Page 110 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.70, # 2, 2013, pp. 99-112

this would be appropriate to create tax promotion instruments aiming to increase investments of

this nature, and vice versa, to impose tax system unfavorable for enterprises not committing
themselves to improve their impact on environment while seeking to gain competitive advantage

through the lower production costs.

To reorient current economic competitive policy in achieving ecologic and resource
protection objectives.

In market economy, ecologically educated consumers have a unique right to fasten
movement towards more sustainable market economy by constantly purchasing environmentally

friendly products. Governments could also support this process through introduction of
ecological labels and financial mechanisms encouraging ecologic consumption. But the

challenge is not only to achieve sustainably qualitative model of consumption, but also to reach

sustainably qualitative gross consumption level.
To move to assessment model, where all costs covering the “lost” link between scarce

resources and their value would be reflected in the price.

In market economy, the main signal for both business and consumers is the price. So it
should include environmental costs of all products, processes and services. While resources are

disappearing, their value increases. Natural resources like oil, gas or coal are very limited; their
consumption has steadily increased in recent years resulting in their price increase. So, the price

increase of natural resources sends clear signal of scarcity.
To apply preventive principal “polluter pays”.

This principle means that all responsibility, including material, is applied to polluters or

consumers, i.e. all social and economic losses caused by pollution and resource usage should be
covered by polluters (consumers).

Where possible, to pass the ownership rights to the “lowest” suitable level of

community or society according to extent of resources included.
Movement to sustainable development is like a movement to a new level in government

and citizens’ communication, where the government delegates the power to citizens. Using this
approach, people are motivated to seek their own benefits, and also to help solving substantial

country, regional or global problems.

To guarantee stable prices, salaries and employment rates that would lead to long-
term approach.

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