COST-EFFICIENT EMISSION REDUCTION STRATEGIES FOR LITHUANIA

As a consequence of the political changes in 1991, Lithuania is curren tly facing the challenge of developing an efficient energy supply syst em. Owing to the outdated energy system and the lack of domestic energ y resources, Lithuania has to find the pathway for a sustainable econo mic development. However, such a strategy should be developed with con sideration for the requirements of environmental protection complying with international protocols. Therefore, the energy-flow optimization model extended by environmental modules (EFOM-ENV) of the Commission o f the European Communities has been adapted and applied to Lithuania. This has been carried out in a joint co-operation project of the Insti tute for Industrial Production and the Lithuanian Energy Institute, fi nanced by the Deutsche Forschungsgemeinschaft (DFG). To study the effe cts of budget limitations during the transitory period from a centrall y planned to a market economy, new constraints concerning investments and fuel imports in hard currency have been introduced. Among others, these effects have been analyzed with regard to their impacts on the d evelopment of cost-efficient emission reduction strategies.