Environmental Public Spending in Romania - the 2004-2016 'Junk' Program

• Author: Florian Nuta
• Pages: 388-391

European Integration - Realities and Perspectives. Proceedings 2017

388

Environmental Public Spending in

Romania – the 2004-2016 “Junk” Program

Florian Marcel Nuţă1

Abstract: Our paper is a review o f the "Junk" program in Romania after more than 10 years of

implementation. It discusses the limitation of the program individually and of the environmental

policy as a whole in our co untry. We also intend to talk about the main limitation of the research

area and the shortages in public information. As we consider t he subject still important for

Romania but also for Europe as a system our intention is to continue in future papers the research

and to extend it.

Keywords: junk; environment; subsidies; public spending

1. Introduction

Environmental issues are more acute and more important than ever at this time. Goods and people

transport are among the most polluting sectors of activity, and governments are seeking ways to limit

the impact of this activity on the environment as far as possible. Vehicle manufacturers are also

interested in less polluting technologies, but at the same time preserving the most important market

share. Both sides, both governments and manufacturers in the automotive industry, are primarily

confronted with educating consumer consumption behavior, which tends to remain faithful to

established (usually highly polluting) technologies, at least in some emerging markets. In this context,

where consumers and producers have to meet their consumer behavior and economic performance,

governments are trying to make use of environmental protection policies involving either subsidies or

high consumption taxes for certain products considered dangerous for the quality of the environment.

Many Western European countries have even set bold targets for the next decade in the drive away of

vehicles powered by classic engines (especially diesel). The emerging countries of central and Eastern

Europe have a difficult stance with such targets due to the consumption behavior of their own citizens,

but also due to the impossibility of stopping the transfer between markets.

Thus, the governments of these countries face massive imports of classical propulsion vehicles and

often with Euro 3 and 4 pollution standards. It is a situation similar to the transfer of industrial

technology that fails to meet the environmental standards of the developed countries is transferred to

the countries emerging, which often have more permissive environmental protection standards.

1 Associate P rofessor, PhD, Danubius University of Galati, Romania, Address: 3 Galati Blvd., 800654, Romania, Tel.:

+40372361102, Corresponding author: floriann@univ-danubius.ro.