Economic Incentives for Environmental Protection: An Overview

Author(s):  
Nick Hanley ◽  
Jason F. Shogren ◽  
Ben White
Author(s):  
V. Ostrovetskyy ◽  

The current economic situation in Ukraine, which is exacerbated by several global issues, such as the political crisis in eastern Ukraine and the spread of COVID-19, requires continuous improvement and development of new environmental instruments to be developed based on balancing state and society as well as preserving the country's natural resource potential for future generations. The system of environmental protection instruments must ensure the efficient functioning of the economic system and not create an excessive burden. Economic instruments: taxes, licenses, quotas, fees, special permits, are gradually replacing the command-administrative methods of environmental management, the system of which was built based on special subsidies, the use of which justified itself in centralized management of the economy in Soviet times. However, in the conditions of the development of market relations, which are based on the principles of democracy, entrepreneurship, development of various forms of ownership, the system of subsidies proved to be ineffective. To replace it began to develop a system of economic incentives for environmental protection, the main elements of which are accessible to the object of use (license, permit), as well as a special fee, tax, the parameters of which are set depending on the scale of damage (pollution) in absolute values or as a percentage of the cost of production. Among the main tools for regulating the environmental aspects of industrial production, first of all, are those that regulate the supply and demand for goods (services), the production and sale of which harms consumers and the environment. Based on the analysis of the dynamics and structure of the main macroeconomic proportions, as well as methods of state regulation of market relations, the article emphasizes the need to adhere to the concept of "green" growth, including through the development and consolidation of environmental taxation. Among the areas of activity in this area, it is proposed to deepen the differentiation of environmental taxation parameters and expand the tax base (expansion of the list of goods, production (consumption) of which is subject to environmental taxation).


2021 ◽  
Vol 70 (4/2020) ◽  
pp. 189-204
Author(s):  
Jelena Šogorov Vučković

Effective environmental protection cannot be imagined without direct management of such protection by state authorities through legal prohibitions and orders, permits, approvals and exemptions, mandatory notifications, control, and repression measures of the state administration, etc. Yet, in modern environmental systems, instruments of indirect influence on the addressees of norms are gaining increasing importance, with the aim of influencing their desirable behaviour through citizens’ awareness. Such instruments are used by law primarily in the field of prevention, with the aim of preventing environmental damage. When using indirect means, the state appeals to the addressees to act appropriately to protect the environment, but without forcibly sanctioning behaviour, if that appeals are not accepted. This paper analyses the nature of indirect instruments, such as public information, economic incentives of the classical and modern types, as well as environmental agreements, with an indication of their role and importance in modern environmental systems.


2018 ◽  
pp. 12-16
Author(s):  
DEMUR CHOMAKHIDZE ◽  
DAVID NARMANIA DAVID NARMANIA

The article views environmental protection issues in the energy sector of Georgia. Trends of developing energy complex are discussed and assessed envisaging ecological requirements. It is indicated that energy complex is the most polluting one among the fields of material production. Focus in made on ecological problems of the land, including cultivable ones, water, climate and other fields. The Georgian experience is presented in respect with meeting these challenges. At the end, views are given for improving the situation. Points to be stressed are: - Rational production and usage for energy resources, creation of energy recourse-conserving, low waste or no waste environmentally clean technologies, reduction of emissions, and thermal gases polluting an environment, decrease of harmful action of industrial and other waste and waste utilization;- Construction and reconstruction of systems of protection of environment, including increase of rates of filtration and neutralization of natural substances in the exhaust gases, waste water, cleaning of ground polluted and damaged during construction and operation of energy facilities, and also usage of industrial waste as secondary raw material; - Provision of economic incentives of rational use of casing-head gases, suppression of practice of their burning in their torches (first of all at the experience of creation of economically favorable conditions for use of such gases);- Introduction of environmentally clean technologies of coal burning in thermal power stations and other enterprises, as a condition of coal use prospects;- Improvement of coal fuel quality (including its enrichment, processing, bracketing etc.);- Usage of mine methane;- Growth of production of high-quality engine fuels appropriate to the European standards, improved for conformity with the requirements of the advanced legal base for polluting substances and exhaust gases emitted as a result of oil products combustion;- Development and realization of the programs of minimization of environmental damage caused by construction and functioning of hydroelectric power stations;- Organization of works of certification of environment protection technologies and means;- Organization of experts training working in a sphere of an environmental protection.


2020 ◽  
Vol 2020 (10) ◽  
pp. 112-126
Author(s):  
Vitalii OSTROVETSKY ◽  

The development of technologies entails the deterioration of both the global environmental situation and at the regional level. The solution of environmental issues is directly related to the use of natural resources, as well as the utilization of the economic system, including through the transformation of waste into raw materials for energy production, various materials, reduction of toxic emissions into the air, water, biodiversity, etc. The main economic instruments of environmental protection and improvement of the ecological situation, which are used in world practice for these purposes, are analyzed. Among them are special taxes, pledge-refundable schemes and expanded business responsibility. The analysis of economic instruments of state regulation of nature management and sources of funding for environmental measures in Ukraine suggests that it needs to be revised and systematized with a scientifically sound definition of the parameters of mandatory payments in favour of the state and the proportions of natural distribution resource payments between the parts of the budget system to prevent the scattering of financial resources and their targeted use to finance environmental protection programs and improve the environmental situation in Ukraine. The expediency of strengthening the integration of such payments into the structure of existing taxes on goods (excise tax on gasoline), while maintaining environmental incentives, in particular, coordination with the taxation of corporate profits, for example, in the form of a reduction factor in the case of their include cost. In this case, the environmental component of taxation should correspond to the scale of environmental damage and is the basis of the mechanism for calculating tax payments or other economic incentives. This can be ensured by deepening the differentiation of tax rates depending on the damage to the environment, as well as the conditions of use of natural resources, the availability of certification of nature management enterprises according to ISO 14000 standard.


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