Environmental expenditure modelling for sustainable development strategies creation and implementation

Abstract

Summary The level of development of the economic mechanism of regulation and stimulation in environmental management on the basis of nature protection funding indicators has been assessed. The correlation between environmental tax revenues in the budget and the dynamics of environmental protection expenditures has been studied. It has been proved that the dynamics of environmental tax revenue in budget does not coincide with the dynamics of environmental protection expenditures. The necessity of methodological approaches development to substantiate effective lines of national policy implementation in the field of environmental protection, as well as recommendations on their scientific support based on the proposed economic and mathematical model providing the balance between environmental revenues in the budget and environmental protection expenditures has been proved. It has been confirmed that it is possible to achieve environmental policy sustainability both at the national and local level by using differential stabilization, in which government environmental demand management (needs for environmental expenditures or budget environmental protection expenditures) is associated with the rate of change of revenue (budget revenues from environmental tax and other fees).