ENVIRONMENTAL ECONOMICS

- "Pro et contra" debate competition summary -

Date of debate
competition: 06.04.2013
Article title:
First name, last name, student identification No
Vedad, Suli!, 23""
Points:
Thesis: #reen ta$ re%orm &as more positi'e t&an ne(ati'e e%%ect %or industry, economy and society
Science o% economics is a social science 'ery closely in'ol'ed in e'ery aspect o% &uman li%e. )s it is a
suc& science, its t&eories and in%luence is (reatly %ocused not only on t&e %inancial and producti'e
per%ormance o% t&e society, but rat&er it re(ards moral and be&a'ioral aspects as *ell. +n t&is sense
economic science considers all a'ailable instruments t&at can be aimed at sol'in( en'ironmental
protection issues and to reducin( pollution. ,&e -ind o% c&an(e is ac&ie'ed t&rou(& speci%ically
encoura(in( reduction o% pollution, c&ar(in( ta$ %or le'el o% additional pollution, or %orbiddin( t&e
pollution by la* in t&e %irst place.
,&e e%%ects o% introducin( (reen ta$es are t*o%old, *&ere primarily t&ey directly contribute to lo*erin(
o'erall le'el o% pollution, *&ere pro(ress can be easily measured, and as second e%%ect (reen ta$es can
contribute or sti%le t&e o'erall economic per%ormance. #reen ta$es &a'e an impact o% increasin( prices
o% t&e %inal products o% particular industries *&ic& in turn lo*ers purc&asin( po*er o% consumers.
+ntroducin( (reen ta$es in today.s *orld is not a taboo issue, but is rat&er become a common practice
*it& t&e de'eloped countries. #reen ta$es &a'e s&o*n to produce 'ery (ood results pollution *ise, but
t&e lar(est problem *it& implementin( t&em *as *it& t&eir implementation in t&e e$istin( %iscal policy
o% t&e rele'ant country. ,&e popular problem is t&at (reen ta$es, especially in de'elopin( countries, can
compromise o'erall economic stability and pro'ide to be a burden unbearable %or bot& t&e producer and
consumer. /or t&is reason an appropriate researc& must be per%ormed and e'ery policy needs to be
deli'ered *it& (reat care and precision, so t&at t&e le'el o% ta$es selected is a%%ordable to t&e society and
still enou(& to induce t&e producer to reduce t&e le'el o% pollution.
/urt&ermore, introduction o% (reen ta$es is considered as Pareto e%%iciency. 0eanin( t&at action in one
direction, can necessarily mean opposite reaction on t&e ot&er end o% t&e e1uation. 2%%ects o% (reen ta$es
*ill be positi'e on t&e en'ironment in t&e lon( run and *ill most certainly &a'e positi'e e%%ects on t&e
society. 3o*, t&e only issue at &and is, *&ic& le'el o% cost is appropriate %or t&e 4citi5ens6 to pay to &a'e
clean en'ironment. #reen ta$es in %orm o% costs *ill ine'itably spill %rom t&e producer to t&e consumers,
*&ic& *ill lo*er t&e purc&asin( po*er o% consumers. +n terms o% industry and t&e producer, t&eir pro%its
*ill be lo*ered also because o% t&e implementation o% t&e (reen ta$es as t&eir emissions &a'e to be
eit&er lo*er or t&ey &a'e to pro'ide additional in'estment in t&e (reen tec&nolo(y. +n essence in order to
be success%ul t&e (reen ta$ implementation &as to %unction as an encoura(in( mec&anism and not as
discoura(in( one, *&ere producers *ill be -een to implement t&e (reen tec&nolo(y, *&ile consumers
*ill not %eel t&e s&i%t in %inancial terms.