The Role of Fiscal Instruments in the Implementation of Low-Carbon Agriculture

Purpose. The study purpose is to determine the aspects for improving the fiscal toolkit as an economic lever for regulating agricultural land use with the optimized approach to the selection of areas of introduction of the low-carbon development for the formation of organizational and economic management conditions towards the ensuring of restoration and preservation of agricultural resource potential. Methodology / approach. In this work, we used the following research methods: monographic, statistical analysis, graphic, correlation and regression analysis. The national and international documents of legal framework for regulating the processes of agricultural land use, materials of the State Statistics Service of Ukraine were used. Results. Based on the ecological and economic efficiency analysis of agricultural land use, the priority of obtaining profits in contrast to the problems of the restoration and preservation of the agricultural resource potential was demonstrated, thanks to which Ukraine took the lead in many commodity crops export. The soil fertility decline is a reason of formed threat to agroecological and food security. Based on the assessment of the nitrogen balance flows, the amount of removal of nutrients from the soil cover was estimated. Originality / scientific novelty. The expediency of using an improved tax instrument for land use as an economic lever for the formation of organizational and economic conditions of management with a focus on the introduction of the principles of the green economy is substantiated. This improvement consists in the correction factor proposed for the first time to the calculated volumes of tax collections. This coefficient allows taking into account the characteristics of the land use effectiveness in combination with the coefficients of carbon stock changes of the internationally recognized methodology UN Intergovernmental Panel on Climate Change (IPCC). Based on the improvement of the target agroecological zoning approach (on the example of the Odesa region), an approach to establishing the priority of land plots from the point of view of the perspective of introducing low-carbon land use is proposed. Practical value / implications. The proposed approach opens the possibility to optimize efforts to introduce low-carbon land use and therefore to restore and preserve agro-resource potential. The national crop production competitiveness is ensured by this. Therefore, this approach can be taken as a basis for the introduction of the latest green economy tools for the agricultural land use sector at the level of territorial communities.