Economic Incentives for Environmental Investment in Modern Russia

Ludmila Aleksandrovna Kormishkina, Evgenii Danilovich Kormishkin, Oksana Sergeevna Sausheva and Dmitrii Aleksandrovich Koloskov
Additional contact information
Ludmila Aleksandrovna Kormishkina: Department of Economics, Ogarev Mordovia State University, Saransk 430005, Russia
Evgenii Danilovich Kormishkin: Department of Economics, Ogarev Mordovia State University, Saransk 430005, Russia
Oksana Sergeevna Sausheva: Department of Economics, Ogarev Mordovia State University, Saransk 430005, Russia
Dmitrii Aleksandrovich Koloskov: Department of Economics, Ogarev Mordovia State University, Saransk 430005, Russia

Sustainability, 2021, vol. 13, issue 21, 1-12

Abstract: This paper is relevant due to the critical need for changing the consumption-oriented economic growth model to an investment one for the long-term sustainable development of Russia, considering global environmental challenges. Environmental investments (EIs), responsible and transformative, are positioned as the growth driver. The study aims to assess the mechanism of environmental investment (EI) in modern Russia, determine limitations, and form the resource-saving principles adequate to the latest challenges. The developed regression models of EI resource potential indicate the inability in the current institutional environment to provide the amount of financing required to form a green economy in Russia. This work justifies the need to establish an integrated mechanism for EI economic incentives to increase their amount in the private sector and obtain socio-economic benefits (natural capital maintenance, efficient resource use, and poverty and unemployment reduction). Based on the world’s best practice analysis of state support for EI market instruments, it sets out proposals to establish this mechanism in Russia and confirms the need to create conditions in which it is more profitable for economic agents to invest in reducing their ecological footprint. This paper proves that EIs promotion should combine positive and negative motivation, engagement, and responsibilities.

Keywords: environmental challenges; environmental investment; state support for environmental investment; market-based environmental investment instruments (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/13/21/11590/pdf (application/pdf)
https://www.mdpi.com/2071-1050/13/21/11590/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:13:y:2021:i:21:p:11590-:d:660656

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().