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Economic Incentives for Environmental Investment in Modern Russia

Author

Listed:
  • 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)

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.

Suggested Citation

  • Ludmila Aleksandrovna Kormishkina & Evgenii Danilovich Kormishkin & Oksana Sergeevna Sausheva & Dmitrii Aleksandrovich Koloskov, 2021. "Economic Incentives for Environmental Investment in Modern Russia," Sustainability, MDPI, vol. 13(21), pages 1-12, October.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:21:p:11590-:d:660656
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    References listed on IDEAS

    as
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    2. Felipe Arias Fogliano de Souza Cunha & Erick Meira & Renato J. Orsato, 2021. "Sustainable finance and investment: Review and research agenda," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 3821-3838, December.
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    5. Ludmila Kormishkina & Evgenii Kormishkin & Vladimir Gorin & Dmitrii Koloskov & Ludmila Koroleva, 2019. "Environmental investment: the most adequate neo-industrial response to the growth dilemma of the economy," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(2), pages 929-948, December.
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