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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
  • Andrey Kalugin
  • Shinji Kaneko

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 citizens’ 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 citizens’ 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. Copyright Springer-Verlag Wien 2012

Suggested Citation

  • Satoru Komatsu & Andrey Kalugin & Shinji Kaneko, 2012. "Allocating Costs of Environmental Management among Generations: A Case of Environmental Liabilities in Transition Economies," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 19(2), pages 225-243, November.
    • Handle: RePEc:spr:trstrv:v:19:y:2012:i:2:p:225-243
    DOI: 10.1007/s11300-012-0243-5
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    1. Motte, Robin de la, 2007. "A Tale of Two Cities: Public participation and sustainability in decision-making on water systems in two Polish cities," Utilities Policy, Elsevier, vol. 15(2), pages 134-142, June.
    2. Dietrich Earnhart, 2004. "Liability for Past Environmental Contamination and Privatization," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 29(1), pages 97-122, September.
    3. 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.
    4. Vorobyov, Alexander Yu. & Zhukov, Stanislav V., 1996. "Russian economic growth: Lessons from liberalization, medium-term constraints, and ecological challenges," World Development, Elsevier, vol. 24(2), pages 359-371, February.
    5. Randall Bluffstone & Theodore Panayotou, 2000. "Environmental Liability and Privatization in Central and Eastern Europe: Toward an Optimal Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 17(4), pages 335-352, December.
    6. 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;Central Eastern European University Network (CEEUN), vol. 17(4), pages 763-776, December.
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    More about this item

    Keywords

    Environmental management; Willingness to pay; Preference; Generation; Transition economics; O13; P28; Q56;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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