Functioning of the financial and economic mechanism of balanced forest land use

Abstract

Scientific and theoretical preconditions for the functioning of the financial and economic mechanism of sustainable use of forest lands were studied through the analysis of ecological and economic aspects of individual factors in accordance with the expected state of forest ecosystems due to forest land use. The study is based on the reports of the State Agency of Forest Resources of Ukraine for 2016–2020, official data of the Forest Stewardship Council®. The influence of reforestation on the level of forest certification in Ukraine is studied; the correlation dependence of capital investments on the state of forest certification is estimated. An assessment of possible trends in the dynamics of forest land use capital investment for the future, free from the impact of individual characteristics of certain periods (under current conditions of forestry and forest certification), as well as an assessment of possible trends taking into account the impact of optimal forestry and forest certification in full. The author's approach to theoretical and methodological approaches and methodological provisions for the formation of the algorithm for implementing the financial and economic mechanism of sustainable use of forest lands, the resulting impact of which is aimed at harmonizing environmental, economic and social components. Theoretical approaches to the formation of a system of principles of sustainable forestry, which allow to reconcile the diverse interests of producers with environmental and socio-economic demands of society; theoretical approaches to organizational and economic management of forestry lands, which are characterized by integrated use of an integrated system of financial and economic mechanisms to achieve balanced use of forestry lands. It is substantiated that the functioning of the financial and economic mechanism will ensure the greening of economic activity in forestry lands, increase economic and social effectiveness of forestry land use, consolidation of management aspects around strategic objectives and priorities set by the Basic Principles of State Environmental Policy for Ukraine up to 2030.