Improving the economic regulation of environmental safety of water use in the context of decentralization of power

Abstract

The analysis of economic regulation of environmental safety of water use in Ukraine is carried out at different administrative levels: national, regional, local. It shows significant disparities in the receipt of rents for special water use and environmental tax for discharges of pollutants into water bodies to the budgets of different levels, as well as extremely low shares of rent payments and environmental tax in the structure of revenues of the Consolidated Budget and local budgets, in particular. In the structure of rent payments, the rent for special water use is insignificant (2.6 - 5.1%), and in the structure of revenues of the Consolidated Budget of Ukraine it is lower - 0.1-0.3%. In the structure of revenues of the Consolidated Budget of Ukraine, the share of the environmental tax is insignificant and fluctuates within half a percent. The environmental tax for discharges of pollutants directly into water bodies in the structure of the environmental tax does not exceed 3%, and its environmental and fiscal roles are negligible. The main directions of strengthening the role of economic regulation in ensuring the environmental safety of water use are identified: increasing the resource-saving role of rent payments; strengthening the differentiation of standards for water fees and environmental tax; economic incentives for water users (tax, credit, and other benefits) in case of introduction of low-waste, waste-free, and resource-saving technologies, implementation of measures that reduce the negative impact on water bodies; partnership cooperation of communities and municipalities with business entities engaged in water use. The paper suggests the mechanisms for strengthening the role of economic regulation of environmental safety of water use in the context of decentralization of power, in particular, through the expansion of powers of local governments in the formation and implementation of rental, tax, and investment policies in the field of water use.