Assessment of the impact of government expenditure on environmental protection on the GDP in the context of environmental legislation

Oksana Levytska,Aliona Romanova

doi:10.15549/jeecar.v7i3.342

Abstract

This article assesses the impact of government expenditure on environmental protection and various social and economic variables on GDP. It analyzes the environmental legislation necessary for the development of environmental activities if Ukraine. The current problem is determined by reducing government expenditure on environmental protection, which will negatively affect the implementation of environmental protection projects. The result of the study is to clarify the extent to which government expenditure on environmental protection should be modified to increase GDP, which changes should be made to the legislation achieving a transition to economies that guarantee sustainable development. The relationships between the variables were analyzed by making use of the neural network model. The study concludes suggestions on how to increase government expenditure on environmental protection for the coming years to strengthen funding for important environmental programs and to make appropriate amendments to the legislation of Ukraine.

Highlights

Protecting the natural environment, optimally using natural resources, and enhancing environmental security is important for the Sustainability of a developing country
During 2000-2017, a decreasing trend of the specific weight of the government expenditure on environmental protection in gross domestic product (GDP) was noticed in Ukraine (Table 1)
Subject to the increase of public environmental protection spending by 0.01% GDP will rise on average by 0.36%

Summary

Introduction

Protecting the natural environment, optimally using natural resources, and enhancing environmental security is important for the Sustainability of a developing country. There is a tendency in developing countries (McCormick, 2001; Eccleston, Charles, 2010; Mirzabaev, Annagylyjova, & Amirova, 2019) for continual environmental degradation in the form of land cultivation, water consumption, deforestation, atmospheric air pollution, underground water pollution, surface water pollution, soil contamination, and low-quality food. Environmental costs include research and development (R&D) expenses, expenses on education, and so forth. All of this determines the level of environmental culture in society (Lauwerys, 1969; Worster, 1977; Zapf, 2001; Hornborg, 2005; Finke, 2013; Zapf, 2016).

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