This book offers original economic analyses on the economy-environment relationship in Eastern and Central Europe. Drawing on the Hungarian experience it provides empirical evidence on the reform of environmental policy which can be applicable toMoreThis book offers original economic analyses on the economy-environment relationship in Eastern and Central Europe. Drawing on the Hungarian experience it provides empirical evidence on the reform of environmental policy which can be applicable to similar problems in other transition economies.
The macroeconomic shocks of the transition process in Central and Eastern Europe have been exceptional in both their intensity and speed. The implications of this adjustment process are examined in relation to their effects on environmental policy, with special emphasis on the rethinking of standard environmental policy for transition economies. The authors focus on a variety of issues including the environmental concerns raised by the privatization process, a discussion on why the less rigorous environmental regulations in Hungary attract foreign direct investment and an empirical analysis of environmental capital flight in Central and Eastern Europe.
There is also a critical overview of the existing literature, an examination of the costs of reducing air pollution and the use of the contingent valuation method to measure the economic benefits of improving air quality in Hungary. In addition the authors assess the effects of industrial restructuring on emissions and analyze incentive-based policy measures including prospects for emission trading.
Their conclusions challenge the common perception that energy pricing policy is the most important environmental policy measure to induce beneficial structural changes in the environments of transition economies. Economics for Environmental Policy in Transition Economies will be of interest to policy makers, academics and postgraduates working in the fields of transition economics, environmental economics and environmental valuation.