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Marjukka Hiltunen Senior Researcher Research Programme for Environmental Policy

COASTAL AREA MANAGEMENT PROJECTS: IMPROVING THE IMPLEMENTATION Sustainable financing MAP / METAP WORKSHOP Malta, January 17 - 19, 2002. Marjukka Hiltunen Senior Researcher Research Programme for Environmental Policy Finnish Environment Institute e-mail: marjukka.hiltunen@vyh.fi.

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Marjukka Hiltunen Senior Researcher Research Programme for Environmental Policy

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  1. COASTAL AREA MANAGEMENT PROJECTS: IMPROVING THE IMPLEMENTATION Sustainable financing MAP / METAP WORKSHOP Malta, January 17 - 19, 2002 Marjukka Hiltunen Senior Researcher Research Programme for Environmental Policy Finnish Environment Institute e-mail: marjukka.hiltunen@vyh.fi

  2. HOW TO FIND MONEY? TWO BASIC STRATEGIES • POLLUTER/USER PAYS • ”MAKE THEM PAY” • Governmental funding • Economic instruments • PRIVATE SECTOR INVOLVEMENT • ”ATTRACT NEW FINANCES” • Public-private –partnerships • Green Business

  3. POLLUTER/USER PAYS -LOGIC • If you pollute, you are causing an externality and you should pay for it. • If you benefit of something that has been preserved for you or improved for you, you should cover the costs. • Then the question is: who is causing the damage or who is getting the benefits?

  4. GOVERNMENTAL FUNDING • WHEN THE GOVERNMENT SHOULD PAY? • By the polluter-pays-logic: when the majority of taxpayers cause/benefit. • Examples: acquiring protected areas, making CZM plans, saving free access beaches • WHY IS GOVERNMENTAL FUNDING SO CRUCIAL FOR SUSTAINABILITY? • It reveals true priorities. • It ensures interest in continuation (sunk costs).

  5. ECONOMIC INSTRUMENTS • Property rights allocation • Fiscal instruments: emission and effluent taxes, input taxes, product taxes, differential taxation, royalty taxation, land use taxes, accelerated depreciation, subsidies, subsidy removal • Environmental charges: user charges, betterment charges, impact charges • Deposit-refund-schemes and performance bonds • Liability systems: legal liability, non-compliance fines, joint and several liability, liability insurance • Tradable quotas and offsets: tradable water rights, tradable fishing quotas, tradable development rights • Voluntary agreements • Environmental labelling/certification

  6. PROBLEMS ANALYSED Freshwater shortage Pollution of water supplies and coastal areas Oil Spills Solid waste/debris accumulation Urbanization Tourism development Mineral extraction Coastal erosion Loss of ecosystems/biodiversity Overfishing and negative impacts of aquaculture

  7. APPLICABILITY • Does the policy instrument address the underlying economic/policy failure? • Is the policy instrument cost-effective? • How does the policy instrument affect equity between different socio-economic classes, economic sectors and regions? • What are the likely macroeconomic consequences to employment, GNP loss and competition? • In which level the policy instrument should be located – Mediterranean, EU, national, local? • Is it possible to acquire funds by using the instrument? • How complicated it is administratively to adopt and implement the policy instrument?

  8. PRIVATE SECTOR INVOLVEMENT • Public-private -partnerships: • different forms of partnership exist – the goal of the partnership defines the form to be selected • Technical/ managerial expertise? • Operating/investment efficiency? • Investments? • Responsiveness to customers? • Green business promotion: • loans – microcredits • venture capital • capacity building

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