CEU eTD Collection (2009); Kholodova, Elena: Economic incentives for industries in the Russian Federation. Reforming environmental standards

CEU Electronic Theses and Dissertations, 2009
Author Kholodova, Elena
Title Economic incentives for industries in the Russian Federation. Reforming environmental standards
Summary Industrial pollution in Russian Federation is the most significant menace for human health and is on the top of the list of the most threatening environmental dangers. Taking into account rapid economic development of the country economic incentives are efficient instruments that facilitate the realization of environmental regulations and motivate private business sector to implement activities aiming to reduce ecological impacts caused by their activities. Comprehensive and efficient system of environmental protection based on the collaboration between private business sector and governmental bodies is one of the prerequisites for the developing country such as Russia to become an equal player on the international market. Among the issues that require attention in terms of achieving visible result in the field of business-government environmental cooperation the demand side, i.e. strict policy measurers and regulative instruments aiming to make realization of environmental activities by industries desirable, is probably the one that have to be addressed in the first turn, and the main goal of such measures is to influence the case before it takes place.
System of economic incentives for industries which is used worldwide (e.g. voluntary agreements, grants, technical assistance, various informative instruments, governmental investments and subsidies) and made a good showing during the last decades is poorly developed in the Russian Federation. Restrictive economic measures prevail in the current Russian legislation. The research reveals that existing economic instruments are characterized as particularly fiscal and not efficient. Environmental payment, the only working economic instrument in Russia, is meaningless from the economical as well as ecological point of view. It is not transparent, facilitates corruption, does not stimulate industries to implement environmental activities and does not correspond with acting Russian environmental legislation. The prevalent practice of reduction of environmental payments for industries has a lot of shortcomings such as individualization of decision making by responsible authorities, exhaustive list of the environmental activities to be implemented by nature user and uncontrolled indices of factual impacts.
It is of principal importance to arrange a dialog between the government and business. Economic development and improvement of the investment climate are primarily hindered by big administrative barriers. In turn, the latter are determined by imperfect normative support of “governm ent-to-business ” relations, low information openness of authorities, critically low level of computerization of state services oriented to clients. All the factors listed above leads to the increase of costs of businesses for overcoming administrative barriers (including the increase of corruption), growing risks for commercial projects, reduction of investment attractiveness and value of business.
Supervisor Illes Zoltan
Department Environment Sciences and Policy MSc
Full texthttps://www.etd.ceu.edu/2009/kholodova_elena.pdf

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