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Finance and Credit
 

Evaluation of financial support to wetlands protection in regions: Evidence from the Russian South

Vol. 22, Iss. 41, NOVEMBER 2016

PDF  Article PDF Version

Received: 19 September 2016

Received in revised form: 3 October 2016

Accepted: 17 October 2016

Available online: 17 November 2016

Subject Heading: INVESTING

JEL Classification: P48, Q52, R10

Pages: 15-28

Mikhailenko A.V. Southern Federal University, Rostov-on-Don, Russian Federation
mikhailenkoanna@gmail.com

Yashalova N.N. Cherepovets State University, Cherepovets, Vologda Oblast, Russian Federation
natalij2005@mail.ru

Ruban D.A. Southern Federal University, Rostov-on-Don, Russian Federation
ruban-d@mail.ru

Importance Wetlands are the most precious natural resources of Russia. Efficient management of this resource requires balanced financial support, however, this issue is understudied.
Objectives The aim of the research is to underpin the approach to evaluation of financial support to wetlands protection in regions, and to test it on the Russian South case.
Methods We summarize major works on economical aspects of wetlands use. It enables to formulate general conceptual framework for developing a quantitative approach to evaluation of financial support to wetlands protection. The statistical data characterizing the cost of nature protection and the human impact in four regions of the South of Russia provide for quantitative evaluation of financial support according to the proposed approach.
Results The evaluation of financial support to wetlands protection in regions should take into account the total expenses for environmental protection in Russian regions and the degree of human impact. In the data analysis for several years, it is expedient to consider the inflation index, and in the inter-State comparisons – the purchasing power parity. The evaluation of financial support demonstrated its inequity, instability and insufficiency.
Conclusions The test of the proposed approach in the Russian South shows its efficiency to detect risks related to specifics of financing the nature protection activities. The findings are important for optimization of regional planning of mechanisms of environment management and relevant financial support.

Keywords: wetlands, environmental protection, regional financing, environmental costs, environmental economics

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