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This paper presents the application of an optimization model developed for Lake Rozkoš, which is located in a sub-basin of the Elbe River basin in Bohemia. Two scenarios for achieving environmental targets (required status of the lake water) were formulated by specialists, together with an assessment of the investment and operating costs of the projects. The optimal solution (investment program) for 41 polluter-municipalities, where 166 coalitions can be considered (41 individual and 125 joint wastewater treatment plants), was computed. The results suggest that the modelling method presented in this paper has the potential to increase the role of economic considerations in the early stages of planning and decision-making about water treatment programs. In this case, more than 20% of the costs could be saved when selected joint wastewater treatment plants are realized. The approach has the potential to contribute to increasing costeffectiveness of allocation of financial sources from national and European Union sources.
Environmental protection seems to be a very important social problem, associated with allocations of substantive amounts of social resources. Designs and implementation models of environmental policies have significant impacts on the effectiveness of such allocations. The authors have developed a novel methodology for ex-post environmental policy implementation assessment. The methodology has been approved as the one suggested for environmental policy assessment by the Czech Ministry of the Environment. It covers all three pillars of sustainable development and applies multicriteria analysis as its main methodological tool. The paper also presents two applications of the methodology - in Integrated Pollution Prevention and Control (IPPC) and Solid Waste Management in the Czech Republic.
We can observe new reasons for improving water protection policies: climate change calls for higher security for drinking water sources, increasing demand for improving water quality for swimming purposes in recreational areas, higher pressure on responsibility for water quality crossing national borders. Our paper presents an application of combinatorial auction theory to the problem of cleaning waters in streams where individual polluters can create various coalitions when submitting proposals for financial support to individual or common projects. The practical case has shown significant savings of social costs if the coalition solutions are realized. There is an information asymmetry between the polluters when elaborating common application for an investment subsidy for their projects. A series of economic laboratory experiments was carried out to pretest subjects’ potential behaviour here. The results showed that 75% of the groups found the (theoretical) first best solution. Subsidies required tended to be relatively low, making the competition for subsidies very stiff.
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