ENVIRONMENTAL POLICY AND EUROPEAN UNION

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					ENVIRONMENTAL POLICY AND EUROPEAN UNION
Lucie Chaberova European Economic Integration 14. 11. 2007

STRUCTURE
 Definition

of the Environment

 Environmental
 European

Policies

Union and the

environment
 Cooperation

and near future

I. THE ENVIRONMENT

THE DEFINITION GIVEN BY THE EUROPEAN COMMITION
 The

environment is the combination of elements whose complex interrelationship make up the settings, the surroundings and the conditions of life of the individual and of society, as they are or as they are felt.

MAIN USES
 Evere

industrial process and human activity affects the environment through the depletion of finite natural resources, pollution and destruction of the countryside

 Environment

is primarily used in three ways:

  

As a consumption good As a supplier of resources

As a receptacle of wastes

MAIN PROBLEMS
 Global
 Acid

warming

Rain

 Ozone
 Etc.

depletion

RECENT ENVIRONMENTAL DISASTRES
(1976), Italy  Bhopal (1984), India  Chernobyl (1986), Ukraine  Cyanide spill (2000), Romania  Tanker Prestige oil spill (2002), Spain
 Seveso

II. ENVIRONMENTAL POLICIES

ENVIRONMENT IN THE VIEW OF ECONOMICS
Economic activities may produce positive or negative externalities  Externalities cause a divergence between the private costs and benefits and social costs and benefits  Many problems arise from the lack of clearly defined property rights over natural resources, such as air or water  Therefore under imperfect competition those goods can only be subject to government regulation


ENVIRONMENTAL POLICIES
Attempt to remove the divergence between private and social costs by direct regulation, i.e. taxes on activities, emision charges, subsidies, tradable permits, use of standards, etc.  Environmental policies may led to the same point of equilibrium (next slide), nonetheless they differ by the distributional effects between consumers, producers and government  Market-based policies  Regulatory command policies


POLLUTION POLICIES
CASE OF NEGATIVE EXTERNALITIES
SMC = social marginal costs

PMC = private marginal costs
Q = Quantity P = Price
1.

No Policy: Equilibrium at P0 and output Q0 Anti-pollution policy by optimal tax: Equilibrium in E Anti-pollution policy by supply regulation: Equilibrium in E

2.

3.

WHY INTERNATIONAL CHARACTER?


Pollutants may be mobile across national boundaries Even if pollution is a purely domestic event, policies to correct it by one country could rise production costs which might affect its international competitivness or induce pollutionintensive indrustries to relocate to countries with laxer environmental policies



WHAT IS THE „BEST‟ INTERNATIONAL POLICY?
the source of the problem (production pollution) => use a policy targeted to deal with its cause (antipollution)  Using an environmental policy to deal with the pollution problem directly and following with trade liberalization => the best welfare increasing policy
 Identify

PROBLEMS IN THE INTEGRATION OF ENVIRONMENTAL POLICIES
Different approches to environmental questions in single countries  Differences in assimilative capacity (the ability of the environment to reduce pollutants by natural processes)  Different consumer preferences and income levels across countries


III. THE ENVIRONMENT AND THE EU

FOUNDATION OF THE COMMON POLICY












The original Treaty of Rome (1957) does not lay down grounds for a common EU policy on the environment The EU Summit in Paris 1972: groundwork for an EU environmental policy 1973: the polluter-pays principle; five-year environmental programmes The Single European Act (1986), Articles 130r-t: introduction of a title on the environment into the Treaty of Rome Article 6 of the consolidated Treaty of Rome stipulates that environmental protection must be integrated into the definition and implementation of other EU policies 1990: The European Environmental Agency

THE EUROPEAN ENVIRONMENT AGENCY


Set up in 1990 by the EU in Copenhagen Members from the whole Europe Tasks:
   





Monitor the state of the environment Act as a whistle blower about approaching problems Support sustainable development Promote best practice in environmental protection

WHAT CAN EU DO IN THE FIELD OF THE PROTECTION OF THE ENVIRONMENT?
To realise its objectives and obligations, the EU can act and introduce regulatory, anticipatory, preventive and rectifying measures Specific action may include:
          

Increasing awareness of problems Sponsoring research Introducing policies Passing laws Setting minimum quality standards Imposing technology Introducing measures to implement laws and policies Setting legal liability for environmental damage Applying an integrated approach in all other policies Providing assistance Acting on regional and global levels

FIVE PRINCIPLES OF THE EU ENVIRONMENTAL POLICY
 Prevention  Rectification

 Polluter

pays

 Inclusion

 Subsidiarity

PRINCIPLES CONT.


Prevention
To prevent all environmental damage through preventive and anticipatory action and measures  All planning and decision-making processes that affect the environment such as motorways or power plants have to take into account the impact on the natural habitat in order to avoid the need for any corrective action in the future  Embodied in Article 174 of the Treaty of Rome




Rectification


If there is certain pollution it has to be tackled at its source and as promptly as possible

PRINCIPLES CONT.


Polluter pays
Prevention, cleaning and compensation for pollution and its damage to the environment should be borne, in principle, by those who cause it  Possibility of EU assistance if common measure to protect the environment impose unequal costs on certain countries




Inclusion


Environmental aspects have to be considered whenever the EU decides in the domain of all other common policies Whenever possible, national and local authorities ought to decide their priorities and manage their response



Subsidiarity


IV. UPCOMING YEARS

THE INTERNATIONAL COOPERATION
The TEEC, article 174: “the Community shall cooperate with third countries and with competent international organizations”  The global agreements the Community is a part of:


The Vienna Convetion for the Protection ot the Ozone Layer (1988)  The Montreal protocol on substance which deplete the ozone layer (1988)  The UN Conventions on Biological Diversity and Climate Change (1994)  The Kyoto protocol on global warming (1997)


THE ENLARGEMENT OF THE EU
access countries - history of years of negtect of the environment  Agenda 2000 – the environment is a major challenge for enlargement  Implementation of the Green legislation; without it EU(15) may accussed each country of „environmental dumping‟
 New

Distance-to-target (Kyoto Protocol) for new Member States countries



Source: European Environmental Agency

THE SIXTH ENVIRONMENT ACTION PROGRAMME
 Environment

2010: Our Future, Our

Choice


Period 2001–2010 Four priority areas for action
Climate change  Nature and biodiversity  Health and the quality of life  Preserving natural resources and managing waste




Carbon dioxide emissions per capita in EECCA and SEE countries (2004)

Source: European Environmental Agency

Actual and projected EU-15 greenhouse gas emissions compared with Kyoto target for 2008-12

Source: European Environmental Agency

SOURCES:
Jovanovic, Miroslav N., The Economics of European Integration: Limits and Prospects, 2005, UK Hitiris, T., European Union Economics, 2003, UK European Environmental Agency www.eea.europa.eu


				
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