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Environmental Financing in European Economies in Transition

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Author Info

  • Grzegorz Peszko
  • Tomasz Żylicz*

    ()

Abstract

The paper offers a perspective on environmental predicament of economies in transition. Emphasis is put on how these economies finance their environmental needs. It is observed that the demand for environmental financing can be affected both by environmental policy measures (such as internalization of externalities) and by other factors (such as the softness of budget constraints faced by firms). The role of subsidies – in many countries of the Central and Eastern European region provided through special purpose ‘environmental funds’ – is then scrutinized. In particular the question is asked whether such funds crowd out commercial capital from the market. Conditions are discussed that would allow the funds to play their constructive environmental roles without crowding out private financing. Copyright Kluwer Academic Publishers 1998

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File URL: http://hdl.handle.net/10.1023/A:1008220017910
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Bibliographic Info

Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 11 (1998)
Issue (Month): 3 (April)
Pages: 521-538

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Handle: RePEc:kap:enreec:v:11:y:1998:i:3:p:521-538

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Web page: http://www.springerlink.com/link.asp?id=100263

Related research

Keywords: environmental project financing; economies in transition;

References

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  1. Kornai, Janos, 1986. "The Soft Budget Constraint," Kyklos, Wiley Blackwell, vol. 39(1), pages 3-30.
  2. Markowska, Agnieszka & Zylicz, Tomasz, 1999. "Costing an international public good: the case of the Baltic Sea," Ecological Economics, Elsevier, vol. 30(2), pages 301-316, August.
  3. Christoph Böhringer, 1996. "Fossil fuel subsidies and environmental constraints," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 8(3), pages 331-349, October.
  4. Tomasz Żylicz, 1995. "Cost-effectiveness of air pollution abatement in Poland," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 5(2), pages 131-149, March.
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Cited by:
  1. Stavins, Robert, 2001. "Experience with Market-Based Environmental Policy Instruments," Discussion Papers dp-01-58, Resources For the Future.

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