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The impact of EU Cohesion policy on environmental sector sustainability in the Baltic states

Author

Listed:
  • Sirje Pädam

    () (Tallinn School of Economics and Business Administration, Tallinn University of Technology)

  • Üllas Ehrlich

    () (Tallinn School of Economics and Business Administration, Tallinn University of Technology)

  • Koidu Tenno

    () (Tallinn School of Economics and Business Administration, Tallinn University of Technology)

Abstract

This article analyses investment from European Union cohesion policy funds into the Estonian, Latvian, and Lithuanian environmental sectors during the budget period 2007-2013. Total investment from these funds in Estonia, Latvia, and Lithuania during that period will be about 14.7 billion euros, of which about 18 percent covers the environmental sector. The purpose is to analyse whether allocation of expenditure to the environment is sustainable. In their analysis the authors apply sustainability criteria based on the cost-benefit rule and the Environmental Performance Index (EPI). The main finding is that the Baltic States allocate least environmental funds to those fields found to be most relevant to sustainability.

Suggested Citation

  • Sirje Pädam & Üllas Ehrlich & Koidu Tenno, 2010. "The impact of EU Cohesion policy on environmental sector sustainability in the Baltic states," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 10(1), pages 23-42, June.
  • Handle: RePEc:bic:journl:v:10:y:2010:i:1:p:23-42
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    References listed on IDEAS

    as
    1. Kenneth Arrow & Partha Dasgupta & Karl-Göran Mäler, 2003. "Evaluating Projects and Assessing Sustainable Development in Imperfect Economies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(4), pages 647-685, December.
    2. Stavins, Robert N. & Wagner, Alexander F. & Wagner, Gernot, 2003. "Interpreting sustainability in economic terms: dynamic efficiency plus intergenerational equity," Economics Letters, Elsevier, vol. 79(3), pages 339-343, June.
    3. Turner, R. Kerry & Georgiou, Stavros & Gren, Ing-Marie & Wulff, Fredric & Barrett, Scott & Soderqvist, Tore & Bateman, Ian J. & Folke, Carl & Langaas, Sindre & Zylicz, Tomasz, 1999. "Managing nutrient fluxes and pollution in the Baltic: an interdisciplinary simulation study," Ecological Economics, Elsevier, vol. 30(2), pages 333-352, August.
    4. Bluffstone, Randall & DeShazo, J.R., 2003. "Upgrading municipal environmental services to European Union levels: a case study of household willingness to pay in Lithuania," Environment and Development Economics, Cambridge University Press, vol. 8(04), pages 637-654, October.
    5. Partha Dasgupta & Karl-Göran Mäler, 2003. "The Economics of Non-Convex Ecosystems: Introduction," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(4), pages 499-525, December.
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    More about this item

    Keywords

    environmental investment; EU funding; sustainability;

    JEL classification:

    • H59 - Public Economics - - National Government Expenditures and Related Policies - - - Other
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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