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Improvement of the economic mechanism of greening of industry in the Volga economic region

Musaev R.A. Lomonosov Moscow State University, Moscow, Russian Federation ( )

Yuzbekov M.A. Yaroslav-the-Wise Novgorod State University, Veliky Novgorod, Russian Federation ( )

Journal: Regional Economics: Theory and Practice, #11, 2015

Importance The paper deals with the economic production sector's greening as one of the conditions of the Russian regions' transition to the sustainable development. The economic mechanism of environmental management effectiveness, in many respects, is defined by the payment system for negative impact on the environment, plays an essential role in this development. However, in reality, the paying for pollution does not correlate with the amount of economic damage, which is inflicted to the environment of industrial enterprises.
     Objectives The research aims to improve the economic mechanism of industry's ecologization through the development of industry coefficients of the environmental situation into the formula, which is aimed at determining of atmospheric pollution charges. The target of research is the industrial production of the Volga economic region.
     Methods In order to analyze how the population's morbidity rate depends on air pollution, we used a correlation analysis. The economic loss due to the population disease burden, which is conditioned upon atmospheric air pollution of manufacture was calculated by the "cost of health" methodology. The paper proves an industrial production's unfavorable impact on the ecological situation of the Volga economic region. On the basis of correlation analysis, we have determined the parameters of atmospheric pollution impact on the morbidity because of the adult and children population's respiratory system. The paper defines the economic damage amount from the deteriorating population health caused by atmospheric air pollution because of industrial enterprises The paper deals with that the payments for environment pollution are understated with the respect to an economic damage because of population disease burden.
     Results The paper developed industrial ratios of the environmental situation, which use will unable partially indemnify for the damage inflicted to the environment and population's health and will encourage enterprises to be engaged in the nature protection activities.
     Conclusions and Relevance On the basis of carried out comparative analysis of the Volga economic region ratios, as well as the ratios, which are developed by us for the Novgorod region, we came to a conclusion about the possibility to establish, in perspective, unified industrial ratios system.

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