Environmental Policies

This sub-indicator assesses the extent to which environmental concerns are effectively taken into account in both macro and microeconomic terms. It considers the extent to which externalisation of costs or inadequate time horizons are avoided or restrained by environmental regulation. In macroeconomic terms, it assesses the extent to which tax and energy policies take ecological goals and measures into account (e.g. promotion of renewable energies, CO2 reduction goals). In microeconomic terms, it assesses the extent to which the government sets incentives for environmentally sound consumption and investments to households and companies. A deeply ingrained awareness of the environment or nature in society may serve as a functional equivalent.