A BRIEF DESCRIPTION OF MAKK (Hungarian Environmental Economics Centre)

The MAKK research institute is carrying out applied research and consulting in the field of environmental economics with the appropriate background of practical and theoretical knowledge. Our aim is to develop economically efficient environmental protection. The institute was established in 1998, on the basis of a four year Harvard University program (HIID) that had supported the Ministry of Finance and Ministry of Environmental Protection. Besides public administration, MAKK’s clients and partners are scientific, business and civil organisations, and our international relations are also rapidly developing.

Our permanent research subjects include the analysis of economic and environmental effects of environmental policies (especially ecotaxes) on macro and sectoral level, as well as effects on households with the help of a general equilibrium model („FEIM”) augmented with an environmental module, which is being developed continuously. With this tool MAKK assessed the economic and environmental impacts of various emission taxes before their introduction in 2004. We also have experience in researching waste management related subjects, and in our „Ecotax II.” research the above two areas were combined as we considered — among other taxes such as emission and energy taxes — the possibility of a waste taxation system. On the basis of HIID we have experience in the monetary evaluation of environmental goods and services (including the benefits of emission reduction) which have been enhanced in an international project evaluating the Szigetköz (a wetland) and Danube Bend areas (in co-operation with the University of Glasgow, University of Newcastle, and Cheltenham College). The results were used in preparation of Hungary in a debate with Slovakia over a large dam and hydro power plant. We also have significant experience in analysing the Hungarian aspects of the Kyoto flexible mechanisms) and the European Greenhouse Gas Emission Trading System; we have prepared studies, background materials as well as consulted private companies, held presentations and organised conferences on the subject. As far as energy economics and policy are concerned, we have conducted research related to voluntary agreements, system and market integration of distributed electricity generation, as well as renewable energy support policies with a special focus on tradable green certificates. Another research topic of MAKK is concerned with an integrated approach of water management and nature friendly regional development.