Conditions for the effective functioning of the system of internalization of economic damage from emissions in the territory

Abstract

The results of the study are derived from a framework for estimating and recovering damage from emissions, the assimilation potential and sustainable development goals taken into account as well. The identified conditions for the establishment of an effective system for internalizing economic damage from emissions in the territory are limited to ensuring the fairness and consistency of the decisions taken, formation of incentives for continuous improvement of the situation and achievement of the goals of sustainable development in the territories. The main conditions are to reduce the limitations of traditional methods and to overcome uncertainty in the analysis of data. The development of assimilation potential should generate income for its owner (the source of income is the polluter). If payments for cap-and-trade payments are insufficient, the state must subsidize the activity. Since the estimation of the cost of cap-and-overs is done in some part in isolation, it is possible to identify the economic feasibility of its operation within the framework of the model. Due to importance and complexity, one of the main elements and conditions of an effective system of internalization of externalities in the territory is the solution of the problems of road transport.