Financing environmental improvement: the use of environmental funds in EU and CEE countries

Article abstract:

The purpose of this article is to examine the design, operation and effectiveness of environmental funds concentrating particularly on those funds whose role is aimed at the second category of protection, improvement and enhancement. The article examines specific examples of environmental funds in Central and Eastern Europe and compares them with established and emerging funds in the UK and other European jurisdictions. That comparison will necessarily refer to the status and effect of the 'polluter pays' principle as a variety of economic instrument. This principle allows an appreciation of the extent to which fund-based arrangements in the environment achieve efficiency and effectiveness where (for example) pollution charges are a source of fund income which may in turn be available for environmental protection, improvement and enhancement.