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Environmental Financing in European Economies in Transition

  • Grzegorz Peszko
  • Tomasz Żylicz*

    ()

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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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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  1. 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.
  2. 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.
  3. János Kornai, 2014. "The soft budget constraint," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 64(supplemen), pages 25-79, November.
  4. 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.
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