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Economic and ecological models in Russia’s mining sector

Author

Listed:
  • I. P. Glazyrina

    (Russian Academy of Sciences)

  • S. M. Lavlinskii

    (Russian Academy of Sciences)

Abstract

The paper analyzes the development level of the institute of public–private partnership (PPP) in Russia’s mining complex and the partnership mechanism, within which the state, using RF Investment Fund monies, assists investors in underdeveloped areas not only in creating infrastructure but also in implementing necessary environmental protection measures. In order to analyze the properties of such a partnership mechanism, the authors have worked out economic and mathematical tools that make it possible to effectively divide spending between the state and a private investor in development of the mineral resource base. The toolkit combines integer mathematical programming and a set of predictive models that describe the functioning of a resource area. The methodology of its application is illustrated with a case study of Zabaikalskii krai, for which a program for developing polymetallic fields is being worked out based on the PPP mechanism; the sensitivity of its decisions to changes in the main partnership parameters is analyzed. The results of numerical experiments confirm the rationality of using this mechanism in an underdeveloped area. They show that, in addition to a coherent approach to assessing the specific amount of funds to be allocated to infrastructural and environmental projects, an important role is played by transaction costs accounting, the level and structure of which affect the effectiveness indicators achieved not only by a private investor, but also by the state.

Suggested Citation

  • I. P. Glazyrina & S. M. Lavlinskii, 2017. "Economic and ecological models in Russia’s mining sector," Regional Research of Russia, Springer, vol. 7(2), pages 180-187, April.
    • Handle: RePEc:spr:rrorus:v:7:y:2017:i:2:d:10.1134_s2079970517020034
    DOI: 10.1134/S2079970517020034
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    References listed on IDEAS

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    1. McCann, Laura & Colby, Bonnie & Easter, K. William & Kasterine, Alexander & Kuperan, K.V., 2005. "Transaction cost measurement for evaluating environmental policies," Ecological Economics, Elsevier, vol. 52(4), pages 527-542, March.
    2. Marshall, Graham R., 2013. "Transaction Costs, Collective Action And Adaptation In Managing Social-Ecological Systems," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152166, Australian Agricultural and Resource Economics Society.
    3. Marshall, Graham R., 2013. "Transaction costs, collective action and adaptation in managing complex social–ecological systems," Ecological Economics, Elsevier, vol. 88(C), pages 185-194.
    4. Ray Challen, 2000. "Institutions, Transaction Costs and Environmental Policy," Books, Edward Elgar Publishing, number 1961.
    5. E. Ostrom, 2010. "A Behavioral Approach to the Rational Choice Theory of Collective Action Presidential Address, American political Science Association, 1997," Public administration issues, Higher School of Economics, issue 1, pages 5-52.
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