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- What are "market failures"? What is a "Public Good"? What is an "Externality"?
- What are the objectives of "emissions trading"? What are the differences between "taxes" and "charges"?
- What is the rationale behind the "polluter-pay" and "user-pay" Principles?
- What "sustainable development" principles are relevant to air traffic?
- What economic benefits are facilitated by ATM and how can we maximise these?
- All these issues are addressed and covered by environment economics.
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Environmental issues are being seriously addressed by industry, research institutes and European and International organisations.
There is now general consensus that economic instruments offer great potentials for governments to improve environmental performance in a cost-effective manner. This potential could be fully exploited with the integration of environmental, economic and also social concerns in policy making. This is particularly urgent with the reduction of greenhouse gas emissions where policies capable of meeting objectives (at the least cost) become increasingly urgent for most countries as the target date of the first commitment period under the Kyoto Protocol approaches (2008-2012). The integration of socio-enviro-economic factors is also vital to ensure we fully understand the trade-offs relating to our decision making.
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Economic instruments constitute one category amongst others of policy instruments designed to achieve environmental goals. They can be used as a substitute or as a complement to other policy instruments such as regulations and co-operative agreements with industry (policy mix).
The work on economic instruments should lead to:
- Identify existing types of economic instruments and their use;
- Establish a set of criteria for the choice of instruments;
- Provide Guidelines for the implementation of economic instruments.
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We must improve our understanding of socio-enviro-economic interrelationships and of the indirect economic costs and benefits arising from ATM. This will help us to develop a policy and approach that acknowledges the synergies and trade-offs between these different imperatives, and ensures that the optimum balance is achieved where possible.
- Understand ATM’s externalities (+/-) and their economic values.
- Include enviro-social-economic issues in our business case assessments.
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Extracts from “Impact Assessment in the Commission – Guidelines” |
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Within the framework of the better regulation package, the European Commission is proposing several concrete actions to improve the way it designs policy. One of these is the introduction of a new integrated impact assessment method. The Göteborg and the Laeken Councils introduced two important political considerations:
- to consider the effects of policy proposals in their economic, social and environmental dimensions; and
- to simplify and improve the regulatory environment.
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EUROCONTROL is committed to follow the highest standards of good governance and better regulation Principles. The use of existing material should facilitate EUROCONTROL decision-making in full consistency with EC requirements and sustainable development Principles.
The aim is to identify critical factors to be reviewed for establishing “Impact Assessments” for EUROCONTROL purposes. The objective is also to try and strengthen the credibility of the Agency proposals for instance through increased transparency, readability and shared ownership of the basic assumptions and methodologies followed.
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