THE NAMEA ENERGY FOR BELGIUM (1990/ )

Transcription

1 Aaaaa&& Federal Planning Bureau THE NAMEA ENERGY FOR BELGIUM (1990/ ) Sébastien Gilis Lies Janssen Guy Vandille February 2006

2 ACKNOWLEDGEMENTS This report has benefited from funding by the European Commission, GD Environment and GD Eurostat, by means of the Grant Agreement nr for the operation entitled "Statistics on environment accounts - NAMEA air emission accounts". Apart from these project sponsors we also wish to thank all the people who provided the data and useful remarks necessary to construct the present NAMEA Energy, more specifically Roland Piers de Raveschoot of the BIM-IBGE; Kristien Aernouts of the VITO; Hugues Nollevaux of the DGRNE; Yves Marenne and Pascal Simus of the ICEDD; and Luc Avonds and Johan Wera of the Federal Planning Bureau. Finally, words of gratitude are also entitled to the Direction Committee of the Federal Planning Bureau, Bart Hertveldt and Valérie Deguel for proofreading the draft version of this report.

3 TABLE OF CONTENTS Acknowledgements Executive summary Introduction 1 I Data compilation methodology 2 A A set of physical and monetary supply and use tables 2 B Data sources 4 1 Brussels-Capital 4 a Data for b Allocation to industries 5 c Allocation to fuel types 5 d The monetary tables 5 2 Flanders 6 a Allocation to industries 6 b Allocation to fuel types 6 c Water transport 7 d Electricity 7 e The monetary tables 7 3 Wallonia 7 a Allocation to industries 8 b Allocation to fuel types 8 c Electricity and heat 8 d The monetary tables 9 4 Air transport 9 5 Road transport 9 a Adjustment to the resident principle 9 b Own account transport 10 C Data precision 10 II Results 12 A. Evolution of energy use in Belgium Global evolution of energy use in Belgium Distribution of energy use according to institutional sector and industry 13 a. Evolution of total energy use 14 b. Evolution of energy use per form of energy 15 B. Evolution of energy supply in Belgium Global evolution of the energy supply in Belgium Distribution of energy supply according to industry 27 a. Total energy supply 27 b. Evolution of the energy supply per fuel type 28

4 III Energy efficiency 39 A Economic data 39 1 Data compilation methodology 39 a Output, value added and intermediate consumption at current prices 40 b Output, value added and intermediate consumption at constant prices 40 c Employment 40 d Household consumption 41 2 Results 41 a Global economic evolution 41 b Household expenditure 43 c Analysis by industry 44 B Analysis of energy efficiency 46 1 Definition 46 2 Analysis of energy efficiency for the industries 48 3 Analysis of energy efficiency for household consumption categories 52 References 53 Annex 1: Industry classification, based on NACE rev. 1, and household classification, 54 based on COICOP categories. Annex 2 : Shares of the industries in the 2002 economy and evolution between and 2002, both in terms of value added and of employment Annex 3 : Energy efficiency in 2002 and energy efficiency gains between 1990 and by industry

5 Executive summary Energy use for transport and heating purposes, as well as for the production of secondary energy forms like electricity and steam (heat) is a major cause of air pollution. Information on the composition and evolution of energy use is thus very useful in order to design sensible policies to reduce air pollution. A vast array of energy statistics is available. However, it is not always easy to link these data to economic data. Energy statistics are compiled on the basis of the territorial principle, while the national accounts are based on the resident principle. The Belgian energy statistics thus contain the use of energy by foreigners, while the use by Belgian residents abroad is not included. Furthermore, energy use for transport purposes is allocated on a functional basis to categories like road transport, air transport, In order to assess the impact of certain policy changes by means of input-output models (or economic models in which intersectoral relationships are explicitly modelled) energy use for transport ought to be allocated to the different industries, as far as own account transport is concerned. Both the resident principle and the own account transport issue are addressed in the context of the National Accounting Matrix including Environmental Accounts (NAMEA), which is a satellite account of the national accounts. The construction of a NAMEA Energy makes it possible to link energy use data to economic data in a consistent way. This report deals with the NAMEA Energy for Belgium for the period 1990/ It consists of both supply and use tables for energy 1 in both physical and monetary terms. Seventeen different types of fuel are distinguished, seven of which are combustible primary energy forms (lignite, coal, natural gas, wood, other biofuels, peat and other, and waste), eight are combustible secondary energy forms (coal coke, coke gas and other gases, fuel oil, diesel oil, motor gasoline, LPG, jet fuel and kerosene, and other petroleum products), and two are air emission free energy forms 2 (electricity, and heat and hot water). Most of the data were taken from the regional energy balances in order to ensure consistency with the NAMEA Air. Just like in the NAMEA Air, transport data were treated differently in order to abide by the resident principle. Energy use Table A shows the evolution and the shares of the domestic use of seven different groups of energy forms, as well as of total domestic energy use over the period Total energy use increased continuously until 2000, after which a slight decline is observed. During the observation period energy use increased by 13.1%. Over a third of total energy demand was met by petroleum products. Petroleum products thus were the largest single provider of energy in Belgium. This was the case throughout the period under investigation, but since 1998 the use of petroleum products has been declining. Heat and natural gas each provided almost a fifth of total domestic energy use.3 The large share of 1 Supply and use do not balance, because in order to be able to link the NAMEA Energy use table to the NAMEA Air, it should not include the fuels which are used for non-energetic purposes, while in the supply table such distinction can not readily be made. 2 At least from the users point of view 3 Remark that the value for heat is net of heat produced by means of air polluting fuels. i

6 heat is due to the fact that nuclear heat is included in this type of energy. Natural gas has become ever more important in the period Between 1990 and 2002 the use of natural gas increased by just slightly less than 65%. Table A: Evolution of the energy use per energy type in Belgium from 1990 till 2002 (in TJ). The percentage change between 1990 and 2002, and the average share of the energy type in the total energy use (in %) Evolution 90/02 Share Solid fuels Biofuels + waste Natural gas Derived gases Petroleum products Net electricity use Net heat use Total The use of solid fuels declined drastically. In 2002 the use of solid fuels was a third lower than in As a consequence, its share in total energy use declined from 17.7% in 1990 to 10.5% in A simultaneous drop of about the same order can be observed for derived gases. This is quite logical, as these gases are mainly derived from solid fuels, more particularly coal and coal coke. The largest increase in the use between 1990 and 2002 was recorded for biofuels and waste. Their use increased by two thirds. Nevertheless, this form of energy on average only accounted for 1.7% of total energy use. The use of net electricity has also increased considerably during the period By the end of this period it was almost 50% higher than at the beginning. 4 Table B: Evolution and average shares of energy use in Belgium over the period (in %). Ranking of the largest energy users. All energy forms Evolution 90/02 Share NACE Sector Agriculture, hunting & forestry 0,3 1, Food products, beverages & tobacco products 3,8 2, Manufacturing & printing of pulp & paper products 24,3 1,1 23 Coke, refined petroleum products & nuclear fuel 10,4 3,4 24 Chemicals and chemical products 50,9 7,4 26 Other non-metallic mineral products -2,7 3,3 27 Basic metals -11,6 10, Electricity, gas & water supply 5,9 26,8 45 Construction 89,6 1, Wholesale and retail trade; 31,7 1, Transport, storage & communication 19,4 9, Real estate, renting & business activities 48,6 1,3 Household: Heating 9,5 14,4 Household: Transport 31,6 5,2 Household: Other 36,7 2,2 Total 91,7 Table B shows that the energy industry (NACE 40-41) was the largest energy user. This is logical, since it supplies most industries and households with electricity and heat. The energy industry alone was responsible for over a quarter of total energy use on average 4 Net electricity use is equal to total electricity use minus electricity produced with emissions, or in other words, electricity produced without air emissions. It contains both primary and nuclear electricity. ii

7 during the period Household heating was the second most important energy user, with a share of over 14%. Only one other energy user had a share higher than 10%, namely the basic metals industry. This industry was the only one of the important energy users for which a decline of its energy use was recorded between 1990 and The increase for the energy industry and household heating was also quite moderate compared to for instance the construction industry and the chemical industry. As concerns transport, we notice that energy use by households increased at a faster pace than energy use by the transport industry. The share of the latter nevertheless remained substantially higher. Energy supply Table C shows the total available supply of energy for the Belgian economy (domestic supply minus exports plus imports), distinguished by fuel type. Total energy supply increased by almost 15% between 1990 and Table C: Evolution of the total energy supply (domestic + imports) available for the Belgian economy, per energy type from 1990 till 2002 (in TJ). The percentage change between 1990 and 2002, and the average share of the energy type in the total energy supply (in %) Evolution 90/02 Share * Solid fuels Biofuels + waste Natural gas Derived gases Petroleum products Net electricity supply Net heat supply Total * Shares in total supply for the fuel types, without taking the negative electricity supply into account. Net electricity supply is equal to total electricity supply minus the fuel inputs needed to generate this electricity. Petroleum products were by far the most important fuel type supplied to the Belgian economy, with a share of over 40%. Supply of petroleum products rose by 24% in the period Natural gas was the second most important fuel type supplied to the Belgian economy. Its supply rose by over 64% per year, just slightly below the growth rate of the supply of biofuels and waste. The latter fuel type nevertheless remained relatively unimportant in total energy supply. As demand for solid fuels in Belgium has declined, their share in total Belgian energy supply also diminished from 25% in 1990 to 14% in The supply of derived gases was also declining due to the lower production of these gases in the basic metals and the coke and refined petroleum products industries. Table D shows the total energy supply by Belgian producers, the energy input needed to generate this supply, as well as exports and imports of energy. Total net supply by the Belgian producers is equal to the sum of net supply by the primary, the manufacturing and the services industry. This net supply of energy is available for other domestic or foreign users. The share of exports increased from 33% in 1990 to 40% in 2002, as a consequence of an average annual growth rate of 3%. Exports of energy grew at a pace almost 8 times faster than available supply for domestic users. Consequently, an increasingly larger part of domestic use had to be satisfied by imports of energy. The share of imports in total supply available for the Belgian economy increased from 65% in iii

8 1990 to 68% in Imports increased at half the pace of exports. Total supply available for the Belgian economy was almost 15% higher in 2002 than in The Belgian producers became more efficient in producing energy during the period under investigation. Whereas fuel inputs represented 83% of net energy supply by the Belgian producers in 1990, this ratio had dropped to 78% in Adding the fuel inputs to the negative net supply of energy by the energy industry results in the amount of energy supplied to the rest of the economy. This amount increased by 25% between 1990 and 2002, from 247 thousand Terajoules to 308 thousand Terajoules. The gross efficiency of the energy industry thus also increased. The ratio of fuel inputs over gross energy output dropped from 2.79 to Despite this increase in gross efficiency, net supply of energy dropped by just over 3%. Table D: Evolution and average shares of major sectors in total supply by domestic producers and of the energy supply in Belgium over the period (in %). Absolute values in Terajoules. All energy forms Evolution 90/02 Share Primary products Fuel inputs Manufacturing Fuel inputs Other Fuel inputs Energy (40.1) Fuel inputs Transport (60-64) Households Total net supply Fuel inputs Exports Local av. supply * Imports * Total av. supply : Share of the major sectors (excl. other, because of negative net energy supply) in total supply by domestic producers (exports not subtracted) * Share of imports and local available supply in total available supply for the Belgian economy Manufacturing industries supplied the major part of energy. This was mainly in the form of petroleum products. Net supply by the manufacturing industries increased by almost 16% between 1990 and The primary products industry generated only 1.4% of total supply by the Belgian producers on average. Their role in energy supply decreased considerably. Net supply of energy by the primary products industry fell by 12% annually during the twelve year period under consideration. 5 A unique characteristic of this industry is that it only produces primary energy sources. It does not transform air polluting energy sources into other forms of energy. Energy efficiency In the previous section we briefly talked about the efficiency of the Belgian industries in producing energy. Now we turn to the efficiency of the use of energy. This we measure both in a static and in a dynamic way. The static indicator is called energy efficiency and 5 This trend could be drastically reversed as a consequence of the introduction of biofuels for transport. iv

9 relates the economic weight of an industry or household consumption category to its relative energy consumption. The economic weight of the industries can be based on different economic variables. We present energy efficiency with respect to value added as well as with respect to employment. The definition of these indicators is as follows: Energy efficiency based on value added = Share of industry i in industries energy consumption Share of industry i in total value added Energy efficiency based on employment = Share of industry i in industries energy consumption Share of industry i in total employment Energy efficiency for household consumption categories is calculated as follows: Energy efficiency = Share of household consumption category i in household energy consumption Share of household consumption category i in total household consumption If we computed the energy efficiency for all industries together or for total household consumption, these ratios would be equal to one, since both the numerator and the denominator would be equal to one. A ratio higher than one for a specific industry or household consumption category implies that this industry or household consumption category contributes relatively more to energy consumption than to value added and employment for the industries, and than to total household consumption for the household consumption categories. 6 In other words, the industry or household consumption category is relatively energy intensive. Relative energy efficiency will be calculated for the most recently available year, that is to say the year This first indicator thus allows to distinguish the industries that use a lot of energy because they create an important part of value added or employment from the industries that are large users of energy because of the activity they perform. Indeed, the specificity of the products produced by a particular industry determines to a large extent the amount of energy needed. Consequently, it would be unfair to compare, say the basic metals industry to the financial industry only on the basis of the consumption of energy per unit of value added or per employee. This kind of cross-sectoral analysis also needs to take the evolution of the energy consumption into account. For this reason a dynamic indicator is also presented. This dynamic indicator is called Energy efficiency gains. It relates the growth rate of energy consumption to the growth rate of an economic variable. As for the relative energy efficiency, we calculated energy efficiency gains both with respect to value added and with respect to employment. The indicators are defined as follows: Energy efficiency gains based on value added = Value added growth rate of industry i - energy consumption growth rate of industry i 6 Remark that this is an inverted measure of efficiency. The higher the value of the indicator, the lower the energy efficiency. In that sense, the indicator should maybe be called an indicator of energy inefficiency. v

10 Energy efficiency gains based on employment = Employment growth rate of industry i - energy consumption growth rate of industry i For the household consumption categories energy efficiency gains are calculated as follows: Energy efficiency gains = consumption growth rate of household consumption category i - energy consumption growth rate of household consumption category i If the consumption of energy has increased at exactly the same pace as value added or employment, this indicator will be equal to zero, implying no energy efficiency gains have been achieved. 7 If the indicator is positive, then the economic variable has grown faster than the energy consumption. This means energy efficiency gains have been achieved. If the indicator is negative, energy efficiency losses have been suffered, because the consumption of energy has grown faster than the economic variable. Energy efficiency gains will be calculated between 1990 and Table E shows the relative energy efficiency of the 8 most important energy using industries in 2002, and how this energy efficiency has evolved between 1990 and The most important energy user among the Belgian industries was the energy industry. Among the large users of energy it was also the one with the lowest relative energy efficiency in 2002, computed either with value added or employment. 8 With respect to value added this industry has achieved above average efficiency gains. With respect to employment the efficiency loss was above average. The same is true for the second most important energy using industry, the basic metals industry. The transport industry was the third largest user of energy. Compared to other important energy users it was not that energy inefficient. The energy efficiency gains with respect to value added were also smaller than for the other important energy users. Table E: 2002 relative energy efficiencies and energy efficiency gains between 1990 and 2002 by industry, ranked according to their average share in total energy consumption Share Rank Sector Based on value added Relative Energy Efficiency Efficiency Gains Based on employment Relative Energy Efficiency Efficiency Gains Total Industries Electricity, gas & water supply (40-41) Basic metals (27) Transport, storage & communication (60-64) Chemicals and chemical products ( 24) Coke, refined petroleum products & nuclear fuel (23) Other non-metallic mineral products (26) Food products, beverages & tobacco products (15-16) Agriculture, hunting & forestry (01-02) The same obviously applies to household consumption. 8 The higher the value of the indicator, the lower is relative energy efficiency. vi

11 Most of the important energy using industries experienced energy efficiency gains with respect to value added and losses with respect to employment. However, there are two exceptions. The first one is the coke and refined petroleum industry, which is the only industry that experienced a loss of energy efficiency with respect to value added. It is also the second most relatively energy inefficient industry. The second exception is agriculture. This industry is a large consumer of energy, while at the same time being relatively energy efficient with respect to employment. This of course, is a consequence of the efficiency gains the industry achieved between 1990 and Table F presents the 2002 energy efficiencies for total household consumption and three consumption categories, as well as the energy efficiency gains for the period. Not surprisingly, the energy efficiency of both transport and heating were lower than for total household expenditure. Heating contributed more than 14 times more to energy use than to household consumption. The share of transport in energy consumption is less than twice its share in total household consumption. The discrepancy between the two categories is due to the fact that energy used for transport is much more expensive than energy used for heating, as a consequence of heavy taxation on transport. This leads to the observation that the share of transport in household expenditure is more than three times higher than the share of heating, while energy use for heating purposes is almost three times higher than energy use for transport purposes. Table F: Energy efficiencies and efficiency gains for household consumption Energy efficiency in 2002 Efficiency gains Total Household Consumption Transport Heating Other From a dynamic point of view, energy efficiency gains were positive for total household consumption. However, there are large differences between the different consumption categories. Energy efficiency gains in transport were remarkably high. The same amount of transport could be achieved in 2002 with only half of the energy used in Energy efficiency gains as concerns heating were a lot smaller. Nevertheless, they remained far above the energy efficiency gains of the rest of household consumption. As a matter of fact, when transport and heating are not taken into account, the energy used for household consumption has increased much faster than household expenditure. vii

12 Introduction Energy use for the production of secondary energy forms like electricity and steam (heat), for transport purposes and for heating purposes is a major cause of air pollution. Consequently, information on the composition and evolution of energy use is a prerequisite in order to design sensible policies to reduce air pollution. A vast array of energy statistics is available. However, it is not always easy to link these data to economic data. Energy statistics do not take into account the resident principle, as is the case in the national accounts. The Belgian energy statistics thus contain the use of energy by foreigners, while the use by Belgian residents abroad is not included. Furthermore, energy use for transport purposes is allocated on a functional basis to categories like road transport, air transport, In order to assess the impact of certain policy changes by means of input-output models (or economic models in which intersectoral relationships are explicitly modelled) energy use for transport ought to be allocated to the different industries, as far as own account transport is concerned. Both the resident principle and the transport issue are addressed in the context of the National Accounting Matrix including Environmental Accounts (NAMEA), which is a satellite account of the national accounts. A NAMEA concerning air pollution already exists for Belgium. Therefore, constructing a NAMEA Energy enables to link energy use data to both economic and air pollution data in a consistent way. This report deals with the NAMEA Energy for Belgium for the period 1990/ The NAMEA Energy is a new part of the Belgian environmental accounts. In order to construct these accounts, first a set of tables had to be drawn up, since no Eurostat standard tables exist for this kind of subject. The sole available standard table is the energy use table, which was drawn up in the context of the NAMEA Air. This table was used as the starting point for a more complete set of tables, consisting of supply and use tables for energy in both physical and monetary terms. The first part of the report deals with the methodology. First the construction of the tables is presented, next the data sources are discussed. Most of the data were taken from the regional energy balances. Transport data were treated differently in order to abide by the resident principle. This section also involves an assessment of the precision of the data. The second part of the report presents the data. First energy use is discussed. We look both at the evolution of total energy use by different industries and the households, and at the importance and evolution of the use of different forms of energy. The same is done for energy supply. This part also assesses to what extent Belgium is able to cover its own energy use, and to what extent it needs to import energy. Part three of the report links the energy data to the economic data available in the NAMEA Air in order to investigate the level and the evolution of the energy efficiency of the Belgian economy and its different components. It starts off with a description of the economic data, after which the energy efficiency of the industries and of different household consumption categories is analysed. 1

13 I Data compilation methodology This chapter presents the methodology used to construct the NAMEA Energy tables. Part A describes the tables. There are two pairs of tables, each consisting of a supply and a use table. One pair is expressed in physical terms (Terajoules), the other in monetary terms (millions of euros). Part B presents the data sources. The data are mainly based on regional energy balances. For each of the three Belgian regions we show how the transition was made from the energy balance to the NAMEA energy table. Road and air transport are dealt with in separate paragraphs. Part C concludes the chapter with an assessment of the quality of the data. A. A set of physical and monetary supply and use tables We used the NAMEA Air energy use table, which is expressed in physical terms (Terajoules), as the starting point to construct the NAMEA Energy supply and use tables. This implies that the sectoral disaggregation conveniently coincides with the disaggregation made in the NAMEA Air, both for industries (NACE 2 digits, with some extra detail for manufacturing and transport, and somewhat less detail for services) 9 and for consumption categories (transport, heating and other consumption). Seventeen different types of fuel are distinguished, seven of which are combustible primary energy forms (lignite, coal, natural gas, wood, other biofuels, peat and other, and waste), eight are combustible secondary energy forms (coal coke, coke gas and other gases, fuel oil, diesel oil, motor gasoline, LPG, jet fuel and kerosene, and other petroleum products), and two are air emission free energy forms 10 (electricity, and heat and hot water). For the air emission free types of energy we had to change the NAMEA Air energy use table, because it contains some supply elements, which naturally belong to the NAMEA Energy supply table. The NAMEA Air energy use table namely contains columns to report primary electricity 11 produced and other forms of emission free energy production, like geothermal steam. Why is this so? The supply of emission free energy is included in order to calculate the net use of electricity and heat by each industry. The net use of electricity is equal to the sum of electricity and heat purchased and primary electricity produced, minus all electricity and heat sold. Electricity produced by combustion of fuels is not included in order to avoid the inclusion of energy use in the form of transformation of one type of energy into another. 12 Electricity and heat produced by means of 9 See Annex 1 for the complete set of industries 10 At least from the users point of view 11 According to the NAMEA Air, this is electricity of which the production is not based on air polluting fuel. Examples are wind energy and solar power, but also nuclear energy. The latter is normally not treated as a primary form of energy. Since we will include the input of nuclear heat to produce electricity we will also not treat it as such, and allocate nuclear electricity to the category other air emission free energy forms. 12 We want to avoid including energy use which does not lead to air emissions, because the NAMEA Energy is supposed to be linked to the NAMEA Air, in order to link energy use to air emissions. For air polluting types of fuel this is achieved by simply not entering the use of the fuel which is transformed into another type of air polluting fuel. Only the final combustion of the second type of fuel is taken into account, because it is only at that moment that air pollutants are emitted. For electricity and heat this method cannot be used, because air pollution is generated during the transformation phase instead of after transformation. 2

14 combustion of any of the air polluting fuels is already accounted for, since the fuels which are combusted are included in the energy use table. Adding the electricity thus generated would lead to double counting of energy use. 13 This is not the case for primary electricity and heat. Therefore, production of these energy forms was added separately. In the NAMEA Energy primary electricity produced and other forms of emission free energy production have been moved to the supply table. The removal of these items from the use table also forces us to change the contents of the columns containing electricity and heat sold, as well as electricity and heat purchased. The columns containing electricity and heat purchased in the NAMEA Air should contain total electricity and heat use in the NAMEA Energy, thus also including electricity and heat produced as an ancillary activity, whether by fuel combustion or in an air emission free manner. However, this means electricity generated by means of fuel combustion, as well as the fuels combusted to generate this electricity are included in the use table, which implies double counting of energy use. Therefore, the columns containing electricity and heat sold in the NAMEA Air should in the NAMEA Energy contain electricity and heat produced by means of combustion of air polluting fuels instead. Only this part of electricity and heat now needs to be deducted in order to avoid double counting of energy use. Electricity and heat produced without emissions no longer have to be deducted, since the energy generating this electricity and heat is no longer accounted for in the use table. As such, the final column in the use table contains total non-transformation energy use for each of the separate industries. Furthermore, some extra lines were added to the use table in order to reflect changes in inventories and exports, two other categories of energy use. The energy supply table is for the largest part the mirror image of the use table, containing of course imports instead of exports. The air emission free part of the table is different, however. As already mentioned above, it contains the columns for primary electricity produced and other forms of air emission free energy production. It also contains columns for electricity and heat produced with emissions. Total supply of electricity and heat is thus covered. The energy inputs used in order to produce the electricity and heat are deducted. This enables us to calculate net electricity and heat supply by each industry. In contrast to the use table the supply table also contains the fuels used for non-energetic purposes. 14 Consequently, the total by industry shows the net amount of energy generated by each industry plus the supply of non-energetic fuels. The supply and the use table thus do not balance. This is not only a consequence of the inclusion of non-energetic supply, but also of the fact that energy is lost in the transformation sector. 15 We deduct total energy input used to produce electricity and heat and hot water in the supply table, while the smaller electricity and heat output is deducted in the use table. This implies that total net energy use can be expected to be larger than 13 Of course, more energy is used in the transformation process than the amount of electrical energy generated. This loss of energy in the transformation process is considered to be a use of energy by the electricity generating industry. 14 On the supply side it is impossible to make the distinction between fuels that are supposed to be used for energetic purposes and fuels that are to be used for non-energetic purposes. 15 We are not referring to distribution losses, as rather to the loss of energy as one type of fuel is transformed into another type of fuel. 3

15 total net energy supply. This is counterbalanced to some extent by the inclusion of fuel used for non-energetic purposes in the supply table only. Next to the supply and use table in physical terms, we also constructed their counterparts in monetary terms. Exactly the same layout was used as for the physical tables. B. Data sources Since the energy tables are to be linked to the NAMEA Air emission tables it is important that the two sets of tables are constructed on the basis of a coherent dataset. The NAMEA Air is constructed on the basis of regional data. Regional air emissions data are in part based on the regional energy balances. As a consequence, the energy balances of the three Belgian regions, Brussels-Capital, Flanders and Wallonia, form the main data source for the Belgian NAMEA Energy. 16 The level of disaggregation of the regional energy balances is not exactly the same as in the NAMEA Energy, however. This implies that in order to fill the tables at a fairly high level of disaggregation estimates had to be made on the basis of distribution keys, like for instance industries shares in value added or employment. This is mainly the case for the allocation by industry, but in some cases also for the disaggregation by type of fuel. Another difference between the energy balances and the NAMEA Energy tables is that the former are based on the territorial principle while the latter are based on the resident principle. Furthermore, in the NAMEA Energy tables, energy used for own account transport is allocated to the different NACE industries instead of to the functional transport category. Consequently, adjustments have to be made in the field of energy use for transport purposes. The final outcome of the Belgian NAMEA Energy tables is thus not equal to the simple sum of the regional energy balances. In what follows we show how the regional energy balances data were transformed into NAMEA Energy data. The main focus is on the physical tables. When not specifically mentioned as such, we are thus not dealing with the monetary tables. 1. Brussels-Capital The data for Brussels-Capital were taken from a set of yearly energy balances. The following tables from these energy balances were used: the energy balance for the manufacturing industry including construction, the energy balance for the high tension services industries, the energy balance for the low tension services industries, the global energy balance and the energy bill. In what follows we discuss how these energy balances were transformed into a format that could be used to complete the NAMEA Energy tables. 16 Different sets of energy statistics coexist in Belgium. Next to the regional energy balances there are also federal energy balances. The latter are based on sales, while the former focus on the use of the energy products. The regional energy balances are therefore deemed more appropriate for the purpose of linking energy data to air emission data. Next to the coherence issue, this is another reason to prefer the regional balances. 4

16 a Data for 1990 For this region detailed energy balances are available for the entire period, except for 1990, for which only the global energy balance is available. This global balance contains a complete description of energy supply, but as concerns energy use it only gives totals for all manufacturing industries together, for three services industries (low-tension users, high-tension using trade industries, and high-tension using non-trade industries), as well as for households and different transport categories. This implies that for 1990 energy use by industries at a more disaggregated level had to be estimated by means of some distribution key. We used the 1991 distribution as a proxy for the 1990 distribution. As a consequence energy use in 1990 at a disaggregated level is less precise. The impact on the Belgian total is quite small, however, due to the fact that Brussels-Capital is the smallest of the three regions in Belgium. This is true for the impact on Belgian totals for all estimates made for this region. b Allocation to industries For the entire 1990/ period energy use by NACE 26 and 27 was calculated on the basis of their relative share in regional value added at current prices. 17 Furthermore, energy use by NACE 17-20, 25, 28-30, 32-33, and 36 could not be allocated. This is also the case for energy use by craftsmen and by the manufacturing industries offices. 18 c Allocation to fuel types In the energy balances prior to the year 2000 no distinction was made between the use of wood and the use of coal. We applied their average share in solid fuel use to calculate separate values for the energy use of these two types of solid fuels in the pre period. Most of the fuel use by households in the energy balances is for heating purposes, since fuel use for transport is recorded separately. Of course, the only fuel type, which is not mainly used for heating purposes, is electricity. For the years 2000 and 2002 data are available regarding the distinction of electricity use for heating or for other purposes. Taking these years as a starting point we calculated values for the entire time period, taking into account the evolution of the percentage of houses with electrical heating and climatological circumstances expressed in degree-days. d The monetary tables The monetary tables are based on the regional energy bill of Brussels-Capital. Thus, only monetary data on the use of energy are available, not on supply. The data are also highly aggregated. They are available for the different fuel types, but only one value is available for the manufacturing industries, and only three for the services industries. These totals 17 Because regional economic data only exist as of 1995, we used the latter year also to distribute 1990 and 1994 energy use by NACE Total non-allocated energy use is included in the NAMEA Energy use table in the row Not allocated. 5

17 were disaggregated on the basis of the physical data, assuming one price per fuel type for all manufacturing industries, and three prices per fuel type for the different kinds of services industries (low-tension users, high-tension trade users and high-tension nontrade users). Monetary supply was directly deduced from monetary use. Where necessary physical supply was used as a distribution key. 2. Flanders The data for Flanders were mainly taken from the global energy balances, which are most detailed as concerns fuel types. In order to achieve more detail as concerns industries, we also used the succinct form energy balances. All these energy balances are available for the entire 1990/ period. In what follows we discuss how these energy balances were transformed into a format that could be used to complete the NAMEA Energy tables. a Allocation to industries The values for metal manufactures (NACE 28-35) as well as those for the group of other industries (NACE 20,25,36-37, and 45) were split on the basis of gross value added at current prices. Just as was the case for NACE 26 and 27 in Brussels-Capital, we had to apply the 1995 distribution to the 1990 and 1994 values as well, because no regional economic data are available for years prior to For the services industries disaggregated data are available only for aggregated fuel types. At the most detailed level of disaggregation by fuel type only one value is available for all services industries together. We distributed these values over the different services industries on the basis of the aggregated fuel type distributions. For example, diesel oil and LPG were both distributed according to the available distribution for petroleum products. This still did not allow us to distinguish energy use between NACE and 70-75, however. We used employment data to further split these values into four separate NACE categories. b Allocation to fuel types As concerns the use of wood, the Flemish energy balances do not distinguish this type of fuel from other renewable types of fuel. The use by the industries was attributed to other biofuels, while the use by households was considered to be wood. The other fuels in the Flemish energy balances are mainly waste, and thus attributed to waste (and NACE 90) in the NAMEA Energy, except for the use by the chemical industry, for which this type of fuel was attributed to other petroleum products. The part of electricity used for heating by households was estimated on the basis of the shares calculated for Brussels- Capital. In the physical energy supply table we are unable to allocate the supply of other biofuels. This was attributed to the not allocated -category. 6

18 c Water transport A special item in the regional energy balances of Flanders is formed by international sea transport bunkers. The balances do not contain any information on whether these bunkers were made use of by residents or not. We estimated the part used by residents by making use of the value for physical diesel oil use for inland water transport and the relative amounts of diesel oil bought by Belgian sea transport firms on the one hand and by Belgian inland water transport firms on the other, which are available in the monetary Belgian use tables 19. This enables us to calculate the physical amount of diesel oil used by Belgian sea transport firms, assuming both inland water and sea transport firms pay the same average price. Once this value was established, we estimated the physical use of other fuel types by resident sea transport firms by applying to this value the ratio between the use of this other type of fuel and the use of diesel oil as found in the Belgian use tables. The precision of this estimate is not very high, as it assumes equal prices across different petroleum products. For some less important petroleum products this estimation method led to values exceeding total international bunkers. In such cases the entire value of international bunkers was attributed to resident firms. International bunkers of lamp petrol and kerosene for sea transport were entirely attributed to exports, since no data on this type of fuel were found in the monetary Belgian use tables. d Electricity It is impossible to distinguish between the energy inputs needed to generate electricity and the ones needed to generate heat for both NACE 40.1 and We therefore allocated all energy inputs used to generate electricity and heat to electricity in the case of NACE 40.1, while for NACE 40.3 the inputs were allocated to heat. Nuclear heat is considered to be entirely imported. All imports of electricity are allocated to electricity produced with emissions, though part of it probably is not. However, it is impossible to distinguish one type of imported electricity from the other. e The monetary tables The Flemish energy balances do not contain any monetary data at all. We estimated monetary use by applying average Walloon prices to the Flemish physical data. The precision of this estimate is probably quite low. The monetary supply table is based directly on monetary use. When necessary, physical supply was used as a distribution key. 3. Wallonia The data for Wallonia were taken from a set of yearly energy balances. The following tables from these energy balances were used: the transformation balance, the detailed balance for the manufacturing industry including construction, the energy balance for the high tension services industries, the global energy balance and the energy bill. Energy balances exist for the entire period under scrutiny. In what follows we discuss how these 19 What is meant here, are the economic use tables constructed by the Institute for National Accounts 7

19 energy balances were transformed into a format that could be used to complete the NAMEA Energy tables. a Allocation to industries Just as was the case for Flanders we needed to proceed to further disaggregation on the basis of value added for energy use by NACE and other industries. Energy use by the commercial services industries was divided between NACE and NACE 55 on the basis of employment. Energy use by financial and other services was divided into energy use by NACE on the one hand and by NACE on the other, on the basis of a detailed distribution available in the energy balances for 1998 only. The 1998 distribution was thus applied to the entire period. The same procedure was followed to split energy use by NACE 75 from NACE 99, and energy use by NACE from NACE 90. Some parts of energy supply and use could not be allocated to separate NACE categories. This was the case for energy supply and its connected energy use by the metal manufactures industries and the other industries, as well as for energy use by the lowtension clients of the services industries. The latter is not available as such in the energy balances, but can easily be calculated by deducting the energy use by high-tension services industries from total energy use by the services industry. b Allocation to fuel types The primary production of biofuels on the one hand and of waste on the other are not separated in the energy balances. We calculated supply of these two types of fuel on the basis of the use. Biofuels are used by the food and tobacco industry, as well as by the sewage and refuse disposal industry. Primary production of waste was calculated by deducting the obtained value for biofuels from total production of biofuels and waste together. c Electricity and heat As of 2001 the energy balances contain data on the division of electricity production by means of renewable energy and waste combustion between NACE 40 and NACE 90. For the years prior to 2001 the use of renewable energy and waste to produce electricity and heat, as well as the production of electricity and heat, and the autoconsumption thereof was divided between NACE 40 and NACE 90 in the same way as observed for the year For the same period prior to 2001, we also calculated a split-up of energy use for energy production by the metal manufacturing industries on the one hand and the other industries on the other hand. This implies that gas oil was attributed to the former, while natural gas was allocated to the latter. Their relative output of energy was calculated for this period on the basis of the average in

20 Autoconsumption of electricity by the manufacturing and the services industries for the period 1990/ was only available for all these industries together. Separate values for autoconsumption in this period were calculated by multiplication of their output of electricity with the average share of autoconsumption in their electricity output, after which the obtained values were rescaled as to obtain the known value for the sum of all industries. The part of electricity used for heating by households was estimated on the basis of the shares calculated for Brussels-Capital. d The monetary tables The monetary tables are based on the regional energy bill of Wallonia. Thus only monetary data on the use of energy are available, not on supply. The data are also more aggregated, both as concerns fuel types as for industries. Disaggregation by industry was obtained making use of physical energy use data. Monetary supply was deduced from monetary use. Where necessary distributions were made on the basis of the physical supply data. 4. Air transport Data on energy use for air transport in the energy balances of the regions are not in line with the resident principle. In order to resolve this problem a survey was conducted with the Belgian air transport companies in Data on kerosene use were obtained for the period These were transformed into energy use expressed in Terajoules, and allocated to the three Belgian regions on the basis of regional value added of the air transport industry. Due to the fact that such a survey could not be repeated this year, we opted to extrapolate the data for 2002 on the basis of regional value added growth of NACE 62. This implies that we assume the energy efficiency of air transport to have remained constant during the period Road transport Data on energy use for road transport in the regional energy balances suffer from the same deficiency as those for air transport. They do not obey the resident principle. On top of that, an important part of road transport by the industries is own account transport, which should be allocated to the industry concerned, and not to the transport industry. Both problems have been addressed in previous versions of the NAMEA Air for Belgium. For the current NAMEA Energy the same methods were applied. a Adjustment to the resident principle Regional use of diesel oil, gasoline and LPG were first split between industries and households. For diesel and gasoline this was achieved on the basis of the distribution used 20 See: Vandille, G. and B. Van Zeebroeck (2004) 9