SPECIFICITY OF THE ENVIRONMENTAL PROTECTION COSTS IN THE REPUBLIC OF SERBIA

Abstract

Environmental law is an extremely important instrument for regulating and managing sustainable development. The main objective of ecological development is to reduce the risk in terms of living conditions and improve the quality of life, with special attention to environmental protection in achieving these goals. The situation in the Republic of Serbia is not at an enviable level from the point of view of this problem. Serbia is currently among the most polluted countries in Europe. This further threatens human health, has an impact on reducing average life expectancy, impairs quality of life, and affects uneven regional development. However, it should not be overlooked that only a good environment provides a more attractive surrounding for work and investment, and thus increases the competitiveness of the economy. The reason for such a bad situation in Serbia is the result of decades of insufficient investment by the state itself. Increasing the state's investment in environmental protection in the coming years is not only an indisputable need, but also a duty of the state. Ensuring environmental sustainability, especially in a time of accelerated technological revolution, is a process that is becoming more and more demanding and expensive, and the requirements for greening businesses are becoming more common.The main objective of the paper is to examine the specific nature of the costs of environmental protection in the Republic of Serbia, in total and by categories, and on this basis, to identify the problematic aspects in this field that require improvement in the future. The method of analysis of available data by cost categories in dynamic of time is applied in the paper. The results of the research indicate a positive tendency of almost continuous growth of total environmental costs in the Republic of Serbia over a ten-year period (2008-2017), as well as a number of problematic items when it comes to cost structure. Although the Government of the Republic of Serbia has recognized the importance of investing in environmental protection, the current financing system is not satisfied, and it is necessary, first of all, by increasing its transparency and improving coordination between competent authorities, to increase the efficiency of using economic instruments in the environmental field. The high penalty that Serbia could pay if it did not harmonize its regulations with the European ones on time are another reason in support of the thesis that environmental protection must become one of this country's priorities. The results of the research can be useful to economic entities in conceptualizing their business orientation and attitude towards environmental protection, but also to policy and strategy makers at higher level, pointing to desirable directing future costs and investments for environmental protection.