Environment in emerging and transition economies

Economic Instruments

 

This work aims to assists EECCA countries to reform existing, and to introduce new, economic instruments for environmental protection.

 

Several reviews of the system of economic instruments for environmental protection in the EECCA region have been completed by the EAP Task Force and others. The main conclusion from these reviews is that a number of concerted actions need to be undertaken by EECCA countries to eliminate the most obvious flaws in the present pollution charge system and increase its incentive impacts, including:

  • Targeted use of pollution charges (for key priority pollutants discharged by big stationary sources);
  • Increase of charge rates to a level that would provide significant incentives to reduce pollution;
  • Exclusion of hazardous air and water pollutants from the charge system;
  • Elimination of charges for air pollution from mobile sources;
  • Elimination of pollution charges on waste;

In addition, it was recommended that product taxes should be introduced as a more effective way to raise revenues. The implementation of these reforms requires a strong commitment on the part of national governments, substantial administrative resources, and economic and legal expertise. In so far as the revenues from economic instruments are earmarked for environmental purposes, this activity is closely related to work on environmental expenditures under the Environmental Finance Programme.

 

Activities focus on demonstration projects in EECCA countries (e.g. RussiaArmenia) on identifying the key elements of reform and on disseminating lessons learned.

 

 

 

Related Documents

 

Reform of Pollution Charges in the Russian Federation: Assessment of Progress, Opportunities and Constraints for Further Improvement

Reform of the pollution charges in the Russian Federation: Assessment of Progress, Opportunities and Constraints for Further Improvement

Environmental Pollution and Product Charges in Armenia: Assessment of Reform Progress and Direction for Further Improvement

Environmental Pollution and Product Charges in Armenia: Assessment of Reform Progress and Direction for Further Improvement (Russian)

Economic Instruments For Pollution Control And Natural Resources Management In OECD Countries: A Survey

Review of Economic Instruments in Eastern Europe, Caucasus and Centra Asia

The Use of Economic Instruments in the Rostov Region, Russian Federation

 

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