Market Liberalisation and Environmental Assessment in Developing and Transitional Economies

The paper examines the relationship between market-liberalising economic policies and environmental assessment procedures, in developing and transitional economies. The current scope of market liberalisation measures is reviewed, and the possible environmental impacts of market liberalisation policies are discussed. The various types of policy instruments that may be used to address these environmental impacts are considered and, in particular, a comparative analysis of cost–benefit analysis and environmental impact assessment, as investment appraisal instruments, is presented. The final part of the paper identifies several areas for further research.