Economic Instruments IN Environmental Management

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ECONOMIC INSTRUMENTS IN ENVIRONMENTAL MANAGEMENT

Environmental economic instruments are the type of incentive.
Economic instruments are European type and refers to fees, penalties or other forms through which the compliance with legislation.
Economic incentive instruments are of the OECD (Organisation for Economic Cooperation and Development) and they create the market environment.
In what follows are 19 types of market instruments that are currently being implemented in countries with economies in transition and developing countries:

1. Ownership:
– Changes in ownership, usage rights and development.

2. Creating the market:
– Tradable emission permits.

3. Responsibility:
– Legislation to regulate the responsibility:

4. Charging systems:
– Taxes on effluent
– Use tax
– Taxes on products
– Administrative charges
– Tax impact
– Fees for access to resources

5. Tax Tools:
– Pollution charges
– Entry fees
– Import duties
– Financial support in introducing new technologies.
– Grants for environmental research and development expenses

6. Storage Systems – Refinancing:
– Deposit schemes – to encourage recycling Refinancing
– Environmental performance, environmental restoration costs

7. Instruments:
– Financial subsidies
– Low interest loans and grants
– Sector funds.

It is desirable that these economic instruments to reduce pollution as much, but also the creation of funds to be used for environmental protection.
The problem is that these economic tools are started in many parts of the globe and are not yet effective: Apply at first and adjust over time. In some areas it manages, in others not, why should more carefully before putting in place some economic instruments, for not doing more harm than good.
These economic instruments need to be incentive to induce polluters to act in such a way as to protect the environment, by changing production technology to obtain more profit than if they continue to produce in the same conditions

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