the market mechanism, Pigou proposed to adopt a tax
on those activities, that cause negative neighborhood
effects, at a rate, equal to these external costs. As a
result of this tax collection, the market price will more
accurately reflect the total costs and benefits of
producing and consuming a good or service.
Recently, many states have taken on an introduction
of such market-based instruments to assess the costs
of negative impacts and ensure long-term
environmental stability.
Michael Porter and Klaas van der Linde
(Porterandvander Linde, 1999), stating, that
competitive advantage depends on the ability to
improve, believed, that “ecological norms can
actually increase competitiveness by stimulating
innovation” (Porter and van der Linde, 1999). In other
words, ecological policy, using market-based
instruments, can stimulate the introduction of new
technologies and reduce production waste. However,
market-based ecological instruments have
traditionally been perceived as more “business-
friendly” than strict ecological management (Cooper
and Vargas, 2004).
Understanding, that the compromise between
ecological sustainability and economic development
is impossible, sustainable development policy are
directed to eliminate sources of environmental
degradation, not just consequences, while providing
opportunities and creating incentives for economic
progress. This internal interdependence between
long-term environmental stability and economic
growth is the conceptual framework for sustainable
development.
2 RESEARCH METHODOLOGY.
SUSTAINABLE
DEVELOPMENT: DEFINITION
AND PRINCIPLES
The key principle, that determines other principles in
the framework of sustainable development, is the
integration of ecological, social, and economic issues
into all aspects of decision-making - it is this concept
of integration, that distinguishes sustainability from
other forms of policy (Stoddart, 2011).
As noted above, the most commonly used
definition of sustainable development is one, that
addresses the importance of conserving resources for
future generations and is one of the main features, that
distinguish sustainable development policy from
traditional ecological policy, which is based on the
internalization of neighborhood effects of
environmental degradation. The overall goal of
sustainable development - long-term stability of the
economy and the environment - is achievable only
through the integration and recognition of economic,
ecological, and social issues in the decision-making
process.
Using this definition of sustainable development
raises the problem of capital interchangeability.
Aggregate capital stock priority: recognizing, that
artificial or produced capital is an adequate
alternative to natural capital, means poor
development sustainability. On the other hand, strong
development sustainability recognizes the unique
properties of natural resources and goods (natural
capital), that cannot be replaced by artificial capital
(Stoddart, 2011).
Within the general definition of sustainable
development, the principle of equity recognizes the
long-term perspective of sustainability to meet the
needs of future generations (Stoddart, 2011). The
"polluter pays" principle means, that economic agents
with negative impacts on the environment, bare the
costs and liabilities, related to these impacts, and do
not impose these costs on others, the environment or
future generations. State ecological policy and
ecological management must ensure, that the negative
impact on the environment as a result of economic
activity is taken into account and compensated for.
The precautionary principle states, that when
serious or irreversible damage is threatened, a lack of
full scientific certainty should not be used as a reason
to postpone cost-effective measures to prevent
environmental degradation (United Nations
Conference on the Human Environment, 1992). This
means, that the initiator of actions, with a risk of
serious or irreversible damage to the environment,
bears the burden of proof, that such an action would
not cause substantial harm.
The principle of common, but differentiated
liability recognizes, that each nation must play a
proportionate role in realizing the concept of
sustainable development. This principle recognizes
the different contributions of developed and
developing countries to environmental degradation,
in general, developed countries bear a greater
responsibility due to the large volume of resources
they consume and the pressure they put on the
environment (Brodhag and Taliere, 2006).
The system of state ecological management works
quite effectively and allows to implement a number
of principles of the concept of sustainable
development, in particular, the “polluter pays”
principle, but does not ensure the necessary
integration of economic, ecological, and social goals