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THE IMPACT OF LOCAL PUBLIC EXPENDITURES RELATED TO ENVIRONMENTAL PROTECTION IN ROMANIA

Septimiu-Rares Szabo

Abstract

Historically, the local administrations in Romania have not had a tradition of allocating significant amount of funds to environmental protection. The allocations, however, increased after the accession of the country in the European Union. While up to 2010, the environmental protection expenditures were included in the local development and social housing budget chapter, as of 2011 the local budgets received a dedicated budgetary section. The impact of these expenditures has not been assessed comprehensively especially since there is an overlap with the central government in terms of competences. There have been several attempts to decentralize authority over environmental protection but these attempts have not been particularly successful. The study looks into the local environment expenditures and assess their impact. Using a panel dataset for 42 Romanian counties over the period 2011-2015, the study aims to find an empirical relationship between the growth of local expenditures on environmental protection and the expansion of the sewerage system. The results suggest that these expenditures do not seem to have a positive impact. Thus, the planning of these expenditures needs to be improved.

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DOI resolver: doi.org/10.5593/sgem2017/53/s21.116

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