Methodical Approaches to Improvement of the Economic Estimation of Natural Wealth of Ukraine

Ihor Bystryakov and Dmitry Klynovyi
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Ihor Bystryakov: Public Institution "Institute of Environmental Economics and Sustainable Development of the National Academy of Sciences of Ukraine", Kyiv
Dmitry Klynovyi: Public Institution "Institute of Environmental Economics and Sustainable Development of the National Academy of Sciences of Ukraine", Kyiv

Economics of Nature and the Environment, 2014, 16-19

Abstract: The article is dedicated to issues as to improvement of methodological bases of the economic assessment of natural wealth of Ukraine. The aim of the article is to determine the directions of the further development of the methods of appropriate componentwise and comprehensive assessment of the natural capital in the system of country's national wealth, taking into account the questions of their adaptation to implementation in economical practice. The attention is concentrated on problem aspects of the existing methods of the assessment of the cost of natural resources, as such insufficiently representing actual value and economic cost of the natural wealth. The stress is laid on the need to consider the value of the natural wealth based on the determination of the cost of natural capital taking into account its system characteristics. It is determined that the main problem on the way of the improvement of methods of the natural wealth assessment is accounting of actual, but hidden and not shown by available modern methods, value of natural wealth being a considerable part of the joint natural capital It is offered to take into account, equally with the economical features of natural resource, connected with their physical presence, also their cost as a capital active, which is accompanied by the corresponding discount rates as a factor defining the rate of the profit and the degree of the feedback from the use of the natural capital in the economic sectors. The solving of the problem of the assessment of natural wealth may be performed in three main conditions: the first - to confess the revenue approach to be principal in assessment of the natural capital, on the same level with the other approaches; the second - obligatory accounting of ecological and social value of natural resources; the third - the expansion of the list of valued resources and accounting of the natural system ecological capital. It is emphasized on the need to reconsider the role of natural rent factor's importance, the risk of using the natural capital. It is determined that in order to secure full-measured assessment of natural wealth, it is necessary to use calculation methods based on the newly-implemented indices of natural capital's economic assessment, along with the application of the available methods of the normative accounting using the data of the state assessment registers of natural resources. It is accented that the economic assessment of natural wealth in reliance upon substantial improvement of rating system is to provide possibilities to considerably improve the management system of the rational use and protection process of natural resources.

Date: 2014
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