The instruments of the environmental policy's economic regulation with a particular regard to the Hungarian System

• Author: Zoltán Nagy
• Position: PhD. Associate professor, University of Miskolc, Law Faculty, Institute of Public Law, Hungary
• Pages: 77-88

LESIJ NO. XXI, VOL. 1/2014

THE INSTRUMENTS OF THE ENVIRONMENTAL POLICY’S

ECONOMIC REGULATION WITH A PARTICULAR REGARD TO

THE HUNGARIAN SYSTEM1

Zoltán NAGY*

Abstract

The paper describes the environmental policy regulation’s theor etical basis in economics with a

particula r regard to the main elements of the theories of Pigou, Baunol and Oates, and Coase. Different

analytical methods which play a n important role in case of economic instruments of environmental

policy are pr esented. The environmental objectives are going to be reached by the implementation of

economic instruments and the essential considerations in the formation of an effective system of assets

are also described. The theoretical basis of the implementation of economic instruments o f

environmental policy in the Europea n Union and the problems emerged, and the implementation of

economic instruments in Hunga ry in respect of the OECD Report ar e key featur es. At the end of the

paper the system of the economic instruments of environmental policy (environmental taxes,

environmental subsidies) are descr ibed according to the Hungar ian regulations in force.

Keywords: environmental protection, environmental la w, environmental taxes, environmental

subsidies, environmental policy, economic instr uments of environmental policy, environmental

pollution, environmental economics.

1. The theoretical basis of the

environmental policy’s regulation in

economics

1

The environmental pollution has been

in the focus of the state regulations and these

economic regulators act on the sustainable

development and the sustainable use of the

environment. These environmental

problems are the parts of the externalities,

which have long been interested the

representatives of the economic theory of

which some theories are going to be

analysed.

2

* Dr. Zoltán Nagy PhD. associate professor, University of Miskolc – Law Faculty, Institute of Public Law, Hungary,

email: jogdrnz@uni-miskolc.hu.

1

This research was (partially) carried out in the framework of the Center of Excellence of Mechatronics and

Logistics at the University of Miskolc.

2

Nagy Zoltán: Fenntartható költségvetési elvonások rendszere a környezetvédelem területén, Publicationes

Universitatis Miskolciensis, Sectio Juridica et Politica, Tomus XXIX/1. Miskolc University Press, Miskolc, 2011.

247. p.

3

Kerekes Sándor: A környezetgazdaságtan alapjai, Budapest, 1998. www.mek.miif.hu 73. p.

Alfred Marshall was the first, who

introduced the concepts of external cost and

benefitsă ină hisă workă theă “Principlesă ofă

Economics”.ă Arthură Pigouă dealtă withă theă

problem of the externalities, within this the

environmentalăproblemsăină“TheăEconomics

ofăWelfare”ăfromă1920.

3

The externality is an unexpected

benefit and an extra cost, which is realized

for the actors outside of t he economic

events, whom do not have any influence on

these eve nts. Any economic event,

economic policy measure, changes in the

domestic or the international markets,

environmental or health impact can be an