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Journal section "Environmental economics"

Identifying the Effect of Decoupling in Major Economic Sectors of the Komi Republic

Fomina V.F.

Volume 15, Issue 1, 2022

Fomina V.F. (2022). Identifying the effect of decoupling in major economic sectors of the Komi Republic. Economic and Social Changes: Facts, Trends, Forecast, 15(1), 176–193. DOI: 10.15838/esc.2022.1.79.9

DOI: 10.15838/esc.2022.1.79.9

Abstract   |   Authors   |   References
The concept of decoupling is currently recognized as a strategic basis for moving toward an environmentally sustainable economy. This fact is confirmed by a review of publications discussing the possibility of achieving an imperative distinction between economic activity, welfare, and resource utilization. In this regard, the relevance of the problem of ensuring sustainable eco-economic development of the region is increasing, which determined the purpose of the work – to obtain the evidence base proving the actual achievement of decoupling in basic industries (extractive, manufacturing, energy). In order to assess the relationship between economic activity and environmental impact at the industry level, we adapted the Tapio decoupling model known as the Decoupling Diamond, which includes eight decoupling states depending on economic growth rate, resource consumption or environmental impact and the value of the elasticity coefficient representing the growth ratio of these indicators. Determining the state of decoupling in each industry includes calculating the rate of change in gross value added (in comparable prices) and environmental indicators: water abstraction, dirty discharge, air pollutant emissions, production waste generation for the period 2010–2019. The results obtained indicate that the rates of change in gross value added, consumption of natural resources, and the negative impact on the environment are related, separated, or negatively divided. For all of the industries under consideration we have revealed a weak negative decoupling on the dirty discharge, for the energy industry – a weak decoupling on the production waste generation. We have identified a downward trend in current and investment environmental costs in the extractive and manufacturing industries, as well as an increase in the proportion of payments for negative environmental impact (NEI) and a decline in innovation activity. The results of the study indicate the need to improve the economic performance of basic industries and strengthen their environmental protection activities; subsequently, the results may be in demand for regulation of eco-economic relations

Keywords

komi republic, Komi Republic, decoupling model, industries, economic growth rates, environmental impact, environmental costs

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