EFFECTIVENESS OF ECOLOGICAL EDUCATION AND AWARENESS IN PUBLIC POLICY: MICROECONOMIC ANALYSIS OF REGULATION EFFECTS AT REGIONAL ENERGY MARKET

Ecological safety is one of the most important challenges for the people all over the world. Remedies applied are often a part of public policy ad, as a rule, undermine losses of public welfare in a short-run to achieve environmental goals. These losses may be considered as a fee paid by society for cleaner environment. The aim of the state as a regulator in this context (or even a kind of its social responsibility) is to choose the way to better environment which guarantees a minimum public welfare loss. Welfare effects are construed here in microeconomic perspective ? as welfare changes measured at the markets under regulation. Ecological education and awareness represent a rare case of regulation which could result in gain of public welfare. The arguments come from theoretical analysis of situation when the information first unavailable is transmitted to consumers, and they change their preferences. Public welfare gain as a result of consumers’ awareness on NOx emission, measured at Novosibirsk regional energy market, could run up to 25 mln of rubles per month (regional market is based on energy consumption and production data). This gain of welfare could occur if consumers show rational reaction, which undermines a decrease of energy demand as a response on information of energy production externalities; or if they react at all. The second remark is crucial for regulation effect. It means that consumers have to consider ecological information as meaningful. These values and behavior are next to ecological education. As some researches show the cleaner environment is out of the priorities for people in Russia. Therefore Russian government has to promote ecological education. Sufficiency of current efforts is considered in the paper as well.