Economic Mechanism of Nature Management: The Institutional Basis and Instrumental-Methodological Provision

• Published in: Bìznes ìnform (Multilingual ed.) Vol. 6; no. 533; pp. 51 - 57
• Main Author: Medynska, Nataliia V.
• Format: Journal Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 01.06.2022
• Subjects: economic mechanism of nature management; institutional basis; instruments; levers; methods
• ISSN: 2222-4459; 2311-116X
• DOI: 10.32983/2222-4459-2022-6-51-57

It was found that the economic mechanism of nature management operates with an insufficient set of methods, instruments and levers that would make it possible to increase the complexity of economic development of natural resource potential and strengthen the effectiveness of the influence of the sphere of nature management on the pace of socioeconomic growth. It is substantiated that for the formation of a modern economic mechanism of nature management, it is necessary to create an institutional basis, which will provide for the installation in the regulatory environmental architectonics of new institutions-rules capable of ensuring more efficient involvement of natural raw materials and ecosystem services in market circulation. It is determined that the instrumental and methodological provision of the economic mechanism of nature management should cover a wide range of methods, instruments and levers, which will allow to ensure the budget-tax and financial-credit impact on the maximum number of operations related to the extraction of material substance of natural raw materials and the use of non-commodity qualities of natural complexes. Studies have shown that in the modern economic mechanism of nature management there should be present a wide range of financial-economic and managerial-economic methods. Financial and economic methods include: evaluation, accounting, programming, planning, forecasting, taxation, budget financing, investment, insurance, lending. The list of managerial-economic methods includes: licensing, expert assessment, certification, regulation, standardization, monitoring, cadastre, limiting, rationing. It is determined that the current economic mechanism of nature management should cover budget, tax, customs, credit, mortgage and collateral, stock, investment, insurance instruments, as well as instruments based on the implementation of public-private partnership agreements. It is substantiated that in the structure of the economic mechanism of nature management two types of levers be distinguished: financial and economic incentives (tax benefits, soft loans, customs privileges, price discounts/allowances, cross-subsidization. endowment) and financial and economic sanctions (fines, penalties, reimbursement, compensation, financial restrictions, budget limits)