44.064 12.526

CPA_M73 Advertising and market research services 42.341 34.113 8.229

CPA_M74_M75 Other professional, scientific and technical services and veterinary services 28.499 23.476 5.024

CPA_N77 Rental and leasing services 42.990 35.127 7.863

CPA_N78 Employment services 100.571 79.238 21.334

CPA_N79 Travel agency, tour operator and other reservation services and related services 17.146 14.529 2.617

CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services147.276 116.124 31.151

CPA_O84 Public administration and defence services; compulsory social security services 547.592 404.789 142.803

CPA_P85 Education services 515.933 386.348 129.585

CPA_Q86 Human health services 393.817 317.083 76.734

CPA_Q87_Q88 Residential care services; social work services without accommodation 224.822 180.394 44.428

CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services48.217 38.448 9.768

CPA_R93 Sporting services and amusement and recreation services 32.202 25.110 7.092

CPA_S94 Services furnished by membership organisations 65.500 52.769 12.731

CPA_S95 Repair services of computers and personal and household goods 12.231 9.954 2.277

CPA_S96 Other personal services 32.611 26.857 5.754

CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 50.965 44.405 6.560

Total 6.226.326 4.908.270 1.318.055

From the EU-27 input-output table for the year 2011


25

Considering the reduction of employers’ social contribution only, in order to compensate the amount

generated by the CO2 tax, a reduction rate by -9,61 % should be necessary. Because the employers’

social contribution is a part of the overall labour cost, the reduction rate must obviously be higher.

The price effects generated by the proportional reduction of labour cost can be estimated by the

Leontief price model:

∆𝑝 = ∆𝑘(𝐼 − 𝐴)−1 where ∆𝑘 = 𝑡𝑤𝑥−1 = 𝑡𝑎𝑤

The results of model computation from Table 7 show the decreasing prices for labour intensive

products like education services (-1,64 %), residential care services; social work services without

accommodation (-1,58 %), postal and courier services (-1,53 %) and for the most products

approximately by -1,0 %. In this way the price increasing effect of introducing the new CO2 tax can

be mitigated.

The overall price taking into account simultaneously the introduction of CO2 tax and the reduction of

labour cost is described as follows:

∆𝑝 = (𝑡𝑎𝑒 − 𝑡𝑤𝑎𝑤)(𝐼 − 𝐴)−1

= 𝑡𝑎𝑒(𝐼 − 𝐴)−1 − 𝑡𝑤𝑎𝑤(𝐼 − 𝐴)−1

= 𝑡𝑟𝑒 − 𝑡𝑤𝑟𝑤


26

Table 7: Price effects of the reduction of labour costs


Output at basic

prices

(in million euros)

Compensation

of employees

(in million euros)

Direct

compensation

coefficients

Total

compensation

coefficients

price effects of

the reducing of

the

compensation of

employees

CPA_A01 Products of agriculture, hunting and related services 345.895 41.552 0,12013 0,36879 -0,75%

CPA_A02 Products of forestry, logging and related services 33.205 6.276 0,18901 0,35621 -0,72%

CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 12.216 2.482 0,20319 0,44808 -0,91%

CPA_B Mining and quarrying 152.046 24.265 0,15959 0,32642 -0,66%

CPA_C10-C12 Food, beverages and tobacco products 898.708 130.360 0,14505 0,49243 -1,00%

CPA_C13-C15 Textiles, wearing apparel, leather and related products 213.617 41.619 0,19483 0,55528 -1,13%

CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials109.699 20.728 0,18895 0,51944 -1,06%

CPA_C17 Paper and paper products 163.028 26.199 0,16070 0,52108 -1,06%

CPA_C18 Printing and recording services 87.822 22.507 0,25628 0,56289 -1,15%

CPA_C19 Coke and refined petroleum products 368.854 12.906 0,03499 0,38191 -0,78%

CPA_C20 Chemicals and chemical products 494.219 61.796 0,12504 0,48790 -0,99%

CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 181.677 28.900 0,15907 0,46537 -0,95%

CPA_C22 Rubber and plastic products 235.239 49.907 0,21215 0,55123 -1,12%

CPA_C23 Other non-metallic mineral products 188.596 39.773 0,21089 0,52646 -1,07%

CPA_C24 Basic metals 362.734 44.270 0,12205 0,51555 -1,05%

CPA_C25 Fabricated metal products, except machinery and equipment 440.268 110.518 0,25103 0,58077 -1,18%

CPA_C26 Computer, electronic and optical products 240.051 52.079 0,21695 0,60037 -1,22%

CPA_C27 Electrical equipment 256.871 52.782 0,20548 0,56599 -1,15%

CPA_C28 Machinery and equipment n.e.c. 521.800 115.956 0,22222 0,57899 -1,18%

CPA_C29 Motor vehicles, trailers and semi-trailers 619.468 93.036 0,15019 0,57134 -1,16%

CPA_C30 Other transport equipment 177.821 33.178 0,18658 0,61679 -1,25%

CPA_C31_C32 Furniture and other manufactured goods 181.587 46.844 0,25797 0,56088 -1,14%

CPA_C33 Repair and installation services of machinery and equipment 223.746 59.290 0,26499 0,58931 -1,20%

CPA_D35 Electricity, gas, steam and air conditioning 656.116 64.368 0,09810 0,38201 -0,78%

CPA_E36 Natural water; water treatment and supply services 50.209 10.457 0,20826 0,43314 -0,88%

CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services209.417 46.044 0,21987 0,50081 -1,02%

CPA_F Constructions and construction works 1.699.591 379.525 0,22330 0,52286 -1,06%

CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 356.490 117.006 0,32822 0,55583 -1,13%

CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 1.137.200 318.057 0,27968 0,52440 -1,07%

CPA_G47 Retail trade services, except of motor vehicles and motorcycles 779.347 285.428 0,36624 0,55565 -1,13%

CPA_H49 Land transport services and transport services via pipelines 552.501 154.728 0,28005 0,53281 -1,08%

CPA_H50 Water transport services 162.968 12.810 0,07860 0,47736 -0,97%

CPA_H51 Air transport services 118.617 22.599 0,19052 0,55968 -1,14%

CPA_H52 Warehousing and support services for transportation 406.148 100.048 0,24634 0,52809 -1,07%

CPA_H53 Postal and courier services 85.404 45.444 0,53211 0,75342 -1,53%

CPA_I Accommodation and food services 661.924 179.454 0,27111 0,49154 -1,00%

CPA_J58 Publishing services 150.208 43.227 0,28778 0,55737 -1,13%

CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services155.203 29.001 0,18686 0,47433 -0,96%

CPA_J61 Telecommunications services 352.501 55.862 0,15847 0,42458 -0,86%

CPA_J62_J63 Computer programming, consultancy and related services; Information services 446.720 169.164 0,37868 0,62490 -1,27%

CPA_K64 Financial services, except insurance and pension funding 764.064 211.962 0,27741 0,49809 -1,01%

CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 298.410 50.685 0,16985 0,48959 -1,00%

CPA_K66 Services auxiliary to financial services and insurance services 196.988 57.860 0,29372 0,54871 -1,12%

CPA_L68B Real estate services 1.141.706 80.074 0,07014 0,21655 -0,44%

CPA_L68A Of which: imputed rents of owner-occupied dwellings 710.547 24.298 0,03420 0,16578 -0,34%

CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 622.681 191.988 0,30833 0,52073 -1,06%

CPA_M71 Architectural and engineering services; technical testing and analysis services 323.514 99.710 0,30821 0,57370 -1,17%

CPA_M72 Scientific research and development services 144.262 56.589 0,39227 0,66905 -1,36%

CPA_M73 Advertising and market research services 171.888 42.341 0,24633 0,54176 -1,10%

CPA_M74_M75 Other professional, scientific and technical services and veterinary services 116.847 28.499 0,24390 0,48007 -0,98%

CPA_N77 Rental and leasing services 282.555 42.990 0,15215 0,36840 -0,75%

CPA_N78 Employment services 160.719 100.571 0,62576 0,75726 -1,54%

CPA_N79 Travel agency, tour operator and other reservation services and related services 96.464 17.146 0,17774 0,54194 -1,10%

CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services383.739 147.276 0,38379 0,61683 -1,25%

CPA_O84 Public administration and defence services; compulsory social security services 1.071.057 547.592 0,51126 0,67611 -1,38%

CPA_P85 Education services 727.104 515.933 0,70957 0,80510 -1,64%

CPA_Q86 Human health services 892.310 393.817 0,44135 0,60532 -1,23%

CPA_Q87_Q88 Residential care services; social work services without accommodation 366.271 224.822 0,61381 0,77817 -1,58%

CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services170.056 48.217 0,28353 0,48363 -0,98%

CPA_R93 Sporting services and amusement and recreation services 100.575 32.202 0,32018 0,54927 -1,12%

CPA_S94 Services furnished by membership organisations 116.410 65.500 0,56266 0,73661 -1,50%

CPA_S95 Repair services of computers and personal and household goods 34.674 12.231 0,35275 0,56831 -1,16%

CPA_S96 Other personal services 140.274 32.611 0,23248 0,34931 -0,71%

CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 54.671 50.965 0,93221 1,01157 -2,06%

Total 23.577.515 6.226.326



27

The results for the overall price effect contained in

Table 8 show the decreasing prices for the labour intensive services like education services (-1,25 %),

employment services (-1,19 %) and residential care services; social work services without

accommodation (-1,10 %) and increasing prices of CO2 intensive products like electricity, gas, steam

and air conditioning (9,80 %), other non-metal mineral products (5,14 %) and air transport services

(4,53 %). In this way the compensating effect of labour cost reduction is demonstrated. The results

show the mitigating effect of the compensation mechanism for the product prices, but the overall

effect for the CO2 emission intensive products is still significant. These are the products with higher

labour productivity and lower compensation of employees (see Table 6) compared to the above

mentioned product and services with higher labour intensity and lower CO2 emission content.

The effect of changing relative prices for the behaviour of consumers and producers is the first step in

analysing the question on the economic effects of introducing of CO2 emission tax. The scope of this

question is very broad and will require additional models and methodological approaches and more

time for our disposal. Appropriate methodology is provided by computable general equilibrium

(CGE) models as demonstrated by Palenik - Miklosovic. (2015) [6].

Another example for analysis of economic effects of carbon dioxide policy for the European Union is

the already mentioned paper by Conrad & Schmidt (1998) [1]. The objective of this paper is to

quantify the economic effects of introducing carbon-reduction policies in the European Union. For

this purpose they used linked applied general equilibrium (AGE) for 11 EU member countries. This

approach enables them to measure the change in competitiveness for domestic industry, the effect on

growth, employment and inflation in member countries; and the cost and benefits of a coordinated

versus an uncoordinated approach to adhere to an EU target of carbon dioxide (CO2) emissions. In the

model the CO2 tax revenue is used to reduce employers’ contribution to social insurance with a hope

for double dividend. In one simulation each country implements a CO2 tax to limit CO2 emissions by

10 %. As an alternative to this uncoordinated approach, they calculated an overall CO2 tax for the

European Union to reduce the CO2 emissions of the EU by 10 %.

The elaboration of such model is very time consuming and data intensive, but it can provide very

interesting and useful results related to economic effects of introducing a new European CO2 tax and

offers topics for further analysis and scientific studies. For this purpose the present study can provide

a good starting point.


28

Table 8: Price effects of the simultaneously introducing a CO2 tax and reducing labour costs


Cost push

effects

price effects of

reducing the

labour costs

Overall price

effects

CPA_A01 Products of agriculture, hunting and related services 2,00% -0,75% 1,25%

CPA_A02 Products of forestry, logging and related services 0,91% -0,72% 0,19%

CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 3,40% -0,91% 2,48%

CPA_B Mining and quarrying 2,39% -0,66% 1,73%

CPA_C10-C12 Food, beverages and tobacco products 1,65% -1,00% 0,65%

CPA_C13-C15 Textiles, wearing apparel, leather and related products 1,32% -1,13% 0,19%

CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials 1,48% -1,06% 0,42%

CPA_C17 Paper and paper products 2,79% -1,06% 1,73%

CPA_C18 Printing and recording services 1,30% -1,15% 0,16%

CPA_C19 Coke and refined petroleum products 3,94% -0,78% 3,16%

CPA_C20 Chemicals and chemical products 3,14% -0,99% 2,15%

CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 1,14% -0,95% 0,19%

CPA_C22 Rubber and plastic products 1,82% -1,12% 0,70%

CPA_C23 Other non-metallic mineral products 6,21% -1,07% 5,14%

CPA_C24 Basic metals 4,78% -1,05% 3,73%

CPA_C25 Fabricated metal products, except machinery and equipment 1,71% -1,18% 0,53%

CPA_C26 Computer, electronic and optical products 1,02% -1,22% -0,20%

CPA_C27 Electrical equipment 1,41% -1,15% 0,26%

CPA_C28 Machinery and equipment n.e.c. 1,29% -1,18% 0,11%

CPA_C29 Motor vehicles, trailers and semi-trailers 1,39% -1,16% 0,23%

CPA_C30 Other transport equipment 1,20% -1,25% -0,05%

CPA_C31_C32 Furniture and other manufactured goods 1,16% -1,14% 0,02%

CPA_C33 Repair and installation services of machinery and equipment 1,19% -1,20% 0,00%

CPA_D35 Electricity, gas, steam and air conditioning 10,58% -0,78% 9,80%

CPA_E36 Natural water; water treatment and supply services 1,79% -0,88% 0,91%

CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services2,06% -1,02% 1,04%

CPA_F Constructions and construction works 1,28% -1,06% 0,22%

CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 0,83% -1,13% -0,30%

CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 0,94% -1,07% -0,13%

CPA_G47 Retail trade services, except of motor vehicles and motorcycles 0,80% -1,13% -0,33%

CPA_H49 Land transport services and transport services via pipelines 2,39% -1,08% 1,30%

CPA_H50 Water transport services 4,23% -0,97% 3,26%

CPA_H51 Air transport services 5,67% -1,14% 4,53%

CPA_H52 Warehousing and support services for transportation 1,15% -1,07% 0,07%

CPA_H53 Postal and courier services 0,86% -1,53% -0,67%

CPA_I Accommodation and food services 0,87% -1,00% -0,13%

CPA_J58 Publishing services 0,68% -1,13% -0,46%

CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services0,73% -0,96% -0,23%

CPA_J61 Telecommunications services 0,57% -0,86% -0,29%

CPA_J62_J63 Computer programming, consultancy and related services; Information services 0,53% -1,27% -0,74%

CPA_K64 Financial services, except insurance and pension funding 0,31% -1,01% -0,70%

CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 0,37% -1,00% -0,62%

CPA_K66 Services auxiliary to financial services and insurance services 0,37% -1,12% -0,74%

CPA_L68B Real estate services 0,38% -0,44% -0,07%

CPA_L68A Of which: imputed rents of owner-occupied dwellings 0,27% -0,34% -0,06%

CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 0,53% -1,06% -0,53%

CPA_M71 Architectural and engineering services; technical testing and analysis services 0,71% -1,17% -0,46%

CPA_M72 Scientific research and development services 0,93% -1,36% -0,43%

CPA_M73 Advertising and market research services 0,65% -1,10% -0,45%

CPA_M74_M75 Other professional, scientific and technical services and veterinary services 0,80% -0,98% -0,17%

CPA_N77 Rental and leasing services 0,82% -0,75% 0,07%

CPA_N78 Employment services 0,35% -1,54% -1,19%

CPA_N79 Travel agency, tour operator and other reservation services and related services 1,24% -1,10% 0,14%

CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services0,65% -1,25% -0,61%

CPA_O84 Public administration and defence services; compulsory social security services 0,54% -1,38% -0,84%

CPA_P85 Education services 0,39% -1,64% -1,25%

CPA_Q86 Human health services 0,48% -1,23% -0,75%

CPA_Q87_Q88 Residential care services; social work services without accommodation 0,48% -1,58% -1,10%

CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services0,57% -0,98% -0,41%

CPA_R93 Sporting services and amusement and recreation services 0,78% -1,12% -0,33%

CPA_S94 Services furnished by membership organisations 0,55% -1,50% -0,95%

CPA_S95 Repair services of computers and personal and household goods 0,89% -1,16% -0,27%

CPA_S96 Other personal services 0,58% -0,71% -0,13%

CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 0,35% -2,06% -1,71%



29

4.4 Comparison of the cost-push effects for particular EU countries

In order to see the cost-push effects of the new European CO2 tax, we will provide exemplary results

for several EU Member countries. The selection of the countries is given by the availability of the

data. Unfortunately, Eurostat does not have (complete) Input-Output Tables for each of the Member

states, so we were not able to simulate all countries. Due to the lack of Input-Output tables for the EU

countries for the year 2011, we used tables for the year 2010. In order to get valid results, we also

simulated our model using the input-output tables for EU-27 (Version A – including imports) for the

year 2010.

Following the methodology mentioned above the simulation yields to a total amount of 3.178.671

thousand tonnes of CO2 emissions generated by final demand (excluding exports) in the EU-27 for the

year 2010. As shown in Figure 5 the tax rate yielding 1 % of GDP for the year 2010 is given as

follows:

Figure 5: Estimation of the CO2 tax rate (year 2010)


In order to generate total revenue from CO2 tax yielding 1 % of GDP of European Union we would

need tax rate in the amount of 38,67 euros per tonne of CO2. The slightly lower tax rate compared

to the year 2011 results on one side through higher CO2 emission generated through final use

including imports (excluding exports) in the year 2010 and a lower GDP in the year 2010 on the other

side.

Given the amount of the tax rate of 38,67 euros per tonne of CO2 we are able to calculate the cost-

push effects for several EU Member countries.

In order to demonstrate the big differences in the technology level expressed by the CO2 emission

coefficients, the basic indicators for several countries are presented in Table 9 and Table 10. The

remaining data used for our simulation are given in the appendix.

The Table 9 contains the countries Austria, France, Hungary and Italy, Table 10 shows the countries

Belgium, Germany, Slovenia and Greece. At the first view the data show significant differences in the

emissions across the countries and across the products. From the EU-27 table the product with the

highest CO2 emissions, electricity, gas, steam and air conditioning, show very big differences across

the countries. The direct emission coefficient for this product takes values between 0,33 kg of CO2 per

euro of production (Austria and France) and 5,03 kg of CO2 per euro of production (Greece). The

corresponding emission coefficient for EU-27 is 1,76 kg of CO2 per euro of production.

Total CO2 emissions

generated through final

use including imports

(excl. exports)

(in 1000 tonnes)

GDP of EU-27

in million euros

1% of GDP

in million euros

price per

tonne CO2

in euros

3.178.671 12.292.730 122.927 38,67


30

Table 9: Direct CO2 emission coefficients for 8 countries (Part 1)

Source: IWI (2016), Computations based on Eurostat, Input-Output-Tables 2010

AUSTRIA FRANCE HUNGARY ITALY

CPA_A01 Products of agriculture, hunting and related services 0,14795 0,13114 0,15597 0,11897

CPA_A02 Products of forestry, logging and related services 0,03086 0,10517 0,19859 0,00841

CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 0,00109 0,36258 0,18097 0,18247

CPA_B Mining and quarrying 0,10300 0,02160 0,31318 0,05080

CPA_C10-C12 Food, beverages and tobacco products 0,05595 0,06557 0,06585 0,03772

CPA_C13-C15 Textiles, wearing apparel, leather and related products 0,00822 0,02274 0,01510 0,02306

CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials0,03935 0,03691 0,07881 0,04143

CPA_C17 Paper and paper products 0,28279 0,11092 0,04592 0,14521

CPA_C18 Printing and recording services 0,01011 0,03488 0,08898 0,03325

CPA_C19 Coke and refined petroleum products 0,23321 0,30016 0,10807 0,42409

CPA_C20 Chemicals and chemical products 0,15891 0,21477 0,27325 0,11724

CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 0,00183 0,02547 0,05485 0,01547

CPA_C22 Rubber and plastic products 0,01762 0,03874 0,03801 0,03650

CPA_C23 Other non-metallic mineral products 0,63783 0,76037 0,80242 0,76181

CPA_C24 Basic metals 0,50228 0,35595 0,21648 0,19134

CPA_C25 Fabricated metal products, except machinery and equipment 0,04573 0,01680 0,05060 0,01420

CPA_C26 Computer, electronic and optical products 0,00905 0,00379 0,00561 0,00396

CPA_C27 Electrical equipment 0,00905 0,01091 0,03754 0,01306

CPA_C28 Machinery and equipment n.e.c. 0,01037 0,00963 0,03286 0,01135

CPA_C29 Motor vehicles, trailers and semi-trailers 0,00233 0,01005 0,01388 0,00959

CPA_C30 Other transport equipment 0,00227 0,00451 0,04898 0,01090

CPA_C31_C32 Furniture and other manufactured goods 0,01478 0,00932 0,02936 0,03104

CPA_C33 Repair and installation services of machinery and equipment 0,02895 0,01006 0,10451 0,04850

CPA_D35 Electricity, gas, steam and air conditioning 0,33810 0,33740 2,22224 1,17600

CPA_E36 Natural water; water treatment and supply services 0,20434 0,00829 0,13158 0,34221

CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services0,04133 0,27744 0,12923 0,22796

CPA_F Constructions and construction works 0,06367 0,02873 0,08402 0,02909

CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 0,01954 0,07836 0,26751 0,02503

CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 0,03204 0,02019 0,09294 0,03186

CPA_G47 Retail trade services, except of motor vehicles and motorcycles 0,02073 0,03452 0,05671 0,03985

CPA_H49 Land transport services and transport services via pipelines 0,17499 0,25474 0,24921 0,19937

CPA_H50 Water transport services 0,01053 0,24046 0,02543 1,76874

CPA_H51 Air transport services 0,61978 0,68206 0,00702 0,51267

CPA_H52 Warehousing and support services for transportation 0,03620 0,00967 0,11490 0,11362

CPA_H53 Postal and courier services 0,01038 0,03110 0,05244 0,04991

CPA_I Accommodation and food services 0,01633 0,04136 0,04507 0,03247

CPA_J58 Publishing services 0,00738 0,00619 0,05152 0,00339

CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services0,01280 0,00298 0,03103 0,00200

CPA_J61 Telecommunications services 0,00564 0,00421 0,04885 0,00073

CPA_J62_J63 Computer programming, consultancy and related services; Information services 0,01658 0,00650 0,08654 0,00824

CPA_K64 Financial services, except insurance and pension funding 0,00263 0,00537 0,05962 0,00576

CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 0,00213 0,00319 0,03578 0,00058

CPA_K66 Services auxiliary to financial services and insurance services 0,00717 0,00502 0,07742 0,00513

CPA_L68B Real estate services 0,01072 0,00442 0,16294 0,00974

CPA_L68A Of which: imputed rents of owner-occupied dwellings 0,00000 0,00000 0,05855 0,00000

CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services0,02913 0,00640 0,06586 0,00780

CPA_M71 Architectural and engineering services; technical testing and analysis services 0,01735 0,01048 0,07208 0,03839

CPA_M72 Scientific research and development services 0,01779 0,02055 0,05118 0,02671

CPA_M73 Advertising and market research services 0,01410 0,01019 0,06453 0,01539

CPA_M74_M75 Other professional, scientific and technical services and veterinary services 0,14946 0,01179 0,13855 0,00592

CPA_N77 Rental and leasing services 0,02811 0,06549 0,45167 0,04743

CPA_N78 Employment services 0,03147 0,01791 0,07583 0,01132

CPA_N79 Travel agency, tour operator and other reservation services and related services 0,01953 0,00570 0,04408 0,00990

CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services0,01667 0,01573 0,13855 0,03358

CPA_O84 Public administration and defence services; compulsory social security services 0,01544 0,01713 0,08116 0,02125

CPA_P85 Education services 0,03743 0,03218 0,06726 0,00102

CPA_Q86 Human health services 0,01050 0,01567 0,05040 0,01391

CPA_Q87_Q88 Residential care services; social work services without accommodation 0,01386 0,03973 0,05519 0,02393

CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services0,02945 0,03566 0,04583 0,00805

CPA_R93 Sporting services and amusement and recreation services 0,03891 0,03741 0,03788 0,04040

CPA_S94 Services furnished by membership organisations 0,03909 0,06134 0,05125 0,02067

CPA_S95 Repair services of computers and personal and household goods 0,01592 0,01514 0,10033 0,01279

CPA_S96 Other personal services 0,05061 0,01656 0,09073 0,03662

CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 0,00000 0,00000 0,07789 0,00000

Results for the year 2010direct CO2 emission coefficients (kg/EUR)


31

Table 10: Direct CO2 emission coefficients for 8 countries (Part 2)


BELGIUM GERMANY SLOVENIA GREECE

































































Results for the year 2010direct CO2 emission coefficients (kg/EUR)


32

Using this data for the estimation of total emission coefficients, the cost-push effects for the particular

countries are presented in Table 11 and Table 12. Similar to the results for EU-27 the highest effect –

in accordance with the level of emission coefficients – is generated for electricity, gas, steam and air

conditioning, again with big difference between the countries. The price effect differs from 2,73 %

(France) to 25,18 % (Greece), with significant price change for Hungary, Germany and Slovenia

(about 10 %). The aim of this comparison is to get information about the order of magnitude of these

changes. For the explanation of these differences and more precise results more disaggregated input-

output tables taking into account different technologies for producing electricity will be needed.

Price effects of the labour cost reducing are given in Table 13 and Table 14. The results reveal similar

effects as has been observed for the EU-27 with decreasing prices for labour intensive products like

education services, residential care services; social work services without accommodation, postal and

courier services and other services. The comparison between the countries shows, that these effects

are higher in the countries with lower labour productivity, like Hungary and Greece.

The results for the overall price effect contained in Table 15 and Table 16 show small-sized decrease

in prices for the labour intensive services and increasing prices of CO2 intensive products like

electricity, gas, steam and air conditioning, basic metals, other non-metal mineral products and air

transport services. Summarising we can observe, that the overall price effect is determined primarily

by the CO2 emission intensity and the overall effect for the CO2 emission intensive products remain

significant. These are the products with higher labour productivity and lower compensation of

employees compared to the above mentioned product and services with higher labour intensity and

lower CO2 emission content.


33

Table 11: Cost-push effects for 8 countries (Part 1)



CPA_A01 Products of agriculture, hunting and related services 1,35% 1,14% 2,07% 1,21%

CPA_A02 Products of forestry, logging and related services 0,37% 0,89% 1,98% 0,64%

CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 0,70% 2,08% 2,05% 1,52%

CPA_B Mining and quarrying 1,15% 0,63% 2,53% 1,26%

CPA_C10-C12 Food, beverages and tobacco products 1,05% 0,95% 1,94% 1,22%

CPA_C13-C15 Textiles, wearing apparel, leather and related products 0,71% 0,58% 1,31% 0,89%

CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials0,89% 0,65% 2,08% 1,10%

CPA_C17 Paper and paper products 2,27% 1,20% 2,22% 2,13%

CPA_C18 Printing and recording services 0,78% 0,63% 1,76% 1,03%

CPA_C19 Coke and refined petroleum products 2,05% 1,88% 2,43% 3,28%

CPA_C20 Chemicals and chemical products 2,02% 1,74% 3,71% 1,95%

CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 0,61% 0,64% 1,39% 1,00%

CPA_C22 Rubber and plastic products 0,98% 0,89% 2,07% 1,40%

CPA_C23 Other non-metallic mineral products 3,79% 4,12% 5,68% 4,85%

CPA_C24 Basic metals 3,95% 2,58% 3,49% 2,59%

CPA_C25 Fabricated metal products, except machinery and equipment 1,44% 0,81% 1,73% 1,09%

CPA_C26 Computer, electronic and optical products 0,62% 0,52% 1,54% 0,66%

CPA_C27 Electrical equipment 0,88% 0,74% 1,90% 1,11%

CPA_C28 Machinery and equipment n.e.c. 0,82% 0,64% 1,34% 0,97%

CPA_C29 Motor vehicles, trailers and semi-trailers 0,77% 0,75% 1,46% 1,04%

CPA_C30 Other transport equipment 0,71% 0,48% 1,68% 0,87%

CPA_C31_C32 Furniture and other manufactured goods 1,44% 0,45% 1,47% 0,98%

CPA_C33 Repair and installation services of machinery and equipment 0,54% 0,53% 1,41% 1,04%

CPA_D35 Electricity, gas, steam and air conditioning 4,47% 2,73% 10,91% 6,50%

CPA_E36 Natural water; water treatment and supply services 1,39% 0,45% 2,05% 2,97%

CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services0,55% 1,70% 1,61% 1,95%

CPA_F Constructions and construction works 1,02% 0,67% 1,81% 1,00%

CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 0,44% 0,55% 2,06% 0,70%

CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 0,39% 0,33% 1,37% 0,74%

CPA_G47 Retail trade services, except of motor vehicles and motorcycles 0,30% 0,36% 1,45% 0,78%

CPA_H49 Land transport services and transport services via pipelines 1,30% 1,42% 2,11% 1,59%

CPA_H50 Water transport services 0,52% 1,45% 1,71% 8,08%

CPA_H51 Air transport services 3,39% 3,39% 1,90% 3,25%

CPA_H52 Warehousing and support services for transportation 0,45% 0,23% 1,46% 1,19%

CPA_H53 Postal and courier services 0,25% 0,25% 0,69% 0,87%

CPA_I Accommodation and food services 0,40% 0,50% 1,55% 0,79%

CPA_J58 Publishing services 0,44% 0,35% 1,14% 0,60%

CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services0,30% 0,52% 0,66% 0,37%

CPA_J61 Telecommunications services 0,29% 0,27% 0,87% 0,43%

CPA_J62_J63 Computer programming, consultancy and related services; Information services 0,24% 0,17% 0,97% 0,37%

CPA_K64 Financial services, except insurance and pension funding 0,15% 0,14% 0,72% 0,17%

CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 0,20% 0,20% 0,72% 0,23%

CPA_K66 Services auxiliary to financial services and insurance services 0,20% 0,21% 0,69% 0,22%

CPA_L68B Real estate services 0,29% 0,12% 1,59% 0,22%

CPA_L68A Of which: imputed rents of owner-occupied dwellings 0,17% 0,02% 0,54% 0,01%

CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 0,33% 0,20% 0,92% 0,33%

CPA_M71 Architectural and engineering services; technical testing and analysis services 0,28% 0,23% 1,03% 0,77%

CPA_M72 Scientific research and development services 0,41% 0,39% 1,04% 0,70%

CPA_M73 Advertising and market research services 0,36% 0,29% 1,05% 0,63%

CPA_M74_M75 Other professional, scientific and technical services and veterinary services 1,00% 0,28% 1,42% 0,42%

CPA_N77 Rental and leasing services 0,22% 0,46% 2,37% 0,88%

CPA_N78 Employment services 0,17% 0,14% 0,63% 0,37%

CPA_N79 Travel agency, tour operator and other reservation services and related services 0,88% 0,30% 1,53% 1,24%

CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services0,25% 0,29% 1,36% 0,63%

CPA_O84 Public administration and defence services; compulsory social security services 0,27% 0,26% 0,87% 0,41%

CPA_P85 Education services 0,31% 0,27% 0,82% 0,19%

CPA_Q86 Human health services 0,29% 0,21% 0,98% 0,44%

CPA_Q87_Q88 Residential care services; social work services without accommodation 0,43% 0,26% 1,10% 0,40%

CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services0,36% 0,41% 0,96% 0,45%

CPA_R93 Sporting services and amusement and recreation services 0,57% 0,50% 1,77% 0,64%

CPA_S94 Services furnished by membership organisations 0,45% 0,48% 0,98% 0,56%

CPA_S95 Repair services of computers and personal and household goods 0,28% 0,33% 1,26% 0,59%

CPA_S96 Other personal services 0,42% 0,15% 0,97% 0,92%

CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 0,00% 0,00% 0,32% 0,00%

Results for the year 2010Cost push effects


34

Table 12: Cost-push effects for 8 countries (Part 2)

























CPA_C33 Repair and installation services of machinery and equipment 0,89% 0,83% 1,08% 1,17%





CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 0,59% 0,69% 0,84% 0,64%

CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 0,59% 0,85% 1,09% 0,90%

CPA_G47 Retail trade services, except of motor vehicles and motorcycles 0,54% 0,78% 0,96% 0,67%





CPA_H53 Postal and courier services 0,54% 0,83% 0,59% 1,10%

CPA_I Accommodation and food services 0,64% 0,83% 1,33% 0,83%

CPA_J58 Publishing services 0,59% 0,56% 1,19% 0,43%

CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services0,39% 0,47% 0,67% 0,94%

CPA_J61 Telecommunications services 0,44% 0,47% 0,62% 0,43%

CPA_J62_J63 Computer programming, consultancy and related services; Information services 0,47% 0,38% 0,49% 0,36%

CPA_K64 Financial services, except insurance and pension funding 0,22% 0,28% 0,36% 0,30%

CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 0,24% 0,37% 0,34% 0,30%

CPA_K66 Services auxiliary to financial services and insurance services 0,33% 0,34% 0,49% 0,16%

CPA_L68B Real estate services 0,57% 0,23% 0,91% 0,14%

CPA_L68A Of which: imputed rents of owner-occupied dwellings 0,06% 0,00% 0,08% 0,00%

CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 0,38% 0,48% 2,76% 0,41%

CPA_M71 Architectural and engineering services; technical testing and analysis services 0,55% 0,64% 1,09% 0,76%

CPA_M72 Scientific research and development services 0,68% 0,54% 0,73% 1,06%

CPA_M73 Advertising and market research services 0,39% 0,40% 0,89% 1,04%

CPA_M74_M75 Other professional, scientific and technical services and veterinary services 0,60% 0,44% 0,70% 0,75%


CPA_N78 Employment services 0,17% 0,14% 0,14% 0,11%

CPA_N79 Travel agency, tour operator and other reservation services and related services 1,95% 0,35% 1,36% 0,83%

CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services0,56% 0,61% 0,75% 1,25%

CPA_O84 Public administration and defence services; compulsory social security services 0,31% 0,39% 0,52% 0,54%

CPA_P85 Education services 0,16% 0,37% 0,53% 0,14%

CPA_Q86 Human health services 0,42% 0,47% 0,61% 0,44%

CPA_Q87_Q88 Residential care services; social work services without accommodation 0,42% 0,32% 0,76% 1,18%

CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services0,51% 0,38% 0,53% 0,10%

CPA_R93 Sporting services and amusement and recreation services 0,63% 1,02% 1,39% 1,47%

CPA_S94 Services furnished by membership organisations 0,40% 0,36% 0,86% 1,30%

CPA_S95 Repair services of computers and personal and household goods 0,71% 0,73% 0,73% 0,26%

CPA_S96 Other personal services 0,82% 0,51% 1,46% 0,34%

CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 0,00% 0,00% 0,00% 0,00%

Results for the year 2010Cost push effects


35

Table 13: Price effects of reducing the labour costs for 8 countries (Part 1)



CPA_A01 Products of agriculture, hunting and related services -0,25% -0,30% -0,91% -0,59%

CPA_A02 Products of forestry, logging and related services -0,23% -0,40% -1,49% -0,60%

CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing -0,32% -0,38% -1,40% -0,67%

CPA_B Mining and quarrying -0,27% -0,28% -0,73% -0,40%

CPA_C10-C12 Food, beverages and tobacco products -0,40% -0,42% -1,11% -0,70%

CPA_C13-C15 Textiles, wearing apparel, leather and related products -0,35% -0,36% -1,06% -0,77%

CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials-0,46% -0,46% -1,20% -0,73%

CPA_C17 Paper and paper products -0,43% -0,43% -1,06% -0,76%

CPA_C18 Printing and recording services -0,55% -0,55% -1,40% -0,83%

CPA_C19 Coke and refined petroleum products -0,31% -0,31% -0,74% -0,48%

CPA_C20 Chemicals and chemical products -0,39% -0,39% -0,89% -0,73%

CPA_C21 Basic pharmaceutical products and pharmaceutical preparations -0,31% -0,41% -0,81% -0,68%

CPA_C22 Rubber and plastic products -0,43% -0,44% -0,98% -0,81%

CPA_C23 Other non-metallic mineral products -0,50% -0,46% -1,04% -0,78%

CPA_C24 Basic metals -0,40% -0,43% -0,95% -0,73%

CPA_C25 Fabricated metal products, except machinery and equipment -0,50% -0,50% -1,07% -0,85%

CPA_C26 Computer, electronic and optical products -0,36% -0,44% -1,06% -0,63%

CPA_C27 Electrical equipment -0,46% -0,45% -1,01% -0,78%

CPA_C28 Machinery and equipment n.e.c. -0,47% -0,43% -0,82% -0,83%

CPA_C29 Motor vehicles, trailers and semi-trailers -0,42% -0,46% -0,93% -0,75%

CPA_C30 Other transport equipment -0,44% -0,48% -1,08% -0,84%

CPA_C31_C32 Furniture and other manufactured goods -0,44% -0,38% -1,10% -0,76%

CPA_C33 Repair and installation services of machinery and equipment -0,62% -0,55% -1,36% -0,87%

CPA_D35 Electricity, gas, steam and air conditioning -0,39% -0,37% -0,96% -0,57%

CPA_E36 Natural water; water treatment and supply services -0,40% -0,38% -1,59% -0,78%

CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services-0,34% -0,49% -1,23% -0,86%

CPA_F Constructions and construction works -0,58% -0,51% -1,30% -0,80%

CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles -0,62% -0,55% -1,64% -0,80%

CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles -0,51% -0,49% -1,34% -0,69%

CPA_G47 Retail trade services, except of motor vehicles and motorcycles -0,58% -0,51% -1,74% -0,74%

CPA_H49 Land transport services and transport services via pipelines -0,54% -0,53% -1,24% -0,78%

CPA_H50 Water transport services -0,43% -0,42% -1,09% -0,78%

CPA_H51 Air transport services -0,52% -0,49% -1,13% -0,68%

CPA_H52 Warehousing and support services for transportation -0,58% -0,43% -1,03% -0,82%

CPA_H53 Postal and courier services -0,76% -0,74% -1,86% -1,28%

CPA_I Accommodation and food services -0,39% -0,51% -1,50% -0,75%

CPA_J58 Publishing services -0,51% -0,50% -1,45% -0,80%

CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services-0,56% -0,46% -0,76% -0,58%

CPA_J61 Telecommunications services -0,40% -0,36% -1,03% -0,57%

CPA_J62_J63 Computer programming, consultancy and related services; Information services -0,64% -0,59% -1,43% -0,86%

CPA_K64 Financial services, except insurance and pension funding -0,64% -0,45% -1,42% -0,80%

CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security -0,60% -0,53% -1,29% -0,79%

CPA_K66 Services auxiliary to financial services and insurance services -0,62% -0,49% -0,88% -0,81%

CPA_L68B Real estate services -0,27% -0,24% -1,09% -0,20%

CPA_L68A Of which: imputed rents of owner-occupied dwellings -0,11% -0,03% -0,30% -0,05%

CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services-0,59% -0,54% -1,45% -0,51%

CPA_M71 Architectural and engineering services; technical testing and analysis services -0,58% -0,55% -1,47% -0,65%

CPA_M72 Scientific research and development services -0,75% -0,57% -1,42% -0,98%

CPA_M73 Advertising and market research services -0,54% -0,53% -1,39% -0,74%

CPA_M74_M75 Other professional, scientific and technical services and veterinary services -0,45% -0,47% -0,98% -0,55%

CPA_N77 Rental and leasing services -0,16% -0,30% -0,61% -0,67%

CPA_N78 Employment services -0,98% -0,82% -2,48% -1,75%

CPA_N79 Travel agency, tour operator and other reservation services and related services -0,54% -0,54% -1,49% -0,78%

CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services-0,63% -0,55% -1,34% -0,96%

CPA_O84 Public administration and defence services; compulsory social security services -0,78% -0,62% -1,77% -1,17%

CPA_P85 Education services -0,92% -0,71% -2,06% -1,50%

CPA_Q86 Human health services -0,69% -0,48% -1,75% -1,05%

CPA_Q87_Q88 Residential care services; social work services without accommodation -0,84% -0,73% -2,18% -1,25%

CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services-0,62% -0,55% -1,55% -0,66%

CPA_R93 Sporting services and amusement and recreation services -0,50% -0,52% -1,44% -0,67%

CPA_S94 Services furnished by membership organisations -0,74% -0,66% -1,55% -1,31%

CPA_S95 Repair services of computers and personal and household goods -0,51% -0,57% -1,36% -0,60%

CPA_S96 Other personal services -0,43% -0,37% -1,27% -0,65%

CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use -1,13% -0,87% -3,03% -1,89%

Results for the year 2010price effects of reducing the labour costs


36

Table 14: Price effects of reducing the labour costs for 8 countries (Part 2)



CPA_A01 Products of agriculture, hunting and related services -0,35% -0,52% -0,45% -0,93%

CPA_A02 Products of forestry, logging and related services -0,40% -0,52% -0,39% -1,44%

CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing -0,42% -0,36% -0,81% -0,74%

CPA_B Mining and quarrying -0,31% -0,42% -0,88% -0,80%

CPA_C10-C12 Food, beverages and tobacco products -0,48% -0,69% -0,94% -1,19%

CPA_C13-C15 Textiles, wearing apparel, leather and related products -0,46% -0,55% -1,05% -1,10%

CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials-0,50% -0,71% -1,01% -1,65%

CPA_C17 Paper and paper products -0,47% -0,64% -1,01% -1,41%

CPA_C18 Printing and recording services -0,61% -0,78% -1,25% -1,78%

CPA_C19 Coke and refined petroleum products -0,33% -0,47% -0,45% -0,90%

CPA_C20 Chemicals and chemical products -0,42% -0,58% -0,81% -1,12%

CPA_C21 Basic pharmaceutical products and pharmaceutical preparations -0,42% -0,49% -0,89% -0,81%

CPA_C22 Rubber and plastic products -0,45% -0,66% -0,99% -1,44%

CPA_C23 Other non-metallic mineral products -0,54% -0,68% -1,06% -1,39%

CPA_C24 Basic metals -0,50% -0,63% -0,99% -1,42%

CPA_C25 Fabricated metal products, except machinery and equipment -0,57% -0,79% -1,12% -1,41%

CPA_C26 Computer, electronic and optical products -0,41% -0,61% -0,67% -0,61%

CPA_C27 Electrical equipment -0,47% -0,64% -1,03% -1,13%

CPA_C28 Machinery and equipment n.e.c. -0,46% -0,74% -0,99% -1,15%

CPA_C29 Motor vehicles, trailers and semi-trailers -0,50% -0,75% -0,91% -0,88%

CPA_C30 Other transport equipment -0,49% -0,64% -0,99% -0,49%

CPA_C31_C32 Furniture and other manufactured goods -0,38% -0,67% -1,02% -1,40%

CPA_C33 Repair and installation services of machinery and equipment -0,73% -0,75% -1,26% -1,97%

CPA_D35 Electricity, gas, steam and air conditioning -0,35% -0,50% -0,85% -0,97%

CPA_E36 Natural water; water treatment and supply services -0,68% -0,64% -1,32% -2,20%

CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services-0,42% -0,58% -1,04% -1,59%

CPA_F Constructions and construction works -0,55% -0,81% -1,18% -1,51%


CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles -0,61% -0,81% -1,35% -1,81%


CPA_H49 Land transport services and transport services via pipelines -0,63% -0,79% -1,08% -1,53%

CPA_H50 Water transport services -0,44% -0,52% -0,43% -0,79%

CPA_H51 Air transport services -0,49% -0,70% -0,93% -1,29%

CPA_H52 Warehousing and support services for transportation -0,52% -0,75% -0,83% -0,98%


CPA_I Accommodation and food services -0,55% -0,75% -1,18% -0,94%








CPA_L68B Real estate services -0,26% -0,19% -0,39% -0,26%

CPA_L68A Of which: imputed rents of owner-occupied dwellings -0,06% 0,00% -0,08% 0,00%





CPA_M74_M75 Other professional, scientific and technical services and veterinary services -0,45% -0,48% -0,87% -1,35%

CPA_N77 Rental and leasing services -0,42% -0,18% -0,67% -0,99%


CPA_N79 Travel agency, tour operator and other reservation services and related services -0,57% -0,60% -1,19% -1,60%







CPA_R93 Sporting services and amusement and recreation services -0,60% -0,65% -1,21% -2,43%



CPA_S96 Other personal services -0,56% -0,40% -0,86% -2,49%


Results for the year 2010price effects of reducing the labour costs


37

Table 15: Overall price effects for 8 countries (Part 1)

























CPA_C33 Repair and installation services of machinery and equipment -0,08% -0,03% 0,06% 0,17%





CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles -0,18% -0,01% 0,42% -0,11%

CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles -0,13% -0,15% 0,03% 0,05%

CPA_G47 Retail trade services, except of motor vehicles and motorcycles -0,27% -0,15% -0,30% 0,04%




CPA_H52 Warehousing and support services for transportation -0,13% -0,20% 0,42% 0,37%


CPA_I Accommodation and food services 0,01% -0,01% 0,05% 0,04%


CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services-0,26% 0,06% -0,10% -0,21%






CPA_L68B Real estate services 0,03% -0,12% 0,50% 0,02%

CPA_L68A Of which: imputed rents of owner-occupied dwellings 0,06% -0,01% 0,25% -0,04%


CPA_M71 Architectural and engineering services; technical testing and analysis services -0,29% -0,32% -0,45% 0,12%



CPA_M74_M75 Other professional, scientific and technical services and veterinary services 0,55% -0,19% 0,44% -0,13%



CPA_N79 Travel agency, tour operator and other reservation services and related services 0,34% -0,23% 0,04% 0,46%

CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services-0,37% -0,26% 0,02% -0,32%






CPA_R93 Sporting services and amusement and recreation services 0,07% -0,03% 0,33% -0,03%



CPA_S96 Other personal services -0,01% -0,22% -0,30% 0,27%


Results for the year 2010overall price effects


38

Table 16: Overall price effects for 5 countries (Part 2)




CPA_A02 Products of forestry, logging and related services 0,73% -0,12% 0,10% 2,81%





CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials0,61% 0,62% 0,49% -0,36%


CPA_C18 Printing and recording services 0,59% 0,51% 0,34% -0,46%



CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 0,45% 0,26% 0,03% -0,17%





CPA_C26 Computer, electronic and optical products 0,44% 0,10% -0,02% -0,04%





CPA_C31_C32 Furniture and other manufactured goods 0,47% 0,11% 0,22% -0,08%

CPA_C33 Repair and installation services of machinery and equipment 0,17% 0,07% -0,18% -0,80%






CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles -0,02% 0,04% -0,26% -0,90%



CPA_H50 Water transport services 0,79% 4,63% -0,02% 0,55%




CPA_I Accommodation and food services 0,09% 0,08% 0,16% -0,11%

CPA_J58 Publishing services 0,09% -0,12% -0,25% -0,87%


CPA_J61 Telecommunications services 0,01% -0,11% -0,19% -0,53%





CPA_L68B Real estate services 0,31% 0,03% 0,52% -0,12%

CPA_L68A Of which: imputed rents of owner-occupied dwellings -0,01% 0,00% 0,01% 0,00%

CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 0,04% -0,21% 1,59% -0,63%


CPA_M72 Scientific research and development services 0,04% -0,24% -0,77% -1,31%


CPA_M74_M75 Other professional, scientific and technical services and veterinary services 0,15% -0,04% -0,17% -0,60%



CPA_N79 Travel agency, tour operator and other reservation services and related services 1,38% -0,25% 0,17% -0,77%







CPA_R93 Sporting services and amusement and recreation services 0,03% 0,37% 0,18% -0,96%


CPA_S95 Repair services of computers and personal and household goods 0,13% -0,42% -0,23% -0,35%

CPA_S96 Other personal services 0,26% 0,12% 0,60% -2,15%


Results for the year 2010overall price effects


39

The present study contributes to the discussion on the new European tax or fee, which would

be based on taxing end consumption (taxing the products and not the production) according to

how much CO2 is emitted during the production of particular commodities, irrespective of

whether all or a part of this process takes place inside or outside the EU.

The input-output model provides an appropriate and unique approach for measuring the total

CO2 content of the various commodities taking the entire production chain into account. The

calculation by products can be the basis for the estimation of product specific CO2 taxes. Such

a tax could become a new direct European tax.

A tax rate of 40,69 euros per tonne of CO2 emissions could have generated fiscal revenue in

the amount of 1 % of EU GDP in the year 2011.

A reduction of the labour costs by -2,03 % could compensate the introduction of a CO2 tax by

the amount of 40,69 euros per tonne of CO2.

The reduction of labour costs leads to decreasing prices of labour intensive commodities and

services and in this way mitigates the price effects generated by introducing the new CO2 tax.

Although such a change in the tax system would be neutral on the overall European level, the

prices of the various products will be affected in quite different ways.

The introducing of the new CO2 tax and the simultaneous reduction of labour costs would

lead to significant changes in commodity prices between +9,80 % (electricity, gas, steam and

air conditioning) and -1,25 % (education services) as results of this compensation

mechanism.

All the results are based on calculations for “Europe as a whole”. The results for different

Member States might differ significantly from the “European average”.

The introduction of a uniform tax rate in Europe will affect the Member States in a different

manner.

Compensation in the form of reducing the labour cost stimulates the demand for labour and

increases employment. Positive effects for the environment as well as for the employment can

be expected (“double dividend”).

The key-factor for the intensity of the cost-push effect is the emission content of particular

products. The way to mitigate the negative effect of introducing the CO2 tax for the product

prices is to promote technological innovations leading to decreasing emission intensity.

The study can be done using the same methodological approach for energy tax under the

condition that data for energy coefficients in the similar classification and quality as for the

CO2 emissions are available.

The current study can be seen as a “feasibility study” which illustrates the high potential of

input-output analysis to address such policy questions. The results provide orders of

magnitude primary but show that more detailed analyses could contribute significantly to

evidence based policy making.

5 Conclusions and recommendations, and proposals for action


40

The study offers insight into some of the implications of moving towards a new European tax

aiming at reducing negative environmental effects and lowering labour costs at the same time.

The focus was on the very relevant “first round effects” of such a change. The effects induced

by a reaction of producers and consumers to the changes in relative prices are not covered and

require the development of more complex models, dealing with the economic effect of

introducing a CO2 emission tax.

The subject of the current study and the presented results offer topics for further analyses and

scientific studies.

The study had to be carried out on the basis of not fully adequate statistical material. The

following annex therefore contains a few proposals for future research.

The analyses should be carried out on the basis of a data set, specifically designed for the

questions under considerations. Important aspects of such a data set are inter alia:

o A more up-to-date reference year

o More disaggregated input-output tables taking into account different technologies for

producing particular products with emphasis on product groups like electricity and

specific products – with respect to environmental impact – like sugar, cement and

others.

o Symmetric tables derived on the basis of the product technology assumption.

So far the calculations were carried out at the EU-27 level and a few Member countries. The

entire analyses should be made available for all Member States to study the different

implications of EU uniform, product specific tax rates on the prices in the different Member

States.


41

[1] Conrad, K. – Schmidt, T. F. N. (1998): Economic Effects of an Uncoordinated Versus a

Coordinated Carbon Dioxide Policy in the European Union: An Applied General Equilibrium

Analysis; Economic Systems Research, Vol.10, No.2

[2] European Commission (2005): Communication from the Commission, Building the ERA of

Knowledge for Growth, Brussels, April 2005

[3] European Economic and Social Committee (2015): Preliminary Draft Opinion of the Section

for Economic and Monetary Union and Economic and Social Cohesion on “A European tax

as an EU own resource”; ECO/377; Brussels

[4] Heerenden, R. (1974): “Affluence and Energy Demand,” Mechanical Engineering, 96, 18-22

[5] Miller, R.E. – Blair, P. D. (2009): Input-Output Analysis, Foundations and Extensions; New

York

[6] Páleník, V. – Miklošovič, T. (2015): Environmental tax as the Possible Part of EU Own

Resources, Working Paper of the Economic Institute of the Slovak Academy of Sciences, 72,

Bratislava

Eurostat (2016): Input-Output Tables for EU-27 and Member countries for the years 2011 and

2010, http://ec.europa.eu/eurostat/de/web/esa-supply-use-input-tables/data/workbooks

Eurostat (2016): Eurostat Database, Air emission accounts,

http://ec.europa.eu/eurostat/data/database

6 Complete bibliography and References

http://ec.europa.eu/eurostat/de/web/esa-supply-use-input-tables/data/workbooks

http://ec.europa.eu/eurostat/data/database


42

Table 17: Cumulative CO2 emission coefficients for 8 countries (Part 1)



































































Results for the year 2010total CO2 emission coefficients (kg/EUR)

7 Annex


43

Table 18: Cumulative CO2 emission coefficients for 8 countries (Part 2)



































































Results for the year 2010total CO2 emission coefficients (kg/EUR)


44

Table 19: Total CO2 emissions for 8 countries in physical units (Part 1)



CPA_A01 Products of agriculture, hunting and related services 1.163 9.724 1.267 6.611

CPA_A02 Products of forestry, logging and related services 87 547 92 9

CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 0 1.244 8 574

CPA_B Mining and quarrying 924 1.067 426 3.481

CPA_C10-C12 Food, beverages and tobacco products 1.284 11.932 775 5.618

CPA_C13-C15 Textiles, wearing apparel, leather and related products 79 1.032 49 2.765

CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials322 508 93 750

CPA_C17 Paper and paper products 2.266 2.902 117 4.675

CPA_C18 Printing and recording services 27 368 74 566

CPA_C19 Coke and refined petroleum products 2.163 18.758 1.280 25.803

CPA_C20 Chemicals and chemical products 2.384 21.242 1.910 10.884

CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 15 1.295 280 639

CPA_C22 Rubber and plastic products 160 1.692 237 1.709

CPA_C23 Other non-metallic mineral products 4.510 22.470 2.195 30.755

CPA_C24 Basic metals 10.670 20.815 1.196 16.764

CPA_C25 Fabricated metal products, except machinery and equipment 689 1.134 279 1.344

CPA_C26 Computer, electronic and optical products 115 250 181 226

CPA_C27 Electrical equipment 120 511 272 721

CPA_C28 Machinery and equipment n.e.c. 270 681 336 1.375

CPA_C29 Motor vehicles, trailers and semi-trailers 53 1.016 305 644

CPA_C30 Other transport equipment 15 365 34 277

CPA_C31_C32 Furniture and other manufactured goods 164 337 79 1.684

CPA_C33 Repair and installation services of machinery and equipment 224 426 116 1.960

CPA_D35 Electricity, gas, steam and air conditioning 10.367 35.713 15.295 108.252

CPA_E36 Natural water; water treatment and supply services 146 85 107 2.484

CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services328 9.834 195 7.051

CPA_F Constructions and construction works 2.863 7.376 781 6.103

CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 141 2.892 559 1.110

CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 1.013 3.925 1.050 4.256

CPA_G47 Retail trade services, except of motor vehicles and motorcycles 401 4.329 383 4.635

CPA_H49 Land transport services and transport services via pipelines 2.842 20.575 1.619 23.677

CPA_H50 Water transport services 13 3.241 3 14.917

CPA_H51 Air transport services 2.475 14.955 9 6.159

CPA_H52 Warehousing and support services for transportation 296 565 576 7.744

CPA_H53 Postal and courier services 27 417 44 363

CPA_I Accommodation and food services 362 3.587 182 3.649

CPA_J58 Publishing services 35 179 56 52

CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services35 82 70 42

CPA_J61 Telecommunications services 39 278 150 36

CPA_J62_J63 Computer programming, consultancy and related services; Information services 178 434 283 364

CPA_K64 Financial services, except insurance and pension funding 38 612 310 503

CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 14 150 52 11

CPA_K66 Services auxiliary to financial services and insurance services 21 163 74 149

CPA_L68B Real estate services 232 587 770 843

CPA_L68A Of which: imputed rents of owner-occupied dwellings 0 0 361 0

CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 567 788 270 554

CPA_M71 Architectural and engineering services; technical testing and analysis services 141 653 138 1.464

CPA_M72 Scientific research and development services 62 842 55 669

CPA_M73 Advertising and market research services 81 205 64 440

CPA_M74_M75 Other professional, scientific and technical services and veterinary services 325 130 184 144

CPA_N77 Rental and leasing services 216 4.419 880 1.649

CPA_N78 Employment services 134 556 47 82

CPA_N79 Travel agency, tour operator and other reservation services and related services 43 44 19 132

CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services109 1.302 474 1.502

CPA_O84 Public administration and defence services; compulsory social security services 338 3.002 841 2.804

CPA_P85 Education services 627 3.887 345 78

CPA_Q86 Human health services 198 2.153 230 1.531

CPA_Q87_Q88 Residential care services; social work services without accommodation 97 2.622 71 521

CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services102 878 65 168

CPA_R93 Sporting services and amusement and recreation services 67 749 26 406

CPA_S94 Services furnished by membership organisations 126 948 50 135

CPA_S95 Repair services of computers and personal and household goods 16 139 24 58

CPA_S96 Other personal services 149 290 109 638

CPA_T Services of households as employers; undifferentiated goods and services produced by households for own use 0 0 1 0

Total 52.967 253.900 38.419 325.211

Results for the year 2010Total CO2 emissions (in 1000 tonnes)


45

Table 20: Total CO2 emissions for 8 countries in physical units (Part 2)



CPA_A01 Products of agriculture, hunting and related services 2.085 6.905 167 4.303


CPA_A03 Fish and other fishing products; aquaculture products; support services to fishing 49 71 0 243

CPA_B Mining and quarrying 115 7.381 122 47


CPA_C13-C15 Textiles, wearing apparel, leather and related products 387 1.002 38 33

CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials179 1.212 14 25

CPA_C17 Paper and paper products 281 6.761 363 126

CPA_C18 Printing and recording services 338 968 7 25

CPA_C19 Coke and refined petroleum products 4.007 18.147 0 3.632

CPA_C20 Chemicals and chemical products 7.935 30.353 209 820

CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 1.007 1.249 62 44

CPA_C22 Rubber and plastic products 308 2.920 98 46

CPA_C23 Other non-metallic mineral products 4.418 29.736 689 3.957

CPA_C24 Basic metals 7.232 42.708 424 594

CPA_C25 Fabricated metal products, except machinery and equipment 577 6.010 85 111

CPA_C26 Computer, electronic and optical products 82 800 3 1

CPA_C27 Electrical equipment 176 2.770 41 7

CPA_C28 Machinery and equipment n.e.c. 378 4.152 41 26

CPA_C29 Motor vehicles, trailers and semi-trailers 86 4.297 56 1

CPA_C30 Other transport equipment 84 689 1 12

CPA_C31_C32 Furniture and other manufactured goods 301 1.244 10 18

CPA_C33 Repair and installation services of machinery and equipment 461 726 9 29


CPA_E36 Natural water; water treatment and supply services 28 4.165 6 7

CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services1.585 17.546 15 16

CPA_F Constructions and construction works 4.975 37.645 281 915

CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 318 2.244 0 34

CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 2.808 13.685 148 704

CPA_G47 Retail trade services, except of motor vehicles and motorcycles 710 9.969 61 225

CPA_H49 Land transport services and transport services via pipelines 2.519 12.692 3.479 6.679

CPA_H50 Water transport services 656 26.869 2 2.218

CPA_H51 Air transport services 4.242 26.310 4 556

CPA_H52 Warehousing and support services for transportation 2.849 10.366 156 157

CPA_H53 Postal and courier services 164 1.886 4 23

CPA_I Accommodation and food services 325 4.354 95 1.268

CPA_J58 Publishing services 198 1.145 3 34

CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services72 639 1 5

CPA_J61 Telecommunications services 539 872 13 71

CPA_J62_J63 Computer programming, consultancy and related services; Information services 684 2.918 18 8

CPA_K64 Financial services, except insurance and pension funding 115 1.118 7 4

CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 73 455 3 15


CPA_L68B Real estate services 321 5.432 174 302


CPA_M69_M70 Legal and accounting services; services of head offices; management consultancy services 1.495 8.089 695 55

CPA_M71 Architectural and engineering services; technical testing and analysis services 426 5.957 40 63

CPA_M72 Scientific research and development services 456 1.024 16 4



CPA_N77 Rental and leasing services 985 3.181 122 110



CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services739 5.030 26 1.039

CPA_O84 Public administration and defence services; compulsory social security services 944 3.308 11 650


CPA_Q86 Human health services 887 7.487 79 90

CPA_Q87_Q88 Residential care services; social work services without accommodation 501 153 24 16

CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services173 788 17 18

CPA_R93 Sporting services and amusement and recreation services 95 2.985 20 39

CPA_S94 Services furnished by membership organisations 71 1.166 8 12


CPA_S96 Other personal services 204 2.970 81 2


Total 84.158 696.595 13.525 78.792

Results for the year 2010Total CO2 emissions (in 1000 tonnes)


46

Table 21: Total CO2 emissions generated through final use for 8 countries in physical units (Part 1)



CPA_A01 Products of agriculture, hunting and related services 643 4.826 728 4.168



CPA_B Mining and quarrying -27 -15 132 36

CPA_C10-C12 Food, beverages and tobacco products 2.393 21.830 2.287 21.528

CPA_C13-C15 Textiles, wearing apparel, leather and related products 794 2.730 264 7.798

CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials238 142 36 526

CPA_C17 Paper and paper products 266 798 179 1.725

CPA_C18 Printing and recording services 2 -47 27 69

CPA_C19 Coke and refined petroleum products 1.325 10.339 1.472 14.046

CPA_C20 Chemicals and chemical products 513 4.098 517 3.858

CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 295 3.370 546 2.520

CPA_C22 Rubber and plastic products 183 603 219 1.904

CPA_C23 Other non-metallic mineral products 545 2.294 -19 1.896

CPA_C24 Basic metals 505 380 308 537

CPA_C25 Fabricated metal products, except machinery and equipment 497 1.886 214 2.798

CPA_C26 Computer, electronic and optical products 581 2.239 719 3.256

CPA_C27 Electrical equipment 503 1.513 282 3.272

CPA_C28 Machinery and equipment n.e.c. 1.099 1.905 484 6.892

CPA_C29 Motor vehicles, trailers and semi-trailers 1.139 9.427 722 7.784

CPA_C30 Other transport equipment 161 557 60 1.307

CPA_C31_C32 Furniture and other manufactured goods 1.863 2.171 257 5.045

CPA_C33 Repair and installation services of machinery and equipment 251 2.628 92 6.059


CPA_E36 Natural water; water treatment and supply services 0 450 250 2.933

CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services11 3.302 184 3.708

CPA_F Constructions and construction works 6.133 31.809 3.347 35.891

CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 484 3.400 479 5.971

CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 834 7.632 723 8.552

CPA_G47 Retail trade services, except of motor vehicles and motorcycles 1.385 6.402 1.869 18.396

CPA_H49 Land transport services and transport services via pipelines 1.375 8.993 872 15.426

CPA_H50 Water transport services 5 184 5 5.533

CPA_H51 Air transport services 1.070 6.918 105 4.275

CPA_H52 Warehousing and support services for transportation 84 374 194 2.816


CPA_I Accommodation and food services 1.639 9.018 1.225 17.070

CPA_J58 Publishing services 161 1.355 136 1.252

CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services70 1.184 63 647

CPA_J61 Telecommunications services 172 1.609 370 1.524

CPA_J62_J63 Computer programming, consultancy and related services; Information services 249 1.164 99 1.082

CPA_K64 Financial services, except insurance and pension funding 85 509 269 791

CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 188 1.568 153 747


CPA_L68B Real estate services 528 2.000 401 1.628




CPA_M72 Scientific research and development services 27 889 47 1.336



CPA_N77 Rental and leasing services 67 529 101 249



CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services89 200 58 541

CPA_O84 Public administration and defence services; compulsory social security services 1.369 11.318 1.971 13.104

CPA_P85 Education services 1.223 7.147 956 3.271

CPA_Q86 Human health services 1.281 6.689 1.004 11.316

CPA_Q87_Q88 Residential care services; social work services without accommodation 689 4.152 344 1.964

CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services253 2.218 299 1.639


CPA_S94 Services furnished by membership organisations 322 1.485 157 508


CPA_S96 Other personal services 266 439 268 3.702


Total 39.741 222.750 32.354 306.039

Results for the year 2010

Total CO2 emissions generated through finale use incl. imports

(excl. exports)

(in 1000 tonnes)


47

Table 22: Total CO2 emissions generated through final use for 8 countries in physical units (Part 2)



CPA_A01 Products of agriculture, hunting and related services 746 6.493 223 2.760



CPA_B Mining and quarrying 14 2.984 -23 -26


CPA_C13-C15 Textiles, wearing apparel, leather and related products 1.106 8.056 221 1.174

CPA_C16 Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials86 1.970 -8 21

CPA_C17 Paper and paper products 125 2.747 65 482

CPA_C18 Printing and recording services 16 339 -18 27

CPA_C19 Coke and refined petroleum products 1.455 13.345 112 3.538

CPA_C20 Chemicals and chemical products 455 6.925 295 937

CPA_C21 Basic pharmaceutical products and pharmaceutical preparations 402 2.545 -13 461

CPA_C22 Rubber and plastic products 117 1.989 98 185

CPA_C23 Other non-metallic mineral products 245 4.847 -8 440

CPA_C24 Basic metals 317 2.601 -73 -70

CPA_C25 Fabricated metal products, except machinery and equipment 935 4.719 33 749

CPA_C26 Computer, electronic and optical products 964 6.937 63 351

CPA_C27 Electrical equipment 569 4.071 253 341

CPA_C28 Machinery and equipment n.e.c. 1.175 10.595 329 834

CPA_C29 Motor vehicles, trailers and semi-trailers 1.927 19.039 740 478

CPA_C30 Other transport equipment 223 2.701 2 637

CPA_C31_C32 Furniture and other manufactured goods 739 7.116 113 740

CPA_C33 Repair and installation services of machinery and equipment 136 2.033 0 10


CPA_E36 Natural water; water treatment and supply services 145 1.876 51 459

CPA_E37-E39 Sewerage services; sewage sludge; waste collection, treatment and disposal services; materials recovery services; remediation services and other waste management services371 10.444 50 371

CPA_F Constructions and construction works 9.889 57.997 1.496 7.739

CPA_G45 Wholesale and retail trade and repair services of motor vehicles and motorcycles 657 6.363 92 644

CPA_G46 Wholesale trade services, except of motor vehicles and motorcycles 1.742 8.047 389 2.826

CPA_G47 Retail trade services, except of motor vehicles and motorcycles 2.907 25.133 446 1.087

CPA_H49 Land transport services and transport services via pipelines 975 7.091 383 5.894

CPA_H50 Water transport services 2 664 1 104

CPA_H51 Air transport services 514 16.180 18 598

CPA_H52 Warehousing and support services for transportation 1.003 1.356 137 118


CPA_I Accommodation and food services 1.522 13.690 440 3.748

CPA_J58 Publishing services 329 2.466 28 320

CPA_J59_J60 Motion picture, video and television programme production services, sound recording and music publishing; programming and broadcasting services144 1.579 28 277

CPA_J61 Telecommunications services 408 3.195 84 469

CPA_J62_J63 Computer programming, consultancy and related services; Information services 438 2.009 43 67

CPA_K64 Financial services, except insurance and pension funding 224 2.923 37 206

CPA_K65 Insurance, reinsurance and pension funding services, except compulsory social security 303 3.415 43 84


CPA_L68B Real estate services 988 13.276 64 848




CPA_M72 Scientific research and development services 262 337 37 100



CPA_N77 Rental and leasing services 310 325 5 80


CPA_N79 Travel agency, tour operator and other reservation services and related services 1.245 342 115 196

CPA_N80-N82 Security and investigation services; services to buildings and landscape; office administrative, office support and other business support services248 1.162 1 131

CPA_O84 Public administration and defence services; compulsory social security services 2.159 17.858 357 3.128


CPA_Q86 Human health services 2.480 18.976 294 1.411

CPA_Q87_Q88 Residential care services; social work services without accommodation 1.223 5.083 84 293

CPA_R90-R92 Creative, arts, entertainment, library, archive, museum, other cultural services; gambling and betting services352 2.180 71 70


CPA_S94 Services furnished by membership organisations 215 2.308 34 1.159


CPA_S96 Other personal services 472 4.548 121 233


Total 56.458 479.859 10.087 82.910

Results for the year 2010

Total CO2 emissions generated through finale use incl. imports

(excl. exports)

(in 1000 tonnes)

ENREG.NO. BE - BXL - 27

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