The linkage between externalities and the institutions – the value and price

Abstract

The main research question of the paper was stated in line with the research task in the project VEGA named „Economic tools applied in the environment protection of the market economy with the application in the Slovak republic“. The first stage of the research was analyzing the approaches of individual economic schools towards the problems of externalities. The objectives were many fold: to discuss the value and price theory concerning the externalities and to show a linkage between externalities and the institutions using an example from Košice region. The case study of Bankov Mine was a small attempt for providing some empirical evidence on the issue of externalities and institutions. Key words: externalities, institutions, price, value, evaluation