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Many economists and analysts claim that extended use of pollution charges in environmental policy will have substantial efficiency advantages in transition economies. This article challenges this view and argues instead that the proposed policy presumes the existence of an already-functioning institutional framework. By focusing on the Russian case, the article discusses a number of reasons why it is difficult to implement pollution charges in an economic system in which Communist behavioral patterns and jurisdictions are still prevalent. The article identifies a number of institutional obstacles related both to enterprise behavior and to environmental regulation and enforcement. These obstacles suggest that it is appropriate to view environmental problems in transition economies primarily as the results of institutional inertia in the economic and political systems. The article ends by discussing alternative ways of controlling pollution in Russia and stresses the importance of improving the legitimacy and basic trust for environmental legislation.

Most economists and analysts claim that extended use of pollution charges in environmental policy will have substantial efficiency advantages in countries undergoing transition to market economies. Essentially this paper challenges this view and argues that the proposed policy presumes the existence of an already functioning institutional framework. By focusing on the Russian case, the paper identifies and discusses a number of reasons why it has become hard to implement pollution charges in an economic system where behavioral patterns and jurisdictions established in the past are still prevalent. Institutional obstacles both at the firm level and within Russian regulatory agencies are discussed. The paper concludes that it is probably more appropriate to view environmental problems in transition economies not as market imperfections per se, but as results of institutional inertia in the economic and political systems. As a consequence the choice of pollution control strategy becomes much more complex than is implied by economic theory. The paper ends with a discussion of command and control regulation and input taxes as alternative ways to control pollution in Russia. ; Godkänd; 1999; 20071210 (patrik_s)

The city of Milan, one of the most car-dependent and polluted in Europe, is also among the few to have introduced a road pricing measure. The story of how this happened is of great interest, for it shows how EU regulations, scientific evidence and political action at the local level have concurred to bring about change in the city's transport policy. Unlike the well-known cases of London and Stockholm, it is concerns for the levels of pollution (rather than congestion) that have led to the introduction of the "Ecopass" scheme in 2008. Accordingly, in the following years the public debate has focused on the effectiveness of this pollution charge in reducing PM10 – a pollutant with adverse health impacts. Based on the analysis of media coverage and official reports, this paper argues that EU regulations had a crucial role in determining the newsworthiness of PM10 in Milan. Media and public concerns have then put increasing pressure on politicians to find a solution to the "emergency". The dubious effectiveness of Ecopass in reducing PM10 levels then has had two kinds of consequences. First, the scheme was upgraded to a congestion charge in 2012, following the results of a bottom-up referendum in which a large majority of voters demanded both an upgrade and an extension of the Ecopass area: this stands in stark contrast with the experience of other cities, where voters have turned down charging schemes (e.g. Edinburgh, Manchester). Second, the new city administration has recently implemented a monitoring system for Black Carbon, a new PM metric that is more suitable to prove the effectiveness of traffic restrictions. Overall, the paper shows how all actors involved in the process (politicians, media and civil society groups) made strategic use of scientific evidence on pollution, in order to bring forward their own agendas.