The indicator includes “Gross investment in tangible goods” and “Value added at factor costs” in the following three sectors: the recycling sector, repair and reuse sector and rental and leasing sector.
- Gross investment in tangible goods is defined as investment during the reference year in all tangible goods. Included are new and existing tangible capital goods, whether bought from third parties or produced for own use (i.e. capitalised production of tangible capital goods), having a useful life of more than one year including non-produced tangible goods such as land. Investments in intangible and financial assets are excluded.
- Value added at factor costs is the gross income from operating activities after adjusting for operating subsidies and indirect taxes. It can be calculated as the sum of turnover, capitalized production, other operating income, increases minus decreases of stocks, and deducting the following items: purchases of goods and services, other taxes on products which are linked to turnover but not deductible, duties and taxes linked to production. Value adjustments (such as depreciation) are not subtracted.
The indicator is calculated in three steps as follows:
- Conceptual framework. The delineation of economic activities related to the circular economy was determined by means of a sector classification based on the purpose of each sector.
- The relevant activities were identified and matched against the integrated system of economic classification, drawing upon existing lists of goods and services for the environmental sector.
- Produce the estimates based on official statistics, in particular structural business statistics, PRODCOM, national accounts, the Labour Force Survey and others.