Environment in emerging and transition economies

Economic Instruments

 

This work aims to assist countries of Eastern Europe, Caucasus and Central Asia (EECCA) 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.

In 2009-2010, the Environmental Action Programme (EAP) Task Force worked on reforming administrative monetary penalties (fines) – the most widespread 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.

In 2011-2012, the EAP Task Force Secretariat developed a policy paper on 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 paper provided recommendations for EECCA countries to re-focus their environmental liability regimes on environmental remediation, consistent with international practices.

Starting in 2013, the work of the EAP Task Force in this area has been focused on economic instruments for the management of environmentally harmful products. The Secretariat has developed a Policy Manual on the design and implementation of such instruments as product taxes and their environmental differentiation, deposit-refund systems and enhanced producer responsibility schemes. Pilot projects on product-related economic instruments are being carried out in Moldova and Ukraine.

 

Related link

 

Related Documents

 

Liability for environmental damage in EECCA: Implementation of good international practices, 2012

Determination and application of administrative fines for environmental offences

Removing Economic Benefits of Environmental Violations in Azerbaijan: Case Study Report

Environmental pollution and product charges in Armenia: Assessment of reform progress and direction for further improvement, 2004

Review of economic instruments in Eastern Europe, Caucasus and Centra Asia, 2003

The use of economic instruments in the Rostov Region, Russian Federation, 2002

Reform of pollution charges in the Russian Federation: Assessment of progress, opportunities and constraints for further improvement, 2004

 

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