HOW TO APPLY ECONOMIC INSTRUMENTS IN THE HUNGARIAN ENVIRONMENTAL POLICY

Authors

  • János SZLÁVIK

Abstract

Severe environmental heritage has burdened the Hungarian society in the period of transition. The material, energy intensive and environmental polluting production and consumption characterising both the previous and current periods have been causing significant environmental damage. New environmental policy is needed. The environmental regulation system should be transformed with economic means playing greater role. The article highlights the direction of the necessary shift and the possibilities. It also analyses the ensuing costs of the new policy and the impact of its realisation. Environmental damage in Hungary, according to conservative estimates, amounts to annual 6-8% of the GDP. As this damage has been accumulating for a quarter of a century since the early 70s its economically evaluated proportion equals Hungary's international debts. Small amounts of money have however been spent on the elimination of the damage. (Today it is 0.5% of the GDP). This amount must and can rise to 2% of the GDP by 1997. Market and economic means come to the fore regarding the allocation of resources. Environmental fees and taxes are made use of. Environmental policy should enforce the principle: 'the polluter pays'. The above mentioned changes will put an end to deterioration while the methods applied are also approaching the practice of OECD within it that of the European Community. The latter one is a significant condition of Hungary's joining the Community.

Keywords:

environmental economics, environmental management, eco-taxation, environmental charges, environmental act

How to Cite

SZLÁVIK, J. (1995) “HOW TO APPLY ECONOMIC INSTRUMENTS IN THE HUNGARIAN ENVIRONMENTAL POLICY”, Periodica Polytechnica Social and Management Sciences, 3(1), pp. 3–15.

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Articles