Shkiperova G.T.Institute of Economics, Karelian Research Centre of RAS, Petrozavodsk, Republic of Karelia, Russian Federation shkiperova@mail.ru
Importance Economic growth impacts the environment significantly. In connection with this, a timely and properly performed analysis of the mutual relationship between economic and environmental indicators acquires greater relevance. Objectives The purpose of the study is to assess the impact of economic development on the Republic of Karelia environment. Methods Using the decoupling factor indicator and models describing the environmental Kuznets curve, I have analyzed the relationship between economic and environmental performance. Results I have identified a number of mutual relations between the economic growth and environmental quality in the Republic of Karelia. I have also identified that the effect of decoupling becomes apparent only for air pollutant emission from stationary sources. In the article, I showed that the environmental Kuznets curve hypothesis for the main types of pollution proves unfounded, and the further economic growth for the majority of the region municipalities will be accompanied by an increase in the environmental load. I underline that at the present stage, the economy structure change gives only the short-term environmental effects associated with the closure of a number of large and medium industrial enterprises at the end of the 1990s, and also the predominant service sector development. Conclusions and Relevance I came to a conclusion that the technical modernization and creation of institutional conditions, which stimulate enterprises to implement ecologically safe technologies, are the most significant factors contributing to the attaining the decoupling effect. The consistent patterns highlighted in the analysis, can serve as a basis for the development of managerial decisions in the field of ecological and economic interactions and preparation of regional programs as well.
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