Finance and Credit

World experience in the use of revolving funds as a tool for improving the financing of infrastructure environmental projects

Vol. 24, Iss. 4, APRIL 2018

Received: 16 February 2018

Received in revised form: 5 March 2018

Accepted: 21 March 2018

Available online: 28 April 2018


JEL Classification: Q57

Pages: 983—1000

Latypova M.V. Omsk State Transport University, Omsk, Russian Federation

Importance This article discusses the role of revolving funds as a tool for environmental projects financing.
Objectives The article aims to study and analyze the world experience of revolving fund use and formation scheme classification to select the optimal one.
Methods For the study, I used the systems approach, comparative analysis, statistical analysis, and modeling.
Results The article presents the detailed functioning schemes of revolving funds. The work reveals the advantages of revolving funds use such as the return of investment, stable profitability, and the purposeful use. On the basis of some other countries' experience, the article develops a classification of these funds.
Conclusions and Relevance The proposed systematization of theoretical and practical materials in the field of the use of revolving funds for the financing of environmental projects and the proposed classification will help develop the optimal scheme depending on the economic situation in the country and peculiarities of the ecological project. The proposals can be of interest to the State authorities in the management of public and municipal finances in the field of environmental protection.

Keywords: revolving fund, environmental protection projects, financing


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