PROPERTY RIGHTS, EXTERNALITIES AND SUSTAINABLE DEVELOPMENT. A CASE STUDY ON CENTRAL AND EASTERN EUROPEAN MEMBER STATES

Abstract

The present paper is aimed to put emphasis on the fact that the role and importance of healthy institutional order in achieving sustainable development is essential. The whole environment theoretical movement follows the same development trend and theoretical and doctrinary evolution. Nevertheless, the market as a real, tangible product of the standard economic judgement system bears imperfections, i.e. income distribution, transaction costs or negative externalities. We therefore aim to bring strong arguments to demonstrate that, irrespective of the ideological level we take into account, we can not refer to market in the absence of private property. Other formal and informal institutions must participate in the whole process in order to enable it to function within optimum parameters. The whole CEE countries’ analysis illustrates that protecting and respecting property rights is of paramount importance in maintaining a high level of development.

Keywords

• sustainable development
• property rights
• externalities