Determinants of Sustainable Development: National Dimension of Environmental Kuznets Curve

Abstract

Purpose. The study objective was to model the conditions to reach the "turning point" in the environmental Kuznets curve model (EKC) for the Ukrainian economy. Меthods. In the research general scientific (analysis and synthesis, induction and deduction, analytical grouping) and special (abstraction, modelling, etc.) methods of studying economic phenomena and processes have been used. Results. To determine the conditions for maintaining sustainable development of the national economy, it has been proposed to use sectoral approach. It is based on the idea that to reach the sustainable turning point in the EKC model for Ukraine, key parameters of its leading economic sectors have to be managed. Such industries for Ukraine are: processing; mining and quarry development; agriculture, forestry and fisheries; supply of electricity, gas, steam and conditioned air; transport, warehousing, post and courier service. It has been proved that sustainable turning point was not reached because mining, transport, warehousing, post and courier services, agriculture, forestry and fisheries put back. It has been demonstrated that processing industry and energy are the priority sectors for the development of Ukraine's economy, because they have the predominant economic conditions to get higher added value compared with mining, and Ukraine's agricultural capacity could be used to increase wages of the sector`s staff. It has been determined that transport sector`s negative trends are explained by few environmentally friendly vehicles in Ukraine and, as a result, higher recent emissions of air pollutants. Conclusions. It has been proved that EKC for Ukraine could be built on the basis of correlation between sulfur dioxide, nitrogen dioxide, oxide, carbon dioxide emissions and income per capita in Ukraine. It has been found out that Kuznets curve in Ukraine is "point"-like. The EKC based on correlation between emissions of air pollutants and average nominal income per capita in the leading sectors of the national economy has been proposed. It has been proved that it is possible to ensure sustainable development of Ukraine's economy by greening production within the existing structure of the national economy based on sectoral capital investment and intensification of government support policy of environment.