Czech Republic : potential cost savings from using economic instruments

This paper summarizes existing knowledge about the cost savings in environmental financing that might be achieved in the Czech Republic through the use of economic instruments. Because relatively little numerical work has been done on potential cost savings in the Czech Republic, the use of Czech data is complemented by supplementary references to experience with economic instruments in the United States and studies of potential cost savings in Poland. The paper examines several case studies of potential cost savings when additional flexibility is provided for environmental compliance at an individual site. Suggestive macro results are also provided for the Czech economy. Later sections identify many additional points of comparison between administrative and economic instruments and summarize the lessons learned from U.S. experience. An appendix contains supporting documents. (Author abstract, modified)