Transition to Markets and the Environment: Effects of the Change in the Composition of Manufacturing Output

Abstract

Measures the changes in environmental quality that occurred in the early years of economic transition for 12 former centrally planned economies. The authors address the empirical question of whether the transition from a centrally planned to a market-driven economy exacerbates environmental degradation or stimulates environmental improvements. The results indicate a strong relationship between environmental improvement and price liberalization, trade and foreign exchange reforms, enterprise restructuring, and prevarication reforms.