Internalization of environmental protection: Role of government and technology

• Main Author: Todosijević-Lazović Snežana
• Format: Article
• Language: English
• Published: University of Novi Sad - Faculty of Economics, Subotica 2015-01-01
• Series: Anali Ekonomskog fakulteta u Subotici
• Subjects: ecology; technology; resources; economy; expenses; market; quality; product
• Online Access: https://scindeks-clanci.ceon.rs/data/pdf/0350-2120/2015/0350-21201534357T.pdf

With the growth of technical and technological modernity, it comes to growth of environmental protection. Degree of pollution is not determined by standards and norms that government proposes in the means of allowance, but the number of issuers. Government with the limit of imperfection of market defines optimum strategy of internalization of external expenses. What level of pollution will prove to be economically sustainable depends on expected social benefits, and also from current and future expenses for cleaning the environment from inherited and current consequences of pollution. The author's research proves that in the means of preference for ecological technology, regardless of starting price of investment, if all the conditions of quality and competition of self products are fulfilled, results show dominance in comparison to 'traditional-classical technologies'. With every technical and technological change it is easier and more efficient to incorporate ecological requests in it. In this research we started from the assumption that sustainable development means transition from classical market economy to ecological economy, because market driven economy encourages irrational expenditure of resources, considering natural goods limitless.