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Economics, the Environment and Health

3.7 Economic Instruments

3.9.1 Economic strategy

The core of the economic strategy to pro-mote improvements in the environment and

3.9 Conclusions

health is likely to contain a number of el-ements, including support for market mech-anisms linked to general economic growth, measured in a way that takes account of the state of environmental capital and the health of the population. Health measurement should cover physical, mental and social wellbeing. This should be supplemented by the use of intervention methods shown to be valuable in terms of return on investment, whether they are laws, regulations or econ-omic instruments. When the principles that the polluter pays and the user of natural re-sources pays prove to be efficient mechan-isms, they should be integrated in economic investment decisions. Further, citizen par-ticipation in decisions on the environment should be developed as an economic and so-cial instrument to promote efficiency.

The most likely areas for cost-effective in-vestment, especially for the CCEE and NIS, are probably energy (including nuclear power), agriculture, pollution control, water resources and sanitation, transport, and the working and living environments. In addi-tion, the development of the environment for tourism will help to increase international pressure and support for change. Action should be taken in each of these areas when the particular problems have been identified and where feasible, acceptable and effective strategies for control, in which people are willing to invest, are available.

Key points for successful implementation are the formulation and negotiation of and consultation on policy, the creation of new forms of institution for environmental man-agement, and the commitment of the private sector to environmental improvement in the transition to a mixed economy. Within this general strategy, economic analysis and envi-ronmental accounting are essential ingredi-ents. They are proving their value in coun-tries and will be in increasing demand in the CCEE and NIS.

Finally, environmental control technology for industry and monitoring should be devel-oped in each country, as it can be expensive if imported. Technology transfer should be an essential feature of aid.

3.9.2 Information

Improved information on the environment, economics and health should be a vital part of any strategy. It is a prerequisite for effi-cient investment by individuals, businesses and governments; it is a requirement for op-erating an efficient market-led or planned economy.

Only by gathering such information as vestments are made, and including in-formation collection in the design of inter-ventions, can future policies and pro-grammes for environmental health be de-fended against the competing demands of other sectors. Existing sources of national and international information are being re-viewed with this in mind [2,5,13] but it is not yet possible to put together a rational invest-ment policy for improving health by improv-ing the environment in the European Re-gion.

[1] Our planet, our health. Report of the WHO Com-mission on Health and Environment. Geneva, World Health Organization, 1992.

[2] World Bank. World development report 1992.

Development and the environment. New York, Oxford University Press, 1992.

[3] Environmental Action Programme for CCEE.

Document submitted to the Ministerial Confer-ence, Lucerne, April 28–30, 1993. Berne, Federal Office for the Environment, 1993.

[4] The global partnership for environment and devel-opment. A guide to Agenda 21. Geneva, United Nations, 1992.

[5] GEMS Monitoring and Assessment Re-search Centre. Environmental data report.

Oxford, Blackwell, 1991.

[6] Department of the Environment. Environ-mental waste. London, H.M. Stationery Office, 1991 (Management Paper No. 28).

[7] Steeg, H.Guidelines for the economic analysis of renewable energy technology applications.

Paris, International Energy Agency, 1991.

[8] Requirements for reusable, recoverable and re-cycled packaging. Official journal of the Euro-pean Communities,C263: 8 (1992).

References

[9] Macve, R. Business, accountancy and the en-vironment. A policy and research agenda. Lon-don, Institute of Chartered Accountants in England and Wales, 1992.

[10] Progress towards environmental objectives. Lon-don, Imperial Chemical Industries, 1991.

[11] Improvement by design. Environmental report.

Progress 1992. London, Imperial Chemical In-dustries, 1992.

[12] Yakowitz, H. What trade in recoverable wastes?OECD observer,180: 26–28 (1993).

[13] World Bank. World development report 1993.

Investing in health. New York, Oxford Univer-sity Press, 1993.

[14] The economic costs of reducing carbon dioxide emissions. Paris, Organisation for Economic Co-operation and Development, 1992 (OECD Economic Studies No. 19).

[15] Conference on Energy and Environment in Euro-pean Economies in Transition. Priorities for co-op-eration and integration. Proceedings. Paris, Inter-national Energy Agency, 1992.

[16] Juhasz, F. &Ragno, A. The environment in eastern Europe: from red to green?OECD ob-server,181: 33–36 (1993).

[17] Moskowitz, P.D. &Morris, S.C.Energy, pol-lution, environment and health. Nairobi, United Nations Environment Programme, 1989.

[18] Acute effects on health of smog episodes. Copen-hagen, WHO Regional Office for Europe, 1990 (WHO Regional Publications, European Series, No. 43).

[19] Bartelmus, P. et al.Integrated environmental accounting. A case study for Papua New Guinea.

Washington, DC, World Bank, 1992.

[20] Peskin, H.M.Accounting for natural resource de-pletion and degradation in developing countries.

Washington, DC, World Bank, 1989.

[21] Pearce, D.W. &Warford, J.J.World without end. Economics, environment and sustainable de-velopment. Oxford, Oxford University Press, 1993.

[22] Health for all targets. The health policy for Eu-rope. Copenhagen, WHO Regional Office for Europe, 1993 (European Health for All Series No. 4).

[23] McKeown, T. The road to health.World health forum,10: 408–416 (1989).

[24] Bojan, F. et al. Regional variations in avoid-able mortality in Europe.In: Normand, C.E.M.

& Vaughan, J.P., ed.Europe without frontiers, the implications for health. London, John Wiley &

Sons, 1993.

[25] The state of the environment in the European Community. Overview. Volume III. Luxembourg, Office for Official Publications of the Euro-pean Communities, 1992 (document COM(92)23).

References 89

[26] Ashton, J., ed. Healthy cities. London, Open University Press, 1992.

[27] Environmental policy. How to apply economic in-struments. Paris, Organisation for Economic Co-operation and Development, 1991.

[28] Walker, T. Tardy Europe set to follow Clinton lead on energy tax. The Times (London), 10 March 1993, p. 27.

[29] Linde, V. et al.Environmental education: ex-periences and suggestions. Stockholm, Swedish International Development Agency, 1993.

[30] Opschoor, J.B. et al. Managing the environ-ment. The role of economic instruments. Paris, Organisation for Economic Co-operation and Development, 1994.

[31] Implications of the outcome of the United Nations Conference on Environment and Development, in

the field of environment and economics. New York, United Nations Economic and Social Council, 1992 (document ENVWA/WG.2/R14:

EC.AD/WG1/R14:6).

[32] Integrated pollution prevention and control. Back-ground report to the introduction of a directive.

Luxembourg, Office for Official Publications of the European Communities, 1993 (document COM(93)423).

[33] Phillips, D.R. &Vehasselt, Y.Health and de-velopment. London, Routledge & Kegan Paul, 1994.

[34] Godfrey, C. Is prevention better than cure?In:

Drummond, M.F. & Maynard, A., ed. Purchas-ing and providPurchas-ing cost effective health care. Lon-don, Churchill Livingstone, pp. 183–197 (1993).

Chapter 4