The Use of Economic Instruments in Nordic and Baltic Environmental Policy 2001-2005
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The Use of Economic Instruments in Nordic and Baltic Environmental Policy 2001-2005

This new report commissioned by the Environment and Finance Group of the Nordic Council of Ministers continues the tradition of reviewing the use of economic instruments in environmental policy in the Nordic countries by providing a comprehensive overview. At the same time, this report extends the country coverage and content of the report. The application of economic instruments is not only discussed for the five Nordic countries, but also for the three Baltic countries. In addition, a discussion on the opportunities and shortcomings associated with the use of economic instruments in the field of environmental policy has been undertaken. The report is a follow-up of the previous five reviews – the last was published in 2002 (TemaNord 2002:581) – and discusses the latest development of the application of economic instruments covering the time period 2001-2005.

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Author(s):
Nordic Council of Ministers

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Energy consumption has increased slowly but continuously over the past years, reaching 5,706 million kWh in 2003 as compared to 4,963 million kWh in 1995. Latvia uses a comparatively high percentage of renewable energy sources; 28.6 percent wood and 5.6 percent hydropower and wind energy in 2001 (Baltic Environmental Forum, 2003).