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Improving the Economic Mechanism of Environmental Management at the Local Level in the Context of Decentralization Processes
Holian V. A., Medynska N. V., Zastavnyy Y. B.

Holian, Vasyl A., Medynska, Nataliia V., and Zastavnyy, Yuriy B. (2021) “Improving the Economic Mechanism of Environmental Management at the Local Level in the Context of Decentralization Processes.” Business Inform 12:133–139.
https://doi.org/10.32983/2222-4459-2021-12-133-139

Section: Ecology and Environmental Management

UDC 330:504.06

Abstract:
It is determined that the economic mechanism of economic management of the nature is a set of methods, means, instruments and forms of budget-tax and financial-credit regulation of economic development and use in the reproduction process of the natural component of national wealth, as well as the implementation of activities aimed at the reproduction of natural resource potential and environmental protection. It is substantiated that in the current socioeconomic and political-legal conditions, the economic mechanism of economic management of the nature operates with an overly narrowed specification of methods and instruments, which makes it impossible to fully ensure a sufficient level of financing for the implementation of environmental projects and priorities for expanded reproduction and enhance of the natural resource potential. It is proved that in the unfavorable conditions of the European natural gas market for the national economy and crisis phenomena caused by the curtailment of business activity due to the spread of the coronavirus pandemic, budgetary opportunities for financing environmental expenditures are limited. Researches have shown that in the dynamics of the real value of environmental expenditures of both the State and local budgets in 2002-2020 in general, there is a downward trend, which indicates a real decrease in the volume of public financing of environmental protection. It is substantiated that due to the deregulation of land relations, that is, the transfer of the State-owned agricultural land outside settlements to communal ownership, additional resource opportunities have been formed to increase the efficiency of the use of instruments of the economic mechanism of economic management of the nature at the local level. It is determined that in the conditions of an overly unified system of budget and tax regulation of economic management of the nature and limited opportunities for financing environmental activities, ensuring a high level of efficiency of functioning of the economic mechanism of economic management of the nature at the local level requires the installation of a complex of incentives into the range of its instruments and methods. Such incentives will orient the entities of agrarian entrepreneurship to the introduction of additional capacities of organic farming, organic cattle breeding and organic feed production. It is substantiated that such incentives are represented by tax and budget preferences.

Keywords: economic mechanism, economic management of the nature, decentralization, local budgets, environmental expenditures, incentives.

Fig.: 2. Bibl.: 8.

Holian Vasyl A. – Doctor of Sciences (Economics), Professor, Senior Research Fellow, Separated Subdivision of National University of Life and Environmental Sciences of Ukraine “Boyarka Forestry Research Station” (12 Lisodoslidna Str., Boiarka, Kyievo-Sviatoshynskyi district, Kyiv region, 08150, Ukraine)
Email: [email protected]
Medynska Nataliia V. – Candidate of Sciences (Economics), Associate Professor, Head of the Department, Department of Land Cadastre, National University of Life and Environmental Sciences of Ukraine (15 Heroiv Oborony Str., Kyiv, 03041, Ukraine)
Email: [email protected]
Zastavnyy Yuriy B. – Director, State Center for Certification and Examination of Agricultural Products (9/12 Yanusha Korchaka Str., Kyiv, 03190, Ukraine)

List of references in article

Veklych, O. O. “Ekonomichnyi mekhanizm pryrodokorystuvannia: analiz diievosti“ [Economic Mechanism of Nature Management: Analysis of Efficiency]. Visnyk Natsionalnoi akademii nauk Ukrainy. 2001. http://dspace.nbuv.gov.ua/bitstream/handle/123456789/72732/08-Veklich.pdf?sequence=1
Veklych, O. O. “Pershi pidsumky finansovo-biudzhetnoi detsentralizatsii ekolohichnoho opodatkuvannia“ [The First Results of Financial and Budgetary Decentralization of Environmental Taxation]. Ekonomika Ukrainy, no. 3 (2016): 60-74.
Holian, V. “Finansuvannia ekolohichnykh proiektiv z mistsevykh biudzhetiv: prohres vidsutnii“ [Financing of Environmental Projects from Local Budgets: No Progress]. http://ua-ekonomist.com/20314-fnansuvannya-ekologchnih-proyektv-z-mscevih-byudzhetv-progres-vdsutny.html
Danylyshyn, B. M. Naukovi narysy z ekonomiky pryrodokorystuvannia [Scientific Essays on the Economics of Nature Management]. Kyiv: RVPS Ukrainy NAN Ukrainy, 2008.
Dorohuntsov, S. I., Borshchevskyi, P. P., and Danylyshyn, B. M. Udoskonalennia upravlinnia pryrodokorystuvanniam v APK [Improving Environmental Management in Agriculture]. Kyiv: Urozhai, 1992.
Drebot, O. I., and Hadzalo, A. Ya. “Elementy ekonomichnoho mekhanizmu ratsionalnoho pryrodokorystuvannia ta okhorony navkolyshnyoho pryrodnoho seredovyshcha“ [Elements of Economic Mechanism of Rational Use of Natural Resources and Environmental Protection]. Ekonomika pryrodokorystuvannia i okhorony dovkillia. 2016. http://dspace.nbuv.gov.ua/bitstream/handle/123456789/163013/25-Drebot.pdf?sequence=1
Myklush, T. S. “Ekonomichnyi mekhanizm kompleksnoho pryrodokorystuvannia u Karpatskomu rehioni: metody ta instrumenty investytsiinoho zabezpechennia“ [Economic Mechanism of Integrated Environmental Management in the Carpathian Region: Methods and Tools of Investment Support]. Investytsii: praktyka ta dosvid. 2018. http://www.investplan.com.ua/pdf/16_2018/12.pdf
Udovytsia, O. F. “Shliakhy udoskonalennia ekonomichnoho mekhanizmu pryrodokorystuvannia v Ukraini“ [Ways to Improve Economic Environmental Mechanism in Ukraine]. Infrastruktura rynku, no. 40 (2020): 359-362. DOI: https://doi.org/10.32843/infrastruct40-61

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