Environmental Policies

This sub-indicator assesses the extent to which environmental concerns are effectively taken into account, meaning whether the externalisation of costs or inadequate time horizons are avoided or restrained by environmetal regulation. It assesses whether tas and energt 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 environmental goals and measures into account (e.g. promotion of renerwable energies, CO2 reduction goals), and whether the government sets incentives for environmentally sound consumption and invstments into households and companies.

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