Page 109 - Azerbaijan State University of Economics

Saulė Augaitytė: Sustainability aspect of economic development

damaging environment. Implementation of this measure could have positive economic impact,

but it is limited by other objectives, especially related to social cohesion and interest groups
activity.

To introduce the so-called “Tobin tax” for all international financial agreements.

This would allow financing huge international environmental and development projects. It
is suggestion by Nobel Laureate economist James Tobin (1970), to impose a tax on all spot

conversions of one currency into another. He thought, that taxing money transfers by 0,1 per
cent, this tax would bound the quickest and the most dangerous financial speculations. The main

idea of Tobin tax was to allocate collected funds to the countries that were facing the poverty at
the moment. On the other side, due to large money tranfers big amounts of funds would be

collected and used to finance environmental projects.

To increase insurance deposits for environmentally risky sectors (nuclear energy) in
order they appropriately reflected the risk level.

Ecological risk is globalizing, so it is important to compensate and reduce it. Insurance is

one of the main financial guarantees ensuring that the negative impact on environment will be
remunerated.

To implement principles of ecologic banking by creating funds holding tax exemptions
and providing actives that would finance “loan portfolio” of debtors meeting specific criteria.

For a long time banks considered themselves as environmentally friendly organizations. In
fact, it is difficult unambiguously to assess banks’ impact on environment. But in times when

environmental protection becomes more and more tender problem, banks started to promote

active economic, political impact by motivating their activity to be more environmentally
friendly. But of course, besides the risk assessment, the bank led by principles of sustainable

development in their activity should also follow some principles, that instead reduce bank’s

profitability. It is clear, that the concept of sustainable banking requires that banks applied
different service tariffs for clients committed to sustainable development in different levels.

To apply stepped-up depreciation for investments into environmentally friendly
technologies.

When talking about enterprises investments directed to reduce their negative impact on
environment or to improve environment in the concept of long-term development, should be

highlighted the importance of such investments, especially in the heavy industry. According to

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