GREEN BUDGETS: THE POTENTIAL FOR ECONOMIC
INSTRUMENTS TO POWER ENVIRONMENTAL CHANGE

Environmental Panorama
International
September of 2011


Published: 16 Sep 2011 The budget is one area where governments can influence our interaction with the environment – encouraging beneficial behaviour, and discouraging environmental destruction. As a conference on environmental fiscal reform opens at the European Environment Agency (EEA), we consider the potential for using financial carrots and sticks to improve the environment.

Ireland is one of the wettest countries in Europe, with up to 225 wet days per year in some areas. But even Dublin, capital of the 'Emerald Isle', has suffered from water shortages. A lot of water was being wasted, as tap water was free of user charges so there was little incentive for people to use water sensibly. Demand increased to such high levels that Ireland considered investing hundreds of millions of euros in new water transfers.

However, the Irish government will soon introduce water pricing, which aims to achieve two objectives – cutting water consumption, so making new water transfer infrastructure less urgent, while also providing a new revenue stream. Low income groups could be compensated directly ('green checks' for instance), which will be more effective than providing free access to common goods. In addition, this may in fact be more equitable - rich people have more bathrooms, bigger gardens and larger cars to wash, so they benefit relatively more if not the resource is properly priced.

This example illustrates the potential for improving the environment using economic instruments, which is the topic of a conference hosted by the European Environment Agency (EEA), 15-16 September, 2011.

The conference will focus on using environmental fiscal reform to drive innovation in European companies, encouraging both production and consumption of environmentally friendly and energy efficient products. In addition, it will consider ways of positively communicating environmental fiscal reform. Conference speakers include Connie Hedegaard, European Commissioner for Climate Action, and Jacqueline McGlade, Executive Director of the EEA.

Economic instruments and environmental innovation

Economic instruments such as taxes, user-charges, deposit-refund systems and emissions trading are among the strongest tools available for integrating environmental concerns directly in the operation of a market economy. They may not always guarantee that very specific quality measures are met, but the mechanisms can help businesses, industry and consumers make more sustainable choices. Moreover, implementation can be much smoother than imposing detailed regulations.

Indeed, such policy innovation can drive technical innovation, urgently needed across Europe. Presently Europe imports far more materials and energy for its consumption than it exports, with an environmental and an economic cost. As these raw materials are becoming more expensive, it is doubly important to decouple this consumption from economic growth.

Europe also needs increasingly comprehensive systems for recycling of materials, products and waste to take advantage of the raw materials that have been brought to Europe.

In addition to more general discussion on environmental fiscal reform, the conference also includes a number of special sessions looking at the revision of the Energy Tax Directive. The conference is co-organised by Green Budget Europe and the Danish Ecological Council. Sponsors include the EEA, the European Environmental Bureau (EEB), Rockwool International and thinktank Concito.

+ More

Using models for air quality assessment and planning: a guide

Published: 26 Sep 2011 Computer models are increasingly used for estimating air quality or forecasting changes in pollution levels. Various different models are currently used across Europe. The new FAIRMODE reference guide aims to make these models comparable, well documented and validated in order to achieve reliable results.

In the past, assessment and reporting of air quality was largely based on monitored measurement data. This is changing - the European Directive on Ambient Air Quality and Cleaner Air for Europe (2008) places more emphasis on the use of models as a complement to monitoring data in order to conduct air quality assessment, forecasting and planning.

There is a pressing need to harmonise the way these models are applied since they have been used in various forms and with differing and often incomparable quality assurance methods across Europe, at both national and local levels.

The Forum for Air Quality Modelling in Europe (FAIRMODE) was established in 2008 in order to facilitate model comparability, documentation and reliability. FAIRMODE is a joint initiative of the European Environment Agency (EEA) and the European Commission's Joint Research Centre (JRC). The FAIRMODE technical reference guide published today is an output of that initiative. It provides a general overview of the use of models with regard to the EU’s Air Quality Directives.

The report includes a list of first recommendations for developing model evaluation protocols. As modelling methods and data sources improve, it is expected that models will increasingly be used by those working to improve air quality. This report and future guidance documents from FAIRMODE are intended to support this development by providing recommendations and clarifications.

 
 

Source: European Environment Agency
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