engleski

Analysis of Economic Instruments for Environmental Protection in Croatia

To achieve environmental goals in Croatia, decision-makers can use different measures and instruments, which can be grouped in two basic groups of instruments: command-and-control and economic instruments. Command-and-control instruments contain predominantly restrictions, technical norms and standards, while economic instruments include marketable (tradable) permits, pollution charges/taxes, subsidies for cleaner production, deposit-refund system, etc. In Croatia, an economic instrument was developed specifically for each environmental media, which results in big differences and imbalances in their development and application. The most successful sectors in implementing economic instruments are sectors with the longest tradition in their application and they include sectors for managing natural resources such as water management and forestry. These sectors develop system of charges with the dominant goal to obtain funds for co-financing activities under their authorities including water, as well as forest protection. Introducing several economic instruments in 2004, which internalized pollution and environmental costs by accepting pollution pay principle, in Croatia, represented a turning point and a new phase in their implementation. The paper offers detailed overview of economic instruments across different environmental media, including numerous horizontal instruments classified in seven groups such as taxes, tax exemptions or allowances, customs duties exemptions and allowances, subsidies, etc.

environmental policy; economic instruments; command-and-control approach; horizontal instruments

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