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Climate or rural development policy?


  • Sándor Kerekes

    () (Corvinus University of Budapest Department of Environmental Economics and Technology Budapest Hungary)

  • Szilvia Luda

    () (Corvinus University of Budapest Department of Environmental Economics and Technology Budapest Hungary)


Being heavily energy dependent, it is not much of a surprise that Europe pays special attention to reducing the use of fossil fuels. Each one of the ten new member states is characterized by relatively low per capita energy consumption and relatively low energy efficiency, and the share of renewables in their energy mix tends to be low, too. The paper examines the problem when policy measures create a decrease in environmental capital instead of an increase. In this case it hardly seems justified to talk about environmental protection. The authors describe a case of a Hungarian rapeseed oil mill which would not be of too much interest on its own but given that almost all similar plants went bankrupt, there are some important lessons to learn from its survival. The enterprise the authors examined aimed at establishing a micro-regional network. They completed a brown-field development to establish a small plant on the premises of a former large agricultural cooperative. By partnering with the former employees and suppliers of the onetime cooperative, they enjoyed some benefits which all the other green-field businesses focusing on fuel production could not. The project improved food security, energy security and population retention as well.

Suggested Citation

  • Sándor Kerekes & Szilvia Luda, 2011. "Climate or rural development policy?," Society and Economy, Akadémiai Kiadó, Hungary, vol. 33(1), pages 145-159, April.
  • Handle: RePEc:aka:soceco:v:33:y:2011:i:1:p:145-159
    Note: The research has been supported by the Norwegian Financial Mechanism (project HU-0056).

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    References listed on IDEAS

    1. Zsolt Darvas & Jean Pisani-Ferry, 2008. "Avoiding a new European divide," Policy Briefs 227, Bruegel.
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    More about this item


    renewable energy; game theory; sustainable development in rural regions; EU climate policy;

    JEL classification:

    • P48 - Economic Systems - - Other Economic Systems - - - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services


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