Methodological approach to determination of the amount of the ecological rent

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Methodological approach to determination of the amount of the ecological rent

Journal Title: Регіональна Економіка - Year 2018, Vol 87, Issue 1

Abstract

Natural resources with assimilative properties are the property of Ukrainian people, and each citizen should receive the ecological rent, and if possible, in the form of a pure environment. The modern system of environmental taxation in Ukraine is imperfect because it does not stimulate the business entities to conduct ecologization of production. In order to collect rental payment for using of assimilation services of ecosystems it is necessary to evaluate the ecological rent. The purpose of the article is to develop proposals concerning forming of versatile mechanism of collection and distribution of ecological rent in Ukraine. In order to accomplish the scientific research the author used general scientific methods: economic-mathematical modeling – for formalization of an estimation of the ecological rent and the cost of use of the environment assimilative potential; method of the system approach – for systematization of foreign experience of sovereign funds creation, etc., as well as specific, in particular, comparisons of benefits and costs (Cost-Benefit Analysis – CBA) – to determine the priorities for nature users: to pay or carry out the ecologization of industries, etc. For the first time in the world practice the methodical approach to determining of the rate of ecological rent as the difference between profit of the economic entity using the assimilative potential of the environment free of charge, and the average income of economic entities (for a specific industry), which recover maximally assimilative functions of ecosystems, is developed. It is the novelty of scientific research. The methodological approach to the determination of the rate of the rental payment for using the assimilative services of ecosystems – environmental rental payment – is developed. The methodological approach to estimation of the cost of the environment assimilative potential exploitation (of the forests, water, atmospheric air, soil) on the basis of valuation of the cost of artificial recycling of wastes, etc. is developed. In opinion of the author, the rental payment for use of the assimilative services of ecosystems should be based on collection of ecological rent (separating of the ecological rent from profit of the economic entity). At the modern development of technologies, the cost of use of the assimilative potential of the ecosystem can be roughly equated with the cost of utilization of waste. The sum of payment for pollution of the nature should be comparable to the concrete amount of economic damage from environmental pollution (revenues from the payment of which would be enough to cover damages) and which would stimulate business entities to realize the ecologization of production. The author offers to use correcting coefficients of the account of assimilative properties of ecosystems. Thus, the modern system of environmental taxation in Ukraine is imperfect because it does not stimulate the business entities to conduct ecologization of production. For the first time in the world practice and the economic theory the methodological approach to the determination of the rate of the rental payment for using the assimilative services of ecosystems – environmental rental payment – is developed on the basis of estimation of the cost of the environment assimilative potential exploitation. However, currently, there is a problem with the estimation of the ecological rent, because of introduction of technologies: thus it is difficult to separate the ecological rent from the technological quasi-rents.

Authors and Affiliations

Olena M. Suhina

Keywords

EP ID EP546170
DOI -
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