Creating a comprehensive mechanism of financial and economic incentives for environmental investments as an imperative for sustainable growth of the Russian economy

Abstract

Subject. We consider progressive tools and mechanisms to stimulate environmental investment. Objectives. The study aims, in the context of the global ESG agenda, to underpin the need to create and give a theoretical idea of decomposition of a comprehensive mechanism for financial and economic incentives for environmental investment, in the interests of progressive growth of total factor productivity (TFP) and sustainable development of the Russian economy. Methods. We employ traditional methods of cognition (analysis and synthesis, analogy, generalization, combination of historical and logical, etc.), and multivariate regression analysis. Results. The study proves the need to create a comprehensive mechanism of financial and economic stimulation of environmental investment in Russia, which optimally combines methods of State support with market instruments of its regulation, incentives, and responsibility. Particular attention is paid to financing environmental protection costs in Russia during 2005–2021. Based on the best practices of the world’s leading economies, we give recommendations on creating a comprehensive mechanism to encourage environmental investments in Russia. Conclusions. A comprehensive mechanism of financial and economic incentives for environmental investment should be focused on mitigating the negative environmental impact of industrial activity as a whole, maximizing the involvement of waste resources in economic turnover, reducing environmental pollution. The findings can be used by public authorities and management to formulate investment strategy.