Creating a comprehensive mechanism of financial and economic incentives for environmental investments as an imperative for sustainable growth of the Russian economy
Subject. We consider progressive tools and mechanisms to stimulate environmental investment. Objectives. The study aims, in the context of the global ESG agenda, to underpin the need to create and give a theoretical idea of decomposition of a comprehensive mechanism for financial and economic incentives for environmental investment, in the interests of progressive growth of total factor productivity (TFP) and sustainable development of the Russian economy. Methods. We employ traditional methods of cognition (analysis and synthesis, analogy, generalization, combination of historical and logical, etc.), and multivariate regression analysis. Results. The study proves the need to create a comprehensive mechanism of financial and economic stimulation of environmental investment in Russia, which optimally combines methods of State support with market instruments of its regulation, incentives, and responsibility. Particular attention is paid to financing environmental protection costs in Russia during 2005–2021. Based on the best practices of the world’s leading economies, we give recommendations on creating a comprehensive mechanism to encourage environmental investments in Russia. Conclusions. A comprehensive mechanism of financial and economic incentives for environmental investment should be focused on mitigating the negative environmental impact of industrial activity as a whole, maximizing the involvement of waste resources in economic turnover, reducing environmental pollution. The findings can be used by public authorities and management to formulate investment strategy.
Keywords: global ESG agenda, green transition, economic growth, environmental investment, green financing
References:
Walker C.C., Druckman A., Jackson T. Welfare systems without economic growth: A review of the challenges and next steps for the field. Ecological Economics, 2021, vol. 186, no. 107066. URL: Link
Sukharev O.S., Voronchikhina E.A. [Structural dynamics of the economy: Impact of investment in old and new technologies]. Ekonomicheskie i sotsial'nye peremeny: fakty, tendentsii, prognoz = Economic and Social Changes: Facts, Trends, Forecast, 2020, vol. 13, no. 4, pp. 74–90. URL: Link (In Russ.)
Jackson T. Prosperity without Growth: Foundations for the Economy of Tomorrow. London, Routledge, 2016, 350 p.
Fücks R. Zelenaya revolyutsiya: ekonomicheskii rost bez ushcherba dlya ekologii [Intelligent Wachsen: Die Grüne Revolution]. Moscow, Al'pina non-fikshn Publ., 2016, 330 p.
Kormishkina L.A., Kormishkin E.D., Ivanova I.A., Koloskov D.A. [Environmental investment as a key factor in the formation and evolvement of an investment model for the growth of the Russian economy]. Ekonomicheskie i sotsial'nye peremeny: fakty, tendentsii, prognoz = Economic and Social Changes: Facts, Trends, Forecast, 2022, vol. 15, no. 4, pp. 118–135. URL: Link (In Russ.)
Gordon R. The Rise and Fall of American Growth: The U.S. Standard of Living since the Civil War. N.Y., Princeton University Press, 2016, 784 p.
Damianova A., Guttierez E., Levitanskaya E., et al. ‘Zelenoe finansirovanie’ v Rossii: sozdanie vozmozhnostei dlya ‘zelenykh’ investitsii. Analiticheskaya zapiska ["Green financing" in Russia: Creating opportunities for "green" investments. Analytical note]. Moscow, Gruppa Vsemirnogo banka Publ., 2021, 110 p.
Lipina S.A., Agapova E.V., Lipina A.V. Razvitie zelenoi ekonomiki v Rossii: vozmozhnosti i perspektivy [Development of the green economy in Russia: Opportunities and prospects]. Moscow, URSS Publ., 2018, 328 p.
Bobylev S.N., Solov'eva S.V. [Circular economy and its indicators for Russia]. Mir novoi ekonomiki = The World of the New Economy, 2020, vol. 14, no. 2, pp. 63–72. URL: Link (In Russ.)
Spence M. Sleduyushchaya konvergentsiya budushchee ekonomicheskogo rosta v mire, zhivushchem na raznykh skorostyakh [The Next Convergence: The Future of Economic Growth in a Multispeed World]. Moscow, Gaidar Institute Publ., 2013, 336 p.
Spiridonova A.V. [Environmental investment in the Russian Federation: A theoretical and legal approach]. Vestnik YuUrGU. Seriya Pravo = Bulletin of SUSU. Series Law, 2020, vol. 20, no. 1, pp. 72–79. URL: Link (In Russ.)
Wang X., Shao Q. Non-linear effects of heterogeneous environmental regulations on green growth in G20 countries: Evidence from panel threshold regression. Science of the Total Environment, 2019, vol. 660, pp. 1346–1354. URL: Link
Yakovlev I.A., Kabir L.S., Nikulina S.I., Rakov I.D. [Financing green economic growth: Concepts, problems, approaches]. Finansovyi zhurnal = Financial Journal, 2017, no. 3, pp. 9–21. URL: Link (In Russ.)
Rutskii V.N., Osipenko M.V. ["Green" economy as a factor of labor productivity in the manufacturing industry of the European Union countries]. Finansovyi zhurnal = Financial Journal, 2020, vol. 12, no. 4, pp. 69–84. URL: Link (In Russ.)
Banerjee A., Duflo E. Ekonomicheskaya nauka v tyazhelye vremena. Produmannye resheniya samykh vazhnykh problem sovremennosti [Good Economics for Hard Times]. Moscow, Gaidar Institute Publ., 2021, 624 p.
Sitnik A.A. ["Green finance": The concept and system]. Aktual'nye problemy rossiiskogo prava = Actual Problems of Russian Law, 2022, vol. 17, no. 2, pp. 63–80. URL: Link (In Russ.)
Eremin V.V., Bauer V.P. ["Green" financing as a trigger of positive climate transformations]. Ekonomika. Nalogi. Pravo = Economy. Taxes. Law, 2021, vol. 14, no. 4, pp. 65–73. URL: Link (In Russ.)
Jackson T. Protsvetanie bez rosta. Ekonomika dlya planety s ogranichennymi resursami [Prosperity without Growth. Economics for a Finite Planet]. Moscow, AST-Press Publ., 2013, 288 p. URL: Link
Kamenik L.L. [Modernization of the Russian economy. Resource recycling – a new vector of business development]. Ekonomika i predprinimatel'stvo = Journal of Economics and Entrepreneurship, 2015, no. 3, pp. 177–184. (In Russ.)
Stiglitz J., Sen A., Fitoussi J.-P. Neverno otsenivaya nashu zhizn': Pochemu VVP ne imeet smysla? Doklad komissii po izmereniyu effektivnosti ekonomiki i sotsial'nogo progressa [Mismeasuring Our Lives: Why GDP Doesn’t Add Up. Report of the Commission on the Measurement of Economic Performance and Social Progress]. Moscow, Gaidar Institute Publ., 2016, 216 p.
Antonova N.M., Kruglova E.V., Ananoeva O.V. [Ecologization of the economy: Practical aspects of the transition to a "green" (cyclical) economy at the regional level]. Vestnik Ekaterininskogo instituta = Bulletin of Catherine the Great National Institute, 2020, no. 1, pp. 29–34. (In Russ.)
Bobylev S.N. [Sustainable development: A new vision of the future?]. Voprosy politicheskoi ekonomii, 2020, no. 1, pp. 67–83. (In Russ.)
Meadows D.H., Randers J., Meadows D.I. Limits to Growth: The 30-Year Update. London, Chelxa Green, 2004, 338 p.
Obiora S.C., Bamisile O., Opoku-Mensah E., Frimpong A.N.K. Impact of banking and financial systems on environmental sustainability: An overarching study of developing, emerging, and developed economies. Sustainability, 2020, vol. 12, iss. 19. URL: Link
Zimmerman R., Brenner R., Abella J.L. Green infrastructure financing as an imperative to achieve green goals. Climate, 2019, vol. 7, iss. 3, pp. 39–52. URL: Link
Sedash T.N., Tyutyukina E.B., Lobanov I.N. [Directions and instruments of green projects financing within the concept of sustainable development of the economy]. Ekonomika. Nalogi. Pravo = Economy. Taxes. Law, 2019, vol. 12, no. 5, pp. 52–60. URL: Link (In Russ.)
Semenova N.N., Eremina O.I., Skvortsova M.A. [Green financing in Russia: Current status and development prospects]. Finansy: teoriya i praktika = Finance: Theory and Practice, 2020, vol. 24, no. 2, pp. 39–49. URL: Link (In Russ.)
Arkhipova V.V. [“Green finance” as a recipe for solving global problems]. Ekonomicheskii zhurnal VShE = HSE Economic Journal, 2017, vol. 21, no. 2, pp. 312–332. URL: Link (In Russ.)
Rakov I.D. [Mechanisms of support of "green" projects financing: Experience of countries]. Russian Journal of Economics and Law = Russian Journal of Economics and Law, 2017, vol. 11, no. 2, pp. 67–82. URL: Link (In Russ.)
Altunina V. V., Alieva I. A. [Current trends in the development of a green finance system: Methodology and practice]. Baltiiskii region = Baltic Region Journal, 2021, vol. 13, no. S2, pp. 64–89. URL: Link (In Russ.)
Bogacheva O.V., Smorodinov O.V. [Challenges to green finance in G20 countries]. Mirovaya ekonomika i mezhdunarodnye otnosheniya = World Economy and International Relations, 2017, vol. 61, no. 10, pp. 16–24. (In Russ.) URL: Link
