engleski

Application of fiscal policy instruments to the externalities in coastal management in the mediterranean region (case of the Kaštela Bay, Croatia)

The paper deals with the relationship between economy and environment or, more precisely, with the problem of externalities in the development management of the highly valuable Mediterranean coastal areas, the Kastela Bay (Croatia) in particular. Theoretical approaches to the external effects from the standpoint of fiscal instruments used in the market economy are presented, with special reference to the conditions occuring during the period of transition from planning to market economy. Past development and present state of the Kastela Bay area are briefly overviwed from the system theory and system dynamics point of view. Having described environmental protection regulations as well as administartion hierarchy in Croatia and the Bay area, the authors envisage the role of instruments of fiscal policy within an overall development management strategy in the area, externalities management in particular. Moreover, a system dynamics model is defined encompassing at the aggregate level economic activities, population and urban flows as well as capacities and use of natural resources and environment on one hand, and fiscal policy instruments within environment management system on the other hand.

fiscal policy; externalities; environment management system; coastal zones

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