vvEPA
            United States
            Environmental Protection
            Agency
            Policy, Planning,
            And Evaluation
            (2127)
EPA 230-R-95-012
September 1995
The U.S. Environmental
Protection  Industry:
The Technical Document
             iUUUi

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                                                       EPA230-R-95-012
                                                          September 1995
THE U.S. ENVIRONMENTAL PROTECTION INDUSTRY:

                   The Technical Document
               Economic Analysis and Research Branch
              Economic Analysis and Innovations Division
               Office of Policy, Planning and Evaluation
                U.S. Environmental Protection Agency
                      Washington, DC 20460

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Acknowledgments

       This report was prepared by Deborah Vaughn Nestor and Carl A. Pasurka, Jr. in EPA's
Office of Policy, Planning, and Evaluation, and provides detail for the companion document The
U.S. Environmental Protection Industry: A Proposed Framework for Assessment.  The authors
gratefully acknowledge the assistance and encouragement of past and present colleagues within
the Economic Analysis and Research Branch: Alan Carlin, Anne Grambsch, Mary Jo Kealy, Al
McGartland and Brett Snyder. The authors also thank the individuals mentioned below for
assistance with the report.

       Don Garner (while at the Environmental Law Institute) and Jim Lockhart (while  at the
Environmental Law Institute) assisted with the data. The participants in the March 1992 seminar
before the Interagency Seminar  on Economics and the Environment at the U.S. EPA gave
helpful comments and guidance. Conversations with Roger Bezdek (Management Information
Services) and Dan Noble (Environmental Business, Inc.) provided additional insights.

       Rick Kaglic, Mo Moabi, and Christine Vogan of the Environmental Economics Division
at the Bureau of Economic Analysis all helped to clarify environmental data collected by the
BEA. Gary Rutledge, Director of the Environmental Economics Division assisted both in
clarifying the data and in resolving conceptual issues related to this report.  Janet Shapiro (U.S.
Bureau of the Census) provided assistance with the "Pollution Abatement Control and
Expenditures" (MA-200) data. Anne Lawson, Director of the Interindustry Economics Division
of BEA, and Allen Young (BEA) also provided assistance. Belinda Bonds and Patricia
Washington of the interindustry economics division of the BEA provided information regarding
data sources and assumptions used in the construction of the U.S. input-output tables.

       Anton Steurer (Eurostat) and Carsten Stahmer (Federal Statistical Office of Germany)
assisted in resolving conceptual  issues involved in preparing this report.

       The following individuals provided helpful comments an earlier draft of this document
(in alphabetical order):

       William Holroyd (Department of Commerce)
       Raymond Prince (U.S. Congressional Budget Office)
       Mahesh Podar (U.S. EPA)
       Rodney Sobin (Office of Technology Assessment)
       Robert D. Atkinson (Office of Technology and Assessment)
       Patrice L. Gordon (Congressional Budget Office)
       David Ingersoll (U.S.  International Trade Commission)

       The preliminary results of this study  were presented at a Resources for the Future
Seminar in September 1993.

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                             TABLE OF CONTENTS

1.     EXECUTIVE SUMMARY	   1-1

2.     DEFINITION OF THE "ENVIRONMENTAL PROTECTION INDUSTRY"  	   2-1

      2.1. THE SEEA AND INPUT-OUTPUT TABLES  	   2-2

            2.1.1.  Overview of the United Nations' System for Integrated
                  Environmental and Economic Accounting 	   2-2
            2.1.2.  Review of Relevant Input-Output Concepts	   2-2

      2.2.   CLASSIFICATION OF THE COSTS OF ENVIRONMENTAL
            PROTECTION  	   2-4

      2.3.   MODIFICATION OF THE U.S. INPUT-OUTPUT TABLES	   2-6

            2.3.1.  Accounting for the Costs of Complying with Environmental
                  Regulation 	   2-6
            2.3.2.  The Modified I-O Tables as a Basis for Defining the
                  Environmental Protection Industry	   2-7

      2.4.   IDENTIFICATION OF COMPONENTS OF THE ENVIRONMENTAL
            PROTECTION "INDUSTRY"	  2-10

            2.4.1.  External Environmental Protection Activities	  2-10
            2.4.2.  Sectors Whose Output is Used Solely for EP	  2-12
            2.4.3.  Internal Environmental Protection Activities  	2-13
            2.4.4.  Household Environmental Protection Activities 	2-14
            2.4.5.  Investment Activities for Environmental Protection 	2-15
            2.4.6.  Government Environmental Protection Activities	  2-15

      2.5. SUMMARY  	  2-16

      NOTES FOR CHAPTER 2	  2-21

3.  THE ENVIRONMENTAL PROTECTION INPUT-OUTPUT TABLES	   3-1

      3.1. EXTERNAL ENVIRONMENTAL PROTECTION ACTIVITIES  	   3-1

            3.1.1.  The Secondary Production Problem	   3-1
            3.1.2.  "Environmental" Water Supply 	   3-6
            3.1.3.  Sewerage Systems	   3-7
            3.1.4.  Solid Waste Management Services  	   3-8

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                                                                         Ill

3.2.   SECTORS WHOSE OUTPUT IS USED SOLELY FOR EP	  3-11

      3.2.1. Environmental Construction Sectors: New Sewer System
            Facilities and Repair and Maintenance of Sewer Facilities	  3-11
      3.2.2. Industrial Air Pollution Control Equipment	  3-11

3.3.   INTERNAL ENVIRONMENTAL PROTECTION ACTIVITIES	  3-13
      3.3.1. Manufacturing Sectors	  3-13
      3.3.2. Electric Utilities	  3-17
      3.3.3. OtherNonmanufacturingSectors 	  3-19
      3.3.4. Miscellaneous Internal Environmental
            Protection Activities	  3-20

3.4.   HOUSEHOLD ENVIRONMENTAL PROTECTION ACTIVITIES	  3-22

      3.4.1. Purchases from External Environmental Protection Sectors	  3-22
      3.4.2. Purchases for the Operation and Maintenance of Septic Systems
            and Sewer Connections	  3-22
      3.4.3. Purchases for Operation and Maintenance of
            Motor Vehicles	  3-22
      3.4.4. Purchases of Environmental Protection Equipment on
            Motor Vehicles	  3-23

3.5.   INVESTMENT ACTIVITIES FOR ENVIRONMENTAL PROTECTION   3-23

      3.5.1. Households	  3-23
      3.5.2. Businesses  	  3-24

3.6.   GOVERNMENT ENVIRONMENTAL PROTECTION ACTIVITIES ...  3-28

      3.6.1. State and Local Government Purchases for Sewerage, Sanitation,
            Highways, Water, and Natural and Agricultural Resources and
            Recreation  	  3-28
      3.6.2. Regulation and Monitoring	  3-29
      3.6.3. Research and Development	  3-29
      3.6.4. BEA Category of Government Environmental Expenditures,
            Excluding Highway Erosion	  3-29
      3.6.5.  Other and Unallocated  	  3-29

3.7. THE U.S. ENVIRONMENTAL PROTECTION I-O TABLES	  3-30

NOTES FOR CHAPTER 3 	  3-51

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IV

4.     EMPLOYMENT ASSOCIATED WITH THE ENVIRONMENTAL
      PROTECTION "INDUSTRY"  	  4-1

      4.1.   EMPLOYMENT IN EXTERNAL ENVIRONMENTAL PROTECTION
           ACTIVITIES	  4-1

           4.1.1.  "Environmental" Water Supply 	  4-1
           4.1.2. Sewerage Systems	  4-1
           4.1.3. Solid Waste Management Services  	  4-1

      4.2.   EMPLOYMENT ASSOCIATED WITH INTERNAL
           ENVIRONMENTAL PROTECTION ACTIVITIES  	  4-2

      4.3.   EMPLOYMENT IN SECTORS WHOSE OUTPUT IS USED SOLELY
           FOR EP	  4-5

           4.3.1. Environmental Construction Sectors	  4-5
           4.3.2. Industrial Air Pollution Control Equipment	  4-5

      4.4.   EMPLOYMENT TO SUPPORT HOUSEHOLD, INVESTMENT, AND
           GOVERNMENT EP ACTIVITIES  	  4-5

      4.5.  SUMMARY  	  4-7

      NOTES FOR CHAPTER 4	  4-11

5. UPDATING THE ENVIRONMENTAL PROTECTION I-O TABLES  	  5-1

      5.1.   EXTERNAL ENVIRONMENTAL PROTECTION ACTIVITIES  	  5-1

           5.1.1.  "Environmental" Water Supply 	  5-1
           5.1.2. Sewerage Services  	  5-1
           5.1.3. Solid Waste Management Services  	  5-1

      5.2.   SECTORS WHOSE OUTPUT CONSISTS SOLELY OF EP
           PRODUCTS  	  5-2

           5.2.1. Environmental Construction Sectors:  New Sewer System Facilities and
                 Repair and Maintenance of Sewer Facilities  	  5-2
           5.2.2. Industrial Air Pollution Control Equipment	  5-3

      5.3.   INTERNAL ENVIRONMENTAL PROTECTION ACTIVITIES	  5-3

           5.3.1. Manufacturing Sectors	  5-3

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            5.3.2. Non-manufacturing Sectors  	   5-4
            5.3.3. Miscellaneous Internal Environmental Protection
                 Activities	   5-4

      5.4.   HOUSEHOLD ENVIRONMENTAL PROTECTION ACTIVITIES	   5-6

            5.4.1. Purchases for the Operation and Maintenance of Septic Systems and
                 Sewer Connections	   5-6
            5.4.2. Purchases for Operation and Maintenance of Motor Vehicles 	   5-6
            5.4.3. Purchases of Environmental Protection Equipment on Motor
                 Vehicles 	   5-7

      5.5.   INVESTMENT ACTIVITIES FOR ENVIRONMENTAL PROTECTION .   5-7

            5.5.1. Households	   5-7
            5.5.2. Businesses  	   5-7

      5.6.   GOVERNMENT ENVIRONMENTAL PROTECTION ACTIVITIES ...   5-10

      5.7.   IMPLEMENTATION OF THE UPDATE	   5-11

      5.8.   EMPLOYMENT  	   5-11

            5.8.1. Employment in ExternalEP Activities  	   5-11
            5.8.2. Employment in Internal EP Activities	   5-12
            5.8.3. Employment to Support Household, Investment,  and Government
                 EP Activities  	   5-12
            5.8.4. Summary of Updated Employment Figures	   5-12

      NOTES FOR CHAPTER  5 	   5-14

6.     APPLICATIONS	   6-1

      6.1.   DECOMPOSITION OF GROSS OUTPUT INTO EP AND NON-EP
            ACTIVITIES	   6-1

      6.2.   MEASUREMENT OF THE SIZE OF THE EP "INDUSTRY" 	   6-2

      6.3.   INDIRECT EMPLOYMENT REQUIRED TO SUPPORT EP
            ACTIVITIES	   6-3

      6.4.   ESTIMATES OF THE SIZE OF THE EP INDUSTRY AND INDIRECT
            EMPLOYMENT ASSOCIATED WITH EP ACTIVITIES 	   6-4

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VI




     6.5.   NUMERICAL EXAMPLE 	  6-5




NOTES FOR CHAPTER 6	  6-14




REFERENCES	  R-l




APPENDIX A	  A-l




APPENDIX B	  B-l




APPENDIX C	  C-l




APPENDIX D	  D-l




APPENDIX E	  E-l

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                                                                                    Vll

                                  LIST OF TABLES

Table 1.1:    Summary of Study Results	 1-2

Table 2.1:    Summary of Environmental Protection (EP) Industry Components	2-17

Table 3.1:    Input-Output Sectors 	3-2

Table 3.2:    Producing Industries for Commodities Classified
             as External EP Activities  	3-5

Table 3.3:    Total Production and Producing Industries for Solid
             Waste Management  Services  	  3-10

Table 3.4:    Distribution of Materials Component of Operation and Maintenance
             Expenditures for Air Pollution Abatement by I-O Sector	3-15

Table 3.5:    Distribution of Materials Component of Operation and Maintenance
             Expenditures for Water Pollution Abatement by I-O Sector	3-16

Table 3.6:    Distribution of Materials Component of Operation and Maintenance
             Expenditures for Solid Waste Pollution Abatement by I-O  Sector 	  3-17

Table 3.7:    Distribution of Materials Component of Capital Expenditures for Air
             Pollution Abatement by I-O Sector  	  3-25

Table 3.8:    Distribution of Materials Component of Capital Expenditures for Water
             Pollution Abatement by I-O Sector  	  3-26

Table 3.9:    Distribution of Materials Component of Capital Expenditures for Solid
             Waste Pollution Abatement by I-O Sector 	3-27

Table 3.10:   1977 Environmental Protect!on Expenditures Input-Output Table 	3-31

Table 3.11:   1977 Environmental Protection Industry Input-Output Table	3-36

Table 3.12:   1982 Environmental Protect!on Expenditures Input-Output Table 	3-41

Table 3.13:   1982 Environmental Protection Industry Input-Output Table	3-46

Table 4.1:    Employment in the External Environmental Protection Activities 	  4-2

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Vlll

Table 4.2:    Employment in Internal EP Activities by I-O Sector 	  4-3

Table 4.3:    EP Employment in the Government Industry Sector 	  4-6

Table 4.4:    Employment Required to Support Household, Investment, and
             Government EP Activities  	  4-8

Table 4.5:    Total Employment for EP Activities  	  4-10

Table 5.1:    Updated Values for the Output of External EP Activities	5-2

Table 5.2:    Updated Values for the Output the Environmental Construction Sectors and the
             Industrial Air Pollution Control Equipment Sector	  5-3

Table 5.3:    Updated Values for Internal EP Activities by Nonmanufacturing	  5-5

Table 5.4:    Environmental Excise Taxes  	  5-6

Table 5.5:    Updated Values for Household Expenditures on Motor Vehicle Pollution
             Abatement Equipment	  5-8

Table 5.6:    Updated Values for Household EP Investment Expenditures 	  5-8

Table 5.7:    Updates for EP Investment Activities (Production Process)	5-9

Table 5.8:    Updated Values for GPFI in EP Equipment on Motor Vehicles	  5-9

Table 5.9:    Updated Values for Government EP Activities	  5-10

Table 5.10:   Updated Employment Estimates for External EP Activities	  5-11

Table 5.11:   Updated Employment Estimates for Government EP Activities	  5-13

Table 5.12:   Updated Estimates for Total Employment in EP Activities  	  5-13

Table 6.1:    Measures of EP Employment and the Size of the EP Industry	  6-4

Table 6.2:    Total I-O Table  	  6-5

Table 6.3:    EP Expenditures  I-O Table  	  6-6

Table 6.4:    Total I-O Table with Internal  EP Activities Externalized  	  6-7

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                                                                                  IX

Table 6.5:    Employment and Employment-Output Ratios for the Example 	   6-12

Table 6.6:    Components of Direct Employment  	   6-12

Table 6.7:    Components of Direct plus Indirect Employment	   6-13




                                 LIST OF FIGURES

Figure 2.1:    Input-Output Transactions Table  	  2-3

Figure 2.2:    System for Integrated Environmental and Economic Accounting	2-5

Figure 2.3a:   The BEA Input-Output Framework Modified to Separate Environmental
             Control Costs	  2-8

Figure 2.3b:   EP Costs Displayed in an Input-Output Framework	  2-8

Figure 2.4a:   The BEA Input-Output Framework Modified to Display the EP Industry .... 2-9

Figure 2.4b:   The EP Industry in an Input-Output Framework	  2-9

Figure 2.5:    Externalization of Internal Environmental Protection Activities	   2-11

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                             1. EXECUTIVE SUMMARY
       This study identifies the production and service activities that constitute environmental
protection (EP) activities in the U.S. economy.  The identification of these activities is
accomplished through the use of an input-output (I-O) accounting framework.  The U.S. I-O
table, published by the Bureau of Economic Analysis (BEA, U.S. Department of Commerce), is
adjusted to isolate EP activities from other economic activities. The resulting EP I-O tables
characterize the sectors whose output is used to comply with environmental regulations as well
as the sectors that demand EP goods and services.  This study  does not attempt to measure or
draw conclusions about the net economic impacts of environmental regulation. Rather, it
focuses on defining and measuring the amount of resources devoted to EP activities.

       In Chapter 2, "Definition of the Environmental Protection Industry," starts by reviewing
previous attempts at developing an EP industry definition. In  this study, the EP industry is
defined by tracing the costs of complying with environmental  regulation through the U.S.
economy.  An attempt to maintain consistency with the types of costs  defined as EP costs by the
EPA in Environmental Investments: The Cost of a Clean Environment has been made. This is
accomplished by applying the input-output accounting framework.  This framework is consistent
with the United Nations'  (U.N.) proposed System for Integrated Environmental and Economic
Accounting (SEEA).

       Chapter 3, "The Environmental Protection Input-Output Tables," generates the data
needed to fill the cells of EP input-output (I-O) matrices and documents all data sources and data
construction techniques.  Attention has been focused upon 1977 and 1982 since these are the two
most recent economic census years for which benchmark I-O tables had been compiled at the
time this report was written. The BEA I-O table, "The Use of Commodities by Industries"
forms the basis of this report.

       Chapter 4, "Employment Associated with the Environmental Protection Industry,"
describes how the 1977 and 1982 EP I-O tables are used to estimate employment attributable to
EP. Also included is  a discussion of data sources and limitations.

       Chapter 5, "Updating the Environmental Protection I-O Tables," describes the
procedures and data sources used to update the  1982 EP I-O tables to  1985, 1988, and 1991.

       Chapter 6, "Applications," demonstrates how the EP I-O tables can be used to derive
measures of the size of the EP "industry" and a modified Leontief multiplier for calculating
indirect EP employment. These measures and indirect employment are computed for the U.S.
for 1977, 1982, 1985, 1988, and 1991. Table 1.1  summarizes the results of this study.

       The detailed concordance of the 41 EP I-O table to the 540 sector "The Use of
Commodities by  Industries" table is presented in Appendix A.  Appendix B provides details of

                                    September 1995

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1-2
The U.S. Environmental Protection Industry
the procedures used to derive patterns for assigning the "materials" component of EP operation
and maintenance and capital expenditures to specific I-O categories. Appendix C provides the
original total I-O tables for 1977 and 1982, and Appendix D derives the total requirements
matrix from the "use" and "make" tables.  Appendix E documents the peer review process.
                                       Table 1.1
                               Summary of Study Results
                                1977
                    1982
1985
1988
1991
 Direct Employment
 (Number of Individuals)

        As a Percent of
        Total Employment

 Direct + Indirect
 Employment
 (Number of Individuals)
     682,778     642,467    657,243     697,326       744,322


         0.80        0.69        0.65        0.64          0.67


    1,312,582   1,437,290   1,489,669   1,384,464     1,619,497
As a Percent of
Total Employment
Direct Value- Added
(Millions of Dollars)
As a Percent of
GNP
Direct + Indirect Value-
Added (Millions of
Dollars)
As a Percent of
GNP
1.63
14,490.3
0.73
32,453.1
1.63
1.60
20,843.5
0.65
51,221.4
1.60
1.61
27,872.4
0.66
66,979.2
1.61
1.66
36,811.2
0.72
83,143.3
1.66
1.77
46,222.8
0.79
101,870.1
1.77
                                    September 1995

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                               2.  DEFINITION OF THE
                   "ENVIRONMENTAL PROTECTION INDUSTRY"
       A primary barrier to measuring the size of the environmental protection (EP) industry is
the lack of a precise industry definition. Thus, the first task of this study is to define, as
specifically as published data sources permit, which production and service activities constitute
the EP industry.  The definition for the EP industry developed in this study is driven by existing
sources of data. However, the definition is flexible and can be easily modified to incorporate
additional sources of information.

       Previous attempts at developing an industry definition have viewed the EP industry from
two distinct perspectives. First, the EP industry can be defined in terms of who bears the cost of
regulation. This is the approach taken by EPA, Environmental Investments:  The Cost of a Clean
Environment (EPA, 1990).  Alternatively, the EP industry can be defined as the companies that
manufacture capital goods  or supply  raw materials and services for purposes of pollution
abatement. From this perspective, the EP industry is defined as companies receiving the revenue
associated with expenditures to comply with regulation. The second approach has been taken by
the World Environmental Directory,  which disaggregates the EP industry into 19 "product
manufactures" categories and 24 "professional services" categories. According to the
Environmental Business Journal (Environmental Publishing,  Inc.  1994), which also takes the
second approach to defining the EP industry, the EP industry consists of 13 separate categories.

       The two approaches to defining the environmental industry will generate different
estimates for several reasons. First, not all environmental costs involve company to company
transactions.  Some pollution abatement activities are performed within the polluting industry
and costs associated with these activities do not become revenues  for companies providing EP
goods and services. Also,  some environmental control costs do not involve out-of-the pocket
expenditures (e.g.,  depreciation).1  Second, the costs of pollution abatement include expenditures
for items that are not part of the "EP" market (e.g., electricity required for  the operation of
pollution control equipment). Again, expenditures on  these items do not become revenues for
companies providing EP goods and services.2 Finally, companies like engineering firms provide
services besides EP. While these companies receive the revenues associated  with EP
expenditures, the total revenues of these companies overstates the amount received for EP goods
and services.3

       In this study, the EP industry  is defined by tracing the costs of complying with
environmental regulation through the U.S. economy.  An attempt to maintain consistency with
the types of costs defined as EP costs by the  EPA in Environmental Investments:  The Cost of a
Clean Environment has been made. Further, the input-output accounting framework is applied.
This framework is  consistent with the United Nations' (U.N.) proposed System for Integrated
Environmental and Economic Accounting (SEEA).
                                     September 1995

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2-2                     The U.S. Environmental Protection Industry

       This chapter is organized as follows. In Section 2.1, the U.N.'s proposed SEEA and
important I-O concepts are reviewed.  Section 2.2 discusses the U.N.'s scheme for classifying
EP activities.  The U.N. provides guidance for classifying the various types of environmental
costs in the U.S. economy. The U.N. scheme is slightly modified to classify environmental costs
in the U.S.  The classification scheme is key since it determines the manner in which the cells of
the I-O table are adjusted to account for environmental control costs. Section 2.3 relates the
classification of the costs of environmental regulations to particular adjustments in the published
U.S. I-O tables. These adjustments to the I-O tables serve as the basis for defining the EP
industry.  In Section 2.4, the precise economic activities in the U.S. economy counted as EP
activities are detailed. Finally,  Section 2.5 provides a  summary.

2.1. THE SEEA AND INPUT-OUTPUT TABLES

2.1.1.  Overview of the United Nations' System for Integrated Environmental and Economic
       Accounting

       The United Nations has proposed the System for Integrated Environmental and
Economic Accounting (SEEA) as a special satellite system that is closely related to the core
System of National Accounts (SNA). Figure 2.1 provides a schematic representation of the
SEEA, and illustrates its relationship with the core SNA and the development of methods to
measure environmental impacts.4 The SEEA are comprised of four parts, labelled I, II,  III, and
IV in the diagram.  Part I describes production and consumption activities and the accounts of
nonfmancial assets. This includes the I-O table from which EP activities are separated from the
rest of the production activities in the economy. In addition, part I contains information
regarding changes in the stocks of natural assets. Part II describes the physical relationships
between the natural environment and the producing sectors of the economy.  Part III represents
economic cost of actual or potential deterioration of environmental and natural resource assets
associated with economic activities.  Constructing part III of the SEEA requires that a monetary
value is placed on the use of the environment. Part IV represents information derived from
extending the nation's production boundary to incorporate the economic functions of the natural
environment.  For example, a nation's production boundary might be extended to include the
value of wetlands in mitigating floods, filtering water for drinking, and serving as a nursery for
commercial fish. This study focuses on part I of the SEEA, the disaggregation of the U.S. I-O
table into environmental and nonenvironmental  components.

2.1.2.  Review of Relevant Input-Output Concepts

             Before discussing the procedure for constructing the disaggregated U.S. I-O
tables, it is helpful to review the relevant I-O concepts. Figure 2.1 shows a schematic
representation of one type of I-O matrix, the transactions table.  A transactions table records the
value of sales and purchases among producing and consuming sectors of the economy.
                                     September 1995

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                    Definition of the Environmental Protection Industry
                                                                                    2-3
       The transactions table in Figure 2.2 is divided into three quadrants. In the upper-left
quadrant, the typical entry (X-) records the sales by the sector in the i  row to the sector in the
j   column. Xj: is the amount of intermediate input I used to produce output j. For example, if
the industry in the i   row is woodpulp and the industry in the j  column is paper, then reading
across the row X- is the dollar value of the product that the woodpulp industry sells to the paper
industry. Reading down the column, X- is the dollar value of the input that the paper industry
purchases from the woodpulp industry.
.th
       In the upper-right quadrant, Y; is the total final demand for the output of the sector in the
i  row.  Final demand includes purchases for consumption, capital formation, inventory
changes, imports, exports, and government purchases. The output of the i  sector is X;, which is
computed by summing the quantities sold as inputs to other producing sectors (X-) and Y;. The
row total, then is equivalent to total demand (intermediate and final).

                                       Figure 2.1

                             Input-Output Transactions Table
TO
FROM
1
2
I
n
V
X
1 2 ... j ... n Y X
^V ^V ^V ^V
All A12 • • • Alj • • • Aln
X2i X22 X2j X2n
^V ^V ^V ^V
Ail Ai2 • • • Aij • • • Ain
X^v ^v ^v
nl n? • • • ni • • • nn
Vl V2 • • • V' • • • Vn
X1 X.J ... X: ... Xn
Y! X!
Y2 Y2
Y, X,
Yn Xn


                                    September 1995

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2-4                     The U.S. Environmental Protection Industry

       The columns of the I-O matrix describe the purchases made by each sector. Note that in
Figure 2.1, these purchases include payments to primary inputs or value added (V:), as shown in
the lower-left quadrant. Primary inputs include payments to labor, indirect business taxes, and
property-type income (e.g. depreciation) in order to account for all costs incurred by the sectors.
The sum of the column entries (X) is equivalent to total costs of production.  The sum of
column entries and the sum of row entries are equal in the I-O accounting framework.

2.2.    CLASSIFICATION OF THE COSTS OF ENVIRONMENTAL PROTECTION

       To trace the costs of complying with environmental regulation through the U.S. economy
using an I-O framework requires first developing a scheme for classifying the various types of
environmental costs.5 The classification of any particular environmental control cost is
important because it determines how the U.S. I-O tables are adjusted to account for that cost.
The U.N.'s Handbook for Integrated Environmental and Economic Accounting (see U.N.,  1993)
provides some guidance for classifying EP activities in the economy.  To follow the U.N.
framework, it is assumed that all costs incurred due to environmental  regulation can be traced to
an EP activity. Once EP costs are classified and the I-O tables are adjusted, this information can
be used to identify  EP activities in the economy. These activities constitute the definition of the
EP industry set forth in this study.

       To disaggregate the monetary data associated with EP, the U.N. has proposed classifying
environmental production and service activities into the following five categories:  external EP
activities, internal EP activities, fixed capital formation for EP, EP activities performed by
households, and EP activities performed by governments. The U.N. has also illustrated
application of this classification scheme in an I-O format.

       External EP activities refers to establishments in which EP constitutes the main or
secondary production activity.  These activities can be either marketed or non-marketed. The
key identifying characteristic of external EP activities is that they are  delivered to other
establishments, or a third party.  External EP activities are represented as separate rows and
columns in an I-O matrix. External EP activities include, for example, the services of solid
waste management services and sewage treatment.  Due to lack of information, remediation
services are not treated as an external EP activity in this report.

       Internal EP activities  are for the establishment in which they are produced.  Internal EP
activities are ancillary activities analogous to administration or research and development
activities. Internal  EP activities are measured by inputs purchased for and combined  as pollution
abatement activity by a polluting industry.  Internal EP activities are not separated from the main
activities of an establishment, and in the I-O framework, are accounted for by separating out that
portion of total inputs used by polluting industries for pollution abatement.
                                     September 1995

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                             Definition of the Environmental Protection Industry
                                                                                               2-5
Core system
Figure 2.2:  System for Integrated Environmental and Economic Accounting

                                Satellite systems
System of
National
Description of
economic activities






1.
Environment-
related
disaggregation
of conventional
national accounts
1
II.
Physical data
on environmental-
economic
interrelationships

~^-
-^—

III.
Additional
valuation
of the economic
use of the
environment
IV.
Extensions of
the production
boundary of the
SNA
A






                                                                                             Framework
                                                                                             for the Development
                                                                                             of Environment
                                                                                             Statistics (FDES)
                                                                                             Description
                                                                                             of the environment
                                                                                             and interacting
                                                                                             socio-demographic
                                                                                             and economic
                                                                                             activities
                                                                                     Source: U.N., 1993
                                              September 1995

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2-6                     The U.S. Environmental Protection Industry

       The category fixed capital formation for EP represents the accumulation of fixed assets
or investment activities for EP. As an example, the purchase of a scrubber represents the
accumulation of capital for air pollution abatement.  Fixed capital formation for EP corresponds
to gross private fixed domestic investment in the I-O format.

       The final two categories, EP activities performed by households and governments are
self-explanatory.

       To classify the costs of complying with environmental regulation in the U.S., the U.N.
classification scheme is followed as closely as possible. However, it should be noted that the
measurement of foreign trade in EP equipment presents an additional set of difficulties. These
difficulties and the actual measurement of EP trade are the subject of a separate report
International Trade in Environmental Protection Equipment: An Assessment of Existing Data
(U.S. EPA, 1993). In this study, the focus is on the domestic portion of the U.S. I-O tables.

2.3.    MODIFICATION OF THE U.S. INPUT-OUTPUT TABLES

2.3.1.  A ccountingfor the Costs of Complying w ith Environmental Regulation

       The classification of EP costs according to the  categories of external, internal,
households, investment, and government serves as the basis for adjusting the U.S. I-O tables.
The classification scheme determines where the EP costs are located within the input-output
table (i.e., in which cells). Implicit in the procedure for adjusting the U.S. I-O tables is the
assumption that EP costs  are already embedded in the  U.S. I-O tables published by the Bureau of
Economic Analysis (BEA).  The modification of the U.S. I-O tables involves isolating EP costs
from the existing tables using supplementary information.

       The categories for environmental control costs are now described in the I-O accounting
framework.  Referring to  Figure 2.3a, expenditures on external EP activities is depicted as an
additional row (i.e. the n+1 row in Figure 2.3a) in the  standard I-O table. The  entries in the
shaded row, X+j, represents the dollar value of purchases of external EP activities by the i
industry. Y^+J-J represents purchases of goods and services from the external EP sector due to
final demand expenditures.

       Internal EP expenditures refers to the inputs purchased and combined as pollution
abatement activity within a polluting firm.  Generally, inputs used for internal pollution
abatement activity are not separated from the primary activity of the polluting industry. The
internal EP industry, then, is accounted for by separating out that portion of inputs used by
polluting industries for pollution abatement. In Figure 2.3a, the inputs to internal EP activities,
X-6, and X-116  are components of X-  X-6 represents the portion of input I used by industry j in
internal EP activities and X-116 is the amount of input I used in economic production.  Note that
in Figure 2.2, the notation X- was used to denote the total amount of input I used by industry j.


                                     September 1995

-------
                     Definition of the Environmental Protection Industry                  2-7

More specifically, it was assumed that X- includes the amount of input I used for purposes of
pollution abatement by industry j.  In addition, the value added associated with the EP activities
of the internal EP industry, V:6, is a component of V:. The primary distinction between external
and internal EP expenditures is that internal expenditures are associated with pollution
abatement activities performed within polluting industries. External expenditures are associated
with the purchase of a complete EP activity from a third party.

       The final three categories of EP costs are: household expenditures for EP, investment
expenditures for EP, and government expenditures for EP. Note that these categories all
represent an adjustment to final demand in the U.S. I-O table, which is depicted as the upper-
right quadrant in Figure 2.3a. Final demand purchases for EP, Y;e, includes the U.N. categories
of fixed capital  formation (investment), consumption, and government expenditures for EP.

       Figure 2.3b displays only the EP component of Figure 2.3a and is one of the I-O tables
                     	             til           C^
derived in Chapter 3.  The sum of the i  column, X  , in Figure 2.3b equals the total costs
                                                    	              til        G
incurred by that sector due to environmental regulation.  The sum of the i  row, X; , in Figure
2.3b equals the  total demand for the output of the i  sector due to EP activities. Hence, the row
total represents  the value of output  of the i  industry that is used for EP activities. Note that the
row and column totals need not be equal in the EP costs I-O table. More specifically, the
amount of, say,  construction services used in EP activities does not imply that the construction
sector engage in EP activities of equal value.

2.3.2.  The Modified I-O Tables as a Basis for Defining the Environmental Protection Industry

       Section  2.2.1 noted that one of the assumptions underlying this study  is the assumption
that all costs attributable to environmental protection activities can be traced to an EP activity.
Under this assumption, the adjusted I-O tables identify EP activities in the economy. In this
study, these EP  activities constitute the definition of the EP industry.

       Figure 2.4a depicts how the various types of EP activities are imbedded in the I-O
framework while Figure 2.4b displays the EP industry I-O table. Figure 2.4b represents one of
the I-O tables derived in Chapter 3. The difference between Figures 2.3a-2.3b and 2.4a-2.4b  is
that Figures 2.4a-2.4b include the inputs used in the production of external EP activities. Figure
2.3b, on the other hand, excludes inputs used in external EP activities,  as these do not constitute
EP costs per se. To include these in the I-O table which depict EP costs would lead to double
counting.
                                     September 1995

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2-8                    The U.S. Environmental Protection Industry




                                     Figure 2.3a




    The BEA Input-Output Framework Modified to Separate Environmental Control Costs
TO
FROM
1
2
n
(n+1)
V
X
1 2 . .
Y ne Y e Y ne Y e
11 11 12 12
Y ne Y e Y ne Y e
21 21 22 22
Y ne Y e Y ne Y e
Anl +Anl An2 +An2
Xfn+ni Xrn+m
Vj^+Vj6 V2ne+V2e
x^'+x,6* x9ne*+x/ .
n (n+1) Y X
Y ne Y e Y
• Aln +Aln Al(n+l)
Y ne Y e Y
A2n +A2n A2(n+l)
Y ne+Y e Y
nn nn n(n+l)
-'Vn+IVi Xfn+lVn+l~)
ne e
n n (n+1)
Xne Y e Y
n ^Vi -'Wn+l^
Y2ne+Y2e X2ne+X2e
Y ne+v e X ne+X e
n n n n
Y v

                                     Figure 2.3b




                    EP Costs Displayed in an Input-Output Framework
TO
FROM
1
2
n
(n+1)
V
X
1 2 ... n (n+1) Y X
Y e Y e Y e
All A12 • • • Aln
X21 X22 X2n
Xnl Xn2 • • • Xnn
~y ~y ~y XT-
^Cn+111 ^Vn+1^2 • • • ^fn+1")n ^Vn+IYn+1'1
Vie V9e V e
v 1 V2 • • • v n
Xe -y e -y e -y
1 ^-9 • • • ^Vi ^-("n+IVn+n
V e V e
Yl Al
Y2e X2e
Y e X e
n n
Y X

                                   September 1995

-------
         Definition of the Environmental Protection Industry




                          Figure 2.4a




The BEA Input-Output Framework Modified to Display the EP Industry
2-9
TO
FROM
1
2
n
(n+1)
V
X
1 2 ... n (n+1) Y X
Y ne_i_Y e Y ne_i_Y e Y ne_l-Y e Y
All +A11 A12 +A12 • • • Aln +Aln Al(n+l)
Y ne-l-Y e Y ne-l-Y e Y ne-l-Y e Y
A21 +A21 A22 +A22 A2n +A2n A2(n+l)
Y ne-l-Y e Y ne-l-Y e Y ne-l-Y e Y
Anl +Anl An2 +An2 • • • Ann +Ann An(n+l)
x,n+ni xrn+m . . . xrn+nn xrn+1Vtl+n
Vlne+Vle V9ne+V9e Vne+Ve V, +n
1 1 2 2 ••• n n (n+1)
jig^* Q% 116^ 6^ 116^ 6^
-/V^ ~T-/VI -**-9 ~i~-/V9 . . . -/vn ~ryvn J^fnJr^ ^
Y2ne+Y2e X2ne+X2e
Y ne+V e Y ne+Y e
Yn +Yn An +An
Y Y
1 (n+^ \ -
-------
2-10                    The U.S. Environmental Protection Industry

       The presentation of EP activities as shown by Figure 2.4a has drawbacks, in practice.
Specifically, the differing treatments of external and internal EP activities complicates the
accounting method. To simplify the presentation of EP activities in the I-O tables, the U.N. has
proposed "externalization" of the internal EP sector. Figure 2.5 provides a schematic
representation of the externalization procedure.  The process involves transferring the inputs
associated with internal EP activities to the row and column in the I-O table that represents the
external EP sector.

       As shown by column (n+1) in Figure 2.5, all inputs associated with the production of the
output of internal and external EP activities are included.  Reading down column (n+1) gives the
dollar value of each of the intermediate inputs used in pollution abatement activity in the
economy.  As shown by row (n+1), the inputs used for internal EP activities in each  sector are
aggregated with purchases of the  output of the external EP sector.  The individual entries in row
(n+1) are the  total operation and maintenance costs for EP undertaken by business sectors plus
purchases of external EP services to satisfy final demand,
2.4.    IDENTIFICATION OF COMPONENTS OF THE ENVIRONMENTAL PROTECTION
       "INDUSTRY"

       The conceptual framework outlined above is used to identify which activities in the U.S.
economy constitute EP activities. In total, these EP activities form the definition of the EP
industry. The EP activities included in the EP industry definition are now detailed.

2.4.1.  External Environmental Protection Activities

       External EP activities are the portion of the  EP industry that is best defined by existing
data sources.  Sectors providing  external EP services are included in the 1977 and 1982
benchmark (540 sector) I-O tables published by the BEA.6  The primary difficulty in identifying
external EP activities is that the 540 sector I-O tables are not sufficiently disaggregated.

       External EP activities consist of the following three I-O sectors:

       1.     "Environmental"  Water Supply (part of BEA I-O sector 68.0301)
       2.     Sewerage Systems (part of BEA I-O sector 79.0300)
       3.     Solid Waste Management Services (part of BEA I-O sector 68.0302)
                                     September 1995

-------
                       Definition of the Environmental Protection Industry



                                         Figure 2.5




                  Externalization of Internal Environmental Protection Activities
                                                            2-77
TO      1




FROM
                                (n+1)
                            Y
X
         v
         x
           n
                       Y
                       x
                        12
                        -22
         Y  ne          Y  ne

   n     Anl           An2
                       +
X(n+1)2+v2e
                  Y
                  x
                    ln
                  Y

                  A
                                    v  e
                                          +
                                           A(n+l)n+Vn
                                            Y2ne+Y2e    X2ne+X2e
   v
   x
  np
xne+x
                      v
                                                         +V
                                                           (n+D
xn+xn
                                       September 1995

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2-72                    The U.S. Environmental Protection Industry

       These sectors involve activities unrelated to EP and the values that appear in the
corresponding rows and columns in the U.S. I-O tables must be adjusted. Following EPA,
expenditures for water supply which are unrelated to drinking water treatment are not considered
EP expenditures.7 Thus, expenditures unrelated to water treatment must be subtracted from I-O
sector 68.0301 (Water Supply) to isolate EP expenditures. Other state and local government
enterprises (BEA I-O 79.0300) includes, among other services, the operation of public sewage
treatment plants. The expenditures associated with the services unrelated to public sewage
treatment must be subtracted to adjust for expenditures unrelated to EP. The row and column
corresponding to I-O sector 68.0302 (Sanitary Services, Steam Supply & Irrigation) must be
adjusted to subtract  steam supply, irrigation, and other non-solid waste abatement activities.
This allows for isolation of the Solid Waste Management Services sector.  These adjustments are
described in more detail in Chapter 3 of this report.

2.4.2.  Sectors Whose Output is Used Solely for EP

       The output of the following three sectors is used exclusively in EP activities:

       1.      New Sewer System Facilities (11.0307 in the BEA I-O tables)
       2.      Sewer Facility Construction:  Repair & Maintenance (BEA I-O sector 12.0210)
       3.      Industrial Air Pollution Control Equipment Industry (part of BEA I-O sector
              49.0300)

       Production in these sectors is not classified as an EP activity. However, the output of
these sectors is purchased by other sectors and combined with other goods and services to
perform EP activities. Also, the output of these sectors is used for no other purpose but EP.

       Ideally, all sectors that produce pollution abatement goods and services would be isolated
and reported separately. The primary difficulty with separating out these sectors is that some
types of EP goods (e.g., chemicals) are used for both EP and non-EP activities. To isolate
production of goods for EP activities, the output would need to be classified by end use, not by
producing industry,  as it is classified in the I-O tables. The one exception is industrial air
pollution control equipment, which has its own SIC code  (SIC 35646).  Although the 540 sector
I-O table corresponds to a 4-digit level of aggregation, other data sources, namely "Selected
Industrial Air Pollution Control Equipment," (MA-35J) Current Industrial Reports (U.S.
Department of Commerce, Bureau of the Census), are used to isolate the production of air
pollution control equipment from the published I-O tables.  Expenditures unrelated to air
pollution control equipment are subtracted from I-O 49.0300 (Blowers and Fans).
                                     September 1995

-------
                    Definition of the Environmental Protection Industry                2-13

2 A3.  Internal Environmental Protection Activities

2.4.3.1.       Inputs to Abate Pollution Within the Production Process

       Inputs, except for the intermediate inputs purchased from the external EP industry, are
difficult to isolate.  The expenditures associated with pollution abatement activities that firms
perform for their own use are typically lumped with other production expenditures.  Defining the
internal EP sector consists of separating the expenditures associated with pollution abatement
from other expenditures incurred in the production process.

       Expenditures on inputs to abate pollution within the production process, or the operation
and maintenance expenditures associated with pollution abatement, consist of two components:

       1.      Value added, which is comprised of labor, depreciation, and indirect business
              taxes.
       2.      Intermediate inputs, which are the quantities of output purchased from other
              sectors to be used in performing EP activities.

       There are three components of value added in the I-O table: payments to labor,
depreciation, and indirect business taxes. For manufacturing sectors, the U.S. Department of
Commerce (Bureau of the Census), Current Industrial Reports (MA-200), reports data on labor
and depreciation expenses associated with pollution abatement at the 4-digit SIC industry level.8

       As for the final component of value-added, indirect business taxes, the 1980
Comprehensive Environmental Response, Compensation and Liability  Act (CERCLA)
introduced environmental excise taxes on the petro-chemical, inorganic chemical and petroleum
industries to provide a source of funds for Superfund.  After its expiration, the Superfund
Amendment and Reauthorization Act of 1986 (SARA) reimposed the excise taxes. The
environmental excise tax is paid by the petroleum and the chemical industries. In addition, an
additional tax on fuel is imposed for the Leaking Underground Storage Tank Trust Fund.

       The MA-200 report also  includes data on other operation and maintenance costs, or more
specifically "materials and supplies" and "services and other costs" used for pollution abatement,
which can be used to approximate  expenditures on intermediate inputs. To allocate the broad
category of "materials" expenditures to the specific intermediate inputs, it is necessary to follow
a procedure similar to Ketkar (1980, 1983a,  1983b, 1984).  In Ketkar's work, engineering
studies and information obtained from surveys of polluting industries are used to compute the
percentage of total operating costs allocated to the input categories of:  electricity, labor, solid
waste collection, equipment leasing, chemicals, depreciation, etc. The  details of the procedures
for disaggregating "materials" expenditures is discussed in Chapter 3 of this report.
                                     September 1995

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2-14                    The U.S. Environmental Protection Industry

       For nonmanufacturing sectors, the BEA data are less detailed.  Data reported for
manufacturing industries are used to derive much of the data for expenditure patterns for
nonmanufacturing. Again, Chapter 3 provides a more detailed explanation of the sources for
allocating expenditures for intermediate inputs for air, water and solid waste pollution abatement
in both manufacturing and nonmanufacturing sectors.

2.4.3.2.       Intermediate Input Expenditures by Business for Motor Vehicles

       EPA and BEA report expenditures by business for abating the pollution from motor
vehicles. For these expenditures, there is a durable goods and nondurable goods and services
(current account) component.  The nondurable component, which consists of a fuel economy
penalty, a fuel price penalty, and maintenance expenditures, is classified as an intermediate
input expenditure. Within the I-O framework, the fuel economy penalty and fuel price penalty
are classified as Petroleum Refining and Related Industries (BEA I-O sector 31.0101).  The
motor vehicle maintenance expenditure is an intermediate input expenditure on Automotive
Exhaust System Repair Shops (BEA I-O sector 75.0002). This  sector includes the repair,
installation, or sales and installation of automotive catalytic converters. Both BEA and the MA-
200 survey exclude these expenditures from their calculations of plant operation and
maintenance EP expenditures by business. The BEA lists these business maintenance
expenditures for motor vehicles under the motor vehicles category.

2.4.4.  Household Environmental Protection Activities

       The BEA defines two categories of EP expenditures by households:  motor vehicle
pollution abatement and septic systems. For each category, there is a durable and nondurable
goods and services component. Both the durable (capital) and nondurable (current account)
goods and services components for motor vehicles are classified as household consumption
expenditures, while only the nondurable component for septic systems is classified as
consumption expenditures.  The durable component for septic systems is classified as household
investment expenditures and is discussed below.

       Durable goods expenditures by households for motor vehicles are the initial cost of
pollution abatement equipment.  Capital account expenditures include catalytic converters, the
devices used to abate motor vehicle air pollution emissions. The expenditures associated with
autos and trucks are assigned to consumption expenditures for motor vehicles and car bodies
(BEA I-O sector 59.0301).  The expenditures associated with motorcycles are assigned to
consumption expenditures for motorcycles, bicycles, and parts  (BEA 61.0500)

       Nondurable expenditures for motor vehicles is composed of: a fuel economy penalty, a
fuel price penalty, and maintenance costs.  The fuel economy penalty and fuel price penalty are
classified as consumption expenditures for Petroleum Refining and Related industries (BEA I-O
sector 31.0101). The motor vehicle maintenance cost is assigned to consumption expenditures


                                    September 1995

-------
                    Definition of the Environmental Protection Industry                 2-15

of Automotive Exhaust System Repair Shops (BEA I-O sector 75.0002).  This sector includes
the installation, repair, or sales and installation of automotive catalytic converters.

       Finally, septic system cleaning, which BEA classifies as an EP expenditure for
nondurable goods and services, is assigned to consumption expenditures of Repair Shops and
Related Services, NEC (BEA I-O 73.0101), which includes sewer cleaning and rodding.

2.4.5.  Investment Activities for Environmental Protection

2.4.5.1. Households

       Household investment expenditures for EP are defined as the durable good expenditures
for septic tanks, septic systems, and connectors to public sewer systems. These expenditures are
classified as investment expenditures since the purchase of housing is classified as an investment
expenditure. Septic tanks and septic systems are assigned to New Residential Construction
(BEA I-O sectors  11.0101 through 11.0105,  inclusive).  The connectors to sewer systems are
assigned to New Sewer System Facilities (BEA I-O 11.0307).

2.4.5.2. Businesses

       Business investment expenditures for pollution abatement include expenditures for motor
vehicles as well as for production processes.  Business expenditures associated with emission
devices (durable goods) for autos and trucks  are assigned to investment expenditures on motor
vehicles and car bodies (BEA I-O sector 59.0301).  The expenditures associated with airplanes
are assigned to investment expenditures on aircraft (BEA 60.0100)

       Other industry investment expenditures for EP are more difficult to classify.  BEA, EPA,
and the MA-200 report total capital expenditures for air,  water, and solid waste pollution
abatement. The expenditures reported in these sources, however, are not disaggregated into
specific I-O categories (e.g., construction, equipment, etc.). As is the case for intermediate
materials inputs, engineering studies must be used.  Chapter 3 provides a detailed description of
specific data sources as well as the procedures applied in the estimation of the patterns for
investment expenditures for pollution abatement.

2.4.6.  Government Environmental Protection Activities

       Five categories of activities in the U.S. I-O tables embody purchases that constitute the
government purchases of goods and services for EP activities:

       1.      State and Local Government Purchases for Sewerage (BEA I-O 99.1003)
       2.      State and Local Government Purchases for Sanitation (BEA I-O 99.1004)
       3.      State and Local Government Purchases for Highways (part of BEA I-O 99.3001)


                                    September 1995

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2-16                    The U.S. Environmental Protection Industry

       4.      State and Local Government Purchases for Water (part of BEA I-O 99.3006)
       5.      State and Local Government Purchases for Natural and Agricultural Resources
              and Recreation (part of BEA I-O 99.3008)

       The categories of purchases for water supply and sewerage by government are solely
capital expenditures.  Operation and maintenance expenditures related to water supply and
sewerage are captured by other sectors discussed in Section 2.4.1.

       Following EPA  and BEA, all state and local government purchases for sewerage (BEA I-
O 99.1003) are counted as EP expenditures. EPA counts all state and local government
purchases for sanitation (I-O 99.1004) as EP expenditures, while BEA counts only a percentage
(see Farber and Rutledge, 1989, p. 18). The EPA convention is followed in this report.  BEA
assumes that federal, state, and local government expenditures to prevent highway erosion are a
percentage of highway construction and engineering capital expenditures (see Rutledge and
Leonard, 1992).  Since virtually all expenditures for highway erosion abatement are by state and
local government, state  and local government purchases for highways (BEA I-O 99.3001) is
used to account for these expenditures.  This report uses the BEA dollar value to determine the
fraction of government highway expenditures that are for EP activities.

       The BEA does not count government expenditures for water as environmental
expenditures. The EPA (1990, p. F-17) argues that the portion of expenditures by state and local
government purchases for water (BEA I-O 99.3006) that are for water treatment should be
classified as EP expenditures and includes 18.4 percent of capital expenditures for water. This
report uses the EPA fraction to determine the amount of capital expenditures for drinking water
that are labeled as EP expenditures.

       The EPA (1990, p. F-7) also counts 20 percent of state and local government natural
resource expenditures (capital and operation and maintenance) as EP expenditures. BEA, in
contrast, excludes all government expenditures for natural resources from its calculation of EP
expenditures. This report uses the EPA dollar value to determine the percentage of expenditures
for  natural resources that are counted as EP expenditures.

2.5. SUMMARY

       In this study, the EP industry is defined by tracing the costs of complying with
environmental regulation through the U.S. economy.  The accounting framework  applied is the
input-output (I-O) transaction matrix.

       Within the I-O framework, five categories of pollution abatement activities have been
identified. External EP activities  are EP goods and services  purchased from third parties.
Internal EP activities are the EP services firms perform for own purposes. The third, fourth, and
fifth categories of EP activities are EP activities performed by households, EP investment


                                    September 1995

-------
                    Definition of the Environmental Protection Industry                2-17

activities, and EP activities performed by governments.  Table 2.1 summarizes the activities
included in each of these categories as well as the primary data sources. Chapter 3 of this report
will describe, in excruciating detail, the process for generating estimates for each of the
components of the  EP industry in 1982.
                                     September 1995

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  2-75
                           The U.S. Environmental Protection Industry
                                                          Table 2.1
                                Summary of Environmental Protection (EP) Industry Components
EP Industry
Component
Subcomponent
Description
(Data Source)
Notes
External
Sectors Whose
Output is Used
Solely for EP
Internal
Inputs
(Value-added)
I-O sector 68.0301
(Water Supply & Sewerage Systems)

I-O sector 79.0300
(Other State and Local Government Enter-
prises)

I-O sector 68.0302
(Sanitary Services, Steam Supply, & Irriga-
tion)

I-O sector 11.0307
(New Sewer System Facilities)


I-O sector 12.0210
(Repair & Maintenance of Sewer Facilities)

I-O sector 49.0300
(Blowers and Fans)

MA-200 for labor and depreciation; IRS
publication for indirect business taxes	
                                                               Adjust row and column in I-O table to isolate
                                                               expenditures for water treatment.
                                                               Adjust row and column in I-O table to isolate
                                                               expenditures for sewerage services.

                                                               Adjust row and column in I-O table to isolate
                                                               expenditures for solid waste management
                                                               services.
                                                               Take directly from the I-O table.
Take directly from the I-O table.


Adjust row and column in I-O table to isolate
industrial air pollution control equipment.

No data source that corresponds to MA-200 for
nonmanufacturing sectors.	
                                                       September 1995

-------
                                      Definition of the Environmental Protection Industry
                                                                                                     2-19
                                                   Table 2.1 (continued)
Component	Subcomponent
                     Description
                                         Notes
Internal
Households
Inputs
(Production Process)


Inputs
(Motor Vehicles)
Investment
Households
                Businesses
MA-200 reports for other operation and
maintenance expenditures.


Fuel economy penalty, fuel price
penalty, and maintenance expenditure
(nondurable component)


Household expenditures for motor vehicles
(durable and nondurable components)
and septic systems (nondurable compo-
nent).

Household investment for environmental
protection is the durable good component
of expenditures for septic tanks, septic  sys-
tems, and connectors to public sewer
systems (durable component).

Business investment for environmental
protection is 1) durable component for
motor vehicles and
2) capital expenditures for air, water, and
solid waste.
Engineering studies to disaggregate "materials"
expenditures; no data source that corresponds to
MA-200 for nonmanufacturing sectors.

Data reported by both EPA and BEA. Use EPA
estimates and BEA technique to determine
business share of motor vehicle EP operation and
maintenance expenditures.

Data reported by both BEA and EPA. Use EPA
estimate and BEA technique to determine
household share of motor vehicle EP equipment
and operation and  maintenance expenditure.

Reported by BEA  and I-O table.
                                                              l)See household expenditures for motor vehicles.
                                                              2) Data reported by BEA, EPA, and in MA-200.
                                                              Use BEA and MA-35J data and engineering
                                                              studies for air, water, and solid waste capital
                                                              expenditures.	
                                                      September 1995

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  2-20
     The U.S. Environmental Protection Industry
                                                    Table 2.1 (continued)
Component	Subcomponent
Description
Notes
Government
I-O sector 99.3001
(State and Local Government Purchases for
Highways)

I-O sector 99.1003
(State and Local Government Purchases for
Sewage)

I-O sector 99.1004
(State and Local Government Purchases for
Sanitation)

I-O sector 99.3006
(State and Local Government Purchases for
Water)

I-O sector 99.3008
(State and Local Government Purchases for
Natural  and
Agricultural Resources and Recreation)
Count a fraction of the column in the I-O table;
the fraction determined by BEA dollar value.

Take directly from I-O table.
                                                                               Take directly from I-O table.


                                                                               Count a fraction of the column in the I-O table;
                                                                               the fraction determined by EPA.


                                                                               Count a fraction of the column in the I-O table;
                                                                               the fraction determined by EPA dollar value.
Notes:
EPA data refers to data reported in Environmental Investments: The Cost of a Clean Environment.
BEA data refers to data reported in Survey of Current Business.
MA-200 data refers to data reported by the U.S. Department of Commerce (Bureau of the Census) in Current Industrial Reports.
MA-35J data refers to data reported by the U.S. Department of Commerce (Bureau of the Census) in Current Industrial Reports.
                                                       September 1995

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                    Definition of the Environmental Protection Industry                2-21

                                   Notes for Chapter 2

1.  At this point, the distinction between "costs" and "expenditures" warrants clarification.  The
   term expenditure is usually refers to tangible out-of-the pocket expenses while cost is a
   broader economic costs. For example, depreciation typically is not referred to as an
   expenditure because no transaction is associated with this expense.  Depreciation is,
   however, a cost.

2.  In addition,  environmental fees, taxes, and penalties do not count has EP industry revenues.

3.  For a detailed discussion of the complications and idiosyncracies of various estimates of the
   size of the EP industry, see the OTA (1994) report, Industry, Technology, and the
   Environment: Competitive Challenges and Business Opportunities (pp. 75-79 and 97-99).

4.  For an in-depth description of the SEEA, see United Nations, 1993.

5.  In reality environmental protection costs/expenditures/activities  consist of two types: those
   that reduce pollution and those that reduce the effects of pollution.  This study focuses on the
   first type.

6.  The benchmark input-output table refers to input-output tables constructed for those years in
   which an economic census takes place.

7.  The EPA (1990, p. F-3) has determined that 12.4 percent of operation and maintenance
   expenditures for drinking water are for water treatment.

8.  Throughout this report "BEA data" will refer to data reported in Survey of Current Business
   while "MA-200 data" will refer to data reported by the U.S. Department of Commerce
   (Bureau of the Census) in "Pollution Abatement Costs and Expenditures" Current Industrial
   Reports, unless otherwise noted.  Also, unless otherwise noted, "EPA data" will  refer to data
   reported in Environmental Investments: The Cost of a Clean Environment.
                                    September 1995

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        3. THE ENVIRONMENTAL PROTECTION INPUT-OUTPUT TABLES
       The purpose of this chapter is to generate the data needed to fill the cells of the
environmental protection (EP) input-output (I-O) matrices as well as to document all data
sources and data construction techniques. Attention has been focused upon 1977 and 1982 since
these were the two most recent economic census years for which benchmark I-O tables had been
compiled during the time this report was written.  The BEA I-O table, "The Use of Commodities
by Industries" forms the basis of this report.  The 540 sector I-O table is first aggregated to 41
sectors. Table 3.1 lists the sectors in the EP I-O tables. The detailed concordance of the 41
sector table to the 540 sector "The Use of Commodities by Industries" table is presented in
Appendix A.

3.1. EXTERNAL ENVIRONMENTAL PROTECTION ACTIVITIES

       The three external EP sectors are: "environmental" water supply (I-O 35), sewerage
systems (I-O 36), and solid waste management services (I-O 37). These three I-O sectors are
derived from information contained in the U.S. I-O tables. "Environmental" water supply is part
of BEA I-O sector 68.0301 (private water supply and  sewerage systems), sewerage systems is
part of BEA I-O sector 79.0300 (other state and local government enterprises), and solid waste
management  services is part of BEA I-O sector 68.0302 (sanitary services, steam supply, and
irrigation).  The procedures for deriving estimates of these activities are discussed below.  The
EP I-O tables are generated for both 1977 and 1982. However, for illustrative purposes, the
discussion focuses on 1982.

3.1.1.  The Secondary Production Problem

       The starting point for constructing the EP I-O tables is the BEA I-O table, "The Use of
Commodities by Industries." The row entries in this table represent commodities while the
column entries represent industries. Reading across any row "I," each entry represents the dollar
value of commodity "I" sold to each industry or purchased as final demand.  Reading down any
column "j," each entry is the dollar value of the commodities purchased as intermediate inputs
for producing the output of industry "j."  If each industry  only produces one commodity and
each commodity is produced by only one industry, (i.e., if there is no secondary  production),
then the row and column totals will be equal. The primary difficulty in extracting EP
expenditures from sectors 68.0301, 68.0302,  and 79.0300 is this secondary production problem.

       The first step in isolating EP activities in sectors 68.0301, 68.0302, and 79.0300 is to
start with a control total for the output of the  individual EP activities. This control total is
derived using additional sources of information, generally data on EP expenditures published by
EPA or BEA. The next step is to generate the individual row and column entries that correspond
to this control total.  The row entries are determined by the ratio of the EP control total to the
                                    September 1995

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3-2                    The U.S. Environmental Protection Industry

                              Table 3.1 Input-Output Sectors

            Code	Description	
             1                   Agriculture, forestry, and fisheries
             2                   Mining
             3                   Construction
             4                   Food and kindred products
             5                   Tobacco manufactures
             6                   Textile mill products
             7                   Apparel and other textile products
             8                   Lumber and wood products
             9                   Furniture and fixtures
            10                  Paper and allied products
            11                  Printing and publishing
            12                  Chemicals and allied products
            13                  Petroleum refining
            14                  Rubber and plastic products
            15                  Leather and leather products
            16                  Stone, clay and glass products
            17                  Primary metals
            18                  Fabricated metal products
            19                  Machinery, except electrical
            20                  Electrical machinery
            21                  Motor vehicles
            22                  Other transportation equipment
            23                  Instruments
                                    September 1995

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        The Environmental Protection Input-Output Tables
                                                   3-3
                     Table 3.1 (continued)
Code
                Description
24
25
26
27
28
29
30
31
32
33
34

35
36
37
38
39
40
41
Nonenvir. PCE

Envir. PCE
Nonenvir. GPFI

Envir. GPFI
Miscellaneous manufacturing
Transportation and warehousing
Communication
Electric utilities
Gas utilities
Trade
Finance, insurance and real estate
Other services
Government enterprises
New sewer system facilities (construction)
Maintenance and repair of sewer facilities
(construction)
Water supply ("environmental")
Sewerage systems
Solid waste management services
Industrial air pollution control equipment
Noncomparable imports and  scrap
Government industry
Other industry
"Nonenvironmental" Personal consumption
expenditures (PCE)
"Environmental" PCE
"Nonenvironmental" Gross private fixed
investment (GPFI)
"Environmental" GPFI
                       September 1995

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3-4
The U.S. Environmental Protection Industry
                                  Table 3.1 (continued)
            Code
                         Description
            Inventory
            Exports
            Imports
            Nonenvir. G.
            Sewer.
            Sanit.
            Water Supply

            Highways

            Natural Resources
        Change in inventories
        Exports
        Imports
        "Nonenvironmental" government expenditures
        State and local purchases, sewerage
        State and local purchases, sanitation
        State and local purchases, "environmental"
        water supply
        State and local purchases, highways (erosion,
        "environmental" component)
        State and local purchases, natural resources
        ("environmental")	
associated sector row total. Because of the secondary production problem, determining the
individual column entries is more difficult. First, the industries that produce commodities
68.0301, 68.0302, and 79.0300 must be determined. This information, shown in Table 3.2, is
reported in the U.S. I-O tables.  The next step is to identify the inputs used by each of the
industries to produce each of the EP commodities, and this is done by making use of the industry
technology assumption (discussed in Section 3.1.2). The inputs are aggregated by commodity so
that the row  and column totals are equal for each of the external EP activities sectors. A detailed
description of this procedure is now provided for each of the external EP activities sectors.
                                    September 1995

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          The Environmental Protection Input-Output Tables                 3-5
                             Table 3.2




Producing Industries for Commodities Classified as External EP Activities
Commodities
68.0301





68.0302




79.0300


Producing
Industries
TOTAL
68.0100
68.0301
78.0200
78.0400
79.0300
TOTAL
65.0300
68.0100
68.0302
79.0300
TOTAL
68.0301
79.0300
1977 Value
(millions)
6,389.4
8.5
1,122.8
1.4
3.7
5,253.0
4,349.4
1,264.2
74.7
3,001.1
9.4
4,961.1
53.8
4,907.3
1982 Value
(millions)
10,778.6

1,777.6


9,001.0
6,793.2
1,758.5
103.1
4,659.9
271.7
9,425.7
107.7
9,318.0
                         September 1995

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3-6                    The U.S. Environmental Protection Industry

3.1.2. "Environmental" Water Supply

       The EP component of BEA I-O sector 68.0301 consists of the component of water
supply associated with water treatment services. According to the I-O sector description (see
U.S. Department of Commerce, BEA, 1991, p.71), sector 68.0301 also includes private
sewerage services.  However, for purposes of constructing the EP I-O tables, it was assumed that
all sewage treatment services are publicly provided. Hence, it was assumed that the output of
sector 68.0301 consists only of water supply.1

       Following EPA, the percentage of operation and maintenance expenditures for water
supply that are for water treatment were counted as EP expenditures.  Total output of
"environmental" water supply was estimated by multiplying the output of commodity 68.0301
by 0.124, EPA's estimate of the proportion of water supply expenditures that are for water
treatment (U.S. EPA 1990, p. F-3). For 1982, multiplying the value of the output of commodity
68.0301 ($10,778.6 million) by 0.124, yielded a value of $1,336.5 million for the
"environmental" component of water supply. The row entries for "environmental" water supply
were determined by multiplying each cell associated with commodity (row) 68.0301 by 0.124.

       In order to generate column entries for "environmental" water supply, the industries that
produce commodity 68.0301 were determined.  Table 3.2 shows that, in 1982, commodity
68.0301 was produced by industries 68.0301  and 79.0300. To assist in isolating the inputs used
by industry 79.0300 to produce commodity 68.0301, the industry technology assumption was
adopted; it was assumed that all commodities produced by an industry are produced with the
same production function. Likewise, when the same commodity is produced in different
industries, it is produced with different production technologies.

       Table 3.2 shows that, in 1982,  16.5 percent of commodity 68.0301 was produced by
industry 68.0301 and 83.5 percent of commodity 68.0301 was produced by industry 79.0300.
The output of "environmental" water supply was allocated to industries 68.0301 and 79.0300
according to these percentages.  Using this method, industry 68.0301 produced $220.4 million
and industry 79.0300 produced $1,116.1 million of "environmental" water supply (see Section
3.1.3 for a more detailed discussion of issues related to industry 79.0300).

       For 1982, the I-O tables report the output of industry 68.0301 at $1,885.3 million and
output of industry 79.0300 at $28,566.1 million. Using the values derived above,
"environmental" water supply constitutes 11.7 percent of the total output of industry 68.0301
and 3.9 percent of the output of industry 79.0300.  The inputs used to produce "environmental"
water supply were isolated by multiplying each column cell entry for industries 68.0301  and
79.0300 by the percentage of "environmental" water supply in total industry output (11.7 for
industry 68.0301 and 3.9 for industry 79.0300).
                                    September 1995

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                    The Environmental Protection Input-Output Tables                 3-7

       One adjustment to the procedure for isolating inputs to "environmental" water supply for
industry 79.0300 was made. First, note from Table 3.2, industry 79.0300 produced commodities
68.0301, 79.0300, and 68.0302.  Production of all or part of these three commodities represents
an EP activity. Production of the EP components of commodities 79.0300 and 68.0302 by
industry 79.0300 is discussed in Sections  3.1.3 and 3.1.4. Next, from the published I-O table,
the entire output of commodity  12.0210 (Maintenance and Repair of Sewer Facilities) was
purchased by industry 79.0300.  It was assumed that all of the output of commodity  12.0210
($3,088.1 million) was purchased as an input to sewerage services.  As a consequence, the input
values for industry 79.0300 for each EP activity as well non-EP activities were re-weighted.
After re-weighting, 4.49 percent of all other inputs purchased by industry 79.0300 were used to
produce "environmental" water supply (see Sections 3.1.3 and 3.1.4 for further discussion).

       The two columns resulting from these computations when added together, are the inputs
required to produce "environmental" water supply.  The residual (i.e., the "nonenvironmental")
expenditures for water supply and the inputs used by the water supply industry which are not for
water treatment were assigned to Other Services (I-O sector 31).

3.1.3. Sewerage Systems

       The EP component of I-O sector 79.0300 consists of sewerage services. I-O sector
79.0300 includes, among other things, publicly provided sewerage services (Ritz 1980, p.  18).
Recall from Section 3.1.2, it has been assumed that all sewage treatment services are publicly
provided.  It follows that all sewerage services produced in the economy are in commodity
79.0300. The control total for 79.0300 (i.e., operation and maintenance expenditures by
government enterprises for sewerage) was obtained from information published by the BEA.2
The BEA (see Rutledge and Vogan 1994, p. 48) reports expenditures for sewerage of $5,159
million in 1982.

        The row entries, or the use of sewerage services by various  sectors, were determined as
follows. The MA-200 report (U.S. Department of Commerce, Bureau of the Census, Current
Industrial Reports) provides manufacturing payments to government for sewerage ($539.3
million). This report uses the MA-200 values as the cell values for purchases of sewerage
services by the various manufacturing sectors. However, the MA-200 does not report payments
by nonmanufacturing sectors and final demand. To derive estimates of payments by
nonmanufacturing sectors and final demand, total manufacturing purchases of sewerage services
($539.3 million) were first subtracted from the total purchases of sewerage services ($5,159
million). The residual represents expenditures for sewerage by all other sectors of the economy
and was distributed among nonmanufacturing sectors ($920.2 million) and households (i.e.
personal consumption expenditures) in proportion to purchases of commodity 79.0300. The
only final demand category to which purchases of sewerage services were assigned is personal
consumption  expenditures (PCE).  The value assigned to PCE is $3,699.5 million.
                                    September 1995

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3-8                    The U.S. Environmental Protection Industry

       According to Table 3.2, commodity 79.0300 was produced by industries 68.0301 and
79.0300 in 1982, with 1.1 percent produced by industry 68.0301 and 98.9 percent produced by
industry 79.0300. These percentages were used to allocate production of sewerage services to
industries 68.0301 and 79.0300. Using this method, $56.7 million of sewerage services were
produced by industry 68.0301 and $5,102.3 million were produced by industry 79.0300.

       To isolate the inputs used by industries 79.0300 and 68.0301 to produce commodity
79.0300, the industry technology assumption was once again adopted (see section 3.1.2. for a
discussion of this assumption).  For 1982, the I-O tables report the output of industry 68.0301 at
$1,885.3 million and the output of industry 79.0300 at $28,566.1 million. Sewerage services
constituted 3 percent of the output of industry 68.0301 and 17.9 percent of the output of
industry 79.0300. The inputs used by industry 68.0301 to produce sewerage services were
isolated by multiplying each column entry for industry 68.0301 by the percentage of the total
output of industry 68.0301 accounted for by sewerage services (3 percent).  The inputs used by
industry 79.0300 to produce sewerage services were isolated by multiplying each column cell for
industry 79.0300 by the percentage of the total output of industry 79.0300 accounted for by
sewerage services (17.9 percent).

       One adjustment to the procedure for isolating  inputs to sewerage services for industry
79.0300 was made. Recall from Section 3.1.2 and from Table 3.2, industry 79.0300 produces
commodities 68.0301, 79.0300, and 68.0302.  Also, it was assumed that all of the output of
commodity 12.0210 (maintenance and repair of sewer facilities) was purchased by industry
79.0300 as an input to sewerage services and the input values discussed above were re-weighted.
As a consequence of re-weighting, 7.9 percent of all other inputs purchased by industry 79.0300
were used to produce sewerage services, the environmental portion of commodity 79.0300.

       The portion of BEA I-O industry 79.0300 inputs that are not part of EP activities were
assigned to Government Enterprises (I-O 32).

3.1.4.  Solid Waste Management Services

       The EP portion of BEA I-O sector 68.0302 consists of solid waste management services
(I-O 37), which is part of sanitary services.  In addition to sanitary services, sector 68.0302
includes steam supply and irrigation activities. According to the 1982 I-O table, the output of
commodity 68.0302 was $6,793.2 million. Two sources of information were used to generate
the control total for the output of solid waste management services:  data published by the BEA
and data reported in the MA-200.

       The BEA reports that private solid waste disposal expenditures were $5,106.9 million in
1982.3 According to Farber and Rutledge (1989, p. 14) these values are expenditures for "...
private contract and self-service disposal of solid waste."  The BEA value, then, provides an
estimate of total expenditures on solid waste pollution abatement.4 The total includes not only


                                     September 1995

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                    The Environmental Protection Input-Output Tables                 3-9

solid waste management services but also the operation and maintenance expenditures associated
with solid waste pollution abatement.  Operation and maintenance expenditures for solid waste
pollution abatement must be subtracted from the BEA total to get expenditures for solid waste
management services. The BEA value excludes depreciation costs associated with private solid
waste disposal.

       The MA-200 provides estimates of labor, materials, depreciation, and services expenses
for solid waste pollution abatement for manufacturing sectors. Expenditures for services
($855.5 million) were assumed to consist of purchases of solid waste management services.
Section 3.3.3 describes the  procedure for deriving estimates of labor, materials, and depreciation
expenses for solid waste pollution abatement for nonmanufacturing sectors.  Labor and materials
expenses for manufacturing ($562.4 million) and nonmanufacturing sectors ($193.3 million)
were subtracted from the BEA total to get a control total, which is the amount of solid waste
management services purchased by manufacturing sectors, nonmanufacturing sectors, and
households ($4,238.2 million). Of this total, $855.5 million (the MA-200 value for solid waste
management services) is by manufacturing sectors. Thus, expenditures (excluding depreciation)
by nonmanufacturing sectors and households totaled $3,382.7 million in 1982.

       Next, the individual  entries representing the use of solid waste management services by
all sectors in the economy were derived.  For manufacturing sectors, the MA-200 reports total
purchases of solid waste services (by industry) and these values were used as the row entries.
For nonmanufacturing sectors and households,  the total value of purchases of solid waste
management services ($3,382.7 million) was divided by total purchases of commodity 68.0302
($4,126.8 million) to form the proportion 0.82.  This proportion is the percentage of total
expenditures on commodity 68.0302 which are classified as EP, and was applied across the row
in the I-O table which represents purchases of commodity 68.0302 for nonmanufacturing sectors
and households.

       To isolate the inputs used for producing solid waste management services, the industries
that produce commodity 68.0302 were determined. Table 3.2 shows that 25.9 percent was
produced by industry 65.0300, 1.5 percent by industry 68.0100, 68.6 percent by industry
68.0302, and 4 percent by industry 79.0300. Production of solid waste management services
($4,238.2 million) was allocated across industries 65.0300, 68.0100, 68.0302, and 79.0300 on
the basis of these shares. The inputs to solid waste services were assigned on the basis of the
percentage of total industry  output accounted for by solid waste services. Equivalently, the
industry technology assumption was used. Table 3.3 lists the producing industries for solid
waste management services, total industry output, total amount of solid waste management
services produced, and solid waste management services as a percentage of industry output.
                                    September 1995

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3-10
       The U.S. Environmental Protection Industry
                                       Table 3.3

      Total Production and Producing Industries for Solid Waste Management Services
     Industry
    Industry Output
(millions of dollars)
  Total Amount of Solid
Waste Services Produced
     (millions of dollars)
   Share of Solid
Waste Services in
  Industry Output
65.0300
68.0100
68.0302
79.0300
$74,190.4
104,172.3
4,659.9
28,566.1
$1,097.1
$64.3
$2,907.3
$169.5
1.5%
0.1%
62.4%
0.6%
       As for "environmental" water supply and sewerage services, an adjustment to the
procedure for isolating inputs to solid waste management services for industry 79.0300 was
made.  Recall from Sections 3.1.2 and 3.1.3, it was assumed that all of the output of commodity
12.0210 (Maintenance and Repair of Sewer Facilities) was purchased by industry 79.0300 as an
input to sewerage services. As a consequence, all input values derived using the industry
technology assumption were re-weighted.  After re-weighting, 0.67 percent of all other inputs
purchased by industry 79.0300 were used to produce solid waste management services.

       The columns of inputs used by each of the industries 68.0302, 65.0300, 68.0100, and
79.0300 for producing solid waste management services added together provide the total inputs
required to produce the output of the Solid Waste Management Services sector (I-O sector 37).
The inputs used to produce non-EP commodity 68.0302 by industries 65.0300 and 68.0100 were
placed in I-O sectors 25 and 27, respectively.  These are the I-O sectors  that contain industries
65.0300 and 68.0100 in the original aggregation of the 540 sector I-O table. The inputs used by
industry 68.0302 to produce non-EP commodity 68.0302 were assigned to Other Services (I-O
31).  Finally, the inputs used by industry 79.0300 for production of nonenvironmental
commodity 68.0302 were assigned to Government Enterprises (I-O sector 32).
                                    September 1995

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                    The Environmental Protection Input-Output Tables               3-11

3.2.    SECTORS WHOSE OUTPUT IS USED SOLELY FOR EP

       The output of the following three sectors is used exclusively for EP activities:

       1.     New Sewer System Facilities (BEA I-O sector 11.0307)
       2.     Sewer Facility Construction: Repair & Maintenance (BEA I-O sector 12.0210)
       3.     Industrial Air Pollution Control Equipment Industry (part of BEA I-O sector
             49.0300).

While production in these sectors is not classified as an EP activity, they are discussed separately
since their output is purchased by other sectors and combined with other goods and services to
perform EP activities.

3.2.1.  Environmental Construction Sectors:  New Sewer System Facilities and Repair and
       Maintenance of Sewer Facilities

       The output values and associated row and column entries for BEA I-O sectors 11.0307
(New Sewer System Facilities) and 12.0210 (Sewer Facility Construction: Repair and
Maintenance) were taken directly from the I-O tables. There is no secondary  production
associated with either of these sectors.

       However, it should be noted that a difficulty in reconciling the values in the I-O tables
and those reported by BEA was encountered. BEA (Rutledge and Vogan  1994, p. 48) reports
government enterprise purchases of fixed capital for water (public sewer systems) at $6,407
million in  1982, which is less than the output of commodity 11.0307 of $8,524.7 million.  Of
the $8,524.7 million reported for commodity 11.0307 in the I-O table,  $2,454.2 million is
purchased for Gross Private Fixed Investment (GPFI).  It was assumed that the primary reason
for the  discrepancy is that BEA classifies GPFI expenditures associated with commodity
11.0307 under its category "Capital Expenditures for Water Pollution Abatement," and does not
include GPFI in its total for government enterprise fixed capital.  Sections 3.5.1 and 3.5.2
discuss how purchases of commodity 11.0307 for GPFI are addressed in this study in further
detail.

3.2.2. Industrial Air Pollution  Control Equipment

       For air pollution control equipment, the Department of Commerce publication, "Selected
Industrial Air Pollution Control Equipment," (MA35J) lists the value of the shipments of SIC
product code 35646 (air pollution control equipment). The value of shipments for air pollution
control equipment was used to calculate the proportion of the total value of the industry output
of Blowers and Fans (I-O 49.0300) accounted for by air pollution equipment (SIC 35646).  The
column entries for BEA I-O sector 49.0300 were multiplied by the ratio of the value of
shipments for SIC 35646 ($906 million) to the value of output for industry 49.0300 ($2,100.1


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3-72                    The U.S. Environmental Protection Industry

million) to estimate the inputs used in the production of air pollution control equipment. The
column entries for air pollution control equipment were assigned to I-O sector 38. All remaining
inputs used by industry 49.0300 were assigned to I-O Sector 19 (Machinery, except electrical).

       As with new sewer system facilities, there was some difficulty with reconciling the
values in the I-O tables and those reported by other government sources. In the I-O tables,
$556.6 million were assigned as GPFI for BEA I-O sector 49.0300. Of this $556.6 million,
$418.6 were for SIC 35646 (air pollution control equipment). This differs from the value
reported in the 1982 MA35J  for 1982 ($905.2 million). The reason for the discrepancy is that
the I-O table values are generated using data from the Census of Manufactures. In 1982, the
Census of Manufactures reported shipments for SIC 35646 at $425.6 million.  This value was
adjusted for exports and changes in business inventories and used in the published I-O tables.5
The Census of Manufactures values differ because they measure shipments only from
manufacturing establishments.  The MA35J report includes shipments from both manufacturing
establishments and design construction firms.  Since design construction firms do not perform
manufacturing as their primary activity, they are excluded from the Census of Manufactures.

       For purposes of constructing the EP I-O tables, the MA35J data were assumed to be
correct since they were most consistent with the engineering studies used to construct capital
expenditure patterns for air pollution control (see Section 3.5.2.1). More specifically, the
MA35J values as a percent of total  capital expenditures for air pollution control were more in
line with the percentage of equipment in investment-related expenditures for air pollution
indicated by engineering studies. As a consequence the value used for air pollution GPFI in
constructing the I-O tables was increased by $487.4 million,  the difference between the values
used in the I-O table and the  MA35J report.

       It was assumed that the only use for air pollution control equipment is GPFI. The
remaining row entries for sector 49.0300 were assigned to I-O Sector 19 (Machinery, except
electrical).

        Finally,  it is worth noting that there is a secondary production issue associated with
sector 49.0300. Industry 49.0300 produces a number of commodities other than 49.0300 and
commodity 49.0300 is produced by a number of industries other than 49.0300.  Total output of
commodity 49.0300 is $2,014.1  million, of which $1,846.7 million is produced by industry
49.0300.  To maintain simplicity in the calculations, it was assumed that the output of SIC
35646 is only produced by industry 49.0300.
                                    September 1995

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                    The Environmental Protection Input-Output Tables                3-13

3.3.    INTERNAL ENVIRONMENTAL PROTECTION ACTIVITIES

3.3.1.  Manufacturing Sectors

       The inputs used to abate pollution within the production process, or the operation and
maintenance expenditures associated with pollution abatement, consist of labor, depreciation,
and services and materials inputs purchased from other sectors in the economy.  As noted in
Chapter 2, expenditures on materials inputs for pollution abatement are published as an
aggregate.  The primary difficulty in representing internal EP activities in the EP I-O tables is
disaggregating expenditures on materials into specific I-O categories.

       The Census MA-200 report was the source  of pollution abatement operation and
maintenance expenditures data for manufacturing industries. The MA-200 reports $3,455.9
million for air,  and $2,949.1 million for water. The  BEA (supplied by Gary Rutledge - letter of
June 6, 1994) reports manufacturing O&M expenditures of $2,654.8 million for air, $2,453.3
million for water both of  which are lower than the MA-200 values. Typically, the MA-200
disaggregates operation and maintenance costs by type of expenditure (depreciation, labor,
materials and supplies,  etc.) and type of pollution abated (air, water, and solid waste), but not
type of expenditure by type of pollution.  The sum  of the data across either type of expenditure
or media is the total operating costs of pollution abatement activities for an industry.  However,
in 1979, the MA-200 survey published separate data  on the amount of each type of expenditure
for each type of pollutant abated. The 1979 survey provides the best source of data for
disaggregating the expenditures for air, water and solid waste by type of operating cost in 1977
and 1982.

       The first step in disaggregating pollution abatement materials costs involved assuming
that the expenditure pattern for air, water, and solid waste pollution abatement by type of
operating cost for manufacturing industries observed in 1979 held for 1977 and 1982. The
expenditure pattern data was placed in a matrix with  the columns of the matrix representing the
type of expenditure and the rows representing expenditure by medium.  For 1979, published data
filled all cells of the matrix. For 1977 and 1982, published data provided only row and column
totals.  A procedure that maintains the row and column totals observed for 1977 and 1982 was
applied to estimate matrix entries. Briefly, the adjustment procedure involved solving a
constrained nonlinear optimization program.6 By performing this initial disaggregation
procedure, expenditures on (1) materials and supplies, (2) services,  (3) labor, and (4)
depreciation were obtained for each medium. This allowed for the use of engineering studies  of
specific pollution abatement processes to further disaggregate "materials and supplies" into
intermediate input categories that appear in the I-O table (e.g., electricity or construction).
Disaggregation of materials expenditures required using engineering studies to generate
expenditure patterns for air, water, and solid waste pollution abatement processes.
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3-14                    The U.S. Environmental Protection Industry

3.3.1.1.       Air Pollution Abatement

       For air pollution abatement processes, the estimates for labor, depreciation, and services
costs were derived from the MA-200 data and used directly.  All expenditures for services,
which includes equipment rental and leasing services, were assigned to I-O sector 31 (Other
Services). Expenditure patterns to disaggregate "materials and supplies" were obtained for five
types of air pollution control equipment (thermal incinerators, fluid-bed catalytic incinerators,
fabric filter systems, electrostatic precipitators, and flue gas desulfurization systems).

       The OAQPS Control Cost Manual (U.S. EPA, 1990) was the source for determining the
operating costs expenditure patterns for fabric filters, electrostatic precipitators, thermal
incinerators, and catalytic incinerators.  The manual provides "example problems," which
estimate the specific categories for the annual costs associated with the operation of each
pollution control system.7 In addition to the materials and supplies expenses, the example
problems reported labor expenses, depreciation, and waste disposal. The values for labor
expenses and depreciation were not used, since they were derived using the MA-200 survey.
The estimates of the costs of disposing of air pollution abatement residuals (e.g., ash and sludge)
were not used since it was assumed that disposal of residuals are reported as solid waste disposal
expenditures in the MA-200.

       For flue gas desulfurization (FGD) systems, information on lime FGD systems
assembled by the Radian  Corporation (1982a, 1982b) was the source.8 As with the other air
pollution control systems, it was assumed that labor and depreciation costs of the pollution
control equipment are captured in the MA-200 report and the focus was on those items which are
part of materials  and supplies. Because Radian reported a combined value for labor and material
maintenance, this value had to be adjusted in order to maintain consistency with the OAQPS
Control Cost Manual. Following the OAQPS Control Cost Manual, it was assumed that the
labor and material cost components of maintenance expenditures are equal.

       The expenditure patterns for fabric filters, electrostatic precipitators, thermal
incinerators, catalytic incinerators, and FGD systems were weighted according to the relative
value of the shipments for each type of equipment, using data from the Department of
Commerce publication, "Selected Industrial Air Pollution Control Equipment" (MA35J). The
patterns were aggregated  to form an overall expenditure pattern. Table 3.4 gives the distribution
values for each type of air pollution control system as well as the aggregate expenditure pattern
applied to the 1977 and 1982 data.9 Appendix B provides greater detail of the procedure used to
derive these expenditure patterns.
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                    The Environmental Protection Input-Output Tables                3-15

                                         Table 3.4

     Distribution of Materials Component of Operation and Maintenance Expenditures for Air
                             Pollution Abatement by I-O Sector
I-O Sector
3
6
12
16
19
27
28
30
31
Fluid-bed
Thermal Catalytic
Incinerators Incinerators
0.023 0.052

0.107


0.112 0.311
0.849 0.465
0.016 0.065

Filter Electrostatic
Systems Precipitators
0.168 0.055
0.116


0.098
0.569 0.713

0.049 0.232

FGD
Systems
0.232

0.065
0.398

0.235


0.070
1977
Aggregate
0.104
0.032
0.008
0.043
0.027
0.591
0.042
0.145
0.008
1982
Aggregate
0.152
0.034
0.025
0.146
0.029
0.477
0.024
0.087
0.026
3.3.1.2.       Water Pollution Abatement

       For water pollution abatement expenditures, the estimates for labor, depreciation, and
service costs were derived from the MA-200 data.  Expenditures for services and other costs,
which include expenditures on equipment leasing and environmental laboratories were assigned
to I-O sector 31 (Other Services).

       To disaggregate expenditures on materials and supplies, expenditure patterns for settling,
biological oxidation, neutralization, filtration, and coagulation were taken from DeRenzo (1978).
The expenditure pattern for chlorination was taken from the American Society of Civil
Engineers and the American Water Works Association (1990).  To weight and aggregate these
patterns, data from the "Water Use in Manufacturing" survey from the 7977 Census of
Manufactures and the "Water Use in Mineral Industries" from the 7977 Census of Mineral
Industries were used. These publications present data for 1978 on the number of gallons of
discharged water treated by each of 10 methods for 4 digit SIC manufacturing and mineral
industries.10 The expenditure  patterns were weighted by the share of discharged water treated by

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3-16                    The U.S. Environmental Protection Industry

a particular wastewater treatment process. Table 3.5 presents the expenditure pattern used in this
study.  Appendix B explains the procedure for deriving this pattern in greater detail.

       The limitations of using this approach to disaggregating operation and maintenance
expenditures for water pollution abatement warrant mention. First, the expenditure pattern for a
specific wastewater treatment process varies within an industry as the size of the treatment
operation changes. This occurs due to the existence of economies of scale in the wastewater
treatment process.  Second, the  expenditure pattern for a particular type of wastewater treatment
process varies across industries.  Third, it is not possible to obtain expenditure patterns for all
types of water treatment processes.  Given the tentative nature of the data used to generate them,
these expenditure patterns must be viewed with caution.

3.3.1.3.       Solid Waste Pollution Abatement

       For solid waste pollution abatement processes, the estimates for labor and depreciation
costs derived from the MA-200 data were used directly.  It was assumed that all service
expenditures were for solid waste management services (I-O 37). Thus, the row entries in I-O
sector 37 represent expenditures by each sector for solid waste management services. This
assumption misses any purchases of services for solid waste abatement other than solid waste
management services (e.g., equipment leasing).
                                       Table 3.5

    Distribution of Materials Component of Operation and Maintenance Expenditures for
                        Water Pollution Abatement by I-O Sector
     I-O           Biological
   Sector  Settling   Oxidation   Neutralization   Coagulation   Chlorination    Filtration   Aggregate*
3
12
16
27
0.237
0.388
0.043
0.332
0.824

0.077
0.099
0.101
0.010
0.867
0.022
0.584
0.253
0.065
0.098
0.016
0.966

0.018
0.714
0.060
0.005
0.221
0.350
0.265
0.183
0.202
 *This pattern was applied to both the 1977 and 1982 data.
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                    The Environmental Protection Input-Output Tables                3-17

       Next, to allocate materials and supplies specific I-O sectors, it was assumed that the
expenditure pattern for sludge removal is representative of the expenditure pattern for all
materials purchased for solid waste disposal.  Expenditure patterns for wash-water recovery,
alum sludge disposal, and lime sludge disposal were taken from the American Society of Civil
Engineers and American Water Works Association (1990, pp. 340-343). Due to the lack of
information on the number of each type of disposal technique in operation, the aggregate
expenditure pattern was formed by taking a simple average of the three  example expenditure
patterns. The expenditure patterns for wash-water recovery, alum sludge disposal, and lime
sludge disposal as well as the average expenditure pattern is presented in Table 3.6.  Appendix B
gives a more detailed explanation of the procedure used for deriving these patterns.

3.3.2.  Electric Utilities

3.3.2.1.       Air Pollution Abatement

       A large percentage of air pollution abatement costs in the electric utilities sector are fuel
related.11 The fuel related expenditures come in the form of a premium paid by the utilities for
low-sulfur coal.  This premium is incurred when electric utilities switch from high-sulfur to low-
sulfur coal rather than install pollution  abatement devices. The BEA includes this premium in
its calculation of current account expenditures by electric utilities (see Farber and Rutledge,
1989, p. 13), but does not report the premium separately.  However, data on the premium were
obtained from BEA.12  The BEA fuel premium value was treated as a purchase of inputs from
Mining (I-O sector 3).
                                        Table 3.6

                   Distribution of Materials Component of Operation and
                    Maintenance Expenditures for Solid Waste Pollution
                                 Abatement by I-O Sector
I-O Wash- Water Alum Sludge Lime Sludge Aggregate
Sector Recovery Disposal Disposal
3
12
27
0.080
0.796
0.124
0.287
0.185
0.528
0.561 0.309
0.327
0.439 0.364
                *This pattern is applied to both the 1977 and 1982 data.


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3-18                    The U.S. Environmental Protection Industry

       The next task was to generate estimates of current account expenditures for the categories
of labor, depreciation, services, and materials and supplies.  BEA's values for current account
expenditures ($35.6 million for public and $465.4 for private) exclude depreciation. Statistics
of Privately Owned Electric Utilities in the United States 1977 and Financial Statistics of
Selected Electric Utilities 1982, Department of Energy (DOE) publications, provide data on
depreciation ($336.2 million) associated with pollution abatement across all media.13 These data
were disaggregated by first calculating average capital expenditures (in constant dollars) by
medium for the current year and the preceding four years.  The relative share in total capital
expenditures was calculated for each medium on the basis of these averages. The DOE
depreciation total was disaggregated into depreciation associated with air, water, and solid waste
pollution abatement according to these average shares. BEA's current account expenditures of
private electric utilities for air pollution abatement (net of the premium paid for low-sulfur coal )
were allocated to labor, materials and  supplies, and services using the average expenditure
pattern for manufacturing (taken from the 1979 MA-200 report). This expenditure pattern  was
re-weighted since the BEA values exclude depreciation.  Materials and supplies are further
disaggregated into specific I-O categories according to the expenditure patterns reported in Table
3.4.

3.3.2.2.       Water Pollution Abatement

       As with air pollution control expenditures, depreciation values were derived from DOE
publications (see Section 3.3.2.1).  The average expenditure pattern for manufacturing in 1979
was used to disaggregate BEA's (see Rutledge letter of June 6,  1994)  current account costs  for
water pollution abatement ($17.4 million by public and $164.8 million by private) into labor,
materials and supplies, and services.  The expenditure pattern was re-weighted because BEA
excludes depreciation from its current account values. Materials and  supplies expenditures were
disaggregated using the expenditure pattern for water pollution control reported in Table 3.5.

3.3.2.3.       Solid Waste Pollution Abatement

       The BEA reports capital expenditures but not current account  expenditures for solid
waste. Operating expenditures for labor and materials and supplies were estimated using the
average expenditure pattern for solid waste reported in the 1979 MA-200.  Operating expenses
for labor were estimated by multiplying total capital expenditures by electric utilities for solid
waste pollution abatement by the ratio of labor expenditures for solid waste pollution abatement
to capital expenditures for solid waste pollution abatement.  Operating expenses of materials
were estimated by multiplying total capital expenditures by electric utilities for solid waste
pollution abatement by the ratio of materials expenditures for solid waste pollution abatement to
capital expenditures for solid waste pollution abatement. These ratios were calculated  from the
1979 MA-200.  Depreciation expenses were derived from DOE data (see Section 3.3.2.1).
Expenditures for Sanitary Services (I-O 37) by Electric Utilities (I-O  27) serves as the  estimate
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                    The Environmental Protection Input-Output Tables                3-19

of expenditures for services.14 Materials expenses were further disaggregated into specific I-O
sectors using the expenditure pattern reported in Table 3.6.

3.3.3.  Other Nonmanufacturing Sectors

       Data on current account expenditures for air ($564.7 million) and water ($931.6 million)
pollution abatement (excluding depreciation) by "mining and other nonmanufacturing
establishments" were obtained from the BEA. BEA also provided data on pollution abatement
capital stock, which was presented separately for "mining" and "other nonmanufacturing
sectors."15 Total current account expenditures were initially disaggregated into current account
expenditures for air and water pollution abatement for "mining" and "other nonmanufacturing
establishments" using the BEA data on pollution abatement capital stock.

       The BEA (Environmental Economics Division, BEA,  1986) reports capital expenditures
for air, water and solid waste for the following nonmanufacturing sectors (excluding electric
utilities) in 1977 and 1982:

       1.  Mining
       2.  Transportation (railroad, air and other)
       3.  Public Utilities (gas)
       4.  Trade and Services16
       5.  Communication  and other17

       It was assumed that  the transportation sector has no current account pollution abatement
expenditures. The current account expenditures for air and water pollution abatement by "other
nonmanufacturing establishments" derived above were allocated to the more specific industry
categories of public utilities (gas), trade and services, and communication on the basis of each
industry's average share of pollution abatement capital  expenditures between 1978 and 1982.
This yielded estimates of total operation and maintenance expenditures for both air and water
pollution abatement. Total current account expenditures were further disaggregated into labor,
materials, and services components using the average expenditure pattern for manufacturing
(from the 1979 MA-200), similar to the procedure used for electric utilities.

       Labor and materials expenditures for solid waste abatement were calculated using the
solid waste capital expenditures data for nonmanufacturing and information for manufacturing in
1979. The ratio of labor expenditures to total capital expenditures and the ratio of materials
expenditures to total capital expenditures for solid waste pollution abatement were computed for
manufacturing in 1979.18  These ratios were multiplied by the capital expenditures for solid
waste for the various nonmanufacturing sectors in order to derive estimates for labor and
materials expenditures for mining, public utilities (gas), trade and services, and communication.
Expenditures for Solid Waste Management Services (I-O 37)  by the individual
nonmanufacturing sectors served as estimates of expenditures for services associated with solid


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3-20                    The U.S. Environmental Protection Industry

waste abatement. Section 3.1.4. contains a more detailed explanation of how these values were
derived.

       Depreciation expenses were calculated by using the 1979 MA-200 data to compute the
ratio of depreciation expenses to capital expenditures for air, water, and solid waste, and then by
multiplying these three ratios by EP capital expenditures.  This yielded estimates of depreciation
expenses by media associated with pollution abatement for mining, public utilities (gas), trade
and services, and communication and other.

       Labor, materials, and depreciation expenses for trade and services and communication
were further disaggregated by distributing the expenditures to more specific I-O sectors on the
basis of the value of each sector's output.19 Materials and supplies expenditures for air, water,
and solid waste were disaggregated using the expenditure patterns for manufacturing sectors.

3.3.4.  Miscellaneous Internal Environmental Protection Activities

3.3.4.1.    Motor Vehicles

       Internal EP activities include operation and maintenance expenditures for motor vehicles
pollution abatement by business.  These consist of pollution abatement costs and credits
associated with light duty vehicles (e.g., autos), trucks, and aircraft.  EPA (1990) disaggregates
these expenditures into the following categories:  fuel price penalty, fuel economy penalty, and
maintenance expenditures.20

       The fuel price penalty and fuel economy penalty were aggregated and assigned as
purchases of intermediate inputs from Petroleum Refining (I-O sector 13).  According to EPA,
total fuel price penalty  and fuel economy  penalty for autos and trucks was $1,911.2 million in
1982.  This includes expenditures by both businesses and households. To isolate expenditures
by businesses, Survey of Current Business data were used to compute the percentages of
expenditures for automobiles and truck attributable to personal consumption and producers'
durable equipment.21 For 1982, the estimate of fuel price penalty and the fuel economy penalty
for businesses was $760.1 million.  This value was distributed to specific sectors based upon
purchases of commodity 31.0101 (Petroleum refining, which is part of I-O 13).

       Maintenance expenditures were treated as purchases of Other Services (I-O sector 31),
since Other Services includes the Automotive and Repair Shop sector. The introduction of
pollution abatement devices reduces some of the operation and maintenance expenditures
associated with certain  types of motor vehicles.  To avoid introducing negative cell values into
the I-O table, these values were set equal to zero. The increase in operation and maintenance
expenditures for trucks assigned to business ($9.7 million) should be assigned to to different
sectors based upon the  relative purchases  of commodity 75.0002 (Automotive Repair Shops and
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                    The Environmental Protection Input-Output Tables                3-21

Services, which is part of I-O 31).  However, given the small values resulting from this
assignment procedure, these expenditures were set equal to zero as well.

3.3.4.2.   Environmental Taxes

       Environmental excise taxes on the petro-chemical, inorganic chemical and petroleum
industries were introduced in 1980 under CERCLA. Values for these taxes were taken from the
Internal Revenue Service (see Belal 1987, p. 53).22  Environmental excise taxes on petro-
chemicals ($153.3 million) and inorganic chemicals ($41.3 million) were assigned to I-O sector
12 and taxes on petroleum ($37.7 million) were assigned to I-O sector 13. The environmental
tax on both imported and domestic petroleum was included as revenue generated by the
environmental tax on petroleum.

3.3.4.3.   Research and Development

       Ideally, internal EP activities would include research and development expenditures by
business. These are excluded due to uncertainty regarding the types of goods and services
purchased for these activities and the exact industries that performed these activities. According
to BEA (see Rutledge and Vogan 1994, p. 45) private expenditures for research  and
development equaled $1,009 million in 1982.

3.3.4.4.   Costs Recovered

       The BEA (see Rutledge and Vogan 1994, p. 45) and the MA-200 data report information
on costs recovered.  These costs recovered are ".. the value of material or energy reclaimed
through pollution abatement activities..." (see Farber and Rutledge 1989, p. 16).  According to
BEA (see Rutledge and Vogan, 1994, p. 45) costs recovered equaled -$1,463 million in 1982.
Costs recovered were excluded to avoid introducing negative cell values into the I-O table.  In
addition, disaggregated values for the relative amounts of materials and energy recovered are not
available.

3.3.4.5.   Agricultural Business

       Current account expenditures by agricultural business were excluded due to uncertainty
regarding the types of goods and services purchased. According to BEA (see Rutledge and
Vogan,  1994, p. 48) these expenditures,  which were for feedlot operations only, were $6 million
in 1982.
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3.3.4.6.   Government Enterprise : Other

       Current account expenditures by a fertilizer plant owner by the Tennessee Valley
authority are excluded.  According to BEA (see Rutledge and Vogan, 1994, p. 48) these
expenditures were $2 million in 1982.

3.3.4.7.   Internal EP Activities of the External EP Sectors

       The procedure for allocating business operation and maintenance expenditures for motor
vehicle pollution abatement resulted in some of the inputs of the external EP sectors being used
for pollution abatement.  All expenditures for inputs of the external EP sectors were included as
EP costs. To avoid double counting of expenditures, the internal EP activities of the external EP
sectors were not counted separately in the estimates of EP activities.

3.4.    HOUSEHOLD ENVIRONMENTAL PROTECTION ACTIVITIES

3.4.1.  Purchases from External Environmental Protection Sectors

       Household purchases from the external  environmental protection sectors of the economy
consist of "Environmental" Water Supply (I-O 35), Sewerage Services (I-O 36), and Solid
Waste Management Services (I-O 37).  The derivation of each of these components is discussed
in detail in Sections 3.1.2, 3.1.3, and 3.1.4 respectively.

3.4.2.  Purchases for the Operation and Maintenance of Septic Systems and Sewer Connections

       The BEA reports expenditures associated with the operation and maintenance of "private
septic systems and  sewer connections linking household plumbing to street sewers" (see
Rutledge and Vogan 1994, p. 48 and p. 49, footnote 3).  Expenditures on septic tank cleaning
services and sewer cleaning and rodding services $436 million were assigned to Other Services
(I-O 31).

3.4.3.  Purchases for Operation and Maintenance of Motor Vehicles

       The EPA reports the fuel price penalty and fuel economy penalty associated with
emissions control devices on motor vehicles. Although BEA collects data on similar categories,
this study uses EPA data.  The household sector was assigned $1,151.1 million in purchases of
commodity 31.0101 (this is part of I-O 13). Section 3.3.4.1 contains additional information on
the distribution of the fuel price penalty  and fuel economy penalty for autos and trucks between
households and business. All motorcycle expenditures were assigned to personal consumption
expenditures (PCE). Pollution abatement devices on motor vehicles reduced expenditures
(assigned to commodity 75.0002) for certain types of motor vehicles.  To avoid introducing
negative cell values into the I-O table, these expenditures were set equal to zero. The increase in


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                    The Environmental Protection Input-Output Tables                3-23

operation and maintenance expenditures for trucks allocated to households was assigned to PCE
of I-O sector 31.  These expenditures are discussed in greater detail in section 3.3.4.1.

3.4.4. Purchases of Environmental Protection Equipment on Motor Vehicles

      The EPA reports expenditures associated with pollution abatement equipment on new
motor vehicles for the following mobile source categories:  automobiles, trucks, aircraft, and
motorcycles.23 Although BEA collects similar data (see Rutledge and Vogan, 1994, p. 48), this
study uses EPA data.

      It was assumed that all expenditures for motorcycles are by households and accordingly,
classified as consumption expenditures. It was assumed that all expenditures for aircraft are by
business, and hence, were assigned to gross private fixed investment (GPFI). EP expenditures
for motorcycles ($102.3 million) were assigned to PCE for Other Transportation Equipment (I-O
sector 22).  EP expenditures for aircraft are discussed in section 3.5.2.4.

      Expenditures for pollution abatement equipment for automobiles and trucks (I-O 21)
were allocated to consumption and investment based on Survey of Current Business data on
personal consumption expenditures and producers' durable equipment for trucks and autos. The
estimates for expenditures on automobile pollution abatement were split into consumption
($2,170.5 million in 1982) and investment (1,021.6 million in 1982) on the basis of the
percentage of expenditures on automobiles and trucks accounted for by consumption and
investment (see Section 3.3.4.1). The estimates for expenditures on truck pollution abatement
are split into consumption ($255.8 million in 1982) and investment (359.8 million in 1982) in a
similar fashion (see section 3.5.2.4).

3.5.   INVESTMENT ACTIVITIES FOR ENVIRONMENTAL PROTECTION

3.5.1. Households

      Household investment activities for EP are defined by BEA as the durable component of
expenditures for "private septic systems and sewer connections linking household plumbing to
street sewers" (see Rutledge  and Vogan 1994, p. 49, footnote 3). Household investment
expenditures for EP consist of expenditures for septic tanks, septic systems, and connectors to
public sewer systems.  The BEA (see Rutledge and Vogan, 1994, p. 48) reports household
investment expenditures for EP of $1,124 million in  1982. In the U.S. I-O tables, these
expenditures were assigned to one of two sectors.  To maintain consistency with the U.S. I-O
tables, a general rule of thumb for disaggregating the expenditure between new residential
construction (part of I-O 3) and new sewer system facilities (I-O 33) was followed: two-thirds
of the BEA value was assigned to I-O 3 and one-third was assigned to I-O 33.24 In 1982, $749.3
million was assigned to I-O 3 and $374.7 million was assigned to I-O 33.  The residual $2,079.5
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($2,454.2 - $374.7) million purchases of I-O 33 for GPFI was assigned to capital expenditures
by  business for water pollution abatement (see section 3.5.2.2).

3.5.2.  Businesses

       BEA (see Rutledge letter of June 6, 1994) reports total capital (plant and equipment)
expenditures for air ($4,961 million), water ($2,811  million), and solid waste ($969 million)
pollution abatement by "... manufacturing, ... privately and cooperatively owned electric utilities
and other nonmanufacturing companies" (see Rutledge and Vogan 1994, p. 49 footnote 2).  In
addition, BEA (see Rutledge letter of June 6, 1994) reports purchases by government enterprises
(publicly owned electric utilities) of fixed capital for air ($426  million) and water ($75 million).
These values combined yield total capital  expenditures for air ($5,387 million), water ($2,886
million), and solid waste ($969 million) pollution abatement and were used as the control totals
in this study.25 No distinction was made between "end-of-line" and "change in production
process" capital expenditures. All capital  expenditures were treated as if they are "end-of-line."

       The EP capital expenditures data are not disaggregated  into specific I-O categories (e.g.,
construction, installation, equipment, etc.) As for intermediate materials inputs, engineering
studies were used to disaggregate the data. Descriptions of the procedures followed for air,
water, and solid waste are presented below.

3.5.2.1.   Air

       The OAQPS Control Cost Manual (U.S. EPA,  1990) was the source for determining the
capital cost expenditure pattern for fabric filters, electrostatic precipitators, thermal incinerators,
and catalytic incinerators.  For flue gas desulfurization (FGD) systems, information on lime
FGD systems assembled by the Radian Corporation  (1982a, 1982b) was the  source. The
patterns were weighted according the relative value of the shipments for each type of equipment,
using data from the Department of Commerce publication, "Selected Industrial  Air Pollution
Control Equipment" (MA35J) and aggregated to form an overall expenditure pattern for both
1977 and 1982.

       Both the BEA and the Commerce (MA35J) data were used.  The MA35J estimates of
shipments of industrial air pollution control equipment served as cost estimates  for mechanical
devices.  Using this information, the aggregate expenditure patterns for 1977 and 1982 were
adjusted to maintain the ratio of shipments of industrial air pollution control equipment to total
capital expenditures for air pollution abatement found  in the BEA and MA35J reports.

       Exports and imports of pollution abatement equipment were excluded in this study.  The
1982 I-O table assigned only $6.7 million of shipments of SIC 35646 to exports. The report
International Trade in Environmental Protection Equipment: An Assessment of Existing Data
(U.S. EPA, 1993) discusses U.S. trade in industrial air pollution control equipment. The data


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                    The Environmental Protection Input-Output Tables                3-25

indicate that the U.S. enjoyed a trade surplus in air pollution control equipment in 1982 (U.S.
EPA, 1993, p. 10). Hence, in 1982, the actual domestic use of industrial air pollution control
equipment was less than shipments of air pollution control equipment. This results in some
inaccuracy in the air pollution plant and equipment capital expenditures patterns. Section 3.2.2.
contains a more detailed discussion of the issues surrounding the different estimates of
shipments of the air pollution control equipment industry.

       Table 3.7 provides the distribution values for capital expenditures for fabric filters,
electrostatic precipitators, thermal incinerators, catalytic incinerators, and FGD systems as well
as the aggregate expenditure pattern applied to the 1977 and 1982 data. Appendix B contains a
detailed description of how the patterns were derived. No distinction between new systems and
retro-fit systems was made.
                                         Table 3.7

              Distribution of Materials Component of Capital Expenditures for Air
                              Pollution Abatement by I-O Sector
Fluid-bed
Thermal Catalytic Filter Electrostatic
T .-. o , Incinerators Incinerators Systems Precipitators
3
6
18
19
20
23
25
38
0.395 0.394 0.567
0.044
0.051
0.059
0.025
0.053 0.053 0.039
0.026 0.026 0.020
0.526 0.527 0.195
0.569

0.012
0.013
0.005
0.038
0.019
0.344
FGD
Systems
0.443

0.069
0.115
0.054

0.053
0.266
1977
Aggregate
0.656
0.014
0.034
0.044
0.019
0.042
0.029
0.162
1982
Aggregate
0.587
0.015
0.050
0.072
0.033
0.028
0.037
0.178
                                     September 1995

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3-26                   The U.S. Environmental Protection Industry

3.5.2.2.   Water

       For water pollution abatement capital expenditures, information from the Development
Document for Effluent Guidelines and Standards for the Nonferrous Metals Forming andiron
and Steel/Copper/Aluminum Metal Powder Production and Powder Metallurgy Point Source
Category (U.S. EPA 1984) were used. The percentages for each I-O category in total costs were
computed using the cost equations for recommended treatment and control technologies and the
midpoint for the range of validity for each equation. Table 3.8 presents the expenditure pattern
and Appendix B explains the procedure for deriving this pattern in greater detail.

       The 1982 benchmark input-output table reports purchases of New Sewer System
Facilities (BEA I-O 11.0307) of $2,454.2 million for Gross Private Fixed Investment (see
Section 3.2.1 for a discussion of this issue). After allowing for private septic systems (see
Section 3.5.1), the residual ($2,079.5 million) constitutes purchases of New Sewer System
facilities by business.  It was assumed that these expenditures are included in the BEA values for
capital expenditures by business for water pollution abatement ($2,886 million). The purchases
of New Sewer System facilities were subtracted from the BEA control total of capital
expenditures for water pollution abatement ($2,886 million).  The residual capital expenditure of
$886.5 ($2,886 - $2,079.5) million is distributed according to the capital expenditure pattern
shown in Table 3.8.
                                        Table 3.8

                      Distribution of Materials Component of Capital
                             Expenditures for Water Pollution
                                 Abatement by I-O Sector


                 	I-O Sector	Aggregate	

                         3                          0.272

                         16                         0.188

                         18                         0.219

                 	19	0.321	


                 *This pattern is applied to both the  1977 and  1982 data.
                                    September 1995

-------
                    The Environmental Protection Input-Output Tables                 3-2 7

3.5.2.3.   Solid Waste

       For solid waste, capital expenditures were allocated on the assumption that the
expenditures for sludge removal are representative of the expenditure pattern for all capital
expenditures for solid waste disposal. Values for wash-water recovery, alum sludge disposal,
and lime sludge disposal reported by the American Society of Civil Engineers and American
Water Works Association (1990) were used.  A simple average was used to aggregate the three
patterns into an overall capital expenditure pattern for solid waste.  The expenditure patterns for
wash-water recovery, alum  sludge disposal, and lime sludge disposal as well as the average
expenditure pattern is presented in Table 3.9. Appendix B gives a more detailed explanation of
the procedure used for deriving these patterns.

3.5.2.4.   Motor Vehicles and Aircraft

       The EPA (see endnote 20) is the source of data for business capital expenditures for
motor vehicle pollution abatement devices. Business investment expenditures on automobile
emission devices ($1,021.6  million in 1982) and truck emission devices ($359.8 million in 1982)
were classified as investment expenditures for motor vehicles (I-O 21) and expenditures for
aircraft (I-O 22) ($34.1 million in 1982). Expenditures for the fuel price penalty and fuel
economy penalty were aggregated and used to adjust purchases of Petroleum Refining (I-O
sector 13) as intermediate inputs. Section 3.3.4.1. contains a discussion of the treatment of the
fuel price penalty and fuel economy penalty.
                                        Table 3.9

                Distribution of Materials Component of Capital Expenditures
                                 for Solid Waste Pollution
                                 Abatement by I-O Sector
I-O Wash- Water Alum Sludge Lime Sludge
Sector Recovery Disposal Disposal
3
12
19
21
0.563
0.088
0.349

0.362
0.046
0.526
0.066
0.359

0.589
0.052
Aggregate*
0.428
0.045
0.488
0.039
                *This pattern is applied to both the 1977 and 1982 data.

                                     September 1995

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3-28                   The U.S. Environmental Protection Industry
3.5.2.5.   Miscellaneous

       Capital expenditures by agricultural business were excluded due to uncertainty regarding
the types of purchases associated with these expenditures.  According to Rutledge and Vogan
(1994, p. 48) these expenditures, which are for feedlot operations only, were $3 million in 1982.

3.6.    GOVERNMENT ENVIRONMENTAL PROTECTION ACTIVITIES

3.6.1.  State and Local Government Purchases for Sewerage, Sanitation, Highways, Water, and
       Natural and Agricultural Resources and Recreation

       Following  BEA and EPA, all state and local government purchases for sewerage (I-O
99.1003) and sanitation (I-O 99.1004) are counted as EP expenditures. EPA also counts all
government purchases for sanitation as EP expenditures.  BEA, on the other hand, (see Farber
and Rutledge, 1989,  p. 18) excludes 30 percent of Governmental Finances data for solid waste
disposal expenditures from sanitation in its measure. This report followed EPA and used the
values from the I-O table on government purchases for sewerage and sanitation.26

       BEA counts a percentage of highway construction and engineering capital  expenditures
as federal, state, and local government expenditures to prevent  highway erosion (see Farber and
Rutledge, 1989, p. 17). Virtually  all of these expenditures are by state and local government
($276 million by state and local government and $8 million by the federal government,  see
Rutledge and Vogan 1994, p. 48).  To incorporate highway erosion abatement expenditures, the
ratio of the BEA dollar value for highway erosion abatement expenditures ($284 million) to total
state and local government purchases for highways (the column sum for I-O sector 99.3001 =
$34,083 million) is computed. This ratio (0.0083), when multiplied by each row entry in I-O
sector 99.3001, gives the values for highway erosion abatement.

       Following  EPA, the portion of capital expenditures by state and local government
purchases for water (I-O  sector 99.3006) that are for water treatment are classified as EP.  The
EPA (1990, p. F-3) counts  18.4 percent of capital purchases for water as water treatment
expenditures.  In this study, water treatment expenditures are isolated by taking 18.4 percent of
each entry in I-O sector 99.3006.

       The EPA (1990, p. F-7) also counts 20 percent of natural resource expenditures  as EP
expenditures.  These expenditures consist of state and local government capital and operation
and maintenance expenditures for natural resources.  To isolate these expenditures, the ratio of
the EPA dollar value for natural resource expenditures counted as EP expenditures ($1,303
million) to state and  local government purchases for natural and agricultural resources and
recreation (the column sum for BEA I-O sector 99.3008 = $12,619 million) is computed.  This
                                    September 1995

-------
                    The Environmental Protection Input-Output Tables                3-29

ratio (0.1032), when multiplied by each column entry in BEA I-O sector 99.3008, gives the
values for natural resources, which are counted as EP expenditures.

3.6.2. Regulation and Monitoring

      Regulation and monitoring expenditures were included with non-environmental
governmental expenditures due to uncertainty regarding the types of purchases associated with
these expenditures. According to Rutledge and Vogan (1994, p. 45), federal expenditures
equaled $820 million and state and local expenditures equaled  $577 million in 1982.

3.6.3. Research and Development

      Research and  development expenditures by government were included with non-
environmental governmental expenditures due to  uncertainty regarding the types of purchases
associated with these expenditures.  According to Rutledge and Vogan (1994, p. 45), federal
expenditures equaled $604 million and state and local expenditures equaled $28 million in 1982.

3.6.4. BEA Category of Government Environmental Expenditures, Excluding Highway Erosion

      Federal expenditures, excluding highway  erosion abatement,  and state and local
expenditures, excluding highway erosion abatement, were also included with non-environmental
governmental expenditures due to uncertainty regarding the types of purchases associated with
these expenditures. According to Rutledge and Vogan (1994, p. 48), federal expenditures,
excluding highway erosion, equaled $316 million and state and local expenditures were less than
$500,000 in 1982.

3.6.5.   Other and Unallocated

      BEA  (August 24, 1994 telephone conversation with Rick Kaglic) report unallocated
expenditures for federal government EP activities of $168 million and expenditures for state and
local government EP  activities of $38 million.  These expenditures were assigned to non-
environmental government  expenditures due to uncertainty regarding the type of goods and
services purchased.
                                    September 1995

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3-30                    The U.S. Environmental Protection Industry

3.7.  THE U.S. ENVIRONMENTAL PROTECTION I-O TABLES

       Tables 3.10 and 3.11 are the U.S. EP I-O tables for 1977. Table 3.10 shows the
distribution of environmental control  costs in the United States.27 This table, which corresponds
to Figure 2.3b in Chapter 2, illustrates which goods and services are purchased as a result of EP
expenditures. Table 3.11 shows the environmental protection "industry" for the United States.
and corresponds to Table 2.4b in Chapter 2. Table 3.11 differs from Table 3.10 because Table
3.11 shows which goods and services are purchased by the external environmental protection
services sectors.

       Tables 3.12 and 3.13 are the U.S. EP I-O tables for 1982. Similar to the 1977 tables,
Table 3.12 shows the distribution of environmental control costs in the United States and
corresponds to Figure 2.3b in Chapter 2. Table 3.13  shows the environmental protection
industry for the United States and corresponds to Table 2.4b in Chapter 2.

       One difficulty that has not been resolved warrants mention.  In generating the
"Externalized Internal Environmental Protection Expenditures"  I-O table (which is not presented
in this report), negative values appear in some cells of the I-O. For example, the cell value
associated with non-EP purchases of I-O 16 (Stone, Clay, and Glass) by I-O 27 (Electric
Utilities) is -46.8 million. For the most part, these negative cell values are relatively small. This
occurs because more purchases of those cells are assigned for EP activities than were assigned to
those cells by the BEA in the original I-O table.  The externalization process results in the
subtraction of the value of purchases from a sector for EP activities that is greater than the cell
value in the original I-O table.  Future research might involve an attempt to  reconcile the
original I-O cell values with the engineering estimates used to disaggregate materials
expenditures for EP activities.
                                     September 1995

-------
                The Environmental Protection Input-Output Tables
3-31
                                 Table 3.10
1977 Environmental Protection Expenditures Input-Output Table (millions of dollars)

01
02
03
04
05
06
07
08
09
1 0
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
20
2 1
22
23
24
25
26
27
28
29
30
3 1
32
33
34
35
36
37
38
39
40
4 1
Total
Labor
I BTs
Other V A
Total VA
O utput
01
0
2
0
1
53
1
0

0
5
3
2
2
7
2
02
0
47
0
36
1 2
22
0

0
5
9
4
0
5
8
03
0
4
0
2
58
3
0

0
9
6
4
8
3
5
04
0
9
1
5
1 1
5
0

0
3
0
1
0
6
9
05
0
3
0
3
0
0
0

0
7
0
7
6
2
0
06
0
3
0
3
3
0
0

0
6
1
1
7
9
1
07
0
3
0
3
2
0
0

0
7
0
8
8
1
0
08
0
8
0
7
6
1
0

0
1
2
2
3
6
2
09
0
1
0
1
1
0
0

0
9
1
7
3
3
1
1 0
0
29
1
20
1 9
1 5
1

0
8
6
3
6
8
4

4
0
0
7
0
0
1
5
0
0
79
7
0
6
1 3
93
8
2
7
3
0
0
5
7
0
0
4
9
0
1
9
4
43
0
2
86
0
0
6
8
27
0
294
1 25
0
92
2 1 7
51 2
2
6
3
3
0
0
1
6
7
0
9
0
0
6
7
6
9
0
1
1 4
0
0
0
26
41
0
1 65
1 5
0
1 2
27
1 93
6
4
4
6
0
0
7
9
2
0
4
6
0
0
7
1
1 8
0
2
57
0
0
1 9
1 01
48
0
281
52
0
46
98
379
3
7
6
3
0
0
3
2
9
0
0
1
0
6
7
7
4
0
0
0
0
0
0
2
1
0
1 6
3
0
2
6
22
6
0
1
5
0
0
2
3
0
0
9
2
0
8
0
9
5
0
0
1 1
0
0
5
1 6
8
0
59
9
0
8
1 7
77
1
1
4
4
0
0
9
2
7
0
3
0
0
8
8
1
4
0
0
1
0
0
1
5
1
0
24
1
0
1
3
27
4
0
0
5
0
0
3
5
3
0
4
6
0
6
2
6
1 0
0
0
9
0
0
3
1
1 0
0
60
1 9
0
1 2
31
92
9
2
6
1
0
0
1
8
9
0
3
1
0
7
8
1
2
0
0
3
0
0
1
2
6
0
2 1
4
0
4
9
30
8
0
2
2
0
0
6
2
1
0
5
4
0
8
2
7
39
1
4
1 3 1
0
0
1 2
33
36
0
346
82
0
1 26
208
555
0
1
1
4
0
0
4
5
1
0
1
6
0
3
9
0
                                 September 1995

-------
                The Environmental Protection Input-Output Tables
3-32
                                 Table 3.10  (cont.)
1977 Environmental Protection Expenditures Input-Output Table (millions of dollars)

01
02
03
04
05
06
07
08
09
1 0
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
20
2 1
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Total
Labor
IBTs
Other VA
Total VA
Output
1 1
0
4
0
3
3
0
0

0
0
1
9
6
3
1
1 2
0
59
4
35
28
36
3

0
1
1
9
5
3
5
1 3
0
59
8
24
1 22
45
7

0
7
5
4
7
3
2
1 4
0
1 1
0
7
1 0
6
0

0
9
9
8
5
0
8
1 5
0
3
0
3
0
0
0

0
7
0
8
4
2
0
1 6
0
1 2
1
6
9
7
1

0
0
5
3
4
1
3
1 7
0
40
6
1 4
1 4
32
5

0
7
5
5
7
6
6
1 8
0
5
0
3
4
2
0

0
4
5
5
3
6
4
1 9
0
5
0
4
6
2
0

0
9
4
2
4
4
4
20
0
4
0
3
3
2
0

0
9
4
4
4
1
3

5
0
0
3
0
0
0
4
9
0
35
4
0
2
6
41
3
1
2
3
0
0
1
5
7
0
1
1
0
1
2
3
84
2
1 0
295
0
0
42
35
93
0
731
204
0
1 92
396
1127
7
9
5
7
0
0
0
0
3
0
4
1
0
4
5
9
1 34
6
21
293
0
0
1 7
4
21
0
765
1 67
0
1 60
327
1 093
5
0
6
3
0
0
1
1
6
0
9
7
0
1
8
7
1 9
0
2
55
0
0
9
9
33
0
1 67
47
0
34
82
249
3
6
3
1
0
0
5
6
6
0
8
5
0
5
0
8
4
0
0
2
0
0
0
5
2
0
22
1
0
1
3
26
4
0
0
3
0
0
3
0
4
0
6
9
0
9
8
4
26
1
3
31
0
0
3
6
20
0
1 31
46
0
54
1 00
232
9
1
9
7
0
0
1
4
7
0
5
7
0
1
8
3
1 00
4
1 6
322
0
0
1 4
1 9
73
0
665
232
0
250
482
1 1 48
2
6
7
1
0
0
1
7
8
0
8
8
0
1
9
7
1 0
0
1
24
0
0
4
21
21
0
1 00
26
0
1 8
44
1 44
0
3
2
9
0
0
4
5
0
0
1
1
0
1
2
3
1 0
0
1
1 9
0
0
6
1 9
27
0
1 03
29
0
1 6
46
1 49
3
3
1
0
0
0
0
4
8
0
6
2
0
8
0
6
8
0
0
27
0
0
6
1 7
22
0
96
27
0
1 7
45
1 4 1
3
3
9
0
0
0
4
0
0
0
4
8
0
6
4
8
                                 September 1995

-------
                The Environmental Protection Input-Output Tables
3-33
                                 Table 3.10 (cont.)
1977 Environmental Protection Expenditures Input-Output Table (millions of dollars)

01
02
03
04
05
06
07
08
09
1 0
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
20
2 1
22
23
24
25
26
27
28
29
30
3 1
32
33
34
35
36
37
38
39
40
41
Total
Labor
IBTs
Other V A
Total VA
O utput
2 1
0
6
0
4
2
3
0

0
6
6
3
4
1
5
22
0
3
0
3
3
0
0

0
5
1
1
7
8
1
23
0
4
0
3
1
0
0

0
0
1
7
9
6
1
24
0
1
0
1
2
0
0

0
9
0
8
1
2
0
25
0
0
0
0
1 38
0
0

0
0
0
0
9
0
0
26
0
1
0
0
1
0
0

0
2
1
6
9
8
1
27
538
59
4
39
1 31
28
4

4
4
7
9
0
0
0
28
0
1 1
0
7
2
5
0

0
2
4
9
8
9
3
29
0
21
1
1 3
80
1 1
1

0
4
4
9
2
9
2
30
0
22
1
1 4
1 1
1 2
1

0
4
5
5
6
4
3

1 2
0
1
1 9
0
0
3
1 8
25
0
99
50
0
29
79
1 79
2
4
5
9
0
0
9
8
5
0
6
5
0
2
7
3
4
0
0
1 1
0
0
5
7
1 3
0
55
26
0
9
35
90
9
1
3
6
0
0
8
7
4
0
0
1
0
5
6
6
5
0
0
9
0
0
0
4
8
0
38
1 0
0
6
1 6
55
1
1
2
0
0
0
9
9
0
0
6
0
0
6
6
2
2
0
0
3
0
0
0
2
5
0
20
3
0
1
4
25
6
0
1
3
0
0
4
5
4
0
6
3
0
4
7
3
0
0
0
0
0
0
4
53
22
0
220
0
0
0
0
220
0
0
0
0
0
0
8
9
7
0
4
0
0
0
0
4
2
0
0
3
0
0
2
23
40
0
77
3
0
2
6
84
3
1
3
5
0
0
4
7
4
0
4
7
0
9
6
0
1 01
3
1 1
1 23
0
0
5
4
30
0
1 086
230
0
1 53
383
1 470
9
3
9
5
0
0
0
8
7
0
4
7
0
2
9
3
1 1
0
1
23
0
0
1
3
0
0
70
28
0
20
48
1 1 9
8
3
0
5
0
0
3
5
9
0
8
5
0
4
8
7
31
1
3
49
0
0
5
1 37
438
0
797
65
0
44
1 09
907
1
0
6
8
0
0
7
4
8
0
5
2
0
3
5
0
32
1
3
52
0
0
20
32
1 76
0
381
68
0
46
1 1 4
496
5
0
8
1
0
0
0
0
7
0
7
0
0
3
3
0
                                 September 1995

-------
        The Environmental Protection Input-Output Tables
3-34
                               Table 3.10 (cont.)
1977 Environmental Protection Expenditures Input-Output Table (millions of dollars)

01
02
03
04
05
06
07
08
09
1 0
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Total
Labor
IBTs
Other VA
Total VA
Output
31
0.0
13.2
1.0
8. 1
56.3
7.7
0.9
32
0.0
0.0
0.0
0.0
6.3
0.0
0.0
33
0.0
0.0
0.0
0.0
0.7
0.0
0.0
34
0.0
0.0
0.0
0.0
0.6
0.0
0.0
35
0.0
0.0
0.0
0.0
0.0
0.0
0.0
36
0.0
0.0
0.0
0.0
0.0
0.0
0.0
37
0.0
0.0
0.0
0.0
0.0
0.0
0.0
38
0.0
0.0
0.0
0.0
0.0
0.0
0.0
39
0.0
0.0
0.0
0.0
0.0
0.0
0.0
40 41
0.0
0.0
0.0
0.0
0.0
0.0
0.0

20.7
0.7
2.6
32.7
0.0
26.1
37.7
104.9
369.6
0.0
682.1
40.5
0.0
28.5
69.0
751 .0
0.0
0.0
0.0
0.0
0.0
1214.3
11.0
7.1
16.6
0.0
1255.3
0.0
0.0
0.0
0.0
1255.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.0
1.0
0.0
2.8
0.0
0.0
0.0
0.0
2.8
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.3
0.0
1.0
0.0
0.0
0.0
0.0
1.0
0.0
0.0
0.0
0.0
0.0
66.0
1.8
0.0
0.9
0.0
68.7
0.0
0.0
0.0
0.0
68.7
0.0
0.0
0.0
0.0
0.0
241 .2
0.0
0.0
1.8
0.0
243.1
0.0
0.0
0.0
0.0
243.1
0.0
0.0
0.0
0.0
0.0
0.5
0.0
0.4
65.6
0.0
66.4
0.0
0.0
0.0
0.0
66.4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.0
0.1
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.5
0.0
0.0
0.5
0.0
0.0
0.0
0.0
0.5
Total Int.
538.4
466.6
37.6
290.5
813.5
258.5
32. 1

771.8
26.5
96.2
1726.0
0.0
1548.1
255.7
749.7
1726.2
0.0
9337.5
1635.0
0.0
1404.2
3039.2
12376.7
                         September 1995

-------
The Environmental Protection Input-Output Tables
3-35
                      Table 3.10 (cont.)
 1977 Environmental Protection Expenditures Input-Output Table (millions of dollars)

01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Total
Labor
IBTs
Other VA
Total VA
Output
Non-envir. Envir. Non-envir. Envir. Non-Envir.
PCE PCE GPFI GPFI Inventory Exports Imports Gov't. Sanit. Sewer. Hwy Water Nat. Res.
0.0 0.0 0.0 0.0 0.2 0.0 12.1
0.0 0.0 0.0 0.0 0.5 0.0 0.4
0.0 4442.6 0.0 0.0 143.9 333.0 282.9
0.0 0.0 0.0 0.0 0.0 0.0 0.9
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 51.0 0.0 4.4 0.0 0.0 0.1
0.0 0.0 0.0 2.7 0.1 0.0 2.0
0.0 0.0 0.0 0.0 0.0 0.0 0.1
0.0 0.0 3.6 1.6 0.1 0.0 3.3
0.0 0.0 0.0 2.1 0.2 0.8 6.2
0.0 0.0 0.0 0.0 0.2 0.0 14.5
0.0 26.6 0.0 16.4 1.2 0.0 10.9
0.0 0.0 0.0 207.3 0.8 0.0 18.1
0.0 0.0 0.0 2.1 0.1 0.0 1.8
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 547.9 0.0 0.0 0.0 0.0 0.7
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 754.8 0.0 6.5 0.2 0.0 1.1
0.0 1377.4 56.4 39.4 1.6 11.0 8.1
0.0 189.4 0.0 0.0 0.2 0.2 4.6
1492.7 775.9 36.9 47.5 3.0 16.2 9.4
0.0 13.4 0.0 0.0 0.1 0.3 2.6
0.0 149.3 9.6 9.2 0.1 0.4 3.2
0.0 0.0 0.0 0.0 0.3 0.0 6.6
0.0 98.4 2.3 34.4 1.2 0.6 12.6
0.0 0.0 0.0 2.1 0.3 0.0 8.7
0.0 0.0 0.0 0.0 2.7 0.0 4.2
0.0 0.0 0.0 0.0 0.7 0.0 6.6
0.0 0.0 21.2 33.1 1.4 3.0 24.5
0.0 0.0 0.0 30.8 0.1 0.0 13.8
308.1 0.0 0.0 27.8 0.0 0.0 4.0
0.0 0.0 0.0 18.3 0.0 0.0 0.3
0.0 314.0 53.0 5295.0 79.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.2
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 617.3 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 2.9 6.1 497.4
0.0 1498.7 31.4 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0



1800.8 9358.0 5425.0 2063.4 193.4 371.7 961.7
Final
Demand
12.3
0.9
5202.4
0.9
0.0
55.6
4.8
0.1
8.5
9.2
14.7
55.2
226.2
4.0
0.0
548.7
0.1
762.6
1493.8
194.5
888.8
16.3
171.9
6.8
149.5
11.0
6.9
7.3
83.2
44.7
31.7
18.6
5741.0
0.0
0.2
0.0
0.0
617.3
506.4
1530.1
0.0



18373.1
Output
12.3
539.3
5669.0
0.9
0.0
93.2
4.8
0.1
8.5
9.2
14.7
345.7
1039.7
4.0
0.0
807.1
0.1
762.6
1525.9
194.5
888.8
16.3
171.9
6.8
149.5
11.0
778.7
33.8
83.2
140.9
1757.7
18.6
5741.0
1548.1
255.9
749.7
1726.2
617.3
506.4
1530.1
0.0

1635.0
0.0
1404.2

30749.7
                  September 1995

-------
                The Environmental Protection Input-Output Tables
3-36
                                 Table 3.11
1977 Environmental Protection Industry Input-Output Table (millions of dollars)

01
02
03
04
05
06
07
08
09
1 0
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
20
2 1
22
23
24
25
26
27
28
29
30
3 1
32
33
34
35
36
37
38
39
40
41
Total
Labor
IBTs
Other V A
Total VA
O utput
01
0
2
0
1
53
1
0

0
5
3
2
2
7
2
02
0
47
0
36
1 2
22
0

0
5
9
4
0
5
8
03
0
4
0
2
58
3
0

0
9
6
4
8
3
5
04
0
9
1
5
1 1
5
0

0
3
0
1
0
6
9
05
0
3
0
3
0
0
0

0
7
0
7
6
2
0
06
0
3
0
3
3
0
0

0
6
1
1
7
9
1
07
0
3
0
3
2
0
0

0
7
0
8
8
1
0
08
0
8
0
7
6
1
0

0
1
2
2
3
6
2
09
0
1
0
1
1
0
0

0
9
1
7
3
3
1
1 0
0
29
1
20
1 9
1 5
1

0
8
6
3
6
8
4

4
0
0
7
0
0
1
5
0
0
79
7
0
6
1 3
93
8
2
7
3
0
0
5
7
0
0
4
9
0
1
9
4
43
0
2
86
0
0
6
8
27
0
294
1 25
0
92
21 7
51 2
2
6
3
3
0
0
1
6
7
0
9
0
0
6
7
6
9
0
1
1 4
0
0
0
26
4 1
0
1 65
1 5
0
1 2
27
1 93
6
4
4
6
0
0
7
9
2
0
4
6
0
0
7
1
1 8
0
2
57
0
0
1 9
1 01
48
0
281
52
0
46
98
379
3
7
6
3
0
0
3
2
9
0
0
1
0
6
7
7
4
0
0
0
0
0
0
2
1
0
1 6
3
0
2
6
22
6
0
1
5
0
0
2
3
0
0
9
2
0
8
0
9
5
0
0
1 1
0
0
5
1 6
8
0
59
9
0
8
1 7
77
1
1
4
4
0
0
9
2
7
0
3
0
0
8
8
1
4
0
0
1
0
0
1
5
1
0
24
1
0
1
3
27
4
0
0
5
0
0
3
5
3
0
4
6
0
6
2
6
1 0
0
0
9
0
0
3
1
1 0
0
60
1 9
0
1 2
31
92
9
2
6
1
0
0
1
8
9
0
3
1
0
7
8
1
2
0
0
3
0
0
1
2
6
0
21
4
0
4
9
30
8
0
2
2
0
0
6
2
1
0
5
4
0
8
2
7
39
1
4
1 31
0
0
1 2
33
36
0
346
82
0
1 26
208
555
0
1
1
4
0
0
4
5
1
0
1
6
0
3
9
0
                                 September 1995

-------
                The Environmental Protection Input-Output Tables
3-37
                                 Table 3.11 (cont.)
1977 Environmental Protection Industry  Input-Output Table (millions of dollars)

01
02
03
04
05
06
07
08
09
1 0
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
20
2 1
22
23
24
25
26
27
28
29
30
3 1
32
33
34
35
36
37
38
39
40
Total
Labor
IBTs
Other V A
Total VA
O utput
1 1
0
4
0
3
3
0
0

0
0
1
9
6
3
1
1 2
0
59
4
35
28
36
3

0
1
1
9
5
3
5
1 3
0
59
8
24
1 22
45
7

0
7
5
4
7
3
2
1 4
0
1 1
0
7
1 0
6
0

0
9
9
8
5
0
8
1 5
0
3
0
3
0
0
0

0
7
0
8
4
2
0
1 6
0
1 2
1
6
9
7
1

0
0
5
3
4
1
3
1 7
0
40
6
1 4
1 4
32
5

0
7
5
5
7
6
6
1 8
0
5
0
3
4
2
0

0
4
5
5
3
6
4
1 9
0
5
0
4
6
2
0

0
9
4
2
4
4
4
20
0
4
0
3
3
2
0

0
9
4
4
4
1
3

5
0
0
3
0
0
0
4
9
0
35
4
0
2
6
4 1
3
1
2
3
0
0
1
5
7
0
1
1
0
1
2
3
84
2
1 0
295
0
0
42
35
93
0
731
204
0
1 92
396
1127
7
9
5
7
0
0
0
0
3
0
4
1
0
4
5
9
1 34
6
21
293
0
0
1 7
4
21
0
765
1 67
0
1 60
327
1 093
5
0
6
3
0
0
1
1
6
0
9
7
0
1
8
7
1 9
0
2
55
0
0
9
9
33
0
1 67
47
0
34
82
249
3
6
3
1
0
0
5
6
6
0
8
5
0
5
0
8
4
0
0
2
0
0
0
5
2
0
22
1
0
1
3
26
4
0
0
3
0
0
3
0
4
0
6
9
0
9
8
4
26
1
3
31
0
0
3
6
20
0
1 31
46
0
54
1 00
232
9
1
9
7
0
0
1
4
7
0
5
7
0
1
8
3
1 00
4
1 6
322
0
0
1 4
1 9
73
0
665
232
0
250
482
1 1 48
2
6
7
1
0
0
1
7
8
0
8
8
0
1
9
7
1 0
0
1
24
0
0
4
21
21
0
1 00
26
0
1 8
44
1 44
0
3
2
9
0
0
4
5
0
0
1
1
0
1
2
3
1 0
0
1
1 9
0
0
6
1 9
27
0
1 03
29
0
1 6
46
1 49
3
3
1
0
0
0
0
4
8
0
6
2
0
8
0
6
8
0
0
27
0
0
6
1 7
22
0
96
27
0
1 7
45
1 4 1
3
3
9
0
0
0
4
0
0
0
4
8
0
6
4
8
                                 September 1995

-------
                The Environmental Protection Input-Output Tables
3-38
                                 Table 3.11  (cont.)
1977 Environmental Protection Industry Input-Output Table (millions of dollars)

01
02
03
04
05
06
07
08
09
1 0
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
20
2 1
22
23
24
25
26
27
28
29
30
3 1
32
33
34
35
36
37
38
39
40
Total
Labor
IBTs
Other V A
Total VA
O utput
2 1
0
6
0
4
2
3
0

0
6
6
3
4
1
5
22
0
3
0
3
3
0
0

0
5
1
1
7
8
1
23
0
4
0
3
1
0
0

0
0
1
7
9
6
1
24
0
1
0
1
2
0
0

0
9
0
8
1
2
0
25
0
0
0
0
1 38
0
0

0
0
0
0
9
0
0
26
0
1
0
0
1
0
0

0
2
1
6
9
8
1
27
538
59
4
39
1 31
28
4

4
4
7
9
0
0
0
28
0
1 1
0
7
2
5
0

0
2
4
9
8
9
3
29
0
21
1
1 3
80
1 1
1

0
4
4
9
2
9
2
30
0
22
1
1 4
1 1
1 2
1

0
4
5
5
6
4
3

1 2
0
1
1 9
0
0
3
1 8
25
0
99
50
0
29
79
1 79
2
4
5
9
0
0
9
8
5
0
6
5
0
2
7
3
4
0
0
1 1
0
0
5
7
1 3
0
55
26
0
9
35
90
9
1
3
6
0
0
8
7
4
0
0
1
0
5
6
6
5
0
0
9
0
0
0
4
8
0
38
1 0
0
6
1 6
55
1
1
2
0
0
0
9
9
0
0
6
0
0
6
6
2
2
0
0
3
0
0
0
2
5
0
20
3
0
1
4
25
6
0
1
3
0
0
4
5
4
0
6
3
0
4
7
3
0
0
0
0
0
0
4
53
22
0
220
0
0
0
0
220
0
0
0
0
0
0
8
9
7
0
4
0
0
0
0
4
2
0
0
3
0
0
2
23
40
0
77
3
0
2
6
84
3
1
3
5
0
0
4
7
4
0
4
7
0
9
6
0
1 01
3
1 1
1 23
0
0
5
4
30
0
1 086
230
0
1 53
383
1 470
9
3
9
5
0
0
0
8
7
0
4
7
0
2
9
3
1 1
0
1
23
0
0
1
3
0
0
70
28
0
20
48
1 1 9
8
3
0
5
0
0
3
5
9
0
8
5
0
4
8
7
31
1
3
49
0
0
5
1 37
438
0
797
65
0
44
1 09
907
1
0
6
8
0
0
7
4
8
0
5
2
0
3
5
0
32
1
3
52
0
0
20
32
1 76
0
381
68
0
46
1 1 4
496
5
0
8
1
0
0
0
0
7
0
7
0
0
3
3
0
                                 September 1995

-------
        The Environmental Protection Input-Output Tables
3-39
                               Table 3.11 (cont.)
1977 Environmental Protection Industry Input-Output Table (millions of dollars)

01
02
03
04
05
06
07
08
09
1 0
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Total
Labor
I BTs
Other V A
Total V A
Output
31
0.0
13.2
1 .0
8.1
56.3
7.7
0.9
32
0.0
0.0
0.0
0.0
6.3
0.0
0.0
33
0.0
0.0
0.0
0.0
0.7
0.0
0.0
34
0.0
0.0
0.0
0.0
0.6
0.0
0.0
35 36 37 38 39 40 41 Total Int.
0.6 2.1 0.3 3.0
0.4 1.0 4.1 0.0 0.0 0.0 0.0 543.8
133.7 425.2 71.6 0.0 0.0 0.0 0.0 1097.2
0.1 0.0 0.6 0.7
0.0 0.0 0.0 0.0
0.0 0.0 0.1 0.0 0.0 0.0 0.0 37.8
0.5 1.9 0.5 2.9
0.0 0.0 29.7 29.7
0.0 0.0 0.0 0.0
2.3 2.4 1.1 5.9
1.6 5.2 2.1 8.9
13.4 37.9 68.2 0.0 0.0 0.0 0.0 410.0
9.1 29.7 187.1 0.0 0.0 0.0 0.0 1039.5
0.3 0.8 10.3 11.4
0.0 0.1 0.0 0.2
2.5 9.5 0.5 0.0 0.0 0.0 0.0 271.0
0.0 0.0 0.0 0.0
4.8 1.1 15.8 21.7
7.3 27.5 2.4 0.0 0.0 0.0 0.0 69.3
1.8 5.7 1.9 9.4
1.0 1.1 3.5 5.5
0.8 3.1 0.0 3.9
2.3 2.3 1.9 6.4
0.9 3.3 4.6 8.8
6.4 20.1 110.6 137.2
20.7
0.7
2.6
32.7
0.0
26. 1
37.7
104.9
369.6
0.0
682.1
40. 5
0.0
28.5
69.0
751.0
0.0
0.0
0.0
0.0
0.0
1214.3
11.0
7.1
16.6
0.0
1255.3
0.0
0.0
0.0
0.0
1255.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1 .0
1 .0
0.0
2.8
0.0
0.0
0.0
0.0
2.8
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.3
0.0
1 .0
0.0
0.0
0.0
0.0
1 .0
2.7 10.4 30.0 43.2
80.1 278.4 6.7 0.0 0.0 0.0 0.0 1137.0
41.3 156.8 3.5 0.0 0.0 0.0 0.0 228.2
15.0 44.0 86.5 145.5
14.6 34.3 28.0 0.0 0.0 0.0 0.0 173.0
27.5 83.8 141.3 0.0 0.0 0.0 0.0 1978.6
3.6 8.9 4.7 17.1
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
66.0 241.2 0.5 0.0 0.0 0.0 0.0 1548.1
0.5 1.8 0.0 0.0 0.0 0.0 0.0 256.2
0.0 0.0 0.4 0.1 0.0 0.5 0.0 749.7
0.9 1.8 65.6 0.1 0.0 0.0 0.0 1726.2
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.1 0.1 0.2 0.4
0.0 0.0 0.0
0.0 0.0 0.0 0.0
442.2 1441.5 884.7 0.1 0.0 0.5 0.0 11727.6
181.2 627.8 662.7 0.0 0.0 0.0 0.0 3106.7
8.1 1.6 83.3 0.0 0.0 0.0 0.0 93.0
160.8 466.1 563.4 0.0 0.0 0.0 0.0 2594.4
350.1 1095.5 1309.4 0.0 0.0 0.0 0.0 5794.1
792.3 2537.0 2194.0 0.1 0.0 0.5 0.0 17521.7
                         September 1995

-------
The Environmental Protection Input-Output Tables
3-40
                      Table 3.11 (cont.)
 1977 Environmental Protection Industry Input-Output Table (millions of dollars)

01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Total
Labor
IBTs
Other VA
Total VA
Output
Non-envir. Envir. Non-envir. Envir. Non-Envir.
PCE PCE GPFI GPFI Inventory Exports Imports Gov't. Sanit. Sewer. Hwy Water Nat. Res.
0.0 0.0 0.0 0.0 0.2 0.0 12.1
0.0 0.0 0.0 0.0 0.5 0.0 0.4
0.0 4442.6 0.0 0.0 143.9 333.0 282.9
0.0 0.0 0.0 0.0 0.0 0.0 0.9
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 51.0 0.0 4.4 0.0 0.0 0.1
0.0 0.0 0.0 2.7 0.1 0.0 2.0
0.0 0.0 0.0 0.0 0.0 0.0 0.1
0.0 0.0 3.6 1.6 0.1 0.0 3.3
0.0 0.0 0.0 2.1 0.2 0.8 6.2
0.0 0.0 0.0 0.0 0.2 0.0 14.5
0.0 26.6 0.0 16.4 1.2 0.0 10.9
0.0 0.0 0.0 207.3 0.8 0.0 18.1
0.0 0.0 0.0 2.1 0.1 0.0 1.8
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 547.9 0.0 0.0 0.0 0.0 0.7
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 754.8 0.0 6.5 0.2 0.0 1.1
0.0 1377.4 56.4 39.4 1.6 11.0 8.1
0.0 189.4 0.0 0.0 0.2 0.2 4.6
1492.7 775.9 36.9 47.5 3.0 16.2 9.4
0.0 13.4 0.0 0.0 0.1 0.3 2.6
0.0 149.3 9.6 9.2 0.1 0.4 3.2
0.0 0.0 0.0 0.0 0.3 0.0 6.6
0.0 98.4 2.3 34.4 1.2 0.6 12.6
0.0 0.0 0.0 2.1 0.3 0.0 8.7
0.0 0.0 0.0 0.0 2.7 0.0 4.2
0.0 0.0 0.0 0.0 0.7 0.0 6.6
0.0 0.0 21.2 33.1 1.4 3.0 24.5
0.0 0.0 0.0 30.8 0.1 0.0 13.8
308.1 0.0 0.0 27.8 0.0 0.0 4.0
0.0 0.0 0.0 18.3 0.0 0.0 0.3
0.0 0.0 314.0 53.0 5295.0 79.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
479.7 0.0 0.0 0.0 0.0 0.8 0.0 55.4 0.0 0.0 0.0 0.0 0.2
1787.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
467.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 -0.0 617.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 2.9 6.1 497.4
0.0 0.0 0.0 1498.7 31.4 0.0 0.0



2734.8 1800.8 -0.0 9358.0 0.0 0.8 0.0 108.4 5425.0 2063.4 193.4 371.7 961.7
Final
Demand
12.3
0.9
5202.4
0.9
0.0
55.6
4.8
0.1
8.5
9.2
14.7
55.2
226.2
4.0
0.0
548.7
0.1
762.6
1493.8
194.5
2381.5
16.3
171.9
6.8
149.5
11.0
6.9
7.3
83.2
44.7
339.8
18.6
5741.0
0.0
536.1
1787.3
467.8
617.3
506.4
1530.1



18482.3
Output
15.3
544.7
6299.5
1.7
0.0
93.4
7.7
29.8
8.5
15.1
23.6
465.2
1265.7
15.4
0.2
819.7
0.1
784.4
1563.1
203.9
2387.0
20.3
178.3
15.7
286.6
54.2
1143.9
235.4
228.7
217.7
2318.4
35.7
5741.0
1548.1
792.3
2537.0
2194.0
617.3
506.8
1530.1

3106.7
93.0
2594.4

36003.9
                  September 1995

-------
                The Environmental Protection Input-Output Tables
3-41
                                  Table 3.1 2
1982 Environmental Protection Expenditures Input-Output Table (millions of dollars)

01
02
03
04
05
06
07
08
09
1 0
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Total
Labor
IBTs
Other VA
Total VA
Output
01
0
0
0
0
55
0
0

0
2
0
1
0
1
0
02
0
1 04
2
80
1 3
49
1

0
8
2
2
1
4
9
03
0
6
0
3
67
4
0

0
6
6
7
8
3
5
04
0
21
1
1 4
7
1 1
0

0
2
0
2
6
8
9
05
0
0
0
0
0
0
0

0
8
1
3
7
5
1
06
0
2
0
1
2
1
0

0
8
1
9
2
6
1
07
0
0
0
0
3
0
0

0
7
0
4
3
4
0
08
0
4
0
3
4
2
0

0
3
2
1
8
0
2
09
0
1
0
0
1
0
0

0
0
1
5
4
6
1
1 0
0
72
2
51
1 5
38
2

0
4
4
2
4
9
1

0
0
0
0
0
0
1 1
36
227
0
331
0
0
0
0
332
4
0
0
6
0
0
6
8
0
0
9
6
0
3
9
9
99
1
5
1 90
0
0
20
1 0
1 77
0
756
282
0
1 77
460
1217
0
6
7
9
0
0
9
0
0
0
7
8
0
8
6
3
1 1
0
1
1 8
0
0
3
41
1 03
0
263
1 9
0
1 0
30
294
4
4
6
4
0
0
3
7
4
0
7
8
0
5
3
1
25
0
2
50
0
0
9
1 75
63
0
384
69
0
68
1 38
522
9
7
7
1
0
0
4
1
9
0
6
4
0
7
1
7
1
0
0
1
0
0
0
3
1
0
1 0
6
0
5
1 2
22
9
1
3
7
0
0
1
0
3
0
9
1
0
9
0
9
3
0
0
4
0
0
1
1 7
7
0
42
9
0
9
1 8
60
4
1
3
0
0
0
6
2
0
0
3
3
0
0
3
6
0
0
0
0
0
0
0
6
1
0
1 4
1
0
2
4
1 8
9
0
1
6
0
0
4
3
0
0
1
7
0
4
1
2
5
0
0
7
0
0
2
3
1 3
0
47
20
0
20
40
88
8
2
6
1
0
0
2
5
6
0
6
0
0
6
6
2
2
0
0
1
0
0
0
5
8
0
22
4
0
4
9
31
1
1
3
9
0
0
5
8
1
0
4
7
0
8
5
9
75
1
6
1 20
0
0
24
61
53
0
525
1 1 9
0
1 77
297
822
1
7
2
8
0
0
0
7
1
0
1
6
0
4
0
1
                                 September 1995

-------
                The Environmental Protection Input-Output Tables
3-42
                                 Table 3.12  (cont.)
1982 Environmental Protection Expenditures Input-Output Table (millions of dollars)

01
02
03
04
05
06
07
08
09
1 0
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Total
Labor
IBTs
Other VA
Total VA
O utput
1 1
0
1
0
0
7
0
0

0
1
2
5
4
8
1
1 2
0
1 44
5
1 02
21
75
4

0
5
6
2
2
9
8
1 3
0
1 43
1 7
65
1 1 9
1 05
1 5

0
5
6
0
1
8
0
1 4
0
33
1
22
4
1 8
1

0
3
5
9
6
0
3
1 5
0
0
0
0
0
0
0

0
6
0
4
2
2
0
1 6
0
1 2
1
6
3
8
1

0
7
4
8
8
0
2
1 7
0
82
8
43
7
56
6

0
6
1
5
1
0
9
1 8
0
1 2
0
8
4
7
0

0
9
6
8
6
2
5
1 9
0
9
0
6
6
4
0

0
3
4
5
1
7
4
20
0
1 2
0
8
3
6
0

0
7
5
7
7
9
5

2
0
0
8
0
0
0
7
1 1
0
41
6
0
5
1 2
53
6
1
4
3
0
0
7
8
3
0
3
9
0
7
6
9
1 61
3
1 4
344
0
0
36
67
1 93
0
1176
323
1 94
282
799
1 976
8
9
3
4
0
0
5
4
9
0
5
1
6
0
7
2
289
1 2
44
438
0
0
1 0
7
85
0
1354
357
37
21 5
61 0
1 965
3
4
9
9
0
0
4
6
0
0
6
5
7
7
9
5
40
1
3
70
0
0
6
1 6
55
0
274
1 00
0
90
1 91
466
1
1
9
1
0
0
7
2
2
0
9
9
0
4
3
2
0
0
0
1
0
0
0
6
2
0
1 2
1
0
1
2
1 4
5
0
0
1
0
0
3
3
4
0
1
4
0
4
8
9
24
1
3
40
0
0
2
7
39
0
1 52
55
0
55
1 1 1
263
4
0
5
3
0
0
3
4
4
0
0
6
0
4
0
0
1 44
5
20
341
0
0
34
28
1 05
0
883
297
0
375
673
1 556
3
7
6
1
0
0
4
3
1
0
7
3
0
7
0
7
1 5
0
1
1 8
0
0
1
27
33
0
1 32
39
0
24
64
1 97
1
4
5
8
0
0
7
7
0
0
8
4
0
8
2
0
1 1
0
1
23
0
0
3
22
45
0
1 36
42
0
32
74
21 1
7
3
1
5
0
0
8
6
7
0
3
4
0
5
9
2
1 4
0
1
34
0
0
4
27
56
0
1 72
56
0
36
92
264
7
4
4
6
0
0
3
7
4
0
5
0
0
2
2
7
                                 September 1995

-------
                The Environmental Protection Input-Output Tables
3-43
                                 Table 3.12 (cont.)
1982 Environmental Protection Expenditures Input-Output Table (millions of dollars)

01
02
03
04
05
06
07
08
09
1 0
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Total
Labor
IBTs
Other VA
Total VA
O utput
21
0
1 1
1
6
3
6
0

0
5
1
7
4
8
9
22
0
7
0
5
3
3
0

0
4
3
3
6
7
3
23
0
4
0
3
2
2
0

0
6
2
5
3
0
1
24
0
0
0
0
1
0
0

0
9
1
6
9
5
1
25
0
0
0
0
1 80
0
0

0
0
0
0
0
0
0
26
0
1
0
1
2
1
0

0
7
2
0
1
1
1
27
1 477
1 1 4
7
81
57
47
6

9
0
8
7
0
8
6
28
0
24
1
1 5
2
1 4
1

0
3
4
5
5
6
2
29
0
28
1
1 8
82
1 5
1

0
1
5
8
2
3
3
30
0
27
1
1 8
1 3
1 5
1

0
9
5
7
7
2
3

20
0
2
1 4
0
0
0
27
39
0
1 36
79
0
62
1 41
277
5
8
7
5
0
0
8
0
7
0
4
1
0
2
3
7
8
0
0
1 4
0
0
1
1 2
26
0
84
45
0
1 2
57
1 42
7
2
8
6
0
0
4
1
5
0
9
1
0
2
3
2
5
0
0
7
0
0
0
5
8
0
41
24
0
9
34
75
5
1
4
6
0
0
6
5
8
0
1
4
0
6
0
1
1
0
0
4
0
0
0
3
5
0
1 9
3
0
3
7
26
6
1
2
7
0
0
2
1
5
0
4
5
0
8
3
7
0
0
0
0
0
0
5
71
1 1 4
0
371
0
0
0
0
371
0
0
0
0
0
0
8
2
9
0
9
0
0
0
0
9
3
0
0
4
0
0
3
1 5
354
0
387
5
0
2
7
395
0
1
4
8
0
0
5
3
2
0
6
2
0
8
9
5
1 86
5
1 9
209
0
0
7
6
1 31
0
2359
460
0
336
796
31 55
4
5
9
7
0
0
2
7
4
0
5
0
0
2
2
6
30
1
3
59
0
0
1
5
7
0
1 68
61
0
31
92
260
8
0
5
7
0
0
8
0
0
0
2
0
0
5
5
7
37
1
4
62
0
0
77
392
273
0
996
81
0
37
1 1 9
1115
0
1
0
9
0
0
7
8
9
0
7
1
0
9
0
7
36
1
3
62
0
0
6
45
259
0
494
80
0
37
1 1 8
61 2
8
1
9
5
0
0
6
8
4
0
4
6
0
7
3
6
                                 September 1995

-------
        The Environmental Protection Input-Output Tables
3-44
                               Table 3.12 (cont.)
1982 Environmental Protection Expenditures Input-Output Table (millions of dollars)

01
02
03
04
05
06
07
08
09
1 0
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Total
Labor
IBTs
Other VA
Total VA
Output
31
0.0
19.8
1.3
12.8
47.3
11.2
1 . 1
32
0.0
0.0
0.0
0.0
9.6
0.0
0.0
33
0.0
0.0
0.0
0.0
0.9
0.0
0.0
34
0.0
0.0
0.0
0.0
0.3
0.0
0.0
35
0.0
0.0
0.0
0.0
0.0
0.0
0.0
36
0.0
0.0
0.0
0.0
0.0
0.0
0.0
37
0.0
0.0
0.0
0.0
0.0
0.0
0.0
38
0.0
0.0
0.0
0.0
0.0
0.0
0.0
39
0.0
0.0
0.0
0.0
0.0
0.0
0.0
40
0.0
0.0
0.0
0.0
0.0
0.0
0.0
41 Total Int.
0.0 1477.9
0.0 908.1
0.0 58.1
0.0 585.6
0.0 755.9
0.0 511.4
0.0 49.5

28.0
0.9
3.2
46.8
0.0
0.0
63.7
283.5
423.5
0.0
943.1
57.9
0.0
28.0
85.9
1029.0
0.0
0.0
0.0
0.0
0.0
0.0
16.6
9.3
22.8
0.0
58.3
0.0
0.0
0.0
0.0
58.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.7
2.6
0.0
5.2
0.0
0.0
0.0
0.0
5.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
0.9
0.0
1.5
0.0
0.0
0.0
0.0
1.5
0.0
0.0
0.0
0.0
0.0
0.0
0.7
0.0
1.0
0.0
1.8
0.0
0.0
0.0
0.0
1.8
0.0
0.0
0.0
0.0
0.0
1.2
0.0
0.7
0.0
2.0
0.0
0.0
0.0
0.0
2.0
0.0
0.0
0.0
0.0
0.0
0.0
3.1
0.0
156.1
0.0
159.2
0.0
0.0
0.0
0.0
159.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.4
0.0
0.4
0.0
0.0
0.0
0.0
0.4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0 1288.6
0.0 41.0
0.0 148.6
0.0 2204.9
0.0 0.0
0.0 0.0
0.0 366.0
0.0 1459.5
0.0 3112.4
0.0 0.0
0.0 12967.5
0.0 2712.4
0.0 232.3
0.0 2159.0
0.0 5103.7
0.0 18071.3
                         September 1995

-------
The Environmental Protection Input-Output Tables
3-45
                      Table 3.12 (cont.)
 1982 Environmental Protection Expenditures Input-Output Table (millions of dollars)

01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Total
Labor
IBTs
Other VA
Total VA
Output
Non-envir. Envir. Non-envir. Envir. Non-Envir.
PCE PCE GPFI GPFI Inventory Exports Imports Gov't. Sanit. Sewer. Hwy Water Nat. Res.
0.0 0.0 3.0 0.0 0.0 0.0 14.5
0.0 0.0 0.0 0.0 0.6 0.0 0.5
0.0 4310.6 100.0 0.0 226.5 614.2 282.3
0.0 0.0 0.0 0.0 0.0 0.0 1.5
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 81.8 8.4 0.0 0.0 0.0 0.2
0.0 0.0 5.1 0.0 0.1 0.0 2.9
0.0 0.0 0.0 0.0 0.0 0.0 0.1
0.0 0.0 2.4 5.5 0.1 1.2 4.4
0.0 0.0 2.2 0.0 0.1 0.0 6.8
0.0 0.0 1.8 0.0 0.0 0.0 15.0
0.0 43.6 29.5 0.0 0.0 0.0 21.3
1149.9 0.0 401.9 0.0 0.7 0.0 31.1
0.0 0.0 0.0 0.0 0.0 0.0 2.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 222.1 0.8 0.0 0.0 0.0 2.7
0.0 0.0 0.0 0.0 0.0 0.0 0.1
0.0 531.2 11.5 0.0 0.3 0.0 6.5
0.0 1244.5 73.2 102.7 2.8 18.4 9.8
0.0 179.9 0.3 0.0 0.4 0.5 6.8
2423.7 1417.8 83.8 65.3 4.6 26.5 12.6
102.2 34.1 0.0 0.0 0.0 0.5 3.5
0.0 152.6 19.0 19.1 0.2 0.7 6.6
0.0 0.0 0.2 0.0 0.0 0.0 13.2
0.0 201.7 65.0 4.9 1.7 1.3 19.5
0.0 0.0 4.4 0.0 0.1 0.0 14.1
0.0 0.0 0.0 0.0 4.8 0.0 6.9
0.0 0.0 0.0 0.0 0.0 0.0 6.7
0.0 0.0 71.0 37.5 1.3 5.5 43.2
0.0 0.0 29.5 0.0 0.0 0.0 10.4
440.0 0.0 -36.1 0.0 -0.5 0.0 57.6
0.0 0.0 38.6 0.0 0.0 0.0 4.2
0.0 2454.2 470.7 122.0 5477.8 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
832.6 0.0 0.0 0.0 2.2 0.0 133.6 0.0 0.0 0.0 0.0 2.2
3699.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
1125.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 906.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 3.9 8.3 0.0
0.0 0.0 2093.0 0.0 36.2 0.0 693.4
0.0 0.0 0.0 0.0 0.0 0.0 0.0



9773.7 11780.1 0.0 2.2 0.0 604.3 3130.5 5712.8 284.0 677.1 1302.6
Final
Demand
17.6
1.1
5533.6
1.5
0.0
90.4
8.1
0.1
13.6
9.1
16.8
94.4
1583.6
2.0
0.0
225.6
0.1
549.5
1451.4
187.8
4034.4
140.2
198.2
13.4
294.1
18.6
11.7
6.8
158.5
39.9
461.1
42.8
8524.7
0.0
970.5
3699.5
1125.8
906.0
12.2
2822.6
0.0



33267.3
Output
17.6
1479.0
6441.8
1.5
0.0
148.4
8.1
0.1
13.6
9.1
16.8
680.1
2339.5
2.0
0.0
737.0
0.1
549.5
1501.0
187.8
4034.4
140.2
198.2
13.4
294.1
18.6
1300.3
47.7
158.5
188.5
2666.0
42.8
8524.7
0.0
1336.5
5159.0
4238.2
906.0
12.2
2822.6
0.0

2712.4
232.3
2159.0

51338.5
                  September 1995

-------
                The Environmental Protection Input-Output Tables
3-46
                                 Table 3.13
1982 Environmental Protection Industry Input-Output Table (millions of dollars)

01
02
03
04
05
06
07
08
09
1 0
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Total
Labor
IBTs
Other VA
Total VA
Output
01
0
0
0
0
55
0
0

0
2
0
1
0
1
0
02
0
1 04
2
80
1 3
49
1

0
8
2
2
1
4
9
03
0
6
0
3
67
4
0

0
6
6
7
8
3
5
04
0
21
1
1 4
7
1 1
0

0
2
0
2
6
8
9
05
0
0
0
0
0
0
0

0
8
1
3
7
5
1
06
0
2
0
1
2
1
0

0
8
1
9
2
6
1
07
0
0
0
0
3
0
0

0
7
0
4
3
4
0
08
0
4
0
3
4
2
0

0
3
2
1
8
0
2
09
0
1
0
0
1
0
0

0
0
1
5
4
6
1
1 0
0
72
2
51
1 5
38
2

0
4
4
2
4
9
1

0
0
0
0
0
0
1 1
36
227
0
331
0
0
0
0
332
4
0
0
6
0
0
6
8
0
0
9
6
0
3
9
9
99
1
5
1 90
0
0
20
1 0
1 77
0
756
282
0
1 77
460
1217
0
6
7
9
0
0
9
0
0
0
7
8
0
8
6
3
1 1
0
1
1 8
0
0
3
41
1 03
0
263
1 9
0
1 0
30
294
4
4
6
4
0
0
3
7
4
0
7
8
0
5
3
1
25
0
2
50
0
0
9
1 75
63
0
384
69
0
68
1 38
522
9
7
7
1
0
0
4
1
9
0
6
4
0
7
1
7
1
0
0
1
0
0
0
3
1
0
1 0
6
0
5
1 2
22
9
1
3
7
0
0
1
0
3
0
9
1
0
9
0
9
3
0
0
4
0
0
1
1 7
7
0
42
9
0
9
1 8
60
4
1
3
0
0
0
6
2
0
0
3
3
0
0
3
6
0
0
0
0
0
0
0
6
1
0
1 4
1
0
2
4
1 8
9
0
1
6
0
0
4
3
0
0
1
7
0
4
1
2
5
0
0
7
0
0
2
3
1 3
0
47
20
0
20
40
88
8
2
6
1
0
0
2
5
6
0
6
0
0
6
6
2
2
0
0
1
0
0
0
5
8
0
22
4
0
4
9
31
1
1
3
9
0
0
5
8
1
0
4
7
0
8
5
9
75
1
6
1 20
0
0
24
61
53
0
525
1 1 9
0
1 77
297
822
1
7
2
8
0
0
0
7
1
0
1
6
0
4
0
1
                                 September 1995

-------
                The Environmental Protection Input-Output Tables
3-47
                                 Table 3.13 (cont.)
1982 Environmental Protection Industry  Input-Output Table (millions of dollars)

01
02
03
04
05
06
07
08
09
1 0
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
20
2 1
22
23
24
25
26
27
28
29
30
3 1
32
33
34
35
36
37
38
39
40
41
Total
Labor
IBTs
Other V A
Total VA
O utput
1 1
0
1
0
0
7
0
0

0
1
2
5
4
8
1
1 2
0
1 44
5
1 02
2 1
75
4

0
5
6
2
2
9
8
1 3
0
1 43
1 7
65
1 1 9
1 05
1 5

0
5
6
0
1
8
0
1 4
0
33
1
22
4
1 8
1

0
3
5
9
6
0
3
1 5
0
0
0
0
0
0
0

0
6
0
4
2
2
0
1 6
0
1 2
1
6
3
8
1

0
7
4
8
8
0
2
1 7
0
82
8
43
7
56
6

0
6
1
5
1
0
9
1 8
0
1 2
0
8
4
7
0

0
9
6
8
6
2
5
1 9
0
9
0
6
6
4
0

0
3
4
5
1
7
4
20
0
1 2
0
8
3
6
0

0
7
5
7
7
9
5

2
0
0
8
0
0
0
7
1 1
0
4 1
6
0
5
1 2
53
6
1
4
3
0
0
7
8
3
0
3
9
0
7
6
9
1 61
3
1 4
344
0
0
36
67
1 93
0
1176
323
1 94
282
799
1 976
8
9
3
4
0
0
5
4
9
0
5
1
6
0
7
2
289
1 2
44
438
0
0
1 0
7
85
0
1 354
357
37
21 5
61 0
1 965
3
4
9
9
0
0
4
6
0
0
6
5
7
7
9
5
40
1
3
70
0
0
6
1 6
55
0
274
1 00
0
90
1 91
466
1
1
9
1
0
0
7
2
2
0
9
9
0
4
3
2
0
0
0
1
0
0
0
6
2
0
1 2
1
0
1
2
1 4
5
0
0
1
0
0
3
3
4
0
1
4
0
4
8
9
24
1
3
40
0
0
2
7
39
0
1 52
55
0
55
1 1 1
263
4
0
5
3
0
0
3
4
4
0
0
6
0
4
0
0
1 44
5
20
341
0
0
34
28
1 05
0
883
297
0
375
673
1 556
3
7
6
1
0
0
4
3
1
0
7
3
0
7
0
7
1 5
0
1
1 8
0
0
1
27
33
0
1 32
39
0
24
64
1 97
1
4
5
8
0
0
7
7
0
0
8
4
0
8
2
0
1 1
0
1
23
0
0
3
22
45
0
1 36
42
0
32
74
21 1
7
3
1
5
0
0
8
6
7
0
3
4
0
5
9
2
1 4
0
1
34
0
0
4
27
56
0
1 72
56
0
36
92
264
7
4
4
6
0
0
3
7
4
0
5
0
0
2
2
7
                                 September 1995

-------
                The Environmental Protection Input-Output Tables
3-48
                                 Table 3.13 (cont.)
1982 Environmental Protection Industry Input-Output Table (millions of dollars)

01
02
03
04
05
06
07
08
09
1 0
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Total
Labor
IBTs
Other V A
Total VA
Output
2 1
0
1 1
1
6
3
6
0

0
5
1
7
4
8
9
22
0
7
0
5
3
3
0

0
4
3
3
6
7
3
23
0
4
0
3
2
2
0

0
6
2
5
3
0
1
24
0
0
0
0
1
0
0

0
9
1
6
9
5
1
25
0
0
0
0
1 80
0
0

0
0
0
0
0
0
0
26
0
1
0
1
2
1
0

0
7
2
0
1
1
1
27
1 477
1 1 4
7
81
57
47
6

9
0
8
7
0
8
6
28
0
24
1
1 5
2
1 4
1

0
3
4
5
5
6
2
29
0
28
1
1 8
82
1 5
1

0
1
5
8
2
3
3
30
0
27
1
1 8
1 3
1 5
1

0
9
5
7
7
2
3

20
0
2
1 4
0
0
0
27
39
0
1 36
79
0
62
1 41
277
5
8
7
5
0
0
8
0
7
0
4
1
0
2
3
7
8
0
0
1 4
0
0
1
1 2
26
0
84
45
0
1 2
57
1 42
7
2
8
6
0
0
4
1
5
0
9
1
0
2
3
2
5
0
0
7
0
0
0
5
8
0
41
24
0
9
34
75
5
1
4
6
0
0
6
5
8
0
1
4
0
6
0
1
1
0
0
4
0
0
0
3
5
0
1 9
3
0
3
7
26
6
1
2
7
0
0
2
1
5
0
4
5
0
8
3
7
0
0
0
0
0
0
5
7 1
1 1 4
0
371
0
0
0
0
371
0
0
0
0
0
0
8
2
9
0
9
0
0
0
0
9
3
0
0
4
0
0
3
1 5
354
0
387
5
0
2
7
395
0
1
4
8
0
0
5
3
2
0
6
2
0
8
9
5
1 86
5
1 9
209
0
0
7
6
1 31
0
2359
460
0
336
796
3155
4
5
9
7
0
0
2
7
4
0
5
0
0
2
2
6
30
1
3
59
0
0
1
5
7
0
1 68
61
0
31
92
260
8
0
5
7
0
0
8
0
0
0
2
0
0
5
5
7
37
1
4
62
0
0
77
392
273
0
996
81
0
37
1 1 9
1115
0
1
0
9
0
0
7
8
9
0
7
1
0
9
0
7
36
1
3
62
0
0
6
45
259
0
494
80
0
37
1 1 8
61 2
8
1
9
5
0
0
6
8
4
0
4
6
0
7
3
6
                                 September 1995

-------
        The Environmental Protection Input-Output Tables
3-49
                               Table 3.13 (cont.)
1982 Environmental Protection Industry Input-Output Table (millions of dol
                                                            a rs)

01
02
03
04
05
06
07
08
09
1 0
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Total
Labor
I BJs
Other V A
Total V A
Output
31
0.0
19.8
1 .3
12.8
47.3
11.2
1 . 1

28. 0
0.9
3.2
46.8
0.0
0.0
63.7
283.5
423.5
0.0
943.1
57.9
0.0
28. 0
85. 9
1029.0
32
0.0
0.0
0.0
0.0
9.6
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
16.6
9.3
22. 8
0.0
58.3
0.0
0.0
0.0
0.0
58. 3
33
0.0
0.0
0.0
0.0
0.9
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
1 .7
2.6
0.0
5.2
0.0
0.0
0.0
0.0
5.2
34
0.0
0.0
0.0
0.0
0.3
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
0.9
0.0
1 .5
0.0
0.0
0.0
0.0
1 .5
35
3.5
1 .1
275.9
0.2
0.0
0.0
1 .0
0.0
0.0
9.2
2.8
47.0
20.9
20. 1
0.0
10.8
0.0
14.7
30. 1
5.9
0.9
1 .0
2.1
1 .4
14.4
14.8
133.8
195.8
41.7
71.9
62. 1
2.2
0.0
0.0
0.7
0.0
1 .0
0.0
0.0
0.0
0.0
987.1
250.7
17.9
80. 9
349.5
1336.5
36
5.9
2.0
416.3
0.2
0.0
0.0
1 .8
0.0
0.0
4.5
3.6
73.3
37.0
6.2
0.1
9.8
0.0
4.4
53.4
8.3
0.9
1 .9
1 .4
1 .9
21.1
17.1
238.6
352.7
51.1
75.2
83.6
3.3
0.0
3088.1
1 .2
0.0
0.7
0.0
0. 1
0.0
0.0
4565.5
386.2
5.8
201.5
593.5
5159.0
37
1 .5
12.6
90.0
0.7
0.0
0. 1
0.4
65.6
0.0
3.8
8.0
177.1
381.2
12.1
0.1
1 .6
0.0
87.3
9.8
3.3
227.9
0.2
147.2
1 .2
255.4
21.3
31.5
276.7
173.5
222.4
210.8
3.3
0.0
0.0
3.1
0.0
156.1
0.0
14.6
0.0
0.0
2600.7
1286.7
122.6
228.3
1637.5
4238.2
38
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.4
0.0
0.4
0.0
0.0
0.0
0.0
0.4
39
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
40
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
41 Total I nt.
10.9
0.0 1493.5
0.0 1690.4
1 .1
0.0
0.0 58.1
3.3
65.6
0.0
17.5
14.4
0.0 883.1
0.0 1194.9
38. 4
0.2
0.0 533.5
0.1
106.3
0.0 142.8
17.6
229.7
3. 1
150.8
4.5
290.9
53. 1
0.0 1692.5
0.0 866.2
266.3
0.0 518.0
0.0 2561.4
8.8
0.0 0.0
0.0 3088.1
0.0 366.0
0.0 1459.5
0.0 3112.4
0.0 0.0
14.8
0.0
0.0
0.0 20957.8
0.0 4636.0
0.0 378.6
0.0 2669.7
0.0 7684.2
0.0 28642.1
                         September 1995

-------
The Environmental Protection Input-Output Tables
3-50
 1982
                      Table 3.13 (cont.)
     Environmental Protection Industry Input-Output Table (millions of dollars)

01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Total
Labor
IBTs
Other VA
Total VA
Output
Non-envir. Envir. Non-envir. Envir. Non-Envir.
PCE PCE GPFI GPFI Inventory Exports Imports Gov't. Sanit. Sewer. Hwy Water Nat. Res.
0.0 0.0 3.0 0.0 0.0 0.0 14.5
0.0 0.0 0.0 0.0 0.6 0.0 0.5
0.0 4310.6 100.0 0.0 226.5 614.2 282.3
0.0 0.0 0.0 0.0 0.0 0.0 1.5
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 81.8 8.4 0.0 0.0 0.0 0.2
0.0 0.0 5.1 0.0 0.1 0.0 2.9
0.0 0.0 0.0 0.0 0.0 0.0 0.1
0.0 0.0 2.4 5.5 0.1 1.2 4.4
0.0 0.0 2.2 0.0 0.1 0.0 6.8
0.0 0.0 1.8 0.0 0.0 0.0 15.0
0.0 43.6 29.5 0.0 0.0 0.0 21.3
1149.9 0.0 401.9 0.0 0.7 0.0 31.1
0.0 0.0 0.0 0.0 0.0 0.0 2.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 222.1 0.8 0.0 0.0 0.0 2.7
0.0 0.0 0.0 0.0 0.0 0.0 0.1
0.0 531.2 11.5 0.0 0.3 0.0 6.5
0.0 1244.5 73.2 102.7 2.8 18.4 9.8
0.0 179.9 0.3 0.0 0.4 0.5 6.8
2423.7 1417.8 83.8 65.3 4.6 26.5 12.6
102.2 34.1 0.0 0.0 0.0 0.5 3.5
0.0 152.6 19.0 19.1 0.2 0.7 6.6
0.0 0.0 0.2 0.0 0.0 0.0 13.2
0.0 201.7 65.0 4.9 1.7 1.3 19.5
0.0 0.0 4.4 0.0 0.1 0.0 14.1
0.0 0.0 0.0 0.0 4.8 0.0 6.9
0.0 0.0 0.0 0.0 0.0 0.0 6.7
0.0 0.0 71.0 37.5 1.3 5.5 43.2
0.0 0.0 29.5 0.0 0.0 0.0 10.4
440.0 0.0 -36.1 0.0 -0.5 0.0 57.6
0.0 0.0 38.6 0.0 0.0 0.0 4.2
0.0 0.0 2454.2 470.7 122.0 5477.8 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 832.6 0.0 0.0 0.0 2.2 0.0 133.6 0.0 0.0 0.0 0.0 2.2
0.0 3699.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 1125.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 906.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 3.9 8.3 0.0
0.0 0.0 2093.0 0.0 36.2 0.0 693.4
0.0 0.0 0.0 0.0 0.0 0.0 0.0



9773.7 11780.1 0.0 2.2 0.0 604.3 3130.5 5712.8 284.0 677.1 1302.6
Final
Demand
17.6
1.1
5533.6
1.5
0.0
90.4
8.1
0.1
13.6
9.1
16.8
94.4
1583.6
2.0
0.0
225.6
0.1
549.5
1451.4
187.8
4034.4
140.2
198.2
13.4
294.1
18.6
11.7
6.8
158.5
39.9
461.1
42.8
8524.7
0.0
970.5
3699.5
1125.8
906.0
12.2
2822.6
0.0



33267.3
Output
28.5
1494.6
7224.0
2.7
0.0
148.5
11.3
65.6
13.6
26.6
31.2
977.5
2778.6
40.4
0.2
759.1
0.1
655.8
1594.3
205.3
4264.1
143.3
349.0
17.9
585.0
71.7
1704.2
872.9
424.8
557.9
3022.5
51.6
8524.7
3088.1
1336.5
5159.0
4238.2
906.0
27.0
2822.6
0.0

4636.0
378.6
2669.7

61909.3
                  September 1995

-------
                    The Environmental Protection Input-Output Tables                3-51

                               NOTES FOR CHAPTER 3

1.  Total output of commodity 68.0301 includes both private and public water supply (Ritz,
   1980, pp. 18 and A-19). Also, there is a significant discrepancy between the values for water
   supply estimated by EPA and those reported in the input-output tables. For example, EPA
   (1990, p. F-16) estimates total operation and maintenance expenditures for water supply at
   $4,245 million for 1977.  The output reported for BEA commodity 68.0301 in the 1977
   input-output table is $6,389.4 million. In 1982, the EPA (1990, p. F-16) estimates total
   operation and maintenance expenditures for water supply at $7,725 million while the 1982
   benchmark I-O table shows a commodity output of $10,778.6 million for BEA I-O sector
   68.0301.

2.  There are two  sources for operation and maintenance expenditures for sewerage. The BEA
   (see Rutledge and Vogan 1994, p. 48) reports expenditures of $2,537 million in 1977 and
   $5,159 million in 1982.  The EPA (1990, p. F-7) reports expenditures of $2,329 million in
   1977 and $4,792 million in  1982. In this report, the BEA data are used.

3.  The 1977 and  1982 data were provided by the Environmental Economics Division at BEA
   (RickKaglic fax of August  16, 1994).

4.  Payments by manufacturing plants to government for solid waste removal ($160.0 million in
   1982) are excluded.

5.  Data were provided by the Interindustry Economics Division at BEA (meeting with Belinda
   Bonds on January 19, 1994).

6.  The data in the MA-200 report are characterized as 1) expenditure by media and 2)
   expenditure by type of input (i.e., labor, depreciation, materials and supplies, and services).
   Due to rounding, the methods of characterizing total pollution abatement expenditures are
   not equal. As  a consequence, the values for expenditure by media are assumed correct. The
   values associated with the type of expenditure (typically services  and equipment leasing) are
   adjusted so that they are equal to the values associated with media.

       For most industries, the rounding difference is $0.1-0.2 million.  The largest discrepancy
   is $0.9 million. For larger discrepancies, the difference is proportionately distributed across
   the different expenditure categories (e.g., labor, depreciation, materials and supplies, services
   and equipment leasing).

       To estimate the matrix entries for 1977  and 1982, the matrix cell values observed in 1979
   are used to generate an initial "guess" for the 1977  and 1982 cell values. To create an initial
   guess, the relative percentages attributable to each combination of expenditure (e.g.,  labor
   expenditures for air pollution abatement) are computed for 1979.  These percentages are
   applied to the observed in 1977 and 1982 in order to decompose the totals for air, water, and

                                    September 1995

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3-52                   The U.S. Environmental Protection Industry

   solid waste into expenditures on labor, depreciation, materials, and services by media. If
   these initial guesses are placed in the matrix with columns representing media and rows
   representing type of expenditure the row and column totals would not necessarily equal the
   row and column totals observed in 1977 and 1982.

       The categories of inputs for the 1977 MA-200 survey are different than the categories for
   the 1979 and 1982 surveys. Specific information is provided on "equipment leasing" in the
   1977 MA-200 survey while "materials, supplies and services" are aggregated into a single
   value. For 1979 and 1982, the two intermediate input categories are 1) materials and supplies
   and 2) services, equipment leasing, and other costs. Because materials, supplies, services
   and equipment leasing are combined into one category ("other") for 1977, it is necessary to
   take the value for "other" and disaggregate it into a materials and supplies component and a
   services and equipment leasing component before applying the programming procedure.
   This disaggregation is accomplished by applying the applying the proportions found in the
   1979 MA-200 survey to the 1977 data.

       It follows that the optimization problem is to choose the new cell values for 1977 and
   1982 to fill the matrix so that the sum of the squared deviations from the initial guess,
   generated by the observed 1979 values, is minimized (see Schneider and Zenios, 1990).
   Mathematically, the constrained nonlinear optimization program is stated:

           , ,.  .  .    v^v^/Ar     77 N2           i  =   a, w, sw
          Minimize  z^,Z^,(^i   ~ Et)
              {£}     '   J                      j  =   L, Dep, M, S
           s.t.
              La + Depa + Ma + Sa   =   a

              w  + Depw + Mw + Sw   =   w
                       + Msw  + Ssw   =   ™
                     La+Lw  + Lsw   =   L

              Depa + Depw + Depsw   =   Dep

                   M+M  + M    =   M
                                  sw
                      ri    ri     ri    	   ri
                      ^a   ^w    ^sw   =   ^

   Nj: is the is the percentage of total expenditures for the i  media and the j  type of
   expenditure in 1979. E- is the estimated percentage of total expenditures for the i  media


                                    September 1995

-------
                     The Environmental Protection Input-Output Tables                3-53

    and the j   type of expenditure in 1977 and 1982. L, Dep, M, and S represent the share of
    total expenditures observed in 1977 and 1982 for labor, depreciation, materials, and services
    while a, w, and sw represent observed share of total expenditures on air, water, and solid
    waste. This programming problem is solved for each manufacturing sector in the input-
    output table.

 7.  The OAQPS example problems include a category  "maintenance material," which is
    assigned to I-O sector 3, repair and maintenance construction. The OAQPS Manual (p. 2-
    26) suggests that materials includes items such as "... oil, other lubricants, duct tape, etc., and
    a host of small tools." For the purposes of this study, these expenses are considered to
    constitute  a type of repair and maintenance construction. With more precise information,
    this material costs component might be more accurately depicted as demand for specific
    items, as opposed to generic "repair and maintenance construction."

 8.  The Radian report looks at two types of FGD systems: dry lime and limestone. The Cost
    and Quality of Fuels for Electric Utility Plants (Department of Energy) reports FGD
    capacity in operation.  According to the MA35J report, electric utilities are the principal
    purchasers of FGD systems.  As a consequence, it may be possible to derive weights for the
    relative importance of lime and limestone units installed at electric utilities and alternatively,
    assume that the expenditure pattern for FGD systems is the weighted average of the lime and
    limestone  FGD systems.

 9.  The Commerce survey "Selected Industrial Air Pollution Control Equipment" (MA35J)
    reports some information on expenditures by specific industries for different types of
    pollution control equipment.  Due to confidentiality considerations, some of the information
    is not published.  For the purposes of this study, it is assumed that the aggregate expenditure
    pattern for the economy is identical for each industry.  Obviously, to the extent that different
    industries  use different types of pollution control equipment, this assumption leads to a
    inaccurate picture of the expenditure pattern for operating costs of air pollution control
    equipment for any particular industry.

10.  The "Water Use in Mineral Industries" survey is also published in the 1982 Census of
    Mineral Industries.  However, the corresponding survey is not published for the 1982 Census
    of Manufacturing. It is assumed that the relative importance of different methods of
    treatment  in 1978 is representative of the distribution of the different methods of treatment in
    1977  and  1982.

11.  Fuel related costs include: operation, fly ash and sulfur removal, and differences in cost of
    environmentally clean fuel.

12.  The Environmental Economics Division at BEA supplied the following information (Gary
    Rutledge letter of June 6, 1994):
                                     September 1995

-------
 3-54                    The U.S. Environmental Protection Industry

                            Fuel Differential for Electric Utilities
                                    (millions of dollars)


                   	1977	1982

                    Private Utility                            $1,377.5

                    Gov't. Utility                             $   100.4

                    TOTAL	$538.4	$1,477.9
13.  These publications also provide data for the following categories:  depreciation expenses;
    labor, maintenance, materials, and supplies; replacement power costs; taxes and fees;
    administrative and general; esthetic  (sic) costs and other.  Since the data are published for
    pollution abatement as a whole, the  categories of costs other than depreciation are not used in
    this study.

14.  Under the heading "fuel related costs" Statistics of Privately Owned Electric Utilities in the
    United States (U.S. Department of Energy 1977) and Financial Statistics of Selected Electric
    Utilities (U.S. Department of Energy 1982) provides information on expenditures by private
    electric utilities for "fly ash and sulphur removal," which represent solid waste services. The
    following compares the DOE values to the values estimated by this study for purchases of
    solid waste management services by electric utilities:

DOE (millions of dollars)
Solid Waste Management Services (I-O 37)
(millions of dollars)
1977
$59.1
$37.4
1982
$134.2
$154.6
    This indicates that use of I-O 37 data to approximate purchases of solid waste management
    services is relatively consistent with DOE estimates.

15.  Data were provided by the Environmental Economics Division at BEA (Gary Rutledge letter
    of June 6, 1994).

16.  The trade and services sector consists of:  wholesale and retail trade, finance and insurance,
    real estate and rental, personal services, and business services.

17.  The communication and other sector consists of:  communication; social services and
    membership organizations; and forestry, fisheries and agricultural services.
                                      September 1995

-------
                      The Environmental Protection Input-Output Tables
3-55
18. The concordance between BEA's nonmanufacturing categories and this study's I-O sectors
    is:
Industry
Mining
Transportation
Public Utilities
Electric
Gas
Trade and services
Wholesale and retail trade
Finance and insurance
Real estate and rental
This
Study
2
25

27
28

29
30
30
BEA I-O
Sector
5-10
65

68
68

69
70
71
Industry
Trade and services
Personal services
Business services
Communication and other
Forestry, fish., & ag. serv.
Construction
Communication
Social services & member, org.

This
Study

31
31

1
o
J
26
31

BEA I-O
Sector

72
73

4
11,12
66,67
77

Trade and services and communication and other are disaggregated using industry output as weights in assigning
pollution abatement expenditures to the various input-output sectors.

19. The values for water pollution abatement for mining derived by using the 1979 MA-200
    expenditure patterns are compared to values reported in the "Water Use Survey," Census of
    Mineral Industries. Census reports the following values for depreciation, labor, materials
    and supplies, and services expenditures associated with water pollution abatement:
Year
1978
1983
The values
Year
1977
1982
Total
200.6
499.0
Depreciation
33.9
113.5
for mining estimated using the
Total
312.5
574.3
Depreciation
40.7
79.2
Labor
44.1
95.2
Materials
79.4
154.7
1979 MA-200 expenditure
Labor
75.5
137.4
Materials
117.6
214.2
Services
43.2
135.5
patterns are:
Services
78.8
143.4
       Thus, the estimated values are higher than the values reported by Census. The Census of
    Mineral Industries reports capital expenditures for water pollution abatement that are 10 to
    90 percent larger than those reported by Environmental Economics Division, BEA (1986).
                                      September 1995

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 3-56                   The U.S. Environmental Protection Industry

    In addition, the Census of Mineral Industries reports the ratio of operating to capital
    expenditures of 0.82 in 1978 and 2.6 in 1983.

20. For 1977 and 1982, the estimates for expenditures for the fuel price penalty, fuel economy
    penalty, and maintenance expenditures are from Environmental Investments: Cost of a Clean
    Environment  (U.S. EPA, 1990). Updated values for the fuel economy penalty for Light
    Duty Vehicles ($2,735 million in 1977 and $764 million in 1982) were obtained from the
    Economic Analysis and Research Branch in EPA's Office of Policy, Planning and
    Evaluation. The BEA price index for EP personal consumption (see Rutledge and Vogan
    1994, pp. 45-47), which was 61.5 in 1977, 94.0 in 1982, and 96.6 in 1986, was used to
    convert the values in 1986 dollars to current dollars.

       For 1977, the following values (in millions of 1986 dollars) were used:
Maintenance Fuel Price Fuel Economy
Expenditure Penalty Penalty
Automobiles
Trucks
Aircraft
Motorcycles
-$354
$50
$0
$0
$384
$60
0
0
$2,735*
$504
0
-$18
            *Updated value obtained from the Economic Analysis and Research
            Branch in EPA's Office of Policy, Planning and Evaluation.

        The above were converted to current dollars by multiplying by .64:
Maintenance
Expenditures
Automobiles
Trucks
Aircraft
Motorcycles
TOTAL
$0.0
$31.9
$0.0
$0.0
$32
Fuel Price Fuel Economy
Penalty Penalty
$244.7
$38.2
$0.0
$0.0
$283.0
$1,743.0
$321.1
$0.0
$0.0
$2,064.1
Total Fuel
Penalty
$1,987.8
$359.4
$0.0
$0.0
$2,347.2
        The negative value for maintenance expenditures in 1977 was treated as zero in the I-O
    table. All EP expenditures for aircraft were assigned to business.  All EP expenditures for
    motorcycles were assigned to households.

                                     September 1995

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                     The Environmental Protection Input-Output Tables               3-5 7

       For 1982, the following values (in millions of 1986 dollars) were used:

Automobiles
Trucks
Aircraft
Motorcycles
Maintenance
Expenditure
-$823
$10
$1
$0
*Updated value obtained from the
Branch in EPA's Office of Policy,
Fuel Price Fuel Economy
Penalty Penalty
$622 $764
$218 $358
$0 -$3
$0 -$42
Economic Analysis and Research
Planning and Evaluation.

*




The above were converted to current dollars by multiplying by 0.97:

Automobiles
Trucks
Aircraft
Motorcycles
TOTAL
Maintenance
Expenditure
$0.0
$9.7
$1.0
$0.0
$0.0
Fuel Price Fuel Economy Total Fuel
Penalty Penalty Penalty
$605.9 $744.2
$212.4 $348.7
$0.0 $0.0
$0.0 $0.0
$818.3 $1,092.9
$1,350.1
$561.1
$0.0
$0.0
$1,911.2
        The negative value for maintenance expenditures in 1982 was treated as zero in the I-O
    table. All EP expenditures for aircraft were assigned to business. All EP expenditures for
    motorcycles were assigned to households.

21. The following values, taken from the Survey of Current Business (U.S. Department of
    Commerce, Bureau of Economic Analysis 1981 and 1983), were used to compute the
    percentages of expenditures for automobiles and truck attributable to personal consumption
    and producers' durable equipment (in billions of current dollars):
                                     September 1995

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 3-55                   The U.S. Environmental Protection Industry


 	1977	1982

  Autos

  Personal Consumption                               44.5                         52.9
  Producers'Durable Equipment                       19.1                         24.9
  Trucks

  Personal Consumption                               11.2                         11.8

  Producers' Durable Equipment	18.3	16.6


       For autos, only new auto purchases are included in the above values.

       In  1982, 68 percent of automobile EP expenditures were assigned to PCE and 32 percent
    were assigned to business.  In 1982, 41.5 percent of truck EP expenditures were assigned to
    PCE and 58.5 percent were assigned to business.

22.  The Belal  (1987) article is one of a series of articles in the Statistics of Income Bulletin., an
    IRS publication that reports quarterly tax collections by type of substance for 11
    petrochemicals and 31 inorganic chemicals. The data reported in these articles and another
    IRS report, Internal Revenue Report of Excise Taxes., are not directly comparable.  Barthold
    (1994) presents a detailed list of existing environmental excise taxes in the United States.

23.  The following values for capital expenditures for mobile source pollution abatement (in
    millions of 1986 dollars) were compiled from EPA data (1990, pp. C-9 through C-18):


    	1977	1982

    Automobiles                            $3,142                           $3,277

    Trucks                                  $385                             $632

    Aircraft                                   $21                              $35

    Motorcycles	$0	$105

    The BEA  price index for EP personal consumption (see Rutledge and Vogan 1994, pp. 45-
    47) which was 61.5 in  1977, 94.0 in 1982, and 96.6 in 1986, was used to convert the values
    in 1986 dollars to current dollars.  The 1977 values were multiplied by 0.64 and the 1982
    values are multiplied by 0.97. This yields the following values for capital expenditures for
    mobile source pollution abatement (in millions of 1977  and  1982 dollars, respectively) that
    were used in the input-output table:

                                     September 1995

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                     The Environmental Protection Input-Output Tables               3-59


    	1977	1982

    Automobiles                          $2,002.4                         $3,192.1

    Trucks                                  $245.4                           $615.6

    Aircraft                                  $13.4                            $34.1

    Motorcycles	$0.0	$102.3


24. Telephone conversation with Gary Rutledge, October 1, 1993.

25. Since all EP capital expenditures related to solid waste are in plant and equipment, it was
    assumed that there are no EP expenditures associated with the remaining components (motor
    vehicle emission abatement, residential systems, and agricultural business).

26. The I-O table value of $5,713 million for government expenditures for sewerage is $694
    million less than the BEA estimate of $6,407 million for government enterprise fixed capital
    - public sewer systems (see Rutledge and Vogan 1994, p. 48) in 1982.  The I-O value of
    $3,131 million for state and local government expenditures for sanitation is $114 million
    more than the BEA estimate (see Rutledge and Vogan 1994, pp. 45 and 48) of $3,433
    million in 1982 ($3,207 million for state and local government and $225 million for federal
    government). The U.S. EPA (1990, p. G-3) reports local government total expenditures for
    solid waste pollution abatement of $4,137 million in 1982.

27. The 1977 use and make I-O tables have minor errors due to merging parts of the 540 sector
    table with the 85 sector table. The original total I-O tables for  1977 and 1982 are presented
    in Appendix C.
                                     September 1995

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                    4. EMPLOYMENT ASSOCIATED WITH THE
                  ENVIRONMENTAL PROTECTION "INDUSTRY"
4.1.    EMPLOYMENT IN EXTERNAL ENVIRONMENTAL PROTECTION ACTIVITIES

       Table 4.1 presents estimates of the number of employees in the external EP activities for
1977 and 1982. Employment in external EP activities is generated by purchases of the output of
these sectors both as intermediate inputs and to satisfy final demand. The following describes
data sources and methods for constructing the estimates.1

4.1.1.  "Environmental"  Water Supply

       Employment in "environmental" water supply was measured as the amount of
employment in private and public water supply attributable to water treatment services.
Employment in private water supply (SIC 494) was taken from County Business Patterns (U.S.
Department of Commerce) and employment in water supply provided by government enterprises
was taken from the Public Employment. Similar to disaggregating output for water supply
sector into environmental and non-environmental components, 12.4 percent of water supply
employment was allocated to water treatment (the environmental component of water supply as
defined by EPA, 1990).

4.1.2.  Sewerage Systems

       It has been assumed that all sewage treatment services are publicly provided so
employment figures were taken from Public Employment.

4.1.3.  Solid Waste Management Services

       Employment in sanitary services (SIC 495) served as an estimate of employment in
private solid waste management services.  This was taken directly from Employment, Hours, and
Earnings, United States, 1909-1990 (U.S. Bureau of Labor Statistics 1991).  SIC 495 also
includes any private sewerage services. However, for the purposes of this report, it was assumed
that employment related to private sewerage services is  zero.
                                   September 1995

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4-2                    The U.S. Environmental Protection Industry

                                      Table 4.1

                       Employment in the External Environmental
                                  Protection Activities

                                (Number of Individuals)


        I-O Sector	1977	1982

         35                                18,724                      19,396

         36                                90,000                     103,000

         37                                41,700                      53,000

        Total                              150,424                     175,396
4.2.    EMPLOYMENT ASSOCIATED WITH INTERNAL ENVIRONMENTAL
       PROTECTION ACTIVITIES

       Employment in internal EP activities consists of employment used directly in pollution
abatement by regulated sectors.  Data on total employment, total payments to labor, and total
payments to labor used in EP activities were obtained for each industry. The MA-200 report
was the source of data for payments to  labor for EP by manufacturing sectors. Payments to
labor for EP by nonmanufacturing sectors were estimated in Chapter 3. Total payments to labor
for both manufacturing and non-manufacturing sectors were obtained from the benchmark I-O
tables.  For each industry, these data were used to calculate the ratio of payments to labor for EP
to total payments to labor.

       For each industry, total employment was multiplied by the EP labor payments-total labor
payments ratio to estimate EP employment. The principal source of employment data was
Employment, Hours and Earnings, United States, 1909-1990 (U.S. Bureau of Labor Statistics,
1991).  This report was supplemented by County Business Patterns (U.S.  Department of
Commerce) and the Statistical Abstract of the United States (U.S. Department of Commerce),
which gives data for the "Agriculture, forestry, and fisheries" sector of the I-O table. The
principal drawback of this approach is that it implicitly assumes that the composition of the labor
force used for EP by an industry is identical to the composition of the labor force used by that
industry for producing its marketable good or service.

       Table 4.2 reports the results of the calculations described above for 1977 and 1982.

                                   September 1995

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Employment in the Environmental Protection Industry               4-3





                    Table 4.2




  Employment in Internal EP Activities by I-O Sector




             (Number of Individuals)
I-O Sector
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
1977
2,289
7,948
667
3,513
202
795
177
1,474
388
4,782
281
10,719
6,518
3,007
206
2,826
11,125
1,610
1,667
1,465
2,074
1,234
1982
154
12,323
536
3,021
175
555
123
1,081
261
4,440
302
10,221
8,844
4,205
107
2,120
9,109
1,504
1,493
1,736
2,339
1,254
                 September 1995

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4-4                    The U.S. Environmental Protection Industry

                                  Table 4.2 (Continued)
I-O Sector
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
TOTAL
1977
984
267
0
209
12,790
1,596
6,415
5,121
3,620
0
0
0
0
0
0
0
0
0
0
95,970
1982
1,439
184
0
173
17,763
2,126
5,642
3,641
3,428
0
0
0
0
0
0
0
0
0
0
100,296
            Note:  Virtually all of the EP employment for I-O sector 2 is
            attributable to the higher cost of low sulfur coal purchased by the
            electric utility sector (I-O 27).  This may bias the estimates upward
            slightly because this higher cost may not represent increased
            purchases of coal.
                                    September 1995

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                  Employment in the Environmental Protection Industry               4-5

4.3.    EMPLOYMENT IN SECTORS WHOSE OUTPUT IS USED SOLELY FOR EP

       Table 4.3 reports estimated employment for the environmental construction sectors and
the industrial air pollution control sector.  The following describes the procedures and data
sources used in constructing the estimates.

4.3.1.  Environmental Construction Sectors

       To estimate employment in the environmental construction sectors, it was assumed that
the average salary  is equal for all types of construction. Employment in each environmental
construction sector was estimated by multiplying total employment in construction by that
environmental construction sector's share of labor expenditures relative to total labor
expenditures by the construction industry. Employment in construction was taken from
Employment, Hours, and Earnings,  United States, 1909-1990 (U.S. Bureau of Labor Statistics
1991). Labor expenditures for construction and the environmental portion of the construction
industry were taken directly from the BEA I-O tables.

       The entire output of New Sewer Facility Construction (I-O 33) is purchased as final
demand and thus, all employees of I-O 33 count as direct EP employment. The output of
maintenance and repair of sewer facilities (I-O 34) is used as an intermediate input by Sewerage
Services (I-O 36).  As  a result,  none of the employees of I-O 34 count as direct EP employment.

4.3.2.  Industrial A ir Pollution Control Equipment

       The industrial  air pollution control equipment industry is a five-digit industry (SIC
35646) and the BLS employment data is reported at the four-digit level. To estimate the number
of employees in the industrial air pollution control equipment industry, it was assumed that SIC
35646 has the same labor-output ratio as SIC 3564 (SIC 3564 is equivalent to BEA I-O sector
49.0300).  Employment in the industrial air pollution control equipment industry was estimated
by multiplying the BLS employment data for SIC 3564 by ratio of shipments of SIC  35646
(taken from the Department of Commerce publication, "Selected Industrial Air Pollution Control
Equipment") to gross  output of SIC 3564 (taken from BEA I-O 49.0300).  Since it has been
assumed that all output of Air Pollution Control Equipment (I-O 38) is purchased for GPFI, all
employees of I-O 38 count as EP employment.

4.4.    EMPLOYMENT TO SUPPORT HOUSEHOLD, INVESTMENT,  AND
       GOVERNMENT EP ACTIVITIES

       Household, investment, and government EP activities were treated together since all of
these activities represent an adjustment to final demand in the EP I-O tables. The procedure for
determining the amount of employment needed to produce the goods and services required for
household, investment, and government EP activities involved calculating the non-EP


                                   September 1995

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4-6                    The U.S. Environmental Protection Industry

employment to output ratio for each industry, using the employment data discussed previously
and gross output data taken directly from U.S. I-O tables. Non-EP employment is simply total
industry employment less employment used directly in EP activities.  The non-EP employment-
output ratio multiplied by the amount of each good and service purchased for EP final demand
(computed by summing across the individual rows of the columns associated with EP final
demand ) yielded an estimate of the amount of non-EP employment for each industry that is
used to produce the goods and services that are purchased for EP final demand. This procedure
avoids double counting employees associated with internal EP activities.

      In addition, a substantial portion  of EP employment falls in the public sector (i.e.,
government industry). This consists of employment associated with state and local government
purchases for:  sanitation, highways, and natural resources. Data on government EP
employment were obtained from Public Employment and were assigned as employment in
government industry (I-O 40). All government employment in sanitation services was classified
as EP employment.  For 1982, employment in highway erosion abatement was estimated by
multiplying the ratio of highway erosion abatement expenditures ($284 million) to total state and
local government purchases for highways (the column sum for I-O sector 99.3001 = $34,083
million) total employment for highways. It was assumed that 20 percent (the percent of
expenditures for natural resources related to EP) of state and local government employment
related to natural resource activities is for EP.  Table 4.3 lists the number of individuals
employed in EP government (I-O 40) for 1977 and 1982.
                                      Table 4.3

                           EP Employment in the Government
                                    Industry Sector

                                (Number of Individuals)
        Final Demand Sector	1977	1982

        Sanitation                          133,000                     116,000

        "Environmental" Highways            5,040                       4,391

        "Environmental" Natural             42,000                      39,000
        Resources

        Total                              180,040                     159,391
                                   September 1995

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                  Employment in the Environmental Protection Industry               4-7

       For I-O sectors 35 through 37, employment attributable to final demand is captured in
the employment in external environmental protection sectors figures in Table 4.1.  Table 4.4
presents estimates for employment to support household, investment, and government EP
activities by I-O sector.

4.5.  SUMMARY

       Table 4.5 provides totals for EP employment in 1977 and 1982. It should be noted that
two key assumptions potentially affect these estimates. First, employment patterns for
environmental protection activities of regulated industries are assumed to mirror the employment
patterns used by the industry to produce its marketable good or service.  Second, employment
estimates associated with the internal environmental protection industry are  only as accurate as
the estimates of the amount of each output from each input-output sector that is purchased for
EP activities.

       The decline in EP employment between 1977 and 1982 can be attributed to two sources.
First, the decline in employment associated with Household, Investment, and Government EP
activities is primarily due to the reduction in employment associated with construction activities
(see I-O sectors 3 and 33 in Table 4.4).  Between 1977 and 1982, there was  a substantial increase
in payments per employee in the construction sector.  Hence in 1982, a given amount of
purchases of construction services generated less employment in the construction sector than in
1977. Second, the decline in Government industry employment is due primarily to a  decline in
sanitation employment (see Table 4.3).
                                    September 1995

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4-8                   The U.S. Environmental Protection Industry
                                      Table 4.4

               Employment Required to Support Household, Investment, and
                              Government EP Activities
(Number of Individuals)
I-O Sector
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
1977
320
9
75,111
8
0
991
150
2
237
121
335
506
448
65
0
10,032
1
13,603
27,619
1982
321
6
49,294
9
0
1,200
172
1
248
75
246
618
1471
22
1
2,762
1
6,747
18,290
                                  September 1995

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Employment in the Environmental Protection Industry               4-9





              Table 4.4 (Continued)
I-O Sector
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
TOTAL
1977
3,626
7,139
294
5,644
152
3,310
213
52
33
3,274
497
1,174
727
80,138
0
0
0
0
16,096
0
0
0
251,925
1982
2,274
25,277
1,535
4,111
183
4,196
235
53
14
4,502
298
11,639
954
52,509
0
0
0
0
15,833
0
0
0
205,098
                 September 1995

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4-10
The U.S. Environmental Protection Industry








               Table 4.5




    Total Employment for EP Activities




         (Number of Individuals)
EP Activity
External
Internal
Household, Investment, and
Government
Government Industry
Total EP
EP Employment as a Percent of
Total Employment
1977
150,424
95,970

251,925
180,040
678,359
.79
1982
175,396
100,296

205,098
159,391
640,181
.69
                                  September 1995

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                 Employment in the Environmental Protection Industry             4-11




                            NOTES FOR CHAPTER 4




1. EPA employment is excluded from the employment figures presented in this chapter.
                                 September 1995

-------
        5. UPDATING THE ENVIRONMENTAL PROTECTION I-O TABLES
       This chapter describes the procedures and data sources used to update the 1982 EP I-O
tables to 1985, 1988, and 1991. Essentially the same data sources used to construct 1982 EP I-O
tables were used for the updates.  The key difference is in the sources used in updating the
estimates for the three external EP activities sectors. For 1982, these sectors were derived from
specific sectors in the 540 sector  benchmark table. Since 1982 is the most recent benchmark I-O
table for the United States available during the time this report was being prepared, alternative
data sources were used.1

5.1. EXTERNAL ENVIRONMENTAL PROTECTION  ACTIVITIES

       Table 5.1 lists updated values for the output of the three external EP sectors. Data
sources and construction procedures are described below.

5.1.1.  "Environmental" Water Supply

       Since exact source of the  data used to estimate the commodity output of I-O 68.0301 in
the 1982 benchmark table is unknown, the following procedure was adopted for purposes of
updating "environmental" water supply.  First, the ratio of commodity output for sector 68.0301
in the 1982 input-output table ($10,778.6 million) to the  revenue of water supply utilities (taken
from Government Finances in 1981-82) in 1982 ($8,597 million) was calculated. This ratio is
multiplied by water supply revenue in  1985, 1988, and 1991 in order to approximate commodity
output for 68.0301. Government Finances was the data source for revenue of water supply
utilities in 1985, 1988, and 1991. It was again assumed that 12.4 percent of water supply
expenditures are for water treatment (i.e., "environmental" water supply).

5.1.2.  Sewerage Services

       BEA (Rutledge and Vogan 1994) was the data source for sewerage services (government
enterprise - public sewer systems).

5.1.3.  Solid Waste Management Services

       BEA (Rutledge and Vogan 1994) was the data source for solid waste management
services.  The BEA value was reduced by the amount of  internal EP activities related to solid
waste pollution abatement, using the same procedure as for the 1982 I-O table.2 The residual
served as the total for the output of solid waste management services.
                                    September 1995

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5-2
The U.S. Environmental Protection Industry
                                       Table 5.1

                  Updated Values for the Output of External EP Activities

                                  (Millions of Dollars)
Sector
"Environmental" Water Supply
Sewerage
Solid Waste
1985
$1,862.4
$6,557.0
$7,089.2
1988
$2,380.9
$8,363.0
$11,391.5
1991
$2,803.7
$11,052.0
$15,049.0
5.2. SECTORS WHOSE OUTPUT CONSISTS SOLELY OF EP PRODUCTS

       Table 5.2 lists updated values the two environmental construction sectors and the
industrial air pollution control equipment sector.  Data sources and construction procedures are
described below.

5.2.1.  Environmental Construction Sectors:  New Sewer System Facilities and Repair and
       Maintenance of Sewer Facilities

       Although BEA (see Rutledge and Vogan 1994) supplies estimates of public sewer
construction, an alternative procedure is followed. The output of new sewer facilities is used
entirely to satisfy various categories of final demand so output was estimated on the basis of the
demand for new sewer facilities construction.

       Government purchases of new sewer facilities were derived from non-EP government
expenditures and various EP government expenditure categories.  The expenditure pattern for
government purchases of new sewer system facilities in 1982 was assumed to hold for 1985,
1988, and 1991. Since the amount of government purchases is published information, this makes
it possible to determine the amount of new sewer facilities construction purchased.

       In  1982, some of the new sewer facility construction output was assigned to GPFI.  This
was updated using total GPFI expenditures and assuming that the 1982 expenditure pattern for
GPFI held for 1985, 1988, and 1991.  The value for GPFI for new sewer facility construction
obtained from this procedure was reduced by the value of residential purchases of new sewer
facilities construction (see Section 5.5.1.).  The residual is the value of GPFI expenditures of
new sewer facilities assigned to business GPFI.

                                   September 1995

-------
                     Updating the Environmental Protection I-O Tables
                                    5-3
                                       Table 5.2

        Updated Values for the Output the Environmental Construction Sectors and the
                     Industrial Air Pollution Control Equipment Sector

                                  (Millions of Dollars)
                                                   1985
                1988
              1991
        New sewer construction

        Repair and maintenance of sewer
        facilities

        Air Pollution Control Equipment
$10,573

 $3,925


   $771
$12,738    $14,223

 $5,006     $6,647
   $550
$818
       The output of repair and maintenance of sewer facilities (I-O 34) was assumed to be
solely used as an intermediate input by the sewerage services sector. It was assumed that the
ratio of the output of repair and maintenance of sewer facilities to sewerage services in 1982
held for 1985, 1988, and 1991.  Multiplying the output of sewerage services by this ratio for
each year yields the estimate of the output of the repair and maintenance of sewer facilities
sector.

5.2.2.  Industrial A ir Pollution Control Equipment

       Shipments from the air pollution control equipment industry (U.S. Dept. of Commerce)
"Selected Industrial Air Pollution Control Equipment" (MA35J) was the source of the updated
values for the output of the industrial air pollution control sector.

5.3. INTERNAL ENVIRONMENTAL PROTECTION ACTIVITIES

5.3.1. Manufacturing Sectors

       "Pollution Abatement and Control Expenditures" (U.S. Department of Commerce,
MA200) was the source of data for internal EP activities in manufacturing sectors. The data are
disaggregated by media (air, water, and solid waste) and by type of cost (labor, depreciation,
materials, and services. Using the same procedure as for 1977 and 1982, the data associated
with each media were further disaggregated into the following components: (1) labor, (2)
depreciation, (3) materials, and (4) services. The same distribution of materials expenditures
was also used.
                                    September 1995

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5-4                     The U.S. Environmental Protection Industry

5.3.2. Non-manufacturing Sectors

       Data for air and water pollution control for "electric utilities" (private and government)
and "mining and other nonmanufacturing" were obtained from BEA Environmental Economics
Division.3 The "mining and other nonmanufacturing" data were allocated to "mining" and
"other nonmanufacturing" using capital stock estimates provided by BEA.  Further
disaggregation of "other nonmanufacturing" was accomplished using data on capital
expenditures for 1981-1985.

       The procedure for disaggregating these expenditures into labor, depreciation, materials,
and services is identical to the procedure used for the 1982 data.  The same procedure applied to
the 1982 data was used to generate estimates of operation and maintenance expenditures for
solid waste.

       Table 5.3 lists the updated values for internal EP activities by nonmanufacturing.

5.3.3. Miscellaneous Internal Environmental Protection Activities

5.3.3.1. Motor Vehicles

       The Survey of Current Business provides data on business and household purchases of
autos and trucks. As for 1982, these values were used as weights in distributing the fuel cost
penalties and capital costs associated with automobile and truck pollution abatement between
households and business.4 Data on EP expenditures associated with automobiles and trucks were
taken from EPA (1990).5  The values assigned for motor vehicle EP expenditures by business
associated with fuel economy and fuel price were $672.1 million in 1985, $750.6 million in
1988, and $94.9 million in 1991. Business motor vehicle maintenance expenditures  are set equal
to zero given its relatively small value (see endnote 5 for the list of household and business
maintenance expenditures).  EP expenditures for aircraft are assumed to be business purchases
and EP expenditures for motorcycles are assigned to households.

5.3.3.2. Environmental  Taxes

       Belal (1987) was the source of environmental excise tax data for 1985. Due to the
expiration of CERCLA, environmental excise tax data were collected for only the first three
quarters of 1985. Mahler (1990) was the source of data for 1988 and Boroshok (1993) was the
source for 1991 environmental excise taxes.  Table 5.4 list the updated environmental tax data.
                                    September 1995

-------
                    Updating the Environmental Protection I-O Tables                  5-5
                                      Table 5.3

              Updated Values for Internal EP Activities by Nonmanufacturing

                                 (Millions of Dollars)

Air
Electric Utilities
Mining
Other Nonmanufacturing
Water
Electric Utilities
Mining
Other Nonmanufacturing
1985

1,036.0
217.5
465.4

207.8
717.9
570.6
1988

1,156.6
279.1
532.2

241.6
982.3
737.0
1991

1,151.6
273.9
527.0

248.1
1,077.1
814.1
Note: The air values for electric utilities excludes the fuel premium, which is $1,220.3
million for 1985, $874.5 million for 1988, and $673.1 million for 1991.
                                   September 1995

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5-6                    The U.S. Environmental Protection Industry

                                      Table 5.4

                              Environmental Excise Taxes

                                  (Millions of Dollars)

Petroleum
Domestic
Imports
Chemicals
Petrochemicals
Inorganic chemicals
Chemicals (imported)
1985
$29.3


$175.8
$139.4
$36.4

1988
$547.6
$250.1
$297.5
$294.3
$241.3
$53.0

1991
$825.0
$434.1
$390.9
$299.6
$237.3
$50.4
$11.9
5.4.    HOUSEHOLD ENVIRONMENTAL PROTECTION ACTIVITIES

5.4.1.  Purchases for the Operation and Maintenance of Septic Systems and Sewer Connections

       BEA (Rutledge and Vogan 1994) was the source of data for household operation and
maintenance expenditures for septic systems and sewer connections. For 1985, 1988, and 1991,
the values were $559 million, $642 million, and $749 million, respectively.

5.4.2.  Purchases for Operation and Maintenance of Motor Vehicles

       EPA (1990) reports data on EP operation and maintenance expenditures for motor
vehicles. All EP  operation and maintenance expenditures for motorcycles were assigned to
households and all EP operation and maintenance expenditures for aircraft were assigned to
business. EP operation and maintenance expenditures for autos and trucks were assigned to
households and business using personal consumption expenditures and producer durable
equipment purchases of autos and trucks as weights.

       The amount assigned to personal consumption expenditures for I-O 13 was $868.3
million in 1985, $1,102.6 million in 1988, and $111.2 million in 1991.


                                   September 1995

-------
                     Updating the Environmental Protection I-O Tables                 5-7

5.4.3.  Purchases of Environmental Protection Equipment on Motor Vehicles

       Data on EP equipment (capital) expenditures on motor vehicles are reported by EPA
(1990).6 Table 5.5 lists the updated values for household expenditures on motor vehicle
pollution abatement equipment. Household maintenance expenditures for motor vehicle EP
operations are assigned to PCE of I-O 31.

5.5.    INVESTMENT ACTIVITIES FOR ENVIRONMENTAL PROTECTION

5.5.1.  Households

       The BEA (see Rutledge and Vogan 1994) reports data on household investment
expenditures for EP. As for the 1977 and  1982 EP I-O tables, one-third of these expenditures
was assigned to I-O 3 and two-thirds were assigned to I-O 33.  Table 5.6 lists the updated values
for household investment in EP.

5.5.2.  Businesses

5.5.2.1.        Production Process

       The BEA (see Rutledge and Vogan 1994) is the source of the data for business plant and
equipment EP expenditures. The expenditure patterns used for the 1977 and  1982 EP I-O tables
were used in the updates. Table 5.7 lists the values used in the updates.7

5.5.2.2.        Motor vehicles and Aircraft

       Table 5.8 lists the mobile source capital expenditure data for EP equipment on motor
vehicles classified as gross  private fixed investment in updating the EP I-O tables (see Section
5.4.2 for further detail).
                                    September 1995

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5-5                    The U.S. Environmental Protection Industry
                                      Table 5.5

          Updated Values for Household Expenditures on Motor Vehicle Pollution
                                Abatement Equipment

                                 (Millions of Dollars)

Automobiles
Trucks
Motorcycles
1985
$3,617.7
$550.8
$91.1
1988
$3,663.4
$752.2
$49.6
1991
$3,352.8
$1,107.3
$61.7
                                      Table 5.6

                Updated Values for Household EP Investment Expenditures

                                 (Millions of Dollars)

I-O3
I-O33
Total
1985
$672.7
$1,345.3
$2,018.0
1988
$524.0
$1,048.0
$1,572.0
1991
$360.3
$720.7
$1,081.0
                                   September 1995

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                   Updating the Environmental Protection I-O Tables                 5-9
                                     Table 5.7
                Updates for EP Investment Activities (Production Process)
                                (Millions of Dollars)

Air
Water
Solid Waste
1985
$3,635
$2,802
$1,611
1988
$3,467
$2,684
$1,890
1991
$5,581
$4,380
$2,520
                                     Table 5.8
              Updated Values for GPFI in EP Equipment on Motor Vehicles
                                (Millions of Dollars)
                                    1985                  1988                  1991
Automobiles                      $1,769.5              $1,820.8              $2,522.0
Trucks                            $787.3                $960.9                $945.2
Aircraft                              $8.2                 $13.7                 $12.8
                                  September 1995

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5-70                   The U.S. Environmental Protection Industry

5.6. GOVERNMENT ENVIRONMENTAL PROTECTION ACTIVITIES

       Table 5.9 reports the updated values for government EP activities. The benchmark I-O
tables were the source for government purchases associated with sewerage (capital account),
water (capital account), and sanitation. Therefore, sources external to the I-O table had to be
used to generate totals for these activities.8 BEA (see Rutledge and Vogan 1994) reports data for
sewerage (government enterprise fixed capital, public sewer systems) and state and local plus
federal highway erosion abatement expenditures. The EPA (1990, p. F-16, col. B) provides the
1985 data for government purchases for water and for 1988 and 1991, Government Finances is
the source. "Environmental" water supply was estimated by multiplying the water supply total
by 0.184. EPA (1990, p. F-7) reports data for government purchases for sanitation for 1985.
For 1988 and 1991, Government Finances is the source. The EPA (1990, p. F-7) reports state
and local expenditures for Natural Resources in 1985 and Government Finances is the source
for 1988 and 1991. "Environmental" natural resources is obtained by multiplying state and local
natural resource expenditures by 0.20.
                                       Table 5.9

                      Updated Values for Government EP Activities

                                  (Millions of Dollars)

Sanitation
Sewerage
EP Highways
EP Water
EP Nat. Resources
1985
$5,212
$7,765
$398
$760.5
$1,671.4
1988
$7,350
$9,918
$493
$1,113.6
$2,047.6
1991
$10,177
$10,653
$541
$1,379.8
$2,515.0
                                   September 1995

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                    Updating the Environmental Protection I-O Tables                5-11

5.7.    IMPLEMENTATION OF THE UPDATE

       To implement the update procedure it was assumed that the structure of the U.S.
economy remained unchanged from 1982.9 Equivalently, it was assumed that all final demand
expenditure patterns and production technologies were constant. The only changes that occur
are in the composition of EP expenditures. Even here, it was assumed that the expenditure
patterns for air, water, and solid waste operation and maintenance materials as well as capital
materials expenditures are unchanged.

5.8.    EMPLOYMENT

5.8.1. Employment in External EP Activities

       Table 5.10 lists employment in the external EP sectors for 1985, 1988, and 1991.
Employment in private water supply (SIC 494) is reported in County Business Patterns.
Employment in "environmental" water supply was estimated as 12.4 percent of private and
public water supply employment. As for 1977 and 1982, all employment in sanitary services
(SIC 495) was counted as employment in EP activities. These data were taken from
Employment, Hours,  and Earnings (U.S. Bureau of Labor Statistics). Public Employment (U.S.
Department of Commerce, various issues) was the source for sewerage services and public water
supply.
                                      Table 5.10

                 Updated Employment Estimates for External EP Activities

                                (Number of Individuals)

"Environmental"
Water Supply
Sanitary Services
Sewerage
1985
20,095
65,600
107,000
1988
21,398
94,000
116,000
1991
22,164
123,000
127,000
                                   September 1995

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5-72                   The U.S. Environmental Protection Industry

5.8.2. Employment in InternalEP Activities

      Employment for most sectors is from Employment, Hours, and Earnings, United States,
1909-1990  (U.S. Bureau of Labor Statistics 1991) and Employment and Earnings 1989-1992,
(U.S. Bureau of Labor Statistics, 1992). The U.S. Statistical Abstract was the source for
"Agriculture, Forestry and Fisheries." Gross output and "compensation of employees" for each
I-O sector for 1985, 1988, and 1991 was estimated by scaling gross output and "compensation of
employees" in 1982 by the increase in  GNP. This information, along with data on payments to
labor used in internal EP activities, was used to update the employment figures using the same
procedure as for 1977 and 1982.

5.8.3. Employment to Support Household, Investment, and Government EP Activities

      The procedure for updating the employment estimates for household, investment, and
government EP activities was essentially the same as for 1977 and 1982. The non-EP
employment to output ratio was computed for each industry, using BLS employment and
updated gross output estimates. The non-EP employment-output ratio was multiplied by the
updated amount of each good and service purchased for EP final demand.

      Public Employment was the source of employment data for sanitation, highways, and
natural resources. All government employment in sanitation  services was classified as EP
employment.  Employment in highway  erosion abatement was estimated by multiplying the ratio
of highway erosion abatement expenditures to total state and  local government purchases for
highways by total employment for highways. It was assumed that 20 percent of state and local
government employment related to natural resource activities is for EP. Table 5.11 reports
updated employment estimates for government EP activities.

5.8.4. Summary of Updated Employment Figures

      Table 5.12 summarizes the updated values for total employment in EP activities.
                                   September 1995

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     Updating the Environmental Protection I-O Tables
5-13
                      Table 5.11




Updated Employment Estimates for Government EP Activities




                (Number of Individuals)

Sanitation
Highways
Natural Resources
1985
113,000
4,853
40,400
1988
114,000
4,899
39,200
1991
114,000
4,699
40,000
                      Table 5.12




  Updated Estimates for Total Employment in EP Activities




                (Number of Individuals)
EP Activity
External
Internal
Household, Investment, and
Government
Government Industry
Total EP
EP Employment as a Percent of
Total Employment
1985
192,695
103,225
204,894
158,253
659,067
.65
1988
231,398
112,430
196,421
158,099
697,348
.64
1991
272,164
104,655
205,668
158,699
741,186
.66
                    September 1995

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5-14                   The U.S. Environmental Protection Industry

                              NOTES FOR CHAPTER 5

1.  The 1987 benchmark table (U.S. Department of Commerce, BEA, 1994)  was published as
   this report was being completed.

2.  The BEA reports the following current account expenditures for solid waste: $8,452.5
   million in  1985, $13,231 million in 1988, and $17,476 million in 1991.

3.  The data on air and water pollution abatement operation and maintenance expenditures by
   nonmanufacturing sectors were provided by Gary Rutledge (letter June 6, 1994).

4.  The following data on household and business purchases of trucks and automobiles (in
   millions of dollars) were used:

Automobiles
Personal Consumption Expenditures
Producers' Durable Equipment
Trucks
Personal Consumption Expenditures
Producers' Durable Equipment
1985
129.9
87.2
42.7
54.9
22.6
32.3
1988
151.5
101.2
50.3
66.5
29.2
37.3
1991
139.3
79.5
59.8
67.1
36.2
30.9
   Source: U.S. Department of Commerce (BEA), 1986, 1989, and 1992.

5.  The following values (in millions of 1986 dollars) were taken from Environmental
   Investments: The Cost of a Clean Environment (U.S. EPA, 1990):


7955 (1986 dollars)
Automobiles
Trucks
Aircraft
Motorcycles

Maintenance
Exp.

-598
22
O
NA

Fuel Price
Penalty

880
335
NA
NA
Fuel
Economy
Penalty

-679*
288
-10
-41
                                   September 1995

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                  Updating the Environmental Protection I-O Tables                 5-15

1988 (1986 dollars)
Automobiles
Trucks
Aircraft
Motorcycles
7997 (1986 dollars)
Automobiles
Trucks
Aircraft
Motorcycles
Maintenance
Exp.

-425
43
6
NA

-490
21
9
NA
Fuel Price
Penalty

1,195
319
NA
NA

0
0
NA
NA
Fuel
Economy
Penalty

-1,063*
241
-20
-46

*
177
-28
-51
 Note: The corrected values for the fuel economy penalty for light duty vehicles (*) were obtained from the
 Economic Analysis and Research Branch in EPA's Office of Policy, Planning and Evaluation.

    The BEA price index for EP personal consumption (see Rutledge and Vogan  1994) was
used to convert the values in 1986 dollars to current dollars.  All negative values were
treated as zero so that the following (in millions of dollars) were used in constructing values
for EP expenditures  for motor vehicles:


1985
Automobiles
Trucks
Aircraft
Motorcycles
TOTAL

Maintenance
Exp.

0.0
22.5
3.1
0.0
$25.6

Fuel Price
Penalty

901.0
343.0
0.0
0.0
$1,243.9
Fuel
Economy
Penalty

0.0
294.9
0.0
0.0
$294.9
                                   September 1995

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5-16                   The U.S. Environmental Protection Industry

1988
Automobiles
Trucks
Aircraft
Motorcycles
TOTAL
1991
Automobiles
Trucks
Aircraft
Motorcycles
TOTAL
Maintenance
Exp.

0.0
45.4
6.3
0.0
$51.7

0.0
24.4
10.5
0.0
$35.0
Fuel Price
Penalty

1,260.6
336.5
0.0
0.0
$1,597.1

0.0
0.0
0.0
0.0
$0.0
Fuel
Economy
Penalty

0.0
254.2
0.0
0.0
$254.2

0.0
206.0
0.0
0.0
$206.0
6.  The following table lists the EPA (1990, pp. C-9 to C-18) data that used to estimate
   expenditures on EP equipment on motor vehicles:
(1986 dollars)
Automobiles
Trucks
Aircraft
Motorcycles
1985
$5,258
$1,307
$8
$89
1988
$5,199
$1,624
$13
$47
1991
$5,049
$1,764
$11
$53
   These were converted to current dollars using the price indexes for EP personal consumption
expenditures (see Rutledge and Vogan 1994):
                                   September 1995

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                     Updating the Environmental Protection I-O Tables                5-17

Automobiles
Trucks
Aircraft
Motorcycles
1985
$5,383.2
$1,338.1
$8.2
$91.1
1988
$5,484.2
$1,713.1
$13.7
$49.6
1991
$5,874.8
$2,052.5
$12.8
$61.7
7.  For 1988, it was necessary to modify the procedure used estimate the goods and services
   purchased as water EP capital expenditures. The amount of purchases of I-O 33 for all gross
   private fixed investment was revised in order to avoid having the amount of purchases of I-O
   33 allocated to water EP capital expenditures exceeding the BEA total for water EP capital
   expenditures by business.

8.  This introduces a discrepancy since all other sectors are scaled in the same proportion during
   the update procedure.

9.  No RAS update of the original 1982 benchmark input-output table was attempted.
                                    September 1995

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                                  6. APPLICATIONS
       This chapter demonstrates presents measures of the size of the EP "industry" and a
modified Leontief multiplier for calculating indirect EP employment. These measures and
indirect employment are computed for the U.S. for  1977, 1982, 1985, 1988, and 1991.  The
chapter concludes with a simplified numerical illustration.

6.1.    DECOMPOSITION OF GROSS OUTPUT INTO EP AND NON-EP ACTIVITIES

       Using I-O concepts and the I-O matrix adjusted for environmental protection activities, it
is possible to  derive a matrix of inputs to EP activities, which is independent of the matrix of
inputs to traditional economic activities.  This is the first step in developing measures for the size
of the EP industry and estimating indirect employment attributable to EP activities.

       In matrix notation, the basic I-O model is described by

 (6.1)            q  =  Aq + Y

where

 (6.2)           A  =  Xq~l

q is the vector of gross output, X is the matrix of inter-industry flows, and Y is the vector of
final demand. A is the matrix of direct intermediate input requirements.  The q""1 matrix is a
diagonal matrix whose elements consist of the reciprocal of industry gross output.

       The vector of gross output requirements for  producing any vector of final demand is
obtained by solving (1) for q1,

 (6.3)            q  =  [I -  A]'1 Y  = BY

I is, of course, the identity matrix.

       The vector of total primary factor demands is
 (6.4)           P  =  TLq


where

 (6.5)            n  =   Vq~l

V is the matrix of primary inputs and II is the matrix of primary input coefficients.

                                    September  1995

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6-2                     The U.S. Environmental Protection Industry
       Schafer and Stahmer (1989) and more recently, Nestor and Pasurka (1995) have shown
that q can be disaggregated into EP and non-EP components as follows:


 (6.6)       q  =   [I - A^Y   =  BY  =  BYe  + Bnjm + BA£Jne


where Bne = I - Ane, with Ane being the matrix non-EP input-output coefficients, Ae is the matrix
of EP input-output coefficients, and Ye and Yne are EP and non-EP final demand respectively.
Equation (6.6) indicates that gross output (q = BY) has three components. The first component,
BYe, is the gross output required to support final demand associated with EP activities. This
output is produced with intermediate inputs used for both EP and non-EP activities. The second
component, BneYne, consists of the gross output required to support non-EP final demand.  The
output is produced with intermediate inputs used for non-environmental protection activities.
The third component, B AeBneYne, measures the output required to support intermediate inputs
used for environmental protection activities. This output includes EP inputs required indirectly
to support non-EP intermediate inputs and final demand.
6.2.    MEASUREMENT OF THE SIZE OF THE EP "INDUSTRY"

       Nestor and Pasurka (1995) propose two alternatives for measuring the size of the EP
"industry." One possible measure is value-added associated with EP activities relative to value-
added for the economy (which is equal to GNP). This comparison is analogous to using value-
added for a specific industry to compute its contribution to GNP or measure its size relative to
the national economy.  The (direct) value-added for EP activities is simply the sum of value-
added for external, internal, household,  investment, and government EP activities. Using IIe,
and IIneto denote the matrices of EP primary inputs, and non-EP primary inputs, respectively,
Nestor and Pasurka (1995) show that direct EP value-added (Pe ) this is given by the expression


        P"   =  K«+1) + TXA?BY\ + [n/; + ne7e H
 (6.7)
                                        + n  7*
                                            ne  e
        *
where Ye  denotes EP final demand excluding purchases of external EP activities while Y(n+1)
denotes external EP activities purchased as final demand.  Aeex and Aem represent the matrix of
direct intermediate input requirements relevant to the external and internal  EP sectors,
respectively.  Note that (6.7) is composed of seven components.  The first component represents
final demand purchases of external EP activities. The second component represents the use of
external EP activities as an intermediate input. The first and  second components, then, are the
value-added associated with external EP activities. The third through sixth components are the


                                    September 1995

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                                     Applications                                  6-3

value-added associated with internal EP activities.  The third and fourth components represent
EP value-added associated with EP and non-EP final demand. The fifth and sixth components
represent EP value-added associated with intermediate inputs used for internal EP activities and
non-EP activities. The seventh component is the non-EP value-added required to support
household, investment and government EP activities.

       As an alternative measure, one might want to compute the total share of GNP required to
support EP activities. Nestor and Pasurka (1995) derive such a measure.  This measures is the
primary inputs (value-added) used directly and indirectly in EP activities (Pe + ) and is given as

 (6.8)           Pf  =   VBY.  + KBABnYne
6.3.    INDIRECT EMPLOYMENT REQUIRED TO SUPPORT EP ACTIVITIES

       It is also possible to use the EP I-O tables to compute indirect employment in EP
activities. Using (6.7), the formula for computing direct employment associated with EP
activities (Le ) is

                       i'A?BY] n
 (6.9)
                                          + /'7*
                                             ne  e

1 denotes the vector of labor-output ratios, with le being for EP activities and lne being for non-
EP activities.

       Using (6.8), the formula for computing direct plus indirect employment associated with
EP activities (Le(d+I)) is

 (6.10)           L™  =   l'BYe  + l'BABnYne +l'e BnYne
                                    September 1995

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    6-4                   The U.S. Environmental Protection Industry

    6.4.   ESTIMATES OF THE SIZE OF THE EP INDUSTRY AND INDIRECT
          EMPLOYMENT ASSOCIATED WITH EP ACTIVITIES

          Equations 6.7, 6.8, 6.9 and 6.10 were used to measure EP activities relative to GNP well
    as well as compute direct employment and direct plus indirect employment for 1982, 1985,
    1988, and 1991. The results of these computations are presented in Table 6.1.
                                      Table 6.1

                Measures of EP Employment and the Size of the EP Industry
Measure	1977	1982	1985	1988	1991

Direct Employment             678,359      640,181    659,067      698,348     741,186
(Number of Individuals)

      As a Percent of Total         0.79         0.69       0.65         0.64        0.66
      Employment

Direct + Indirect               1,267,082    1,433,502  1,591,940    1,796,027   1,965,818
Employment
(Number of Individuals)

      As a Percent of Total         1.48         1.54       1.58         1.65        1.76
      Employment

Direct Value-Added            14,124.9     20,593.1   28,692.2     37,754.5   46,646.6
(Millions of Dollars)

      As a Percent of GNP         0.71         0.64       0.68         0.74        0.80

Direct + Indirect Value-        30,436.4     50,802.5   72,404.1     96,766.0   121,625.2
Added (Millions of Dollars)

      As a Percent of GNP         1.53         1.58       1.74         1.93        2.12
                                      September 1995

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                                      Applications
6-5
6.5.    NUMERICAL EXAMPLE

       To illustrate the EP I-O concepts, this section works through a numerical example using
a hypothetical three sector I-O table. Sectors 1 and 2 undertake internal EP activities and
purchase external EP services from the third sector, which is the external EP services sector.  For
simplicity of exposition, we assume: (1) the external EP services sector does not undertake
internal EP activities, (2) the external EP services sector does not use its own output as an
intermediate input in its production process, and (3) there are no environmental  excise taxes.
Also, to make the hypothetical I-O table comparable to the U.S. I-O table, intermediate inputs
and domestic absorption (consumption + investment + government expenditures, or C+I+G)
consist of both domestically produced and imported products.  Table 6.2 is the total I-O table
which embodies EP activities and corresponds to Figure 2.4a in Chapter 2.  Note that X3 3
(X(n+1)(n+1) in Figure 2.4a) equals zero, reflecting the assumption that the external EP services
sector does not use its own output as an intermediate input in its production process. In this
example, GNPis295.
                                        Table 6.2

                                     Total I-O Table

1
2
3
Int.
Inputs
Labor
Capital
IBT
Output
1 2 3
95 70 60
80 30 20
40 10 0
215 110 80
115 50 10
55 25 10
15 15 0
400 200 100
Int.
Inputs
225
130
50
C+I+G Exports Imports
171 70 66
90 40 60
50 0 0
Total
Uses
400
200
100



                                    September 1995

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6-6
The U.S. Environmental Protection Industry
       Table 6.3, which corresponds to Figure 2.3b in Chapter 2, shows the purchases of all
products used in EP activities for the example. Table 6.3 excludes the inputs purchased by the
external EP services sector since these inputs represent do not represent direct purchases for EP.
Internal EP activities are represented by sector 1 and 2 purchases from sectors 1 and 2 and the
use of primary inputs for EP.  External EP activities are represented by sector 1 and 2 purchases
from sector 3. Household, government, and investment activities for EP are all represented by
the entries in the C+I+G column.  Total EP expenditures in this economy are 300 and are greater
than GNP.

       Table 6.4 corresponds to Figure 2.5 in Chapter 2 and shows the total I-O table with
internal EP activities externalized to the external EP sector.  Table 6.4 is constructed  by
subtracting inputs associated with internal EP activities from the corresponding I-O cell values
of Table 6.1.  Both the row and column sum associated with each sector's internal EP activities
are added to the external EP sector.  Equivalently, the cost of a sector's internal EP activities is
added to the cost of purchased external EP services.  Also, the amount of each intermediate input
plus primary  inputs used in internal activities is added to the inputs purchased by the  external EP
services sector. Note that  the externalization procedure results in an increase in gross output in
the external EP sector but  leaves GNP unaffected.
                                         Table 6.:
                                EP Expenditures I-O Table


1
2
O
Int. Inputs
Labor
Capital
IBT
Output

1 2 3
40 40 0
50 10 0
40 10 0
130 60 0
11.5 5 0
3.5 10 0
000
145 75 0
Int.
Inputs
80
60
50

C+I+G Exports Imports
20 0 10
10 0 5
50 0 0
Total
Uses
90
65
100





                                     September 1995

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                                      Applications
6-7
                                        Table 6.4
                   Total I-O Table with Internal EP Activities Externalized

1
2
3
Int. Inputs
Labor
Capital
IBT
Output
1 2 3
55 30 140
30 20 80
145 75 0
230 125 220
103.5 45 26.5
51.5 15 23.5
15 15 0
400 200 270
Int.
Inputs
225
130
220
C+I+G Exports Imports
171 70 66
90 40 60
50 0 0
Total
Uses
400
200
270



        It is relatively easy to obtain the matrix of total direct intermediate input requirements
(A),the matrix of direct EP input requirements (Ae), the matrix of direct non-EP input
requirements (Ane), the matrix of total primary input coefficients (II), the matrix of EP primary
input coefficients (IIe), and the matrix of non-EP primary input coefficients (IIne) as shown
below.
       A =
       Ae =
0.2375


0.2
0.1
0.35
0.15
0.05
0.6
0.2
0.0


0

0.1
.125
0.1
0.2
0.05
0.05
0.0
0.0
0.0
                                     September 1995

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6-8
The U.S. Environmental Protection Industry
                  Ae
        n =
       nne = n-ne =
0.1375
0.075
0
0.15
0.1
0
0.6
0.2
0

0.2875
0.1375
0.0375
0.25
0.125
0.075
0.1
0.1
0

0.02875
0.00875
0.0
0.025
0.05
0.0
0.0
0.0
0.0

0.25875
0.12875
0.0375
0.225
0.075
0.075
0.1
0.1
0
        Furthermore, it is possible to disaggregate Ae into input coefficients pertaining to

external EP activities (Aeex ) and input coefficients pertaining to internal EP activities (Ae'n ).
   A     A ext    . int
   Ae  = Ae   + Ae
0.0
0.0
0.1
0.0
0.0
0.05
0.0
0.0
0.0
0.1
0.125
0.0
0.2
0.05
0.0
0.0
0.0
0.0
                                     September 1995

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It follows that
and
       B = [I - A]
                 -i
       Bne = [I - Ane]
                    .1
                                     Applications
6-9
1.6584
0.4344
0.1876
0.7502
1.3870
0.1444
1.1451
0.5380
1.1414

1.1765
0.0980
0.0
0.1961
1.1275
0.0
0.7451
0.2843
1.0
        Final demand (Y) is equal to domestic absorption (C+I+G) plus exports (X) less imports
(M). Y can be disaggregated into the component that pertains directly to EP (Ye) and the
component that does not pertain to EP (Yne). For this example,
                            Y  =
                             -1 ne
10
5
50

+

165
65
0
        Ye can be further disaggregated into final purchases of external EP activities
and final purchases of products other than external EP activities for purposes of EP (Ye  )
                     Y = Y    + Y  =
                      1 e   1 (n+l)   1 e
0
0
50

+

10
5
0
        Using equation 6.6, gross output in the hypothetical economy is disaggregated into EP
and non-EP components as follows.
                                    September 1995

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6-10

X=[I-
                        The U.S. Environmental Protection Industry
               BY = BYe + Bne Yne + BAeBneYne
77.5913
38.1787
59.6681

+

206.8627
89.4608
0

+

115.5459
72.3605
40.3319
        The seven components of direct value-added are (see equation 6.7):
Ped =
               HAeeXtBY]
                                   HeYne
nneYe*
                                                                    6.3688

                                                                    4.6938

                                                                    0.0
The first component represents final demand purchases of external EP activities. The second
component represents the use of external EP activities as an intermediate input. The first and
second components, then, are the value-added associated with external EP activities.  The third
through sixth components are the value-added associated with internal EP activities. The third
and fourth components represent EP value-added associated with EP and non-EP final demand.
The fifth and sixth components represent EP value-added associated with intermediate inputs
used for internal EP activities and non-EP activities. The seventh component is the non-EP
value-added required to support household, investment and government EP activities.
                                    September 1995

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                                     Applications
                                                       6-11
         It follows that
         According to equation 6.8, total value-added (direct plus indirect) for EP consists of
three components

Pe(d+I) = HBYe + IlBAeBneYne + IIeBneYne
37.8190
21.4079
5.7731

+

55.3428
28.9658
9.7600

+

8.1838
6.2831
0.0
         Thus, for the example
               d+I
Labor

Capital

IBT
101.3456

 56.6569

 15.5331
         Table 6.5 gives employment and the employment-output ratio for each of the three
sectors in the economy.  Table 6.6 corresponds to equation 6.9 and shows how direct EP
employment is computed. Table 6.7, which corresponds to equation 6.10,  shows how direct plus
indirect employment is calculated. In Table 6.6, the sum of the first two components is the
employment associated with external EP activities. The sum of the second through sixth
components is the employment associated with internal EP activities, and the seventh component
is the employment requirement for household, government, and investment EP activities.
                                   September 1995

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6-12                  The U.S. Environmental Protection Industry





                                  Table 6.5




           Employment and Employment-Output Ratios for the Example
Industry Total Employment Non-EP
Employment in Internal EP Employment 1
1 20 2
2 5 0.5
3 1 0
18 0.050
4.5 0.025
1 0.010
1, U
0.005 0.045
0.0025 0.0225
0.000 0.0100
Table 6.6
Components of Direct
Employment
Component
l'AeextBY
c
VY;
le'AneBY
*
lne'Ye
Total (Lpd )
Amount of
Employment
0.5000
0.5000
0.0625
0.9875
0.5500
0.9000
0.5625
4.0625

                                 September 1995

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           Applications                                6-13

            Table 6.7
 Components of Direct plus Indirect
           Employment
                       Amount of
Component	Employment
l'BYe                      5.4307
!'BAeBneYne                7.9896
l'eBneYne                   1.2580
Total (Lp(d+I))	14.6783
         September 1995

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6-14                   The U.S. Environmental Protection Industry




                              NOTES FOR CHAPTER 6




1.  See Appendix D for a discussion of the derivation of the total requirements matrix.
                                  September 1995

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                                  7. REFERENCES
American Society of Civil Engineers and American Waterworks Association (1990), Water
Treatment Plant Design, McGraw-Hill Publishing Co.: New York.

Barthold, Thomas A.  (1994), "Issues in the Design of Environmental Excise Taxes," The
Journal of Economic Perspectives, 8, No. 1 (Winter), 133-151.

Belal, Rashida (1987), "Environmental Taxes, 1981-85," Statistics of Income Bulletin, 6, No. 4
(Spring), 51-58.

Boroshok, Sara (1993), "Environmental Excise Taxes, 1991," Statistics of Income Bulletin, 13,
No. 1 (Summer), 44-54.

Business Publishers, Inc. (1991), World Environmental Directory, 6th edition, Pittsburgh, PA:
Business Publishers, Inc.

DeRenzo, DJ. (1978), Unit Operations for Treatment of Hazardous Industrial Wastes, Park
Ridge, NJ: Noyes Data Corp.

Environmental Business Publishing, Inc. (1994), "Foundation for the Future," Environmental
Business Journal, 7, No. 4 (April).

Environmental Economics Division, Bureau of Economic Analysis (1986), "Plant and
Equipment Expenditures by Business for Pollution Abatement," Survey of Current Business, 66,
No. 2 (February), 39-45.

Farber, Kitt D. and  Gary Rutledge (1989), "Pollution Abatement and Control Expenditures:
Methods and Sources for Current-Dollar Estimates," mimeograph.

Gunerman, Robert C., Bruce E. Burris, and Sigurd P. Hansen (1986), Small Water System
Treatment Costs, Park Ridge, New Jersey: Noyes Data Corporation.

Ketkar, Kusum (1980), "Some Allocation and Distribution Effects of Pollution Abatement
Expenditures in the United States," Ph.D. dissertation, Vanderbilt University, 1980.

Ketkar, Kusum (1983 a), "Pollution Control and Inputs to Production," Journal of Environmental
Economics and Management, 10, No. 1, 50-59.

Ketkar, Kusum (1983b), "The Allocation and Distribution Effects of Pollution Abatement
Expenditures on the U.S. Economy," Resources and Energy, 5, 261-283.
                                   September 1995

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R-2                    The U.S. Environmental Protection Industry

Ketkar, Kusum (1984), "Pollution Control Policies and the Structure of the U.S. Economy,"
Applied Economics., 16, No. 2, 237-256.

Mahler, Susan J. (1990), "Environmental Excise Taxes, 1988," Statistics of Income Bulletin., 10,
No. 2 (Fall), 59-64.

Nestor, Deborah Vaughn and Carl Pasurka (1995), "Environment-Economic Accounting and
Indicators of the Importance of Environmental Protection Activities," Review of Income and
Wealth, 41, No. 3 (September), 265-287.

Office of Management and Budget (1987), Standard Industrial Classification Manual: 1987,
Springfield, VA: National Technical Information Service.

Radian Corporation (1982a), Acid Rain Mitigation Study: Volume I. FGD Cost Estimates
(Technical Report), EPA-600/2-82-070a, Springfield, VA: National Technical Information
Service.

Radian Corporation (1982b), Acid Rain Mitigation Study: Volume II. FGD Cost Estimates
(Appendices), EPA-600/2-82-070b, Springfield, VA: National Technical Information Service.

Ritz, Philip M. (1980), Definitions and Conventions of the 1972 Input-Output Study, Bureau of
Economic Analysis Staff Paper, No. 34, Springfield, VA: National Technical Information
Service.

Rutledge, Gary and Christine Vogan (1994), "Pollution Abatement and Control Expenditures,
1972-92," Survey of Current Business, 74, No. 5 (May), 36-49.

Schafer, Dieter and Carsten Stahmer (1989), "Input-Output Model for the Analysis of
Environmental Protection Activities," Economic Systems Research,  1, No. 2, 203-228.

Schneider, Michael H. and Stravos A. Zenios (1990), "A Comparative Study of Algorithms for
Matrix Balancing," Operations Research, 38, No.  3 (May-June), 439-455.

United Nations, Department of Economic and Social Development,  Statistical Division (1993),
Handbook of National Accounting: Integrated Environmental and Economic Accounting,
Interim Version, Studies in Methods, Series F, No. 61.

U.S. Congress, Office of Technology Assessment (1994), Industry, Technology, and the
Environment: Competitive Challenges and Business Opportunities, OTA-ITE-586, Washington,
DC: U.S. Government Printing Office.
                                    September 1995

-------
                                     References                                 R-3

U.S. Department of Commerce (various issues), County Business Patterns., Washington, D.C.:
U.S. GPO.

U.S. Department of Commerce (various issues), Statistical Abstract of the United States,
Washington, D.C.: U.S. GPO.

U.S. Department of Commerce, Bureau of Economic Analysis (1981), "National Income and
Product Accounts, 1976-79," Survey of Current Business, 61, Special Supplement (July).

U.S. Department of Commerce, Bureau of Economic Analysis (1983), "National Income and
Product Accounts Tables," Survey of Current Business, 63, No. 7 (July), 20-100.

U.S. Department of Commerce, Bureau of Economic Analysis (1984), "Benchmark Input-
Output Accounts for the U.S. Economy, 1977," Survey of Current Business, 64, No. 5, 42-84.

U.S. Department of Commerce, Bureau of Economic Analysis (1986), "National Income and
Product Account Tables," Survey of Current Business, 66, No. 7 (July), 24-92.

U.S. Department of Commerce, Bureau of Economic Analysis (1989), "National Income and
Product Account Tables," Survey of Current Business, 69, No. 6 (June), 3-17.

U.S. Department of Commerce, Bureau of Economic Analysis (1991), "Benchmark Input-
Output Accounts for the U.S. Economy, 1982," Survey of Current Business, 71, No. 7, 30-71.

U.S. Department of Commerce, Bureau of Economic Analysis (1992), "National Income and
Product Accounts," Survey of Current Business, 72, No. 12 (December), 4-37.

U.S. Department of Commerce, Bureau of Economic Analysis (1994), "Benchmark Input-
Output Accounts for the U.S. Economy," Survey of Current Business, 74, No. 4 (April), 73-115.

U.S. Department of Commerce, Bureau of the Census (1979), 7977 Census of Manufactures,
Washington, D.C.: U.S. Government Printing Office.

U.S. Department of Commerce, Bureau of the Census (1984), 1982 Census of Manufactures,
Washington, D.C.: U.S. Government Printing Office.

U.S. Department of Commerce, Bureau of the Census (1981), 7977 Census of Mineral
Industries, Washington, D.C.: U.S. Government.

U.S. Department of Commerce, Bureau of the Census (1986), 7952 Census of Mineral
Industries, Washington, D.C.: U.S. Government.
                                   September 1995

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R-4                    The U.S. Environmental Protection Industry

U.S. Department of Commerce, Bureau of the Census (various issues), "Pollution Abatement
and Control Expenditures," Current Industrial Reports, MA200, Washington, D.C.: U.S.
Government Printing Office.

U.S. Department of Commerce, Bureau of the Census (various issues), "Selected Industrial Air
Pollution Control Equipment," Current Industrial Reports, MA35J, Washington, D.C.: U.S.
Government Printing Office.

U.S. Department of Commerce, Bureau of the Census (various issues), Government Finances,
Washington, D.C.: U.S. Government Printing Office.

U.S. Department of Commerce, Bureau of the Census (1978), Public Employment in 1977,
Washington, D.C.: U.S. Government Printing Office.

U.S. Department of Commerce, Bureau of the Census (1983), Public Employment in 1982,
Washington, D.C.: U.S. Government Printing Office.

U.S. Department of Commerce, Bureau of the Census (1986), Public Employment in 1985,
Washington, D.C.: U.S. Government Printing Office.

U.S. Department of Commerce, Bureau of the Census (1989), Public Employment in 1988,
Washington, D.C.: U.S. Government Printing Office.

U.S. Department of Commerce, Bureau of the Census (1992), Public Employment in 1991,
Washington, D.C.: U.S. Government Printing Office.

U.S. Department of Energy (various issues), Cost and Quality of Fuels for Electric Utility
Plants, Washington, D.C.: U.S. GPO.

U.S. Department of Energy (1979), Statistics of Privately Owned Electric Utilities in the United
States, 1977, Washington, D.C.: U.S. GPO.

U.S. Department of Energy (various issues), Financial Statistics of Selected Electric Utilities,
Washington, D.C.: U.S. GPO.

U.S. Department of Labor, Bureau of Labor Statistics (1991), Employment, Hours, and
Earnings, United States, 1909-1990, Washington, D.C.: U.S. GPO.

U.S. Department of Labor, Bureau of Labor Statistics (1993), Employment and Earnings, 1989-
1992, Washington, D.C.: U.S. GPO.
                                   September 1995

-------
                                     References                                   R-5

U.S. Environmental Protection Agency (1984), Development Document for Effluent Guidelines
and Standards for the Nonferrous Metals Forming andiron and Steel/Copper/Aluminum Metal
Powder Production and Powder Metallurgy Point Source Category, Washington, D.C.

U.S. Environmental Protection Agency (1990), OAQPS Control Cost Manual, mimeograph.

U.S. Environmental Protection Agency (1990), Environmental Investments: The Cost of a Clean
Environment, Springfield, VA: National Technical Information Service.

U.S. Environmental Protection Agency (1993), International Trade in Environmental Protection
Equipment, Washington, D.C.

U.S. Internal Revenue Services (various issues), Internal Revenue Report of Excise Taxes,
Washington, D.C.: U.S. Government Printing Office.
                                   September 1995

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          APPENDIX A.   CONCORDANCE OF INPUT-OUTPUT SECTORS
  Concordance Between Environmental Protection Industry and BEA Input-Output Sectors

 EP Industry I-O Sector    BEA I-O Sector1	Description	
 1                                           Agriculture, forestry, and fisheries
                         01                   Livestock and livestock products
                         02                   Other agricultural products
                         03                   Forestry and fishery products
                         04                   Agricultural, forestry and fishery
                                              services
 2                                           Mining
                         05                   Iron and feroalloy mining
                         06                   Nonferrous metal mining
                         07                   Coal mining
                         08                   Crude petroleum and natural gas
                         09                   Stone and clay mining
                         10                   Chemical  and fertilizer mining
 3                                           Construction
                         11                   New construction
                                              (exclude:  11.0307—New sewer system
                                              facilities)
                         12                   Maintenance and repair construction
                                              (exclude:  12.0209—Maintenance and
                                              repair of sewer system facilities)
 4                                           Food and kindred products
	14	Food and kindred products	
                                   September 1995

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A-2                    The U.S. Environmental Protection Industry

   Concordance Between Environmental Protection Industry and BEA Input-Output Sectors
                                     (Continued)

 EP Industry I-O Sector    BEA I-O Sector1	Description	
 5                                           Tobacco manufactures
                         15                    Tobacco manufactures
 6                                           Textile mill products
                         16                   Broad and narrow fabrics, yarn and
                                              thread mills
                         17                   Miscellaneous textiles and floor
                                              coverings
 7                                           Apparel and other textile products
                         18                   Apparel
                         19                   Miscellaneous fabricated textile
                                              products
 8                                           Lumber and wood products
                         20                   Lumber and wood products, except
                                              containers
                         21                   Wood containers
 9                                           Furniture and fixtures
                         22                   Household furniture
                         23                   Other furniture and fixtures
 10                                          Paper and allied products
                         24                   Paper and allied products, except
                                               containers
                         25                   Paperboard containers and boxes
 11                                          Printing and publishing
	26	Printing and publishing	
                                   September 1995

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                         Concordance of Input-Output Sectors                       A-3

  Concordance Between Environmental Protection Industry and BEA Input-Output Sectors
	(Continued)	
 EP Industry I-O Sector    BEA I-O Sector1	Description	
 12                                           Chemicals and allied products
                         27                   Chemicals and selected chemical
                                              products
                         29                   Drugs, cleaning and toilet preparations
                         30                   Paints and allied products
 13                                           Petroleum refining
                         31                   Petroleum refining
 14                                           Rubber and plastic products
                         28                   Plastics and synthetic materials
                         32                   Rubber and miscellaneous plastic
                                              products
 15                                           Leather and leather products
                         33                   Leather tanning and finishing
                         34                   Footwear and other leather products
 16                                           Stone, clay and glass products
                         35                   Glass and glass products
                         36                   Stone and clay products
 17                                           Primary metals
                         37                   Primary iron and steel
                         38                   Primary nonferrous metals
 18                                           Fabricated metal products
                         39                   Metal containers
                         40                   Heating, plumbing and fabricated
                                              structural metal
                         41                   Screw machine products  and stampings
	42	Other fabricated metal products	

                                   September 1995

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A-4                    The U.S. Environmental Protection Industry

   Concordance Between Environmental Protection Industry and BEA Input-Output Sectors
	(Continued)	
 EP Industry I-O Sector    BEA I-O Sector1	Description	
 19                                          Machinery, except electrical
                         43                   Engines and turbines
                         44                   Farm and garden machinery
                         45                   Construction and mining equipment
                         46                   Materials and handling machinery
                         47                   Metal working machinery
                         48                   Special industry machinery
                         49                   General industry machinery
                                              (exclude "environmental" component
                                              of 49.0300-Blowers and Fans)
                         50                   Miscellaneous machinery, except
                                              electrical
                         51                   Office, computing and accounting
                                              machines
                         52                   Service industry machines
 20                                          Electrical machinery
                         53                   Electrical industrial equipment
                         54                   Household appliances
                         55                   Electrical lighting and wiring
                                              equipment
                         56                   Radio, TV and communication
                                              equipment
                         57                   Electronic components and accessories
                         58                   Miscellaneous electrical machinery and
                                              supplies

 21                                          Motor vehicles
	59	Motor vehicles and equipment	
                                   September 1995

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                          Concordance of Input-Output Sectors                       A-5

   Concordance Between Environmental Protection Industry and BEA Input-Output Sectors
	(Continued)	
 EP Industry I-O Sector    BEA I-O Sector1	Description	
 22                                          Other transportation equipment
                         13                    Ordnance and accessories
                         60                    Aircraft and parts
                         61                    Other transportation equipment
 23                                          Instruments
                         62                    Scientific and controlling instruments
                         63                    Optical, ophthalmic and photographic
                                               equipment
 24                                          Miscellaneous manufacturing
                         64                    Miscellaneous manufacturing
 25                                          Transportation and warehousing
                         65                    Transportation and warehousing
 26                                          Communication
                         66                    Communications, except radio and TV
                         67                    Radio and TV broadcasting
 27                                          Electric utilities
                         68.0100               Electric utilities
                         78.0200               Federal electric utilities
                         79.0200               State and local electric utilities
 28                                          Gas utilities
                         68.0200               Gas production and distribution
                                               utilities
 29                                          Trade
                         69                    Wholesale trade
	74	Eating and drinking places	

                                   September 1995

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A-6                    The U.S. Environmental Protection Industry

   Concordance Between Environmental Protection Industry and BEA Input-Output Sectors
	(Continued)	
 EP Industry I-O Sector    BEA I-O Sector1	Description	
 30                                          Finance, insurance and real estate
                          70                   Finance and insurance
                          71                   Real estate and rental
 31                                          Other services
                          68.0301               Water supply and sewerage systems
                                               ("nonenvironmental")
                          68.0302               Steam supply and irrigation systems
                                               ("nonenvironmental")
                          72                   Hotels, personal and repair services
                          73                   Business services
                          75                   Automobile repair and services
                          76                   Amusements
                          77                   Health, education, social services,
                                               nonprofit organizations
 32                                          Government enterprises
                          78.0100               U.S. postal services
                          78.0300               Commodity credit corporation
                          78.0400               Other federal government enterprises
                          79.0100               Local government passenger transit
                          79.0300               Other state and local government
                                               services ("nonenvironmental")
 33                                          New sewer system facilities
                          11.0307               New sewer system facilities
 34                                          Maintenance and  repair of sewer system
                                             facilities
                          12.0210               Maintenance and repair of sewer
	system facilities	

                                    September 1995

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                         Concordance of Input-Output Sectors                      A-7
  Concordance Between Environmental Protection Industry and BEA Input-Output Sectors
                                   (Continued)

 EP Industry I-O Sector    BEA I-O Sector1	Description	
 35                                         Water supply ("environmental")
                        68.0301              Water supply and sewerage systems
                                             ("environmental")
 36                                         Sewerage systems
                        79.0300              Other state and local government
                                             services ("environmental")
 37                                         Solid Waste Management
                        68.0302              Sanitary services ("environmental")
 38                                         Selected industrial air pollution control
                                           equipment
                        49.0300              Blowers and fans ("environmental")
 39                                         Noncomparable imports and scrap
                        80                   Noncomparable imports
                        81                   Scrap, used and secondhand goods
 40                                         Government industry
                        82                   Government industry
 41                                         Other industry
                        83                   Rest of the world industry
                        84                   Household industry
	85	Inventory valuation adjustment	
 1 From "The Use of Commodities by Industries" table.
                                  September 1995

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          APPENDIX B.   CONSTRUCTION OF EXPENDITURE PATTERNS
         This appendix outlines, in detail, the procedure for constructing the expenditure
patterns for air, water, and solid waste pollution abatement.  More specifically, it derives the
proportions that were applied to the "materials and supplies" component of both operation and
maintenance and capital costs and in order to allocate these components to specific I-O
categories. First, the derivation of the expenditure patterns for the materials component of
operation and maintenance costs is presented for air, water, and solid waste,  respectively.
Second, the expenditure patterns for the materials component of capital expenditures for air,
water, and solid waste pollution abatement are derived.

MATERIALS COMPONENT OF OPERATION AND MAINTENANCE EXPENDITURES

Air

         "Materials and supplies" expenditure patterns for five types of air pollution control
equipment (thermal incinerators, fluid-bed catalytic incinerators fabric, filter systems,
electrostatic precipitators, and flue gas desulfurization systems) were estimated on the basis of
available engineering studies. For thermal incinerators, fluid-bed catalytic incinerators fabric,
filter systems,  electrostatic precipitators, the OAQPS Control Cost Manual (U.S. EPA, 1990)
was the source. For flue gas desulfurization systems, information assembled by the Radian
Corporation (1982a, 1982b) was the source.  Tables B.I through B.5 present the expenditure
patterns obtained from these studies.

         The five expenditure patterns were aggregated to form an  overall expenditure pattern
for the materials component of operating costs. To aggregate across the specific abatement
technologies, weights were assigned to each technology according to the proportion of the value
of each type of technology in total shipments of air pollution control equipment.  The data on the
value shipments of air pollution control  equipment were taken from the Department of
Commerce publication, "Selected Industrial  Air Pollution Control Equipment (MA-35J)."  The
MA-35J gives values for shipments of technologies other than the five that were used for
constructing the air expenditure pattern. These other types of technologies were ignored for the
purposes of computing the weights. Thermal incinerators, fluid-bed catalytic incinerators, fabric
filters, electrostatic precipitators, and  flue gas desulfurization equipment represent about 84
percent of the total value of shipments of air pollution control  equipment in  1977 and about 85
percent in 1982. Table B.6 presents the weights that were used in the aggregation of the specific
expenditure patterns.
                                    September 1995

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B-2                    The U.S. Environmental Protection Industry
                                       Table B.I

               Distribution of Materials and Supplies Operating Expenditures
                                for Thermal Incinerators
Item
Maintenance material
Utilities - natural gas
Utilities - electricity
Insurance
Item
Cost
$7,130
264,500
35,000
4.830
Assigned
I-O Sector
3
28
27
30
Share in
Total Cost1
0.023
0.849
0.112
0.016
 Source: OAQPS Control Cost Manual (U.S. EPA, 1990)
 1 "Total Cost" excludes expenditures for labor, capital recovery (depreciation), and services.
                                       Table B.2

               Distribution of Materials and Supplies Operating Expenditures
                           for Fluid-bed Catalytic Incinerators
Item
Maintenance material
Catalyst replacement
Utilities - natural gas
Utilities - electricity
Insurance
Item
Cost
$7,130
14,600
63,400
42,300
8,900
Assigned
I-O Sector
3
12
28
27
30
Share in
Total Cost1
0.052
0.107
0.465
0.311
0.065
 Source: OAQPS Control Cost Manual (U.S. EPA, 1990)
 1 "Total Cost" excludes expenditures for labor, capital recovery (depreciation), and services.
                                    September 1995

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                         Construction of Expenditure Patterns                       B-3
                                      Table B.3

              Distribution of Materials and Supplies Operating Expenditures
                                  for Filter Systems
Item
Maintenance material
Replacement parts, bags
Electricity
Compressed air
Insurance
Item
Cost
$ 14,256
9,845
48,223
8,294
4,123
Assigned
I-O Sector
3
6
27
19
30
Share in
Total Cost1
0.168
0.116
0.569
0.098
0.049
Source:  OAQPS Control Cost Manual (U.S. EPA, 1990)
1 "Total  Cost" excludes expenditures for labor, capital recovery (depreciation), and services.
                                      Table B.4

              Distribution of Materials and Supplies Operating Expenditures
                             for Electrostatic Precipitators
Item
Maintenance material
Electricity (fan)
Electricity (operating)
Insurance
Item Assigned Share in
Cost I-O Sector Total Cost1
$ 4,320
21,018
35,344
18,447
3
27
27
30
0.055
0.266
0.447
0.233
 Source: OAQPS Control Cost Manual (U.S. EPA, 1990)
 1 "Total Cost" excludes expenditures for labor, capital recovery (depreciation), and
 services.
                                   September 1995

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B-4                    The U.S. Environmental Protection Industry
                                       Table B. 5

                Distribution of Materials and Supplies Operating Expenditures
                                 for Lime FGD Systems
Item
Raw Material
Lime
Fixation Chemical
Utilities
Water
Electricity
Reheat (steam)
Maintenance
Material (!/2 Radian value)
Supplies
Sludge Handling
Item Assigned Share in
Cost I-O Sector Total Cost1

$3,219,000
527,000

32,000
1,903,000
524,000

1,444,500
433,000
528,000

16
12

31
27
31

3
3
2

0.398
0.065

0.005
0.235
0.065

0.179
0.053
    Source:  Radian Corporation (1982)
    1 "Total  Cost" excludes expenditures for labor, capital recovery (depreciation), and
    services.
    2i
     The costs associated with sludge handling were assumed to be included in solid waste
    operation and maintenance expenditures.
                                    September 1995

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                          Construction of Expenditure Patterns
B-5
                                       Table B.6
               Weights Assigned to Air Pollution Control Expenditure Patterns
Technology
Thermal Incinerators
Fluid-bed Catalytic Incinerators
Filter Systems
Electrostatic Precipitators
FGD Systems
Total
Total Shipments of Air Pollution
Control Equipment
Percentage of Total Included in
Expenditure Pattern Construction
1977
Total
($1000)*
22,801
5,162
141,881
291,538
55,734
517,116
617,331
0.838
1977
Weight
0.044
0.01
0.274
0.564
0.108
1.000
**
**
1982
Total
($1000)*
15,170
11,494
224,839
236,078
282,437
770,018
905,162
0.851
1982
Weight
0.02
0.015
0.292
0.306
0.367
1.000
**
**
    *Source:  Selected Industrial Air Pollution Control Equipment (MA-35J) (Department
    of Commerce, 1978 and 1983)
Water

         To assign the materials component of operation and maintenance expenditures to
specific I-O categories, expenditure patterns for primary settling, biological oxidation,
neutralization, filtration,  coagulation, and chlorination were taken from Gumerman, Burris,
Hansen (1986) and DeRenzo (1978). Tables B.7 through B. 12 provide these patterns as well as
the assigned I-O sectors.

         Similar to the case for air pollution control materials expenses, the processes were
weighted and aggregated. The weights were derived from data for 1978 on the number of
gallons of discharged water treated by ten methods for manufacturing and mineral industries.
These data were obtained from the "Water Use in Manufacturing" survey from the 7977 Census
of Manufactures and the  "Water Use in Mineral Industries" from the 7977 Census of Mineral

                                    September 1995

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B-6                     The U.S. Environmental Protection Industry

Industries.  Table B. 13 provides the data used to construct the weights and the weights assigned
to the specific abatement processes.  The values for the five processes that were not used in the
construction of the aggregate expenditure pattern were not used in the construction of the
weights.

Solid Waste

         To assign "materials and supplies" to specific I-O sectors, it was assumed that the
expenditure pattern for sludge removal is representative of the expenditure pattern for all
materials purchased for solid waste disposal.  Expenditure patterns for wash-water recovery,
alum sludge disposal, and lime sludge disposal were taken from the American Society of Civil
Engineers and American Water Works Association (1990, pp. 340-343). Due to the lack of
information on the number of each type of disposal technique in operation, the aggregate
expenditure pattern was formed by simply taking an average of the three example expenditure
patterns.  The expenditure patterns for wash-water recovery, alum sludge disposal, and lime
sludge disposal are presented in Tables B.15-B.17.
                                        Table B.7

                Distribution of Materials and Supplies Operating Expenditures
                     for Settling (Primary and Secondary - Example I)1
Item
Maintenance
Lime
Electricity
Ammonia
Phosphoric Acid
Taxes and Insurance
Item Cost
$ 46,000
14,000
105,000
60,000
54,000
23,000
Assigned I-O
Sector
3
16
27
12
12
3
Share in
Total Cost2
0.152
0.046
0.348
0.199
0.179
0.076
 Source: DeRenzo, 1978, p.214.
 1 Aerated lagoons served as the example for settling.
 2 "Total Cost" excludes expenditures for labor, capital recovery (depreciation), and
 services.
                                     September 1995

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                         Construction of Expenditure Patterns                       B-7

                                      Table B. 8

              Distribution of Materials and Supplies Operating Expenditures
                    for Settling (Primary and Secondary—Example 2)1'2
Item
Maintenance
Chemicals
Electrical Energy
Taxes and Insurance
Item Cost
$ 5,600
12,600
3,400
2,800
Assigned
I-O Sector
3
12
27
3
Share in Total
Cost3
0.229
0.517
0.139
0.115
Source: DeRenzo, 1978, p. 326.
JThe centrifugation system with throughput of 36,000 gallons per day (i.e. 6 tons of solid per
day) served as an example of settling.
2The expenditure patterns for aerated lagoons and centrifugation were averaged to get one
expenditure patterns for primary and secondary  settling.
3 "Total Cost" excludes expenditures for labor, capital recovery (depreciation), and
services.
                                      Table B.9

              Distribution of Materials and Supplies Operating Expenditures
                               for Biological Oxidation1
Item
Maintenance
Lime
Electricity
Taxes and Insurance
Item Cost
$ 50,000
7,000
9,000
25,000
Assigned I-O
Sector
3
16
27
3
Share in
Total Cost2
0.549
0.077
0.275
0.099
Source: DeRenzo, 1978, p. 227.
Anaerobic digestion served as the example for biological oxidation.
2 "Total Cost" excludes expenditures for labor, capital recovery (depreciation), and
services.
                                   September 1995

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B-8                     The U.S. Environmental Protection Industry

                                       Table B. 10

                Distribution of Materials and Supplies Operating Expenditures
                                    for Neutralization
Item
Maintenance
Lime
Electricity
Coagulant Aids
Taxes and Insurance
Source: DeRenzo, 1978, p. 736.
1 "Total Cost" excludes expenditures for labor,
services.
Item Cost
$ 42,000
539,000
13,500
6,000
21,000
capital recovery
Assigned I-O
Sector
3
16
27
12
3
(depreciation),
Share in
Total Cost1
0.067
0.867
0.022
0.010
0.034
and
                                       Table B. 11

                Distribution of Materials and Supplies Operating Expenditures
                                    for Coagulation1
Item
Maintenance
Lime
Coagulant Acid
Sulfuric Acid
Taxes and Insurance
Electrical Energy
Item Cost
$ 12,000
2,000
4,800
3,000
6,000
3,000
Assigned I-O
Sector
3
16
12
12
3
27
Share in
Total Cost2
0.384
0.065
0.156
0.097
0.195
0.098
 Source: DeRenzo, 1978, p. 526.
 JThe precipitation, flocculation, and sedimentation system (with a wastewater flowrate of
 410,000 gallons per day) served as the example for coagulation.
 2 "Total Cost" excludes expenditures for labor, capital recovery (depreciation), and
 services.
                                    September 1995

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                          Construction of Expenditure Patterns                       B-9


                                      Table B.I2

                   Distribution of Materials and Supplies Expenditures
                                   for Chlorination1
Item
Process Energy
Maintenance Material
Chlorine
Item Cost
$ 15.12
14
835
Assigned I-O
Sector
27
3
12
Share in
Total Cost2
0.098
0.016
0.996
Source: American Society of Civil Engineers and the American Water Works Association,
1990, p.249.
JAn erosion feed chlorinator with a chlorine feed rate of 1 Ib/day served as the example for
chlorination of industrial waste water.
2 "Total Cost" excludes expenditures for labor, capital recovery (depreciation), and
services.
                                      Table B.I3

                   Distribution of Materials and Supplies Expenditures
                                     for Filtration1

Maintenance
Hydrated Lime
Ferric Chloride
Electrical Energy
Taxes and Insurance
6,000
75
840
3,100
4,000
3
16
12
27
3
0.428
0.005
0.060
0.221
0.286
Source: DeRenzo, 1978, p. 736.
1 "Total Cost" excludes expenditures for labor, capital recovery (depreciation), and
services.
                                   September 1995

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B-10                   The U.S. Environmental Protection Industry


                                       Table B.I4

              Weights Assigned to Water Pollution Control Expenditure Patterns
Technology
Settling (Primary and Secondary)
Biological Oxidation
Neutralization
Coagulation
Chlorination
Filtration
TOTAL2
1978 Total
(Billions of Gallons)1
4656.5
1654.6
1554.1
715.3
485.8
351.5
9417.8
Weight
0.494
0.176
0.165
0.076
0.052
0.037
1.000
   Derived from the 1978 "Water Use in Manufacturing" survey from the 7977 Census of
   Manufactures and the "Water Use in Mineral Industries" from the 7977 Census of Mineral
   Industries.
   2Because wastewater may be treated by more than one process, the sum of the of the water
   treated by category will not be equal to the total amount of wastewater treated.  Thus, it is
   not possible to determine the percentage of wastewater treatment accounted for in the
   determination of the expenditure pattern.


                                       Table B.I5

               Distribution of Materials and Supplies Operating Expenditures
                                for Wash-Water Recovery
Item
Power
Misc. Supplies
Polymer
Item Cost
$ 1,250
800
8,000
Assigned I-O
Sector
27
3
12
Share in
Total Cost1
0.124
0.080
0.796
 Source: American Society of Civil Engineers and American Water Works Association, 1990,
 pp. 340-343.
 1 "Total Cost" excludes expenditures for labor, capital recovery (depreciation), and
 services.

                                    September 1995

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                          Construction of Expenditure Patterns                     B-ll

                                       Table B.I6

         Distribution of Materials and Supplies Component of Operating Expenditures
                                for Alum Sludge Disposal
Item
Power
Misc. Supplies
Polymer
Item Cost
$9,150
4,970
3,200
Assigned I-O
Sector
27
3
12
Share in
Total Cost1
0.528
0.287
0.185
 Source: American Society of Civil Engineers and American Water Works Association, 1990,
 pp. 340-343.
 1 "Total Cost" excludes expenditures for labor, capital recovery (depreciation), and
 services.


                                       Table B.I7

     Distribution of Materials and Supplies Component of Operating Expenditures for Lime
                                    Sludge Disposal
Item
Power
Misc. Supplies
Item Cost
$ 47,000
60,000
Assigned I-O
Sector
27
3
Share in
Total Cost1
0.439
0.561
 Source: American Society of Civil Engineers and American Water Works Association, 1990,
 pp. 340-343.
 1 "Total Cost" excludes expenditures for labor, capital recovery (depreciation), and
 services.

MATERIALS COMPONENT OF CAPITAL EXPENDITURES

Air

         The pattern for the materials and supplies component for capital expenditures for five
types of air pollution control equipment (thermal incinerators, fluid-bed catalytic incinerators
fabric, filter systems, electrostatic precipitators, and flue gas desulfurization systems) was


                                    September 1995

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B-12                    The U.S. Environmental Protection Industry

obtained from engineering studies.  For thermal incinerators, fluid-bed catalytic incinerators
fabric, filter systems, electrostatic precipitators, the OAQPS Control Cost Manual (U.S. EPA,
1990) was the source. For flue gas desulfurization systems, information assembled by the
Radian Corporation (1982a, 1982b) was the source.  Tables B.18 through B.23 document the
values reported in these studies.

         As in the case of operation and maintenance expenditures, the five expenditure patterns
were aggregated to form an overall expenditure pattern.  Weights were assigned to each
technology according to the proportion of the value of each type of technology in total shipments
of air pollution control equipment.

         For the purposes of this study, both the BEA and the Commerce (MA-35J) data were
accepted "as truth." The MA-35J estimates of shipments of industrial air pollution control
equipment served as cost estimates for mechanical devices.  Using this information, the
aggregate the expenditure patterns for 1977 and 1982 were adjusted in order to maintain the ratio
of shipments of industrial air pollution control equipment to total capital  expenditures for air
pollution abatement. Table B.24 provides both original expenditure patterns and the
expenditures patterns adjusted to maintain consistency with the BEA and the Commerce data.
The adjusted patterns were used in this study.

Water

         The values for the materials and supplies component of capital  expenditures were
derived using information from the Development Document for Effluent Guidelines and
Standards for the Nonferrous Metals Forming andiron and Steel/Copper/Aluminum Metal
Powder Production and Powder Metallurgy Point Source Category.  The proportion of
expenditures accounted for by each I-O category was computed using the cost equations for
recommended treatment and control technologies. The midpoint for the range of validity for
each equation, when substituted into the cost equation, gave an estimate of the costs for each
item.  These cost estimates, distribution values, and assigned I-O sector are presented for each
item of the materials component of capital expenditures for water pollution abatement  are
presented in Table B.25.

Solid Waste

         As in the case of operating costs for solid waste, capital expenditures are allocated on
the assumption that the expenditures for sludge removal are representative of the expenditure
pattern for all capital expenditures for solid waste disposal.  Cost estimates for wash-water
recovery, alum  sludge disposal, and lime sludge disposal reported by the American Society of
Civil Engineers and American Water Works Association (1990) were used. These values,
assigned I-O sectors, distribution values are presented in Tables B.26-B.28. The simple average
of the values for the three technologies gave the aggregate expenditure pattern.


                                    September 1995

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                             Construction of Expenditure Patterns
B-13
                                         Table B.I8

                   Distribution of Materials and Supplies Capital Expenditures
                                      for Fabric Filters
Item
DIRECT COSTS
Purchased equipment costs
Fabric Filter
Bags and cages
Auxiliary equipment
Instrumentation
Sales taxes
Freight
Direct Installation Costs
Foundation and supports
Handling and erection
Electrical
Piping
Insulation for ductwork
Painting
INDIRECT COSTS (INSTALLATION)
Engineering
Construction and field experiments
Contractor fees
Start-up
Performance test
Contingencies
Assigned Share in
Item Cost I-O Sector Total Cost1


$80,231
18,092
62,700
16,102
4,831
8,051

7,600
95,004
15,201
1,900
13,300
3,800

19,001
38,001
19,001
1,900
1,900
5,700


38
6
2
23
3
25

3
3
3
3
3
3

3
3
3
3
3
3


0.195
0.044
0.152
0.039
0.012
0.020

0.018
0.230
0.037
0.005
0.032
0.009

0.046
0.092
0.046
0.005
0.005
0.013
Source: OAQPS Control Cost Manual (U.S. EPA, 1990)
1 "Total Cost" excludes expenditures for labor, capital recovery (depreciation), and services, site
preparation, and facilities and buildings.
2The distribution of costs for auxiliary equipment is presented in Table B.20.
                                        September 1995

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B-14
The U.S. Environmental Protection Industry
                                           Table B. 19

                     Distribution of Materials and Supplies Capital Expenditures
                                  for Electrostatic Precipitators
Item
DIRECT COSTS
Purchased equipment costs
Absorber vessels and carbon
Auxiliary equipment
Instrumentation
Sales taxes
Freight
Direct installation costs
Foundation and supports
Handling and erection
Electrical
Piping
Insulation for ductwork
Painting
INDIRECT COSTS
Engineering
Construction and Field Experiments
Contractor fees
Start-up
Performance test
Model study
Contingencies
Item Cost


635,189
62,700
69,789
20,937
34,894

32,940
411,755
65,881
8,235
16,470
16,470

164,702
164,702
82,351
8,235
8,235
16,470
24.705
Assigned
I-O Sector


38
2
23
3
25

3
3
3
3
3
3

3
3
3
3
3
3
3
Share in Total
Cost1


0.344
0.034
0.038
0.012
0.019

0.018
0.223
0.036
0.004
0.009
0.009

0.089
0.089
0.045
0.004
0.004
0.009
0.014
    Source: OAQPS Control Cost Manual (U.S. EPA, 1990)
    1 "Total Cost" excludes expenditures for labor, capital recovery, (depreciation), and
    preparation, and facilities and buildings.
    2 The distribution of costs for auxiliary equipment is presented in Table B.20.
                                                     site
                                        September 1995

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                       Construction of Expenditure Patterns
B-15
                                    Table B.20

                     Distribution of Auxiliary Equipment Costs
                   for Fabric Filters and Electrostatic Precipitators
Item
Ductwork
Fan
Motor
Starter
Dampers
Compressor
Screw conveyor
Stack
Item Cost
$14,000
14,000
7,000
3,500
7,200
6,000
4,000
7,000
Assigned
I-O Sector
18
19
20
20
18
19
19
3
Share in
Total Cost1
0.034
0.034
0.017
0.008
0.017
0.015
0.010
0.017
Source: OAQPS Control Cost Manual (U.S. EPA, 1990)
1 "Total Cost" excludes expenditures for labor, capital recovery (depreciation), and
services, site preparation, and facilities and buildings.
                                 September 1995

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B-16
The U.S. Environmental Protection Industry
                                       Table B.21

         Distribution and Classification of Materials and Supplies Capital Expenditures
                                 for Thermal Incinerators
Item
DIRECT COSTS
Purchased equipment costs
Incinerator
Instrumentation
Sales taxes
Freight
Direct installation costs
Foundation and supports
Handling and erection
Electrical
Piping
Insulation (for ductwork)
Painting
INDIRECT COSTS
Engineering
Construction and Field Experiments
Contractor fees
Start-up
Performance test
Contingencies
Assigned Share in
Item Cost I-O Sector Total Cost1


$254,000
25,400
7,630
12,700

24,000
42,000
12,000
6,000
3,000
3,000

30,000
15,000
30,000
6,0000
3,000
9,000


38
23
3
25

3
3
3
3
3
3

3
3
3
3
3
3


0.526
0.053
0.016
0.025

0.050
0.087
0.025
0.012
0.006
0.006

0.062
0.031
0.062
0.012
0.006
0.020
   Source: OAQPS Control Cost Manual (U.S. EPA, 1990)
   1 "Total Cost" excludes expenditures for labor, capital recovery (depreciation), and
   services, site preparation, and facilities and buildings.
                                    September 1995

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                       Construction of Expenditure Patterns                      B-17

                                   Table B.22

     Distribution and Classification of Materials and Supplies Capital Expenditures
                             for Catalytic Incinerators
Item
DIRECT COSTS
Purchased equipment costs
Incinerator
Instrumentation
Sales taxes
Freight
Direct installation costs
Foundation and supports
Handling and erection
Electrical
Piping
Insulation (for ductwork)
Painting
INDIRECT COSTS
Engineering
Construction and Field Experiments
Contractor fees
Start-up
Performance test
Contingencies
Assigned Share in
Item Cost I-O Sector Total Cost1


$468,200
46,800
14,000
23,400

44,200
77,300
22,100
11,000
5,520
5,520

55,200
27,600
55,200
11,0000
5,200
16,600


38
23
3
25

3
3
3
3
3
3

3
3
3
3
3
3


0.527
0.053
0.016
0.026

0.050
0.087
0.025
0.012
0.006
0.006

0.062
0.031
0.062
0.012
0.006
0.019
Source: OAQPS Control Cost Manual (U.S. EPA, 1990)
1 "Total Cost" excludes expenditures for labor, capital recovery (depreciation), and
services, site preparation, and facilities and buildings.


                                 September 1995

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B-18
The U.S. Environmental Protection Industry
                                     Table B.23

                Distribution of Materials and Supplies Capital Expenditures
                                for Lime FGD Systems
Item
DIRECT COSTS
Lime Preparation
Conveyors
Slakers and pumps
Storage silos
Storage tanks
Pumps and motors
SO2 Scrubbing
Absorbers
Fans and motors
Heat exchangers
Soot blowers
Valves and ducting
Mold tanks
Pumps and motors
INDIRECT COSTS
Interest during construction
Field overhead
Engineering
Freight
Offsite
Taxes
Item Cost


$546,000
161,000
1,249,000
261,000
36,000

15,973,000
2,040,000
3,100,000
1,196,000
1,617,000
1,037,000
2,982,000

3,962,000
3,962,000
3,163,000
395,000
1,188,000
474,000
Assigned
I-O Sector


19
20
18
18
20

38
19
19
19
18
18
20

3
3
25
3
3
3
Share in
Total Cost1


0.009
0.003
0.021
0.004
0.001

0.266
0.034
0.052
0.020
0.027
0.017
0.050

0.066
0.066
0.053
0.007
0.020
0.008
                                   September 1995

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Item
Spares
Allowance for shakedown
Contingency
Contractor Fee
Land cost
Construction of Expenditure Patterns
Table B.23 (Continued)
Item Cost
158,000
1,996,000
11,044,000
3,313,000
154,000


Assigned
I-O Sector
3
3
3
3
3
B-19

Share in
Total Cost1
0.002
0.033
0.184
0.055
0.002
Source: DeRenzo, 1978, p. 736.
1 "Total Cost" excludes expenditures for labor, capital recovery (depreciation), and
services.


                                       Table B.24

                 Original and Adjusted1 Expenditure Patterns for Materials
                           Component of Capital Expenditures
                                 for Air Pollution Control
I-O
Sector









3
6
18
19
20
23
25
38
1977
Original
0.545
0.012
0.028
0.036
0.016
0.035
0.024
0.304
1977
Adjusted
0.656
0.014
0.034
0.044
0.019
0.042
0.029
0.162
1982
Original
0.516
0.013
0.044
0.063
0.029
0.025
0.032
0.278
1982
Adjusted
0.587
0.015
0.050
0.072
0.033
0.028
0.037
0.178
    JTo adjust the original expenditure patterns, the proportion of total expenditure for sector 38
    was set equal to the ratio of shipments of industrial air pollution control equipment to total
    capital expenditures for air pollution abatement observed in 1977 and 1982. Proportions for
    sectors other than 38 were adjusted so that all proportions summed to one.

                                     September 1995

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B-20
The U.S. Environmental Protection Industry
                                    Table B.25

              Distribution of Materials and Supplies Capital Expenditures
                           for Water Pollution Abatement
Item
Agitators, C-clamp
Agitators, Top Entry
Clarifier, Concrete
Clarifier, Steel
Cooling Tower System
Equalization Tanks, Steel
Feed System, Alum
Feed System, Batch Lime
Feed System, Lime
Feed System, Polymer
Feed System, Sulfuric Acid
Multimedia Filter
Oil/Water Separator
Pumps, Centrifugal
Pumps, Sludge
Sulfonator
Tank, Batch Reactor
Tank, Concrete
Estimate of Assigned
Item Cost (S)1 I-O Sector
1,009
1,896
279,519
165,571
55,563
52,187
39,961,345
2,193
175,552
30,502
64,304
60,528
24,913
9,605
7,332
16,193
15,089
17,800
18
18
16
18
18
18
19
19
19
19
19
19
18
19
19
18
18
16
Share in
Total Cost2
0.001
0.001
0.168
0.100
0.03
0.031
3
0.001
0.106
0.018
0.039
0.036
0.015
0.006
0.004
0.010
0.009
0.011
                                    September 1995

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                         Construction of Expenditure Patterns                     B-21
                             Table B.25 (Continued)
Item
Tank, Fiberglass
Tank, Large Steel
Vacuum Filter
Vacuum Filter Housing
Engineer
Contingency
Contractor's Fee
Estimate of Assigned
Item Cost (S)1 I-O Sector
15,089
2,187
184,251
28,166
120,945
199,559
133,039
16
18
19
18
3
3
3
Share in
Total Cost2
0.009
0.001
0.111
0.017
0.073
0.120
0.080
 Source: Derived from the Development Document for Effluent Guidelines and Standards
for the Nonferrous Metals Forming andiron and Steel/Copper/Aluminum Metal Powder
 Production and Powder Metallurgy Point Source Category.
 Computed by substituting the midpoint for the range of validity into the corresponding
 cost equation.
 2 "Total Cost" excludes expenditures for labor, capital recovery (depreciation), and
 services.
 3
 The cost for feed system, alum was omitted from the computation of distribution values
 since the estimated cost of this item was so much higher than for any other component.
                                   September 1995

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B-22                    The U.S. Environmental Protection Industry
                                       Table B.26

                 Distribution of Materials and Supplies Capital Expenditures
                                for Wash-Water Recovery
Item
Recovery Ponds
Land
Polymer Feed
Return Pumps
Site Work
General Contractor Overhead
and Profit
Engineering
Legal, Fiscal, and
Administrative
Interest During Construction
Item Cost
$ 20,000
25,000
20,000
80,000
20,000
25,000
20,000
2,000
17,000
Assigned I-O
Sector
3
3
12
19
3
3
3
3
3
Share in
Total Cost1
0.088
0.108
0.088
0.349
0.088
0.108
0.088
0.008
0.075
 Source: American Society of Civil Engineers and American Water Works Association, 1990,
 pp. 340-343.
 1 "Total Cost" excludes expenditures for labor, capital recovery (depreciation), and
 services.
                                    September 1995

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                             Construction of Expenditure Patterns
B-23
                                           Table B.27

                     Distribution of Materials and Supplies Capital Expenditures
                                    for Alum Sludge Disposal
Item
Centrifuge
Polymer
Haul Truck
Site Work
General Contractor Overhead and Profit
Engineering
Legal, Fiscal, and Administrative
Interest During Construction
Source: American Society of Civil Engineers
1 "Total Cost" excludes expenditures for labor

Assigned I-O
Item Cost Sector
$ 230,000 19
20,000 12
29,000 21
39,000 3
48,000 3
37,000 3
4,000 3
30,000 3
and American Water Works Association, 1990,
, capital recovery (depreciation), and services.
Table B.28
Share in Total
Cost1
0.526
0.046
0.066
0.089
0.110
0.085
0.009
0.069
pp. 340-343.

Distribution of Materials and Supplies Capital Expenditures
for Lime Sludge Disposal
Item
Vacuum Filter
Haul Truck
Site Work
General Contractor Overhead and Profit
Engineering
Legal, Fiscal, and Administrative
Interest During Construction
Assigned I-O
Item Cost Sector
$ 650,000 19
58,000 21
99,000 3
113,000 3
92,000 3
1000 3
82,000 3
Share in Total
Cost1
0.589
0.052
0.090
0.102
0.083
0.009
0.075
Source:  American Society of Civil Engineers and American Water Works Association, 1990, pp. 340-343.
1 "Total Cost" excludes expenditures for labor, capital recovery (depreciation), and
services.
                                        September 1995

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APPENDIX C.  USE OF COMMODITIES BY INDUSTRIES INPUT-OUTPUT
                    TABLES: 1977 AND 1982
                         September 1995

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Use of Commodities by Industries Input-Output Tables: 1977 and 1982
C-l
                         Table C. 1
                 1977 "Use" Input-Output Table

01
02
03
04
05
06
07
08
09
1 0
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
20
2 1
22
23
24
25
26
27
28
29
30
3 1
32
33
34
35
36
37
38
39
40
41
Total
Labor
IBTs
Other
Total VA
O utput
01
31871
1 62
1 390
11358
0
202
80
1 95
0
273
27
7734
3580
638
25
75
1 2
278
946
408
1 1 9
1 7 1
5
1 9
1929
322
1168
2 1 2
5689
8250
2890
52
0
0
1
5
0
0
7
0
0
801 07
11618
2815
352 1 3
49647
129754

1
8
7
3
0
6
5
9
0
9
6
9
1
5
7
1
1
5
4
2
6
9
1
0
0
3
4
6
0
2
4
8
0
0
5
7
0
0
4
0
0
8
8
2
0
0
8
02
7
5561
2928
6
0
28
23
99
0
46
22
927
957
306
1
1 20
778
804
2572
427
95
3
35
38
51 6
94
1411
479
1 567
5659
2111
50
0
0
6
8
27
0
1 83
0
0
27910
12790
3021
34308
50120
78031

9
8
7
9
0
4
9
8
0
4
0
3
3
3
6
/
3
6
0
7
9
2
5
9
3
4
7
1
3
3
2
5
0
0
1
6
7
0
5
0
0
7
8
2
3
3
0
03
655
1 993
328
9
0
1 322
1 08
18305
569
826
4
3540
7339
2987
2
15826
8891
23157
5148
7144
1 1 5
1 3
7 1 1
51 6
5753
995
501
239
23232
2795
15718
1 32
0
0
0
26
4 1
0
32
0
0
1 48986
87504
2699
19029
109233
258219

2
9
5
3
0
3
8
8
5
4
8
3
2
0
4
2
9
5
3
0
6
0
0
7
4
1
9
0
4
6
0
3
0
0
7
9
2
0
4
0
0
4
5
5
4
4
8
04
53245
1 1 0
962
33222
0
1 0
60
77
0
5659
92 1
2056
739
1850
1
3032
1 0
6760
302
1 6
7
0
33
1 9
4454
364
1077
796
1 0692
1312
5693
242
0
0
1 9
1 01
48
0
4504
0
0
1 38408
25371
6401
19018
50791
189200

8
2
2
1
0
9
2
7
0
9
4
7
9
7
4
4
0
9
1
2
3
0
3
4
9
7
9
0
3
7
3
2
0
0
3
2
9
0
3
0
0
4
6
7
4
7
1
05
2612
6
20
4
2627
0
1
4
0
232
1 25
26
40
257
0
1
1
63
8
0
0
0
1
1
88
8
34
4
1 53
1 1 2
67 1
30
0
0
0
2
1
0
1
0
0
71 48
1118
2423
21 63
5704
12852

7
5
3
2
9
0
5
9
0
2
4
9
5
7
0
/
4
6
1
7
6
4
6
1
4
3
3
6
8
8
2
4
0
0
2
3
0
0
0
0
0
3
2
0
1
3
6
06
2072
33
221
8
0
11090
1 40
3
0
327
20
958
258
6576
6
1 1 5
42
5
328
1 1
1
0
1 1
7
468
1 4 1
575
1 20
1671
21 4
1151
57
0
0
5
1 6
8
0
21 7
0
0
26890
7621
325
2874
10821
37712

6
7
8
9
0
1
8
9
0
4
2
1
9
4
5
0
8
2
5
0
5
1
2
3
6
4
2
1
3
8
6
1
0
0
9
2
7
0
4
0
0
2
9
7
2
8
0
07
261
6
1 72
1 3
0
11808
9547
1 1
0
402
58
1 97
204
1810
256
7
0
25
1 29
38
2
0
1 1
607
441
375
302
65
21 82
636
1306
1 87
0
0
1
5
1
0
74
0
0
31155
1 4056
1 93
4119
1 8369
49524

7
0
7
3
0
4
9
3
0
1
/
3
0
6
4
5
7
8
8
0
9
2
9
1
9
8
7
6
2
8
9
2
0
0
3
5
3
0
1
0
0
6
1
1
8
0
6
08
3801
5
233
3
0
76
1 2
12111
0
1 23
1 7
632
437
250
8
237
45
1216
275
50
46
1
1 4
1 4
91 1
54
370
1 20
1918
351
748
32
0
0
3
1
1 0
0
5
0
0
24142
8799
343
5692
1 4835
38978

3
8
2
4
0
4
0
0
0
4
8
6
2
3
5
8
6
5
4
0
6
7
2
0
3
1
3
4
4
5
9
0
0
0
1
8
9
0
4
0
0
9
8
2
5
5
4
09
0
4
1 20
32
0
978
79
1708
73
227
25
237
91
81 3
39
1 27
1127
964
89
23
1
0
9
1 3
363
87
1 27
37
950
362
876
48
0
0
1
2
6
0
1 6
0
0
9669
5270
1 1 4
1 638
7023
1 6692

2
6
6
1
0
6
0
9
8
1
/
5
5
0
4
0
0
1
5
2
8
0
2
4
9
8
3
4
5
5
9
8
0
0
6
2
1
0
8
0
0
0
7
4
6
7
7
1 0
21
334
560
233
0
671
1 2
2688
1
13420
51
1682
1260
1980
0
81
1 60
346
341
8
6
0
27
8
1945
1 21
948
602
2672
396
1467
63
0
0
1 2
33
36
0
540
0
0
32740
11780
783
6255
18819
51560

3
8
7
1
0
5
5
4
2
2
3
7
4
9
9
2
7
6
4
1
1
0
4
6
2
2
5
6
4
8
2
7
0
0
4
5
1
0
5
0
0
1
9
7
3
9
0
                        September 1995

-------
Use of Commodities by Industries Input-Output Tables: 1977 and 1982
C-2
                       Table C. 1 (cont.)
                 1977 "Use"  Input-Output Table

01
02
03
04
05
06
07
08
09
1 0
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
20
2 1
22
23
24
25
26
27
28
29
30
3 1
32
33
34
35
36
37
38
39
40
41
Total
Labor
IBTs
Other
Total VA
O utput
1 1
0
2
1 93
1 5
0
85
6
1
0
8171
4838
1024
248
328
5
1 4
48
83
251
1 3
8
0
461
1 30
1309
602
320
65
2858
1141
3329
854
0
0
0
4
9
0
22
0
0
26453
1 6660
576
6293
23530
49984

2
6
6
1
0
6
0
0
0
8
9
7
9
7
0
1
9
8
6
7
/
0
4
3
6
4
2
8
6
7
8
6
0
0
1
5
7
0
3
0
0
9
8
3
3
4
3
1 2
399
3725
774
1139
0
1 0
31
56
0
1769
224
21874
1955
2468
6
641
1426
1982
935
33
6
0
97
30
3367
277
1747
1764
4521
1 387
6956
1 43
0
0
42
35
93
0
581
0
0
60508
1 6360
1 253
1 4435
32048
92557

1
4
5
5
0
1
7
8
0
6
3
9
9
1
3
6
1
8
9
9
0
1
8
3
7
3
2
0
6
1
9
9
0
0
0
0
3
0
8
0
0
4
2
0
4
6
0
1 3
0
60277
91 0
35
0
1 9
0
22
0
489
1 2
3335
8310
1 7 1
4
1 97
44
550
1 67
7
1 02
0
24
2
3202
1 73
627
1572
1 789
81 7
1954
94
0
0
1 7
4
21
0
1 84
0
0
851 44
5204
5272
3273
13751
98895

4
4
5
2
0
6
8
7
0
1
1
8
2
5
2
0
5
3
1
3
3
0
6
6
6
0
3
1
5
7
4
5
0
0
1
1
6
0
9
0
0
0
6
8
6
0
0
1 4
0
51 1
46 1
54
0
1611
2 1
1 1 6
0
1408
42
9435
940
10611
6
370
509
474
379
56
28
0
48
20
1616
1 40
1021
338
2268
71 3
1925
59
0
0
9
9
33
0
571
0
0
3581 8
1 5234
1 577
6662
23473
59291

8
6
5
6
0
2
7
6
0
9
6
4
4
1
4
1
8
1
9
5
7
3
7
7
7
1
3
7
4
2
3
0
0
0
5
6
6
0
0
0
0
0
4
0
5
9
9
1 5
0
2
30
530
0
471
1 7
38
0
1 33
1 4
220
26
453
1436
6
2
72
24
0
0
0
2
70
1 07
33
47
1 1
325
1 1 0
299
48
0
0
0
5
2
0
0
0
0
4548
2355
30
721
31 07
7655

0
9
9
0
0
7
2
2
0
0
3
0
3
4
8
5
6
2
9
9
1
0
3
7
6
5
8
7
1
8
6
9
0
0
3
0
4
0
9
0
0
5
3
7
3
3
8
1 6
3
1 996
558
2 1
0
1 1 9
1 1
286
0
878
42
1080
649
401
3
4123
370
357
391
55
61
20
36
32
2134
1 1 7
778
939
1 294
51 1
1130
56
0
0
3
6
20
0
1 51
0
0
1 8646
1 0505
604
4857
1 5967
3461 3

7
7
2
1
0
0
4
9
0
7
5
7
0
1
5
2
8
0
5
8
5
8
2
3
1
5
6
4
7
6
8
1
0
0
1
4
7
0
4
0
0
0
3
8
3
4
4
1 7
1
9131
1718
1 1
0
22
2 1
1 94
1
1 46
48
2566
1276
783
4
642
30726
1109
2307
581
5
1 5
1 09
2 1
4043
1 36
2914
1683
5675
848
1947
1 00
0
0
1 4
1 9
73
0
3759
0
0
72664
25951
1 532
6464
33948
106613

4
0
7
1
0
8
4
9
8
3
9
8
3
7
7
8
0
6
0
3
0
3
4
7
9
5
4
3
8
0
4
5
0
0
1
7
8
0
4
0
0
7
9
1
7
7
4
1 8
1
48
91 2
9
0
1
45
287
0
605
1 99
1202
337
1131
0
435
23636
5222
1909
430
61
0
83
33
1438
375
7 1 0
31 5
3652
972
2430
99
0
0
4
21
21
0
1 01
0
0
46740
23665
746
10619
35031
81771

1
3
1
8
0
5
8
4
0
3
6
2
2
9
0
5
6
7
9
8
6
0
3
1
8
9
7
5
6
2
8
8
0
0
4
5
0
0
9
0
0
8
0
8
3
1
9
1 9
1
29
591
1 6
0
76
20
1 98
1
540
1 42
436
578
2090
1
705
15078
4267
17059
5211
567
2 1
286
64
1494
520
823
265
6477
1270
3585
1 71
0
0
6
1 9
27
0
0
0
24
62674
381 58
1120
15791
55070
117745

1
8
5
9
0
5
4
8
9
4
1
3
2
6
2
8
3
1
6
7
3
5
9
8
3
9
3
4
6
0
3
3
0
0
0
4
8
0
0
0
8
6
7
8
0
4
1
20
1
26
464
1 1
0
54
29
1 57
350
837
242
973
322
3521
1
1089
7771
3216
1289
12964
30
25
447
84
1281
363
745
1 77
5116
1794
3472
21 8
0
0
6
1 7
22
0
254
0
0
47383
31521
755
9358
41635
8901 9

7
1
3
1
0
3
8
4
7
9
9
7
6
9
0
5
8
2
6
4
6
1
2
4
2
5
5
6
3
0
9
5
0
0
4
0
0
0
8
0
0
8
7
7
4
8
6
                         September 1995

-------
Use of Commodities by Industries Input-Output Tables: 1977 and 1982
C-3
                       Table C. 1 (cont.)
                 1977 "Use"  Input-Output Table

01
02
03
04
05
06
07
08
09
1 0
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
20
2 1
22
23
24
25
26
27
28
29
30
3 1
32
33
34
35
36
37
38
39
40
41
Total
Labor
IBTs
Other
Total VA
O utput
2 1
0
44
299
2
0
271
2313
1 40
231
204
41
635
259
5226
5
1453
11547
10871
4163
3404
31779
33
2 1 0
29
1156
65
538
200
4969
51 4
2729
1 35
0
0
3
1 8
25
0
522
0
0
84051
23069
1 648
891 5
33633
1 1 7685

7
3
9
5
0
7
0
0
3
3
/
5
6
2
1
6
7
8
9
3
8
1
7
9
9
0
6
8
5
5
3
5
0
0
9
8
5
0
9
0
0
8
1
6
6
3
1
22
1
1 0
253
6
0
31 1
1 62
885
1 62
64
81
277
308
62 1
0
373
4719
2109
2605
3452
604
6202
431
41
863
264
408
1 00
2477
873
2141
1 1 4
0
0
5
7
1 3
0
35
0
0
30993
21679
445
3777
25902
56895

1
1
1
4
0
5
3
1
8
8
0
3
9
7
8
4
7
5
2
9
9
7
8
3
0
2
6
4
1
3
1
9
0
0
8
7
4
0
4
0
0
2
1
7
7
5
7
23
0
6
1 01
41
0
228
1 9
25
2
566
59
867
1 41
1036
8
225
1070
779
268
1311
2
0
1020
51
368
1 54
1 56
41
1 240
31 6
1263
52
0
0
0
4
8
0
70
0
0
11513
8376
222
4957
1 3556
25069

4
8
6
6
0
6
7
0
8
6
6
0
2
4
0
1
0
7
7
7
/
0
0
8
3
0
2
9
6
4
7
8
0
0
9
9
0
0
4
0
0
1
5
7
4
6
7
24
26
27
1 1 7
29
0
378
79
437
0
687
47
454
1 46
1104
93
81
1458
367
1 22
227
1
8
1 6
1106
473
1 60
1 32
34
1 348
432
1109
78
0
0
0
2
5
0
526
0
0
11324
541 6
21 0
2793
8420
1 9744

1
9
3
1
0
3
5
3
0
1
0
1
3
9
7
3
5
0
9
4
6
4
9
6
6
8
4
3
2
7
6
2
0
0
4
5
4
0
9
0
0
2
6
6
3
5
7
25
8
82
3254
72
0
64
1 65
1 7
0
1 1 1
262
1 42
8700
957
3
73
385
484
655
367
328
1742
67
1 1 4
16543
989
81 9
1 70
3571
301 4
6830
200
0
0
4
53
22
0
3112
0
0
53392
4931 5
4322
1 8542
72180
125572

3
4
3
6
0
0
8
2
0
5
2
6
6
5
6
2
4
5
4
2
/
3
3
4
2
1
1
0
7
6
0
0
0
0
8
9
7
0
4
0
0
1
3
4
6
3
4
26
0
0
1 973
3
0
0
36
0
0
48
1 54
81
1 31
67
1
1 3
62
96
1 50
1731
1 46
4
1 28
52
334
1 059
278
1 50
573
1 690
3878
201
0
0
2
23
40
0
931
0
0
1 4050
21109
5744
20611
47466
61516

9
0
9
5
0
0
5
0
0
4
4
3
2
2
1
9
6
3
5
5
0
6
3
9
3
8
7
1
6
1
/
8
0
0
4
7
4
0
8
0
0
3
3
9
8
0
3
27
6
7255
351 8
3
0
2
4
0
0
34
56
1 60
8258
54
0
7
1 9
67
7 1 6
239
1 1
3
77
1 7
2272
240
-3421
3784
1 1 52
745
1104
1 98
0
0
5
4
30
0
0
0
0
26632
8370
3129
22382
33881
6051 4

3
4
9
3
0
1
0
0
0
4
3
8
0
8
7
2
1
9
2
0
6
8
8
8
9
3
4
7
0
7
3
2
0
0
0
8
7
0
2
0
0
7
3
1
2
6
2
28
0
13147
342
1
0
0
0
0
0
7
1 0
3
1 80
5
0
1
0
4
7
7
3
1
1 3
4
64
40
3421
17028
43
470
302
1 1 4
0
0
1
3
0
0
3
0
0
35236
3905
1 545
7614
1 3066
48302

7
6
0
0
0
0
7
0
0
3
9
5
2
1
1
1
0
2
6
9
1
7
6
5
8
0
4
1
7
3
3
5
0
0
3
5
9
0
2
0
0
7
9
5
6
0
7
29
2512
0
3437
25119
0
75
1 57
446
0
3870
1639
322
5378
1732
88
406
1 9
745
1059
31 4
348
3
235
747
8109
6032
7075
1571
1 6598
22900
43164
1 978
0
0
5
1 37
438
0
464
0
0
157136
1 88068
56509
68555
313133
470269

5
0
3
7
0
3
5
8
0
0
8
9
8
5
1
3
2
0
0
5
/
8
1
1
6
8
5
2
1
2
2
8
0
0
7
4
8
0
0
0
0
3
0
5
5
0
3
30
1 480
5
15143
7
0
0
83
2
0
440
1943
1 94
765
285
1 0
23
0
1 08
1 2 1
227
33
1 9
1 46
288
1157
3034
1725
1119
3043
53566
16266
2784
0
0
20
32
1 76
0
276
0
0
1 04534
59352
52961
1 84380
296695
401229

3
4
8
9
0
0
4
7
0
9
2
2
1
3
3
0
9
8
8
2
5
0
0
4
9
4
9
0
5
9
4
3
0
0
0
0
7
0
3
0
0
4
7
5
8
0
4
                         September 1995

-------
Use of Commodities by Industries Input-Output Tables: 1977 and 1982
C-4
                             Table C.1 (cont.)
                       1977 "Use" Input-Output Table

01
02
03
04
05
06
07
08
09
10
1 1
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Total
Labor
IBTs
Other
Total VA
Output
31
1112.4
16.8
4324.8
2678.6
0.0
266.9
1615.2
188.3
4.5
1638.6
5120.9
6895.7
3888.8
2157.7
72.6
1025.1
19.6
3285.6
2445.4
2801 .8
5201 .8
323.0
3241 .5
1517.1
5589.4
5943.5
4303.6
1508.8
1 3802.5
24083.8
36372.0
21 39.4
0.0
26. 1
37.7
1 04.9
369.6
0.0
0.0
0.0
0.0
1 44123.8
1 71 285.0
61 86.9
91673.4
269145.4
413269.2
32
159.5
6.2
2322.8
490.6
0.0
7.3
63.8
0.0
0.0
70.5
207.8
212.2
403.6
63.8
9.9
50.9
6.7
53.6
194.8
236.8
81 .3
62.7
22.4
55.4
1343.5
172.7
1493.0
973.6
643.5
565. 1
1201.8
333.5
0.0
1214.3
11.0
7. 1
16.6
0.0
0.4
0.0
14.3
12773.1
19694.6
0.0
-1023.5
18671 .2
31 444.2
33
1 .9
39.0
7.0
0.2
0.0
0.4
2.0
18.5
0.0
4.0
0.2
16.2
87.5
19.3
0.0
472.4
297.6
646.1
254.1
82.8
1.7
0.3
3.5
1.2
109.3
22.0
11.9
5.6
267.4
66.4
996.5
5.3
0.0
0.0
0.0
1 .0
1 .0
0.0
0.0
0.0
0.0
3442.3
1880.6
84.6
333.5
2298.7
5741 .0
34
0.8
10.6
1 .8
0.0
0.0
0.6
0.9
7.3
0.0
0.9
0.0
18.0
25.1
14.8
0.0
77.3
12.9
177.2
11.9
5.9
1.5
0.0
0.7
1.1
21.5
35.2
3.1
1.5
53.2
5.9
36.9
0.8
0.0
0.0
0.0
0. 1
0.3
0.0
0.0
0.0
0.0
527.8
986.6
6.4
27.3
1020.3
1548. 1
35
0.6
0.4
133.7
0.1
0.0
0.0
0.5
0.0
0.0
2.3
1.6
13.4
9.1
0.3
0.0
2.5
0.0
4.8
7.3
1.8
1.0
0.8
2.3
0.9
6.4
2.7
80.1
41 .3
15.0
14.6
27.5
3.6
0.0
66.0
0.5
0.0
0.9
0.0
0. 1
0.0
0.0
442.2
181.2
8. 1
160.8
350. 1
792.3
36
2. 1
1 .0
425.2
0.0
0.0
0.0
1.9
0.0
0.0
2.4
5.2
37.9
29.7
0.8
0.1
9.5
0.0
1.1
27.5
5.7
1.1
3.1
2.3
3.3
20.1
10.4
278.4
156.8
44.0
34.3
83.8
8.9
0.0
241.2
1 .8
0.0
1 .8
0.0
0. 1
0.0
0.0
1441.5
627.8
1 .6
466. 1
1095.5
2537.0
37
0.3
4. 1
71.6
0.6
0.0
0. 1
0.5
29.7
0.0
1.1
2.1
68.2
187.1
10.3
0.0
0.5
0.0
15.8
2.4
1.9
3.5
0.0
1.9
4.6
110.6
30.0
6.7
3.5
86.5
28.0
141.3
4.7
0.0
0.5
0.0
0.4
65.6
0.0
0.2
0.0
0.0
884.7
662.7
83.3
563.4
1309.4
21 94.0
38 39
0.0 0.0
0.0 0.0
3.0 0.0
0.1 0.0
0.0 0.0
17.2 0.0
0.1 0.0
2.0 0.0
0.0 0.0
3.2 0.0
0.7 0.0
1.8 0.0
5.3 0.0
2.2 0.0
0.0 0.0
1.8 0.0
106.0 0.0
38.4 0.0
57.9 0.0
24.4 0.0
0.0 0.0
0.0 0.0
2.2 0.0
0.1 0.0
8.4 0.0
3.3 0.0
3.9 0.0
1.5 0.0
34.1 0.0
11.6 0.0
16.8 0.0
0.9 0.0
0.0 0.0
0.0 0.0
0.0 0.0
0.1 0.0
0.1 0.0
0.0 0.0
0.3 0.0
0.0 0.0
0.0 0.0
347.4 0.0
191.4 0.0
5.7 0.0
72.7 0.0
269.9 0.0
617.3 0.0
40
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.5
0.0
0.0
0.0
0.0
0.0
0.5
213794.2
0.0
0.0
213794.2
213794.7
41
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.5
5889.8
0.0
6517.5
12407.3
12406.8
Total Int.
100274.2
104629.8
49287.2
75193.9
2627.9
30285.6
14980.6
38768.2
1400.3
44278.3
16717.7
70547.4
58460.3
52794.1
2106.0
32148.8
110411.8
70816.3
47731.0
41928.0
39822.1
8682.9
8082.3
5774.9
75423.2
23566.0
33570.3
36704.0
1 34673.9
1 38993.6
177334.8
1 1 099.3
0.0
1548. 1
256.2
749.7
1726.2
0.0
17155.8
0.0
39. 1
1 680589.7
1 175408.0
1 65707.9
6501 12.0
1 991227.9
367181 7.5
                         September 1995

-------
Use of Commodities by Industries Input-Output Tables: 1977 and 1982
                                                        C-5
                            Table C.
                       1977 "Use"Inp
1 (cont.)
ut-Output
                                         Table

01
02
03
04
05
06
07
08
09
1 0
1 1
12
13
14
15
16
1 7
18
1 9
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41




Non-Environ.
PCE GPFI Inventory Exports Imports Gov't. Sanit. Sewer. Hwy Water Nat. R.
11377.4 0.0 712.2 12959.7 -2712.4 3340.3 0.0 0.0 0.2 0.0 12.1
236.6 489.9 588.8 3235.4 -37565.4 221.5 0.0 0.0 0.5 0.0 0.4
0.0 158491.6 0.0 26.4 0.0 49654.9 0.0 0.0 143.9 333.0 282.9
113507.8 0.0 1616.6 7307.8 -8358.0 3586.0 0.0 0.0 0.0 0.0 0.9
8437.4 0.0 364.8 1664.3 -271.7 -0.1 0.0 0.0 0.0 0.0 0.0
2926.4 892.4 1268.5 1490.8 -1476.5 146.0 0.0 4.4 0.0 0.0 0.1
37261.7 0.0 2694.5 1077.0 -6120.4 875.9 0.0 2.7 0.1 0.0 2.0
547.6 11.0 1336.2 1937.7 -3576.8 100.2 0.0 0.0 0.0 0.0 0.1
9208.1 5049.9 490.8 294.3 -743.4 870.4 3.6 1.6 0.1 0.0 3.3
5498.9 0.0 919.5 2328.4 -3737.7 1433.5 0.0 2.1 0.2 0.8 6.2
10237.0 0.0 595.6 701.9 -360.0 3941.9 0.0 0.0 0.2 0.0 14.5
19330.9 541.2 1831.0 8137.9 -5715.6 3480.5 0.0 16.4 1.2 0.0 10.9
37593.0 0.0 2996.2 2837.3 -11591.1 5592.1 0.0 207.3 0.8 0.0 18.1
6443.8 57.7 1625.1 3266.2 -3022.0 934.6 0.0 2.1 0.1 0.0 1.8
7609.5 0.0 227.3 310.3 -2667.4 52.1 0.0 0.0 0.0 0.0 0.0
1952.4 0.0 880.0 1106.6 -1713.6 449.7 0.0 0.0 0.0 0.0 0.7
59.3 110.8 2280.6 3092.0 -12003.0 373.3 0.0 0.0 0.0 0.0 0.0
3210.0 4674.6 2263.2 3730.2 -2680.5 1808.0 0.0 6.5 0.2 0.0 1.1
1576.8 49891.9 3950.7 18524.0 -7509.6 4236.8 56.4 39.4 1.6 11.0 8.1
19283.4 19703.8 2694.6 9014.1 -11398.8 7395.6 0.0 0.0 0.2 0.2 4.6
46124.2 30854.1 4368.3 10993.6 -18252.5 2883.0 36.9 47.5 3.0 16.2 9.4
8119.4 11122.1 898.0 10102.6 -2143.3 18626.4 0.0 0.0 0.1 0.3 2.6
4306.0 8757.6 661.3 3491.6 -3107.7 3116.8 9.6 9.2 0.1 0.4 3.2
12684.3 1283.2 913.3 1295.3 -3832.5 912.2 0.0 0.0 0.3 0.0 6.6
33063.3 1978.6 1019.5 10168.9 -591.9 7151.0 2.3 34.4 1.2 0.6 12.6
22917.5 3385.1 0.0 985.4 0.0 2708.7 0.0 2.1 0.3 0.0 8.7
25816.3 0.0 0.0 62.7 -352.6 4843.6 0.0 0.0 2.7 0.0 4.2
11828.7 0.0 0.0 205.8 -1847.1 871.7 0.0 0.0 0.7 0.0 6.6
289847.0 24699.8 3117.0 12611.2 5375.6 3416.2 21.2 33.1 1.4 3.0 24.5
240622.5 10747.0 0.4 5949.1 -532.8 8065.9 0.0 30.8 0.1 0.0 13.8
245181.6 0.0 151.5 4076.6 -148.4 19665.4 0.0 27.8 0.0 0.0 4.0
4480.4 0.0 0.0 193.7 0.0 760.4 0.0 18.3 0.0 0.0 0.3
0.0 314.0 0.0 0.0 0.0 53.0 5295.0 79.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
479.7 0.0 0.0 0.8 0.0 55.4 0.0 0.0 0.0 0.0 0.2
1787.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
467.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 617.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
14595.3 -10279.6 -203.5 1589.8 -27223.5 4669.8 0.0 0.0 2.9 6.1 497.4
0.0 0.0 0.0 0.0 0.0 212264.1 0.0 1498.7 31.4 0.0 0.0
-1290.7 0.0 -18992.0 43915.2 -10908.4 -316.8 0.0 0.0 0.0 0.0 0.0



1257328.6 323394.0 21270.0 188684.6 -186789.0 378240.2 5425.0 2063.4 193.4 371.7 961.7
Final
Demand
25689.5
-32792.3
208932.7
1 17661 .1
10194.7
5252.2
35793.5
356.0
15178.6
6451 .8
15131.1
27634.5
37653.7
9309.4
5531 .8
2675.9
-6086.9
13013.3
70787.0
46697.8
77083.6
46728.2
17248.1
13262.6
52840.5
30007.7
30376.9
1 1066.4
3391 50.0
264896.8
268958.5
5453.1
5741 .0
0.0
536.1
1787.3
467.8
617.3
-16345.3
213794.2
12407.3



1991143.4
Output
125963.7
71837.5
258219.9
192855.0
12822.6
35537.8
50774.1
39124.2
16578.9
50730.1
31848.8
98181 .9
961 14.0
62103.5
7637.8
34824.7
104324.9
83829.6
1 18518.0
88625.8
1 16905.7
5541 1 .1
25330.4
19037.5
128263.7
53573.7
63947.2
47770.4
473823.9
403890.4
446293.3
16552.4
5741 .0
1548.1
792.3
2537.0
2194.0
617.3
810.5
213794.2
12446.4

1 175408.0
165707.9
6501 12.0


                         September 1995

-------
Use of Commodities by Industries Input-Output Tables: 1977 and 1982
C-6
                         Table C.2
                 1982 "Use" Input-Output Table

01
02
03
04
05
06
07
08
09
1 0
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
20
2 1
22
23
24
25
26
27
28
29
30
3 1
32
33
34
35
36
37
38
39
40
41
Total
Labor
IBTs
Other
Total VA
O utput
01
55652
253
1811
11954
0
232
1 75
404
0
667
78
9937
8294
453
26
34
0
449
1506
1 87
337
409
1 8
46
3766
41 0
2087
365
6820
11504
5001
1 1 4
0
0
1 1
36
227
0
1 8
0
0
123297
1 4248
3680
541 63
72092
1 95390

3
6
9
8
0
6
0
9
0
2
6
8
0
2
6
1
0
4
9
8
4
4
3
3
3
5
9
9
3
4
8
0
0
0
6
8
0
0
8
0
0
4
8
8
3
9
3
02
5
8956
4748
6
0
27
1 5
1 20
0
31
1 23
1382
2374
505
1
1 65
223
1813
4191
565
41
4
49
32
905
31 6
3534
1057
2077
26081
4930
50
0
0
20
1 0
1 77
0
438
0
0
64987
25883
26549
75194
127627
192614

8
2
5
9
0
6
2
6
0
6
1
6
9
8
1
4
7
9
4
6
3
6
5
4
1
3
9
8
8
3
0
5
0
0
9
0
0
0
1
0
0
4
4
3
4
1
5
03
484
2500
442
1
0
1 486
1 72
16465
709
868
2 1 9
5425
15797
3869
6
20939
13597
32863
9499
13109
247
1 9
1328
604
8246
1 455
955
300
33239
4473
36376
21 8
0
0
3
4 1
1 03
0
8
0
0
226079
1 40808
2006
58284
201 099
427178

1
9
5
7
0
0
4
1
0
6
3
2
5
6
9
8
8
3
0
4
9
0
5
3
1
8
3
3
6
1
5
0
0
0
3
7
4
0
4
0
0
3
6
1
3
0
3
04
76728
1 80
508
49044
0
25
47
1 1 0
0
7285
2073
3590
1240
4157
1
4214
7
9995
473
1 4
22
0
68
29
7435
664
2524
2190
15041
21 96
11545
470
0
0
9
1 75
63
0
41 89
0
0
206324
37576
6688
26806
71071
277395

6
0
1
4
0
8
1
4
0
4
3
0
6
1
4
5
5
7
0
4
3
0
8
1
5
5
4
0
7
5
8
3
0
0
4
1
9
0
8
0
0
4
3
5
6
4
8
05
3131
1 2
1 5
0
3365
0
1
0
0
696
266
57
1 20
89
0
3
0
99
24
1
4
0
5
1
1 23
25
7 1
23
440
1 96
628
54
0
0
0
3
1
0
4
0
0
9470
2393
2554
5235
10184
1 9654

2
7
8
9
4
0
0
5
0
1
9
0
6
6
0
8
5
3
9
0
0
0
4
2
3
8
5
7
7
4
4
2
0
0
1
0
3
0
2
0
0
4
9
7
9
5
9
06
1 759
49
1 4 1
4
0
11537
27
7
0
337
34
1455
457
8187
4
1 95
6
2
482
1 8
7
0
22
1 0
530
92
987
360
1 899
396
2017
1 1 1
0
0
1
1 7
7
0
263
0
0
31435
91 07
328
-29
9406
40842

5
5
0
5
0
6
3
3
0
3
9
5
9
0
5
6
6
6
9
0
1
1
1
9
6
4
8
8
3
5
/
9
0
0
6
2
0
0
5
0
0
9
7
1
7
1
0
07
1 26
1 2
1 02
5
0
1 4348
12804
1 4
0
380
1 01
497
548
2212
347
5
1
1 4
1 82
1 0
1 6
0
26
546
506
331
600
1 93
2778
1 067
2379
330
0
0
0
6
1
0
1 03
0
0
40605
18970
293
4266
23529
641 35

2
7
8
4
0
4
1
4
0
4
6
5
5
1
9
0
3
1
7
4
9
1
8
3
8
7
9
2
8
6
8
3
0
0
4
3
0
0
5
0
0
9
0
2
6
8
7
08
4326
1 8
229
2
0
1 5
5
13077
0
1 56
28
929
744
337
7
1 52
37
1345
449
49
1 9
2
1 7
1 0
1148
1 27
693
1 90
1 989
449
1147
57
0
0
2
3
1 3
0
3
0
0
27789
1 0490
463
2286
13241
41030

7
3
5
6
0
0
5
9
0
7
5
9
7
9
1
/
6
8
6
1
4
3
1
1
0
1
5
8
3
4
4
0
0
0
2
5
6
0
8
0
0
6
6
6
9
1
7
09
0
7
1 80
25
0
1 254
70
2226
1 47
286
35
439
2 1 7
795
73
1 85
1482
1256
1 29
25
6
0
28
28
420
92
248
84
1 590
573
1557
79
0
0
0
5
8
0
22
0
0
1 3587
7766
1 38
21 69
10074
23662

4
0
8
8
0
9
3
1
7
8
5
4
2
4
6
4
8
6
6
4
/
0
1
1
7
9
0
1
7
7
6
1
0
0
5
8
1
0
7
0
0
5
6
9
4
9
4
1 0
63
568
270
295
0
843
6
4541
2
19015
78
3748
2333
2857
1
91
89
626
340
9
30
0
55
1 3
3300
270
2217
1784
3344
593
2319
1 39
0
0
24
61
53
0
731
0
0
50720
17654
830
9376
27862
78582

8
6
8
6
0
2
9
0
2
1
4
4
0
2
1
3
5
1
2
8
2
0
6
0
3
8
0
0
7
2
9
3
0
0
0
7
1
0
6
0
0
5
4
8
9
1
6
                        September 1995

-------
Use of Commodities by Industries Input-Output Tables: 1977 and 1982
C-7
                       Table C. 2 (cont.)
                 1982 "Use" Input-Output Table

01
02
03
04
05
06
07
08
09
1 0
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
20
2 1
22
23
24
25
26
27
28
29
30
3 1
32
33
34
35
36
37
38
39
40
41
Total
Labor
IBTs
Other
Total VA
O utput
1 1
2
1 1
201
6
0
1 04
4
1
0
13971
7098
2018
1121
874
9
1 9
202
1 66
458
1 5
43
0
855
2 1 0
2148
1 097
72 1
1 91
4088
1 966
5224
1 370
0
0
0
7
1 1
0
54
0
0
44280
29068
730
12723
42522
86803

3
7
8
5
0
1
7
5
0
9
4
9
4
0
2
5
9
1
6
9
9
0
4
6
1
4
7
3
5
0
6
2
0
0
7
8
3
0
0
0
0
9
6
1
8
5
4
1 2
280
4830
541
92 1
0
1 9
30
7 1
0
2004
609
27792
3267
4204
2
885
698
2938
939
42
1 6
0
1 67
32
3941
505
4084
3431
681 3
1 539
9606
273
0
0
36
67
1 93
0
920
0
0
81714
28146
1777
22792
52716
1 34430

8
8
9
4
0
5
9
2
0
9
4
6
6
5
9
0
3
8
9
9
3
0
8
2
8
7
4
1
9
4
2
7
0
0
5
4
9
0
6
0
0
2
3
3
8
4
6
1 3
1
1 31 800
489
25
0
33
0
46
0
364
23
3119
17493
370
3
361
47
479
64
1 2
35
0
27
4
8110
204
1822
3584
4673
1 894
2174
97
0
0
1 0
7
85
0
31 0
0
0
177781
8116
4767
1 6040
28924
206705

9
8
3
8
0
2
5
7
0
6
0
7
8
5
3
/
8
9
3
2
8
0
3
6
8
4
8
8
3
0
3
1
0
0
4
6
0
0
0
0
0
2
9
0
7
6
8
1 4
2
408
288
50
0
1514
1 6
1 28
0
1751
87
14799
844
14112
3
42 1
252
795
543
1 04
1 0
0
61
20
2198
657
2229
1045
4205
81 2
2999
1 1 0
0
0
6
1 6
55
0
944
0
0
51498
21934
1 621
7775
31331
82829

9
5
2
7
0
4
0
8
0
8
4
4
2
4
2
8
0
3
3
1
8
2
1
5
6
5
0
3
9
9
1
5
0
0
7
2
2
0
6
0
0
5
5
8
0
3
8
1 5
0
5
1 9
61 9
0
497
7
72
0
1 08
1 2
429
39
387
1614
1 0
1
80
33
2
0
0
5
1 04
1 57
29
83
34
526
1 81
486
88
0
0
0
6
2
0
1
0
0
5646
2872
37
543
3452
9099

2
2
3
2
0
0
1
4
0
2
1
0
5
4
1
0
8
0
0
1
2
0
8
4
6
8
9
1
2
5
8
2
0
0
3
3
4
0
1
0
0
3
1
0
7
8
1
1 6
2
2879
333
1 7
0
96
5
287
0
1172
65
2364
629
51 7
2
4657
254
437
387
68
1 1
1 01
48
28
2979
440
1483
1799
1671
560
1741
97
0
0
2
7
39
0
243
0
0
25434
1 4359
633
4117
19110
44545

4
1
4
2
0
0
4
8
0
6
6
1
4
3
5
/
2
9
1
1
1
9
6
3
1
9
2
7
6
5
9
6
0
0
3
4
4
0
5
0
0
8
9
5
4
8
6
1 7
3
651 8
1 469
8
0
21
8
2 1 9
5
1 36
70
3549
1555
1225
2
587
28741
1267
2624
725
20
43
63
1 9
4661
631
5247
3025
6174
91 0
4642
1 91
0
0
34
28
1 05
0
5202
0
0
79739
31680
1 1 83
-6472
26392
106131

2
8
1
2
0
4
8
8
2
1
3
1
5
6
6
/
4
5
9
3
1
3
7
0
3
3
0
1
2
7
1
3
0
0
4
3
1
0
4
0
0
8
7
7
4
0
8
1 8
2
71
1 1 82
7
0
1
89
354
0
669
335
1907
757
1210
0
641
28537
7814
2515
388
39
0
1 03
40
1906
1481
1435
675
6560
1 327
3905
1 85
0
0
1
27
33
0
1 40
0
0
64350
34332
1 055
6882
42270
106621

4
4
9
4
0
3
9
3
0
9
1
1
4
2
4
9
2
9
6
1
1
0
2
6
6
1
1
6
0
1
/
6
0
0
7
7
0
0
9
0
0
5
4
9
5
8
3
1 9
7
64
1141
1 2
0
1 38
1 2
259
30
826
299
820
1044
3439
2
1213
17728
6357
24527
10226
1 1 4
35
352
98
2427
1 1 93
1911
630
12395
2551
7191
307
0
0
3
22
45
0
807
0
0
98242
63834
1 760
14474
80069
178311

3
1
4
8
0
8
3
5
3
6
3
3
8
6
4
/
1
6
8
3
2
0
6
8
6
4
6
9
3
0
3
4
0
0
8
6
7
0
9
0
0
1
1
4
7
2
3
20
8
1 57
744
9
0
51
27
241
388
1098
383
2584
751
5880
1
1488
9930
5266
2032
25554
1 8
40
552
1 32
2110
1640
1871
505
1 0707
2400
7056
389
0
0
4
27
56
0
626
0
0
84741
581 48
1481
4305
63935
148676

5
1
2
8
0
2
2
3
2
8
/
6
9
8
9
5
8
4
6
5
1
7
3
0
2
1
2
4
8
6
9
3
0
0
3
7
4
0
0
0
0
0
4
8
1
3
3
                        September 1995

-------
Use of Commodities by Industries Input-Output Tables: 1977 and 1982
C-8
                       Table C. 2 (cont.)
                 1982 "Use"  Input-Output Table

01
02
03
04
05
06
07
08
09
1 0
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
20
2 1
22
23
24
25
26
27
28
29
30
3 1
32
33
34
35
36
37
38
39
40
41
Total
Labor
IBTs
Other
Total VA
O utput
2 1
3
38
498
0
0
240
1665
1 1 9
1 1 3
1 53
53
743
61 0
4671
2
1001
8194
8111
6858
2557
25308
39
41 3
27
2249
224
923
375
8564
543
3771
250
0
0
0
27
39
0
698
0
0
79093
23647
1 657
6841
321 47
111240

8
8
4
7
0
8
1
6
2
6
4
3
6
3
7
3
5
5
4
3
1
3
4
2
4
3
2
0
8
1
0
0
0
0
8
0
7
0
7
0
0
4
9
8
7
4
8
22
4
1 7
950
7
0
309
355
97 1
407
1 08
1 22
466
597
1170
1
565
5914
2915
3721
4765
607
13162
1569
62
1429
567
932
274
3648
1 857
5085
207
0
0
1
1 2
26
0
1 1 0
0
0
52927
40529
749
8605
49884
102811

7
2
9
6
0
3
3
3
0
1
0
8
3
3
2
0
8
9
8
9
3
2
6
4
5
8
6
6
2
9
3
3
0
0
4
1
5
0
2
0
0
3
4
6
4
4
7
23
2
47
1 41
52
0
51 3
6
1 03
2
684
1 06
91 0
366
1552
6
374
1798
1260
354
3089
1 1
0
1597
37
468
330
381
1 1 2
2122
683
2470
93
0
0
0
5
8
0
258
0
0
1 9955
1 5463
352
8119
23935
43891

5
4
1
1
0
1
7
9
8
5
3
5
9
1
0
9
1
7
5
6
4
0
4
4
2
6
3
2
0
9
1
8
0
0
6
5
8
0
5
0
0
4
9
7
1
7
1
24
35
41
1 65
49
0
492
1 26
778
21
111
1 37
701
31 4
1516
93
1 7 1
2135
565
302
592
1 0
5
36
1339
546
1 04
244
79
2274
526
2266
1 34
0
0
0
3
5
0
668
0
0
17261
7262
202
3266
10731
27993

0
1
0
1
0
5
6
9
5
3
3
7
3
2
1
4
0
7
0
6
0
4
7
3
0
5
8
7
2
7
8
2
0
0
2
1
5
0
1
0
0
5
7
1
9
7
2
25
1 8
221
5361
249
0
53
1 87
27
0
1 61
473
230
26315
1062
7
77
246
938
1884
37 1
353
2491
85
1 30
26535
2280
1853
65
6252
6371
9610
276
0
0
5
7 1
1 1 4
0
541 1
0
0
99797
73322
5744
1 6456
95524
195321

0
0
5
3
0
9
7
5
0
0
4
6
2
9
8
1
5
2
4
4
8
9
6
1
7
7
5
2
6
7
6
1
0
0
8
2
9
0
1
0
0
8
6
8
6
0
8
26
4
0
4024
3
0
0
29
0
0
86
508
1 49
31 7
1 91
2
7
34
325
442
4435
1 0
7
2 1 0
88
41 6
1 985
377
1 7
1 321
3545
8809
257
0
0
3
1 5
354
0
1 934
0
0
29920
42502
6334
33068
81905
111825

3
0
9
4
0
0
1
0
0
4
8
6
4
9
9
8
0
6
4
6
3
9
3
9
5
6
8
4
5
8
3
2
0
0
5
3
2
0
8
0
0
4
6
2
4
2
6
27
1 9
1 5843
8234
0
0
5
2
0
0
41
1 24
336
8370
94
0
1
56
1 1 8
1496
360
1 0
5
98
30
5785
1 73
0
13430
1 939
2292
1961
344
0
0
7
6
1 31
0
1
0
0
61326
14601
6528
38866
59996
121322

2
1
9
9
0
3
9
0
0
5
1
4
9
7
8
0
7
6
4
4
6
2
4
9
6
0
0
7
0
2
/
4
0
0
2
7
4
0
9
0
0
8
4
4
3
0
8
28
2
387 1 3
781
0
0
0
0
0
0
6
25
1 0
384
1 1
0
0
0
3
1 3
1 9
6
2
27
9
1 39
31
205
48191
1 1 6
755
628
1 98
0
0
1
5
7
0
9
0
0
90308
6793
2864
1 0704
20362
110671

1
8
6
2
0
0
2
0
0
3
2
1
5
6
3
4
7
0
6
3
5
7
5
1
0
7
5
4
0
9
0
8
0
0
8
0
0
0
5
0
0
3
5
9
5
9
2
29
2808
34
4373
39803
0
65
1 86
870
8
8359
2369
458
12331
2376
83
689
29
1149
1550
337
472
3
400
838
8081
9669
14306
2877
27868
36657
69575
3027
0
0
77
392
273
0
1 485
0
0
253894
294051
77689
94602
466343
720237

7
1
4
4
0
7
1
5
3
0
9
3
2
1
9
5
9
8
8
4
6
4
5
4
2
2
8
8
5
3
/
2
0
0
7
8
9
0
8
0
0
9
7
2
1
0
9
30
3023
0
25685
9
0
0
1 02
1 0
1
897
4218
347
2036
402
25
54
1
1 28
461
343
83
29
979
508
5721
71 53
1047
88
961 0
1 01 008
32183
5246
0
0
6
45
259
0
1 430
0
0
203154
118240
82237
312198
512675
71 5830

2
4
7
0
0
3
8
2
3
5
/
1
6
8
7
2
2
7
6
6
8
1
9
3
0
9
7
5
6
2
6
9
0
0
6
8
4
0
8
0
0
7
6
2
1
9
6
                         September 1995

-------
Use of Commodities by Industries Input-Output Tables: 1977 and 1982
C-9
                             Table C.2 (cont.)
                       1982 "Use" Input-Output Table

01
02
03
04
05
06
07
08
09
1 0
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Total
Labor
IBTs
Other
Total VA
Output
31
1 165.2
41.0
12437.2
4589.9
0.0
263.8
1564.7
300.7
9.9
4089. 1
11124.2
11017.6
7441 .4
6019.6
288. 1
1806.3
46.2
5690.0
5654.5
5516.7
91 84.8
491 . 1
4990.4
2509.0
7003.3
10678.1
7449.9
2853. 1
20939.3
44036.2
75641 .3
4464. 1
0.0
0.0
63.7
283.5
423.5
0.0
2306.1
0.0
0.0
272383.5
321735.4
9319.8
150488.8
481544.0
753927.5
32
2110.6
25.0
5206.9
1343.8
0.0
8.4
57.3
0.0
0.0
54.3
269.9
812.2
1450.0
138.7
6.0
91.7
0.4
55.3
688.2
830.3
264.0
105.0
30. 1
49.3
2355.6
253.2
3225.2
3990.6
1268.8
1111.6
1612.1
660.2
0.0
0.0
16.6
9.3
22.8
0.0
731 .5
0.0
0.0
28854.6
30223.9
13.7
-5049.7
25187.9
54042.5
33
1.2
57.3
7.0
0.0
0.0
0.4
4.2
24.5
0.0
7.8
6.3
23.0
210.3
30.8
0.0
688.0
343.2
804.4
392.0
118.3
4.6
0.4
10.8
0.9
180.2
29.1
20.5
6.6
430.4
99.8
2142.3
9.2
0.0
0.0
0.0
1.7
2.6
0.0
0.0
0.0
0.0
5657.8
1942.7
64. 1
860.1
2866.9
8524.7
34
0.7
19.7
2.3
0.0
0.0
1.3
2. 1
11.5
0.0
2.5
1 .0
38.0
74.8
29.9
0.0
146. 1
18.7
288.2
32.0
12.7
5.2
0.0
3.0
1 .5
39.0
58.9
6.7
2.3
111.2
15.4
118.7
1.7
0.0
0.0
0.0
0.3
0.9
0.0
0.0
0.0
0.0
1046.3
1724.0
6.2
311.6
2041 .8
3088.1
35
3.5
1.1
275.9
0.2
0.0
0.0
1 .0
0.0
0.0
9.2
2.8
47.0
20.9
20. 1
0.0
10.8
0.0
14.7
30. 1
5.9
0.9
1 .0
2. 1
1 .4
14.4
14.8
133.8
195.8
41 .7
71.9
62.1
2.2
0.0
0.0
0.7
0.0
1.0
0.0
0.0
0.0
0.0
987.1
250.7
17.9
80.9
349.5
1336.5
36
5.9
2.0
416.3
0.2
0.0
0.0
1 .8
0.0
0.0
4.5
3.6
73.3
37.0
6.2
0. 1
9.8
0.0
4.4
53.4
8.3
0.9
1 .9
1 .4
1 .9
21.1
17.1
238.6
352.7
51 .1
75.2
83.6
3.3
0.0
3088.1
1.2
0.0
0.7
0.0
0.1
0.0
0.0
4565.5
386.2
5.8
201.5
593.5
5159.0
37
1.5
12.6
90.0
0.7
0.0
0.1
0.4
65.6
0.0
3.8
8.0
177.1
381 .2
12.1
0. 1
1 .6
0.0
87.3
9.8
3.3
227.9
0.2
147.2
1 .2
255.4
21.3
31.5
276.7
173.5
222.4
210.8
3.3
0.0
0.0
3.1
0.0
156.1
0.0
14.6
0.0
0.0
2600.7
1286.7
122.6
228.3
1637.5
4238.2
38 39
0.0 0.0
0.0 0.0
7.5 0.0
0.1 0.0
0.0 0.0
25.2 0.0
0.0 0.0
3.2 0.0
0.0 0.0
4.3 0.0
1.6 0.0
4.2 0.0
5.8 0.0
5.6 0.0
0.0 0.0
6.3 0.0
196.2 0.0
87.9 0.0
149.0 0.0
42.8 0.0
0.1 0.0
0.0 0.0
7.5 0.0
0.1 0.0
15.6 0.0
5.7 0.0
8.9 0.0
3.8 0.0
79.4 0.0
12.2 0.0
30.1 0.0
1.4 0.0
0.0 0.0
0.0 0.0
0.0 0.0
0.0 0.0
0.4 0.0
0.0 0.0
0.6 0.0
0.0 0.0
0.0 0.0
705.6 0.0
330.1 0.0
6.6 0.0
-136.3 0.0
200.4 0.0
906.0 0.0
40
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
337369.5
0.0
0.0
337369.5
337369.5
41
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
7640.3
0.0
37745.0
45385.3
45385.3
Total Int.
151800.6
214422.5
83523.7
1 09132.2
3365.4
34228.1
17821 .7
41 938.9
1846.6
67281 .2
31 580.9
103394.9
120900.7
75000.2
2631 .4
41 978.2
1 20857.9
96621 . 1
75502. 1
74541 .9
37605.5
17003.3
14469.9
7649.9
1 18281 .0
45268.8
66199.4
94668.0
213852.4
261563.1
329196.9
19916.9
0.0
3088.1
366.0
1459.5
3112.4
0.0
30097.8
0.0
0.0

1916700.0
252500.0
1038397.1


                         September 1995

-------
Use of Commodities by Industries Input-Output Tables: 1977 and 1982
C-10
                            Table C.2 (cont.)
                       1982 "Use" Input-Output Table

01
02
03
04
05
06
07
08
09
10
1 1
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Total
Labor
IBTs
Other
Total VA
Output
Non-Environ.
PCE GPFI Inventory Exports Imports Gov't. Sanit. Sewer. Hwy Water Nat. R.
15998.0 0.0 -1513.0 19448.3 -4153.0 8505.7 3.0 0.0 0.0 0.0 14.5
251.4 1137.0 943.9 8388.9 -46481.4 727.2 0.0 0.0 0.6 0.0 0.5
0.0 267631.4 0.0 82.3 0.0 74717.9 100.0 0.0 226.5 614.2 282.3
166401.5 0.0 865.3 10933.1 -12416.4 6333.7 0.0 0.0 0.0 0.0 1.5
14249.0 0.0 363.7 2666.1 -972.5 -1.7 0.0 0.0 0.0 0.0 0.0
3425.2 1390.8 -632.9 1815.2 -2208.4 254.2 8.4 0.0 0.0 0.0 0.2
56918.7 0.0 -193.5 1413.1 -11623.5 1447.4 5.1 0.0 0.1 0.0 2.9
820.8 3.5 -1037.0 2537.8 -3182.7 125.7 0.0 0.0 0.0 0.0 0.1
12492.7 9354.9 -247.0 604.6 -1542.6 1087.4 2.4 5.5 0.1 1.2 4.4
9260.3 0.0 321.7 4072.1 -5635.3 2061.8 2.2 0.0 0.1 0.0 6.8
17388.0 0.0 104.9 1403.4 -638.4 4547.4 1.8 0.0 0.0 0.0 15.0
31960.1 1457.8 -984.5 14694.3 -9954.2 6502.9 29.5 0.0 0.0 0.0 21.3
78469.4 0.0 -2310.1 9387.9 -19488.6 14550.9 401.9 0.0 0.7 0.0 31.1
8597.1 45.1 -749.6 6463.9 -4871.8 1674.2 0.0 0.0 0.0 0.0 2.0
10390.5 0.0 117.7 512.2 -4628.3 104.4 0.0 0.0 0.0 0.0 0.0
3053.0 0.0 -75.3 1710.6 -2788.5 491.0 0.8 0.0 0.0 0.0 2.7
50.0 68.4 -4890.2 4855.5 -17599.0 981.8 0.0 0.0 0.0 0.0 0.1
4610.6 5969.6 -1287.3 5668.3 -5230.5 2227.6 11.5 0.0 0.3 0.0 6.5
2497.0 78679.6 -1617.5 33371.7 -17084.1 8208.2 73.2 102.7 2.8 18.4 9.8
24308.8 37204.3 -112.1 17478.5 -22304.2 18376.9 0.3 0.0 0.4 0.5 6.8
51624.1 37215.5 -1336.8 12304.7 -31997.9 4650.7 83.8 65.3 4.6 26.5 12.6
9142.7 15337.7 3911.7 19331.9 -5270.2 40244.9 0.0 0.0 0.0 0.5 3.5
6266.1 15866.8 -90.5 6722.7 -5790.2 6459.7 19.0 19.1 0.2 0.7 6.6
18844.9 4347.6 -42.3 1904.8 -7526.8 1572.5 0.2 0.0 0.0 0.0 13.2
49682.0 3068.2 -539.6 19706.0 -902.1 10571.8 65.0 4.9 1.7 1.3 19.5
40287.0 4705.1 0.0 1490.0 0.0 5442.5 4.4 0.0 0.1 0.0 14.1
47066.0 0.0 0.0 82.9 -910.0 8828.2 0.0 0.0 4.8 0.0 6.9
25567.7 0.0 0.0 149.9 -4671.1 2396.4 0.0 0.0 0.0 0.0 6.7
438312.1 35304.5 -494.2 21941.5 8609.0 6776.2 71.0 37.5 1.3 5.5 43.2
426033.4 9535.0 0.0 12151.0 -1075.9 11846.2 29.5 0.0 0.0 0.0 10.4
431610.3 4360.9 -83.5 5850.6 -124.1 41064.4 -36.1 0.0 -0.5 0.0 57.6
7709.7 0.0 0.0 101.4 0.0 1183.0 38.6 0.0 0.0 0.0 4.2
0.0 2454.2 0.0 0.0 0.0 470.7 122.0 5477.8 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
832.6 0.0 0.0 2.2 0.0 133.6 0.0 0.0 0.0 0.0 2.2
3699.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
1125.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 906.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
23831.4 -15590.2 -148.0 2280.2 -47284.0 9223.9 0.0 0.0 3.9 8.3 0.0
0.0 0.0 0.0 0.0 0.0 334546.9 2093.0 0.0 36.2 0.0 693.4
-6587.9 0.0 -11299.0 106000.1 -42165.9 -562.0 0.0 0.0 0.0 0.0 0.0



2036189.5 520453.7 -23055.0 357527.7 -331912.6 637774.2 3130.5 5712.8 284.0 677.1 1302.6
Final
Demand
38303.6
-35031.9
343654.6
1721 18.7
16304.6
4052.7
47970.3
-731.8
21763.6
10089.7
22822.1
43727.2
81043.2
1 1 160.9
6496.5
2394.3
-16533.4
1 1976.6
104261.8
74960.1
72653.1
82702.7
29480.2
191 14.1
81678.7
51943.2
55078.8
23449.7
510607.6
458529.6
482699.7
9036.9
8524.7
0.0
970.5
3699.5
1125.8
906.0
-27674.5
337369.5
45385.3



3208084.5
Output
190104.2
179390.6
427178.3
281250.9
19670.0
38280.8
65792.0
41207.1
23610.2
77370.9
54403.0
147122.1
201943.9
86161.1
9127.9
44372.5
104324.5
108597.7
179763.9
149502.0
1 10258.6
99706.0
43950.1
26764.0
199959.7
97212.0
121278.2
118117.7
724460.0
720092.7
811896.6
28953.8
8524.7
3088.1
1336.5
5159.0
4238.2
906.0
2423.3
337369.5
45385.3

1916700.0
252500.0
1038397.1

3208084.5
                         September 1995

-------
      APPENDIX D.   DERIVATION OF THE TOTAL REQUIREMENT MATRIX
        Due to problem of secondary production (i.e. most industries produce more than one
commodity), it is necessary to introduce the modified form of the total requirements matrix. To
obtain the modified total requirements matrix, both the "Use" and the "Make" Tables are
required. The "Make" table is BEA's "The Make of Commodities by Industry" table and the
"Use" table is BEA's "The Use of Commodities by Industry" table.  The rows of the "Make"
table are industry sectors and the columns are commodity sectors. Hence, a row shows the
amount of each commodity produced by an industry, while a column shows the amount of a
commodity produced  by each industry. Similarly, in the "Use" table, the rows are commodity
sectors, while the columns are industry sectors. A row shows the amount of a commodity used
by each  industry and purchased as final demand, while a column shows the amount of each
commodity and the amount of primary factors used by an industry.

        Industry output (q) is given by:

             q      =     [i-A]"1 =     BY

where
             Y                  =     the final demand  (commodity)vector
             A                  =     "Use" table (divide I-O ccells of column by
                                       industry output associated with that column)
             B = W[I-AW]       =     industry by commodity total requirements
                                       matrix

and
             W                 =     "Make" table (divide I-O cells of a column by
                                       commodity output associated with that column)
             AW               =     commodity by commodity direct requirements
matrix
             [I-AW]            =     commodity by commodity total requirements
                                       matrix

        The "Use" table, or the commodity by industry direct requirements  table, is the table
that is adjusted to isolate EP activities.  Thus, the industry by commodity matrix total
requirements matrix, W[I-AW] , is used in this study.  This matrix shows direct and indirect
requirements of the output of industry I per dollar of final demand of commodity j. When
estimating equations 14, 18, 19, and 20, B and Bne are calculated in the manner shown above.

        For simplicity of calculation, the adjustment for the "scrap sector" is ignored. Given
the relatively small size of the "scrap sector," this probably has an insignificant impact on the
results.

                                   September 1995

-------
               APPENDIX E.  DOCUMENTATION OF PEER REVIEW
E. 1.      Description of Review Process

         Drafts of the reports The U.S. Environmental Protection Industry:  The Technical
Document and The U.S. Environmental Protection Industry:  A Proposed Framework for
Assessment were subjected to both an inter- and intra-agency reviewed.  Representatives from
the following Agencies were contacted for comment: Bureau of Economic Analysis,
Congressional Budget Office, Department of Commerce, Office of Technology Assessment, and
the U.S. International Trade Commission.  Within EPA, representatives from the following
offices were contacted: Office of Air and Radiation, Office of International Activities, Office of
Prevention, Pesticides and Toxic Substances, Office of Solid Waste and Emergency Response,
and Office of Water. Upon receipt of comments, EPA staff made an attempt to address and
incorporate all comments, to the maximum extent possible. Specific comments and responses
are listed below.

         In addition, the analytical methods used were documented in an academic paper, which
was submitted for peer review to the journal, The Review of Income and Wealth, a journal
specializing in national income accounting and input-output concepts. The paper,
"Environment-Economic Accounting and Indicators of the Economic Importance of
Environmental Protection Activities," was accepted for publication  after two revisions.

E.2.      Specific Comments and Responses

Comment:     [The report should] note (or footnote) additional complications and idiosyncracies
             of various estimates [of the size of the EP industry] beyond the discussion
             definitions and the example of water supply.

Response:    Endnote 3 in Chapter 2 of The U.S. Environmental Protection Industry:  The
              Technical Document and endnote 6 in The U.S. Environmental Protection
             Industry: A Proposed Framework for Assessment were added.

Comment:    The point that data is the limiting factor [to measuring the size of the EP industry]
             should be made explicit for policymakers.

Response:    Although data are a potential source of the discrepancy in different estimates of
             the size of the EP industry, it is not the primary source of the discrepancy. Rather,
             the report points out that it is the lack of a consistent definition of the economic
             activities that constitute environmental protection activities that is the primary
             source of the different estimates.
                                    September 1995

-------
E-2                    The U.S. Environmental Protection Industry

Comment:    In addition to internal corporate activities and purchase of nonenvironmental
             commodities, environmental costs in the form of fees, taxes, and penalties paid to
             government do not count as EP industry revenues.

Response:    Endnote 2 in Chapter 2 of The U.S. Environmental Protection Industry: The
             Technical Document and endnote 5 in The U.S. Environmental Protection
             Industry: A  Proposed Framework for Assessment were added.

Comment:    While disentangling [revenues from] environmental goods and services from
             nonenvironmental goods and services can be difficult and may in practice account
             for some discrepancy between cost and revenue based estimates of the EP
             industry, it is not a theoretical reason for such a discrepancy.

Response:    The report does not claim that the difficulty in acquiring such data is a
             "theoretical  reason for such a discrepancy." The report discusses the difficulties
             of actually measuring the size of the environmental protection industry.

Comment:    In distinguishing value-added from revenues or costs of EP, it might be useful to
             have a more concrete example of how value-added is only a component of total
             costs in [The U.S. Environmental Protection Industry: A Proposed Framework
             for Assessment}.

Response:    Endnote 7 was added to The U.S. Environmental Protection Industry:  A
             Proposed Framework for Assessment.

Comment:    Perhaps a more important example than adding the value of game animals can be
             found to illustrate the SEEA's modification of national income accounting.

Response:    The example was changed to the value of wetlands in mitigating floods, filtering
             water for drinking, and serving as a nursery for commercial fish.

Comment:    Are government expenditures on vehicle emissions control  and other
             environmental activities (e.g., precipitators at a municipal utility or military base
             clean-up or environmental monitoring) treated somewhere or are data not
             available?

Response:    As stated in  the report(s), this study uses the BEA definition of environmental
             protection expenditures with some modifications in order to accommodate EPA's
             definition of environmental protection costs.  Some of BEA's expenditure
             information  is excluded due to lack of information regarding which goods and
             services are  purchased as a consequence of these expenditures. For example,
             regulation and monitoring expenditures are excluded from this report.
                                    September 1995

-------
                             Documentation of Peer Review
E-3
Comment:    The report may benefit from a comparative assessment that clearly indicates why
             one approach [to measuring the EP industry] may be better over others.

Response:    The preferred approach depends on the type of question that is being asked so it is
             not possible to compare approaches without reference to the research issue.
             Section 2 of The U.S. Environmental Protection Industry: A Proposed
             Framework for Assessment details the reasons that input-output framework is
             appropriate for this study.

Comment:    The discussion of Table 1 [in The U.S. Environmental Protection Industry: A
             Proposed Framework for Assessment] is insufficient.

Response:    The text describing the table was revised.

Comment:    [The report] needs to clarify that water related EP expenditures include drinking
             water.

Response:    The text under 3.3.1 in The U.S. Environmental Protection Industry: A Proposed
             Framework for Assessment was altered to make this point.

Comment:    The format of the reports [should be] described in a preface or other appropriate
             introductory material.

Response:    The acknowledgments section of the reports describes the relationship between
             the two reports.

Comment:    The report could be improved by collection of primary data.

Response:    Such  data would have been useful in constructing the EP input-output tables for
             this report. However, the cost collecting primary data was not within the EPA
             budget allocated for this project.

Comment:    The reports could be improved by more clearly describing the objective of the
             analysis.

Response:    Section 1.1 of The U.S. Environmental Protection Industry: A Proposed
             Framework for Assessment was revised to address this comment.

Comment:    The report [should] highlight all assumptions in a list or table.

Response:    Appendix G, "List of Important Assumptions"  was added to The U.S.
             Environmental Protection Industry: The Technical Document.
                                    September 1995

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E-4                    The U.S. Environmental Protection Industry

Comment:    Are any air pollution services provided by the [external] EP industry?

Response:    As indicated by the detailed discussions of what is included in the external EP
             sectors in Chapters 2 and 3 of The U.S. Environmental Protection Industry: The
             Technical Document no air pollution control services are provided by the external
             EP services sectors.

Comment:    (Regarding Table 1 in The U.S. Environmental Protection Industry: A Proposed
             Framework for Assessment)  The table needs a discussion of units and whether
             the information is based on a revenue, cost or value-added approach.

Response:    The text describing the table was revised and the omitted units (millions of
             dollars) were added to the table.

Comment:    The report needs a more complete discussion of the model to accompany
             derivation of the mathematical formulae.

Response:    The derivation of the input-output multipliers is presented in "Environment-
             Economic Accounting and Indicators of the Economic Importance of
             Environmental Protection Activities" which will appear in the September 1995
             issue of The Review of Income and Wealth.

Comment:    The report needs to make clear that there are two parts to disaggregating the
             input-output tables: 1) identifying environmental protection expenditures which
             reduce pollution and 2) identifying defensive expenditures to reduce the effects of
             pollution.

Response:    Endnote 5 in Chapter 2 of The U.S. Environmental Protection Industry:  The
             Technical Document was added.

Comment:    How are federal contributions to SRFs treated?

Response:    Federal state revolving fund  (SRF) subsidies do not appear to be counted as
             environmental protection expenditures by the Bureau of Economic Analysis.
             Hence, there is no explicit accounting of SRFs in the input-output tables in this
             report.
                                    September 1995

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