Abstract
The article analyses the impact of the lease model of relations in forestry on the economic and environmental impact of its management. The existing low economic efficiency of forestry of the Republic of Mordovia and negative ecological trends require a revision of the forest management model. The forest sector of Mordovia failed to create a competitive market environment. The lease relationship did not create conditions to increase the profitability of timber production through its innovative development. The fact is that low payment rates of timber put the economic barrier on the way to modernization of timber production, stimulating the preservation of backward, inefficient technologies in the field of wood harvesting and processing, in which a large amount of waste is generated, there is low productivity, non-competitive products are produced in export markets. Also, the ecological condition of forests continues to deteriorate as a result of the development of lease relations in the region. The authors of the article consider that a concession model should replace the lease model of forest management. Its use will increase the profitability of forestry, as the concession payment for forest use will most rightly correspond the cost of consumed resources in the region, as well as take into account the unique natural characteristics of the territory used.
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