Implementation of Economic Instruments in the EU Forest-Based Sector: Case Study in Austria and the Czech Republic

Abstract

Economic instruments are political tools created to promote environmental stewardship by influencing consumption and production patterns, fostering technological innovation, and improving the environment; however, if current failures in their formulation or implementation persist, they can negatively impact the environment and society. This research aims to analyze the strengths, weaknesses, opportunities, and threats (SWOT) of economic instruments by extracting these aspects from the forest policy documents of the EU, Austria, and the Czech Republic using the qualitative content analysis method. It has been found that the EU channels its resources from economic instruments through various financing programs that make distribution more effective and align with the environmental objectives of the EU. Additionally, the SWOT analysis indicates that the economic instruments applied in the EU present significant differences in the application and management of forests and the performance of the financial instruments according to the national strategies and action plans used. These identified challenges, limitations, and improvement areas allow for generating suggestions that policymakers can apply concerning the use, implementation, dissemination, and access processes of financing mechanisms for sustainable forest management in the European Union.