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Are the costs of pollution abatement lower in Central and Eastern Europe? Evidence from Lithuania

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  • BLUFFSTONE, RANDALL

Abstract

It is often claimed that pollution reductions can be achieved at lower cost in Central and Eastern Europe and the former Soviet Union, because more possibilities exist to update production processes and reduce waste. To date, however, there has been little or no systematic evaluation of what the costs actually are in these countries. The main purpose of this paper is to partially fill this research gap using firm-level data from Lithuania. Abatement cost estimates for key air pollutants are presented based on investments made in Lithuania during 1993–4. The paper also attempts to estimate the demand for pollution directly using data on pollution charges from 1994. Using both methods, it is shown that for at least some key pollutants marginal and average abatement costs are probably substantially lower in Lithuania than in western countries.

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  • Bluffstone, Randall, 1999. "Are the costs of pollution abatement lower in Central and Eastern Europe? Evidence from Lithuania," Environment and Development Economics, Cambridge University Press, vol. 4(4), pages 449-470, October.
    • Handle: RePEc:cup:endeec:v:4:y:1999:i:04:p:449-470_00
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    Cited by:

    1. Daniel A. Brent & Lata Gangadharan & Anca Mihut & Marie Claire Villeval, 2019. "Taxation, redistribution, and observability in social dilemmas," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 21(5), pages 826-846, October.
    2. Tokunaga, Masahiro, 2020. "Regime Change and Environmental Reform: A Systematic Review of Research on Central and Eastern Europe," CEI Working Paper Series 2019-10, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    3. Randall Bluffstone & Daiva Semeniene & Jochem Jantzen, 2003. "How Much Will It Cost to Join the Club? The Extra Costs of Approximating Lithuanian Environmental Laws with Those of the European Union," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(2), pages 279-303, October.
    4. Dietrich Earnhart & Dylan G. Rassier, 2016. "“Effective regulatory stringency” and firms’ profitability: the effects of effluent limits and government monitoring," Journal of Regulatory Economics, Springer, vol. 50(2), pages 111-145, October.
    5. Earnhart, Dietrich & Lizal, Lubomir, 2006. "Effects of ownership and financial performance on corporate environmental performance," Journal of Comparative Economics, Elsevier, vol. 34(1), pages 111-129, March.
    6. David Maradan & Anatoli Vassiliev, 2005. "Marginal Costs of Carbon Dioxide Abatement: Empirical Evidence from Cross-Country Analysis," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 141(III), pages 377-410, September.
    7. Amir Hossein Montazer Hojat & Khalid Abdul Rahim & Lee Chin, 2010. "Firm's Environmental Performance: A Review of Their Determinants," American Journal of Economics and Business Administration, Science Publications, vol. 2(3), pages 330-338, September.
    8. Dietrich Earnhart & Lubomir Lizal, 2010. "Pollution Control in a Transition Economy: Do Firms Face Economies and/or Diseconomies of Scale?," CERGE-EI Working Papers wp405, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    9. Dietrich Earnhart & Lubomir Lizal, 2007. "Does Better Environmental Performance Affect Revenues, Cost, or Both? Evidence From a Transition Economy," William Davidson Institute Working Papers Series wp856, William Davidson Institute at the University of Michigan.

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