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Allocating Costs of Environmental Management among Generations: A Case of Environmental Liabilities in Transition Economies

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  • Satoru Komatsu

    (Graduate School for International Development and Cooperation, Hiroshima University)

  • Andrey Kalugin

    (Graduate School for International Development and Cooperation, Hiroshima University)

  • Shinji Kaneko

    (Graduate School for International Development and Cooperation, Hiroshima University)

Abstract

The objective of this paper is to examine cost allocation in relation to remediating environmental liability issues in Russia, where significant environmental damages, continuing from the Soviet era, present serious impediments to pursuing sustainable development. The research attempts to highlight citizensf preferences for remediating facilities and sites with environmental liabilities, and elicits preference differences among citizens using choice experiment methods. Intergenerational issues are involved in addressing environmental liabilities in transition economies because the causes and effects are spread among generations. Therefore, evaluating citizensf preferences provides more policy implications for future remediation initiatives. The econometric analysis reveals that citizens demonstrate positive preferences for reducing pollution of drinking water and soil decontamination. The research also suggests that the households with higher incomes, older household heads (or spouses), and more young children have higher preferences for remediating environmental liabilities in Russia. Estimation of the marginal willingness to pay (MWTP) for age and income segments of the households allows the government to determine a suitable taxation policy. The findings provide new insights on cost allocation in relation to remediating environmental damages in transition economies that have suffered from these serious environmental legacies.

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File URL: http://ir.lib.hiroshima-u.ac.jp/metadb/up/ZZT00001/IDEC-DP2_01-7.pdf
File Function: First version, 2011
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Bibliographic Info

Paper provided by Hiroshima University, Graduate School for International Development and Cooperation (IDEC) in its series IDEC DP2 Series with number 1-7.

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Length: 20 pages
Date of creation: Dec 2011
Date of revision:
Handle: RePEc:hir:idecdp:1-7

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Web page: http://www.hiroshima-u.ac.jp/en/idec/
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Keywords: Environmental management; Willingness to pay; Preference; Generation; Transition economics;

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  1. Andrey Kalugin & Satoru Komatsu & Shinji Kaneko & Olena Slozko, 2010. "Citizens’ Perception of Past Environmental Damage and Liability in Countries with Transition: Evidence from Kemerovo, Russia," Transition Studies Review, Springer, vol. 17(4), pages 763-776, December.
  2. Bluffstone, Randall, 2007. "Privatization and contaminated site remediation in Central and Eastern Europe: Do environmental liability policies matter?," Ecological Economics, Elsevier, vol. 63(1), pages 31-41, June.
  3. Randall Bluffstone & Theodore Panayotou, 2000. "Environmental Liability and Privatization in Central and Eastern Europe: Toward an Optimal Policy," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 17(4), pages 335-352, December.
  4. Dietrich Earnhart, 2004. "Liability for Past Environmental Contamination and Privatization," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 29(1), pages 97-122, September.
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