Environment in emerging and transition economies

Economic Instruments

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This work aims to assists Eastern Europe, Caucasus and Central Asia (EECCA) countries in more effective implementation of the Polluter Pays Principle by re-designing their economic instruments for environmental protection in line with their appropriate functions.

A comprehensive review of the system of economic instruments for environmental protection in EECCA and demonstration projects in Russia and Armenia (2003-2005) resulted in recommendations on how to eliminate the most obvious flaws in EECCA countries’ existing pollution charge systems and increase their incentive impact.

More recently, the EAP Task Force worked on reforming monetary penalties (fines) – the most widespread administrative environmental enforcement instrument in EECCA countries and internationally, intended both to punish non-compliance and prevent its future re-occurrence. It developed a guidance document on the determination and application of administrative fines for environmental offences and conducted a case study in Azerbaijan which focused on the calculation of economic benefit of non-compliance and its removal through an appropriate monetary penalty.

The Secretariat is currently collaborating with EECCA Regional Environmental Centres on a project dealing with environmental liability for damage to natural resources. Environmental liability is one of the means of making polluters pay for preventing, remediating or compensating environmental damage they cause. The project’s objective is to help EECCA countries to re-focus their environmental liability regimes on environmental remediation, consistent with international practices.

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Environment in emerging and transition economies

Economic Instruments

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