Algorithm for Institutionalization and Financing of Responsible Production and Consumption in Russian Regions in Industry 4.0 in Order to Maintain Environmental Safety

Abstract

Purpose: The purpose of this work is to determine a promising algorithm for institutionalizing and financing responsible production and consumption in the regions of Russia in the Industry 4.0 in order to maintain environmental safety. Design/methodology/approach: In order to achieve this goal, the following tasks are consistently solved. The first task is to determine the current impact of industry financing 4.0 on the prevalence of responsible production and consumption practices in the regions of Russia, based on econometric modeling by regression analysis. Second task: proposal and justification of improved practices of financial support of practices of responsible production and consumption in regions of Russia in conditions of Industry 4.0 in order to maintain environmental safety. Findings: The results of the research revealed an imbalance in the contribution of society and business to the sustainable development of the regions of modern Russia. As it turned out, digitalization of business contributes to the popularization of practices of responsible consumption, but the internetization of society does not contribute to responsible consumption. This confirmed the hypothesis put forward about the insufficiently high effectiveness of institutional environmental security in the regions of Russia. Originality/value: An algorithm has been developed to institutionalize and finance responsible production and consumption in the regions of Russia in the Industry 4.0 in the interests of maintaining environmental safety. The proposed algorithm demonstrated the sequence of managing the processes of greening digital society and business in the regional economy, and outlined promising areas of financial support for responsible production and consumption in the regions at each stage.