Theoretical Basis of Sustainable Subsoil Use

Vitaliy Puhach

Economics of Nature and the Environment, 2014, 45-48

Abstract: The article investigates theoretical basis for sustainable using of mineral resources. The basis of country's economics is using of mineral resources. The article provides a brief analysis of non-renewable resources and the economic theory of Harold Hotelling. Economic agents in decision-making should take into account the fact that consuming today of an additional unit of such resource, they thereby reduce the volume of consumption, which will be available in the future. Ignoring this fact can lead to extremely rapid exhaustion of reserves of the resource. Managers of using resources will be on track in establishing a sustainable mining operation if they then focus on the following five areas: safety, environment, economy, efficiency and the community. Briefly on each of the principles, if the mining complex is not profitable, it cannot be sustained; environmental sustainability should include a list of measures aimed at reducing the impact, eliminating the consequences of the past and prevent them in the future; mining enterprises shall be effective as to the management and retrieval of resources; mining operation must be carried out with respect to the priority of safety; finally, using of mineral resources needs a “social licence to operate†. Sustainable using of mineral resources - the use of subsoil for extraction of minerals, or other tasks provided for by the legislation in condition of effective state regulation of the provision of the basic principles of sustainable development for territorial and economic systems. Sustainable development in the area of using mineral resources means that investment in geological projects should be financially profitable and technically feasible, environmentally safe and socially responsible, public-private partnership is to be with the openness of the community.

Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:ene:journl:y:2014:p:45-48

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