Level Of Economic Activity Research Articles

The Role of Green Economy in Sustainable Development (Case Study: The EU States)

The analysis of various green concepts has historically been linked to a broader discussion of the relationship between sustainable development the environment. Some authors believe that the solution to the problem of the impact on the planet’s is to reduce the level of economic activity, which would mean severe restrictions in the use of resources. Others think that economic activity can continue to grow, but with less impact on the environment; some experts claim that it is quite possible to achieve a balance between economic care for the planet people. In this context, it is necessary to use a new paradigm that clearly states that environment and economic growth cannot be seen as conflicting goals, which is confirmed by the authors of the article who studied the situation in the EU countries in the period 2016-2017.

Managing the trade-off between economic growth and protection of environmental quality: the case of taxing water pollution in the Olifants river basin of South Africa

Abstract A series of pollution control measures have been introduced to protect water quality in the Olifants river basin, the third most water-stressed and most polluted basin in South Africa. This paper employed an environmentally extended computable general equilibrium (CGE) model to analyse the economic and environmental implications of a tax on water pollution in the basin. Implications of increasing the pollution tax rate currently in place for the levels of economic activities and water quality have been simulated under alternative tax revenue recycling schemes. Results of our policy simulations suggest that internalising the cost of water pollution through the tax regime achieves its environmental goals of protecting the aquatic ecosystem, by shifting production away from pollution-intensive sectors. This, however, comes at some cost to the regional economy of the basin. Recycling the tax revenue through income transfers to households or a subsidy to pollution abatement mitigates the adverse economic impacts.

Functional distribution of income and growth regime in Peru, 1942-2013

This paper begins by reviewing the literature on the relation between economic growth and the functional distribution of income since the time of the classical economists, highlighting the work of Kalecki and the post-Keynesians who develop the growthregimes approach. It reconstructs and analyses statistics on the shares of wages, income from self-employment (or from mixed sources) and profits in Peru’s GDP between 1942 and 2013, and then compares these shares with the averages for Latin America and other economies. The study then makes a comparative analysis of trends in the wage share and rate of growth, and it estimates a simultaneous equations model using three-stage least squares (3SLS) and generalized method of moments (GMM) to determine the growth regime. The conclusion is that growth is wage-led, so distributional policies to increase this component would likely boost the level of economic activity.

The role of capital and labour in shaping the environmental effects of fiscal stimulus

Although the macroeconomic consequences of short-term fiscal stimulation packages have been thoroughly analysed in the literature, still relatively little is known about their environmental effects. We discuss an important channel through which short-run expansionary fiscal policy influences greenhouse gas emissions. We show that fiscal policy exerts its impact not only by increasing general level of economic activity, but also by changing the composition of factors of production – capital and labour. Using the dynamic stochastic general equilibrium model of economy, we demonstrate that fiscal expansion results in a shift from capital-intensive to more labour-intensive technologies. Our panel study proves that the latter tends to be associated with lower emissions of greenhouse gases per unit of production. Hence, our analysis demonstrates that an extensive use of fiscal stimulus during recessions can significantly reduce the environmental burden of the additional units of GDP.

The money creation process: A theoretical and empirical analysis for the United States

AbstractThe aim of this paper is to assess—on both theoretical and empirical grounds—the two main views regarding the money creation process, namely the endogenous and exogenous money approaches. After analysing the main issues and the related empirical literature, we will apply a vector autoregression model and a vector error‐correction model methodology to the United States for the period 1959–2017 to assess the causal relationship between a number of critical variables that are supposed to determine the money supply, that is, the monetary base, bank deposits, bank loans and the nominal level of economic activity. The empirical analysis supports several propositions related to the endogenous money approach. In particular, it shows that for the United States in the years 1959–2017 (a) bank loans determine bank deposits and (b) bank deposits in turn determine the monetary base. Our conclusion is that money supply is mainly determined endogenously by the lending activity of commercial banks and the nominal level of economic activity.

ПІДХОДИ ДО МОДЕЛЮВАННЯ ПОПИТУ НА ВАНТАЖНІ ПЕРЕВЕЗЕННЯ У ЗЕРНОВІЙ ЛОГІСТИЦІ

The article deals with the concepts and problems of corn logistics in Ukraine. As a direction for increasing the efficiency of corn logistics, the forecasting of demand for transport services for corn transportation through modeling is proposed. It is established that demand modeling is carried out in order to obtain the main indicators of the goods transportation process, as well as their forecasting and further improvement. Probabilistic modeling involves not only building models for analyzing and optimizing the structure of routes and choosing the capacity of transport, but also predicting the volume of traffic with an assessment of their impact on the main indicators of efficiency, reducing the time and resources spent on logistics operations. The basic models of demand for transportation of domestic scientists are considered. The research results of the demand for transport services show that the random nature of demand has to be taken into account. The basic demand-forming unit is the request for transport service - the customer's need for services, backed by purchasing power and presented on the market for its satisfaction. The service request is the basis and the cause of interaction between the elements of the logistics system of goods delivery – a forwarder, a carrier, a goods terminal and a goods owner. The set of potential and real requests for the services of the enterprise form the demand for its services, respectively, the set of requests for services of all enterprises of the region represents the demand for transport services in the region. The works of scientists who use econometric models as a basis for demand modeling (linear OLS regression model, autoregressive model with distributed ADLM lag, unlimited vector VAR autoregressive model) are studied. Such models calculate the elasticity of demand for goods trasportation, depending on the level of economic activity, where the key indicators of the assessment are the industrial production index and gross domestic product by purchasing power parity and different modes of transport. The article also considers the nature, scope, and parameters of demand modeling using programs such as TRANS-TOOLS, STAN, TAPAS, SYNTRADE, INTERLOG, Urban Distribution, and their effectiveness for corn logistics.

STATISTICAL ANALYSIS OF THE LEVEL OF ECONOMIC ACTIVITY AND LEVEL OF UNEMPLOYMENT IN UKRAINE

Introduction. Economically active population causes both direct growth of the gross domestic product of the country and the creation of progressive labour relations. It is the basis for the formation of the middle class. Instead, high unemployment (underutilization of labour potential) is a major economic and social problem for the country. Therefore, the study of factors that affect the level of economic activity of the population and the level of unemployment is an actual scientific task. It is also important to study the economic activity and unemployment of the population of Ukraine in the regional context and a comparative analysis of regions by the size of these indicators. Purpose. The article aims to obtain analytical dependencies of unemployment rates and economic activity of the population of Ukraine on a number of factors, as well as clusterization of regions of Ukraine according to unemployment rates. Method (methodology). To achieve the goal, official statistical information on the labour market of Ukraine has been used. The following statistical methods such as correlation analysis, least squares method and hierarchical cluster analysis are used. Results. The analytical dependence of the level of economic activity and the unemployment rate of Ukrainian population on the duration of studies is constructed. Economic activity, depending on the duration of studies, has been received in the form of a logistic function with saturation of 92%. The unemployment rate is respectively a downline linear function. The educational levels, which are already sufficient to ensure high economic activity of the population, have been identified. A correlation analysis of the interdependence of a number of factors that influence the level of unemployment has been established. It has been performed the clusterization of the regions of Ukraine according to the percentage of unemployment among the economically active population, the unemployment rate for one vacancy and the proportion of the urban population. Five key clusters have been identified. On the basis if use of statistical methods, we have concluded that the most important factor in reducing unemployment is the increase in the economic activity of the population. It is determined that in order to increase the competitiveness of labour force in Ukraine it is necessary to stimulate the population to improve its level of education, in particular, to increase the duration of studies.

The value of economic security of the Russian Federation in the era of globalization

The article analyzes the problems of economic security. Economic security is the state of the national economy that provides for the satisfaction of the country’s vital needs for material goods, regardless of the occurrence of force majeure of a socio-political, economic or environmental nature in the global economic system or within the country. Ensuring economic security in the state, as well as any economic entityin Russia has a significant role, is implemented through the mechanism of economic security, whichacts as a system of measures to prevent economic threats (economic monitoring, forecasting, detectionand prevention of threats, the definition of limit (threshold) indicators). Economic security in the era ofglobalization is an important component of national security, as the economy permeates all spheres ofactivity of the state. The authors investigate the evolutionary trend of modern society in the era of globalization.In a single economic space globalization acts as a new level of economic activity. In the contextof globalization, despite the existing risks, challenges and threats to economic security, it is necessaryto take into account the factors of strengthening the national economy and increasing its competitiveness.The article analyzes the threats to the economic security of Russia. Today, the Russian economy isunder the pressure of sanctions, which poses a threat to its stabilization so ensuring economic security isone of the key conditions for its consolidation. In the state of economic security, sustainable economicgrowth is ensured, as well as the protection of the country’s economic interests at all levels: national andinternational. Threats to economic security are phenomena and processes that have a negative impact onthe economy of the country, infringing on the economic interests of the individual, society and the state.

The theoretical basis for determining the innovative contribution to economic growth

It is proposed to expand the production function of Cobb-Douglas through the inclusion of, in addition to scientific and technical progress, the cost of labor and capital of innovative factors, namely: the volume of expenses for scientific and technical work, the volume of financing of innovative activities, the volume of innovative products sold, the volume of innovative products in commodity export. An analytical universal approach has been developed to identify the modified Cobb-Douglas production function, which does not require long time series of variables, allows accurate display of output or GDP, and provides a causal functional (non-statistical) relationship between input and output data. Moreover, the definition of the components of the aggregate supply function is formalized, and all the elasticity and capital utilization coefficients are functions of time in each separate period, and not average constant values, which indicates the dynamic nature of the dependencies. Further application of the Solow residual method to the modified Cobb-Douglas function taking into account innovative factors allows us to determine the contribution to the economic growth of each individual factor, in particular the innovative contribution at the country, region and economic activity levels, which indicates the universality of the approach.

Foreign Portfolio Investment And Stock Market Development in Nigeria

The exposure and vulnerability of financial markets in developing countries have been at center stage of empirical debates in recent time. The crux of the debate is not whether the financial system is isolated or not but the extent of such exposure. As an attempt to investigate the Nigerian exposure to external shock, this paper investigates the impact of foreign portfolio investment on the stock market between the study period of 1980 and 2014. Data for the study were sourced from the statistical bulletins published by the Central Bank of Nigeria. A model that captures the fundamental drivers of stock market development was built while the time series properties of the variables were examined using Augmented Dickey Fuller and Johansen co-integration tests. In view of the results of the pre-estimation tests, the Error Correction Modeling approach was used to estimate and examine the relationship between foreign portfolio investment, stock market development and other variables such as economic growth, exchange rate and inflation rate. The results show that there was a significant positive long run relationship between foreign portfolio investment and stock market development. It was also found that the level of domestic economic activities, exchange rate and inflation rate were other key fundamentals dictating the momentum of investment flow and direction of stock market development in Nigeria. The lagged error correction term (ECMt-1) is -0.012 indicating that the speed and time to full adjustment from short run shock to long run stability is low. The paper concludes that portfolio investment is a major driver of stock market development and more importantly, the main channel through which external financial instability is transmitted into the Nigerian economy. The policy implication is that increase in the foreign portfolio investment increases the domestic stock market performance. This could however lead to a great instability and financial distress if the enabling domestic macroeconomic conditions and policy framework to insulate the stock market against the vagaries of external shocks are not properly coordinated.

Induced Shifting Involvements and Cycles of Growth and Distribution

The paper builds on the concept of (shifting) involvements, originally proposed by Albert Hirschman (2002 [1982]). However, unlike Hirschman, the concept is framed in class terms. A model is presented where income distribution is determined by the involvement of the two classes, capitalists and workers. Higher involvement by capitalists and lower involvement by workers tends to increase the profit share and vice versa. In turn, shifts in involvements are induced by the potential effect of a change in distribution on economic activity and past levels of distribution. On the other hand, as the profit share increases, the economy tends to become more wage led. The dynamics of the resulting model are interesting. The more the two classes prioritize the increase of their income share over economic activity, the more possible it is that the economy is unstable. Under the stable configuration, the most likely outcome is Polanyian predator-prey cycles, which can explain some interesting historical episodes during the 20th century. Finally, the paper discusses the possibility of conflict and cooperation within each of the distribution-led regimes.

Геохимическое воздействие Холоднинского свинцово-цинкового месторождения на аквальные ландшафты Северного Прибайкалья

The features of pollution of aquatic environments (river and lake) in the area of impact of Grodnenskoe polymetallic mine, located in the water basin of the lake Baikal (Republic of Buryatiya) is considered. The main existing sources of pollution, the degree of toxicity and the scale of the impact on the drainage watercourses, as well as the peculiarities of transportation of pollutants were determined. Existing spatial zones of ecological risk for aquatic landscapes associated with modern geochemical impact of Kholodninskoe mine were revealed. Today, it is a part of the Kholodnaya River basin, which flows near the mine and receives water streams from abandoned tunnels. In the waters of these streams very high concentrations of pollutants (a number of heavy metals) have been revealed. They are hundreds and thousands times higher than the maximum permissible concentration. After the confluence of streams with the Chpolodnaya River pollution zone have been formed, within which the concentration of zinc in the waters of the river exceeds the normative values. For the TyyaRiver, which drains the ore body, but does not receive streams from the tunnels, significant excess of standards for the heavy metals content have not been found. Directly in the water area of the Lake Baikal, including the Gulf of Angarskiy Sor, where the Kholodnaya River flows, significant excess of permissible values was not identified, either. Based on the analysis of the selected samples, Conclusions based on the selected samples analysishave been made on specific featuresof current chemical elements migration in the «Kholodnaya River – Lake Baikal» system at the present level of economic activity, as well as the prospects for the future.

The Recurrence of Long Cycles: Theories, Stylized Facts and Figures

Basic innovations and their diffusion, the expansion or contraction of the level of economic activity and the volume of international trade, rising sovereign debts and their defaults, conflicts and the outbreak of wars, are some of the major phenomena appearing during the downswing or upswing phases of long cycles. In this article, we examine the extent to which these phenomena constitute stylized facts of the different phases of long cycles which recur quite regularly in the turbulent economic history of capitalism. The main argument of this paper is that the evolution of long cycles is a result of the long-run movement of profitability. During the downswing of a long cycle, falling profitability induces innovation investment and the associated with it “creative destruction” of the capital stock that eventually set the stage for the upswing phase of a new long cycle.

Balancing the labour market in conditions of growing migration activity of the population

The article deals with the labour market model in conditions of high migration activity of the population in Ukraine on the basis of the method of system dynamics. The author suggests a hypothesis that labour migration is determined by the level of wages in the donor country, the level of employment and unemployment, the number of current jobs and vacancies. The assumption is grounded on the basis of the obtained results of the multifactor economic-mathematical model. The article proves that statistics on the labour market in Ukraine are not complete and reliable, and experts' opinions about the necessary conditions for balancing aggregate demand and supply vary. Given the low competitiveness of the domestic economy, the low level of wages, unemployment, shadow employment and the general impoverishment of Ukrainians, an open European labour market creates new incentives and conditions for job search abroad - conditions for outflow of workers from Ukraine. In addition, the crisis socio-economic situation, the increase in the number of refugees from Ukraine as a result of the annexation of the Crimea and military actions in the East of Ukraine create a high probability of an explosion of migration in our country. The author's analysis of the functioning of the national labour market in recent years gives grounds for asserting its ineffectiveness, namely: reduction of the level of economic activity and the level of employment of the population, increase of unemployment, imbalance between demand for labour and its offer, decrease of the load of registered unemployed on one free workplace, due to high rates of labour migration, lower real wages. The article argues that the urgent problems concerning the migration of the population of Ukraine are to increase the economic activity of the population; preventing the growth of unemployment, limiting the scope of labour under the pressure of the financial and economic crisis; ensuring the correspondence between the supply and demand of the workforce. The solution of this problem requires the formation of a well-balanced state policy taking into account the regional specificity of the trends of labour migration, including increasing the competitiveness of the labour force, ensuring a high level of employment, social protection, wages and incomes, and their approach to similar parameters of economically developed countries of the world. Thus, the solution of issues related to the migration of the population is a prerequisite for the implementation of an effective public employment policy.

УДОСКОНАЛЕННЯ НАУКОВО-МЕТОДОЛОГІЧНИХ ПОЛОЖЕНЬ РОЗВИТКУ ЕКОНОМІЧНОГО МЕХАНІЗМУ ІННОВАЦІЙНОЇ ДІЯЛЬНОСТІ ПРОМИСЛОВИХ ПІДПРИЄМСТВ В УМОВАХ НЕСТАБІЛЬНОСТІ РИНКОВОГО СЕРЕДОВИЩА

Уповільнення темпів інноваційного розвитку підприємств машинобудування, зростання числа збанкрутілих підприємств, нестабільність ринкового середовища їх функціонування виводять на перший план питання щодо активізації інноваційної діяльності суб’єктів господарювання. Присвячено розглядові науково-методологічних аспектів оцінювання ефективності інноваційної діяльності та розвитку економічного механізму. Проаналізовано наявні підходи вітчизняних і зарубіжних учених до оцінювання ефективності інноваційної діяльності підприємств, визначено, що відсутній ефективний методичний підхід до розвитку економічного механізму, який би враховував досягнутий рівень інноваційного розвитку, фінансово-господарську діяльність. Удосконалено методологічний підхід до розвитку економічного механізму на підставі комплексної оцінки ефективності інноваційної діяльності промислового підприємства, який дозволяє провести системний, усебічний, оперативний аналіз виробничо-господарської, інноваційної діяльності підприємства, з’ясувати потребу в розробленні економічного механізму, сформувати рекомендації щодо його використання. Установлено, що у процесі розроблення методологічного підходу було сформовано послідовність етапів, яких слід дотримувати при використанні цього підходу, здійсненні комплексної оцінки ефективності інноваційної діяльності та розвитку економічного механізму. Обґрунтовано необхідність розрахунку індикаторів і показників удосконаленого підходу задля врахування специфіки діяльності підприємств машинобудування, визначення рівня фінансово-господарської, інноваційної діяльності, доцільності формування економічного механізму та можливості використання цього підходу не лише в теоретичному, а й практичному аспектах. Визначено, що методологічний підхід спрямований на налагодження діяльності підприємств машинобудування шляхом використання економічного механізму і формування можливостей підприємств до планування розвитку на майбутнє.

Interaction Effect of Tourism and Foreign Exchange Earnings on Economic Growth in Nigeria

Deteriorating nature experienced in the level of economic activities in Nigeria is evident in most sectors of the economy, including the tourism sector. But there is a need to develop the tourism industry because of its potentials for job creation, and the Nigerian government should make vital efforts to diversify the economy from oil production to other viable sectors in order to create wealth for the nation. Against this backdrop, this study examined the interaction effect of tourism and foreign exchange earnings from the tourism industry on economic growth in Nigeria. The study engaged time series data sourced from the World Development Indicators for the period 1980–2016 and employed the fully modified ordinary least squares (FMOLS) and Johansen cointegration econometric technique of analysis. The empirical results from the FMOLS showed that revenue generated from tourism have a significant and positive effect on Nigeria’s economic growth; the interaction effect of tourism and foreign exchange earnings on economic growth in Nigeria is positive which implies that an increase in the tourism and foreign exchange earnings will lead to an increase in economic growth. Thus, based on these findings, the study recommended that as a matter of priority, the Nigerian government should encourage diversification through tourism promotion to achieve the desired level of economic growth and ensure that foreign exchange earnings from tourism transmits to the improvement of amusement parks and recreational centres which will significantly open new opportunities for tourism patronage and hence boost economic growth.

Problems and perspectives for the use of human resources potential of agricultural enterprises

The subject of the research is a set of socio-economic relations regarding problems and perspectives of labor resource potential of agrarian enterprises. The purpose of the work is to identify the main problems of population reproduction at the present stage of development of rural areas of Ukraine, employment in general and economically active population, in particular, assessing the scope of informal employment and justifying on this basis the prospects for improving the labor resource potential of agrarian enterprises and managing them. Methodological basis of the article became statistical and mathematical methods of research: absolute and relative values, index, statistical groupings, series of dynamics. The International Labor Organization (ILO) methodology was used to assess employment and unemployment among the main sex and age groups of the population. Results of work. An important condition for successful work of agrarian enterprises and ensuring their productive and resource potential is the security and continuity of their employees. Management of labor resources is one of the main areas of economic activity in agrarian enterprises, the purpose of which is to identify new ones and increase existing sources and reserves for increasing the efficiency of production by increasing its volume with increasing productivity and better use of wages. The urgency of the research of labor resources of agrarian enterprises and their practical solution is compounded by the need to increase employment and reduce unemployment of rural residents, stabilize the labor market in the countryside, stop the depopulation of rural population, and preserve the settlement network of rural areas. The field of application of results. Research results can be used in the activity of agrarian enterprises in order to create new competitive advantages, increase the efficiency of labor resource use and strengthen its competitive position in the market. Conclusions. As in most developed countries, there is a direct correlation between the level of education and the level of economic activity in Ukraine: the higher the level of education, the higher the level of economic activity, the lower the level of education, the greater the gap in the levels of economic activity of rural and urban populations. Formation of effective production-resource potential in agrarian enterprises of Ukraine is possible through the implementation of such a personnel policy, which involves planning of staffing needs, effective use of employees (training, staff development), the use of material incentives and socially oriented motivational mechanisms. A significant reduction in the number of employed rural populations leads to high risks of poverty, vulnerability and social exclusion, which has contributed to the creation of an extremely negative trend in the labor market. To survive under such difficult conditions, the peasants who previously earned funds from collective farms and state farms were forced to engage in growing products for sale or exchange in a personal farm, or to go to work abroad or to Ukrainian cities where the situation on the labor market was more favorable. Only a small percentage of the peasants managed to establish farms, such as those operating in developed countries.

Economic Culture and Financial Mechanism

The Object of the Study. Economic culture.The Subject of the Study. The economic culture of the world finance market.The Purpose of the Study. Demonstrating the financial mechanism of exploiting Russia, its citizens and developing countries disguised as free market economy models.The Main Provisions of the Article.Economic culture is an important part of common personal culture. There are three interrelated levels of people’s economic behaviour. The basis of economic behavior is an “economic person” wishing to achieve maximum usefulness. Theoretical development of a more perfect category characterizing a person’s economic activity has not caused any changes in their practical behavior. Today, the category “human capital” functions to a certain degree only on microeconomic level and its practical use is connected not with the necessity of a person’s development but with the necessity of income growth from economic use of this very person. The economic person continues to function on all the other levels of economic activities. It is, connected with the fact that financial and economic mechanisms regulating the behaviour of market agents on macro and mega levels, have already been formed and are used with the category of economic person. Credit, stock and currency markets exist as the system of command and exploitation of small economies. Every element of financial market is used to redirect the value created in the developing countries to the leading economic powers. Not only the financial system itself, but also the educational system of undeveloped countries, existing market models, international agreements and clustering countries have been organized for the diversion of this created value. Russia’s peculiarities are that the monetary authorities of the country submit to the interests of leading economic states. Many elements of economic culture are apparently of a fictitious and declarative nature, hiding the essence of economic and financial relations, which are still on the level of an economic person. Current economic culture does not meet the interests of contemporary society. It is necessary to transform economic and financial mechanism so that it should not destroy spirituality and nature of a person and contribute to harmonious development of both particular regions of the world and human civilization as a whole.

Changes of waste generation in Australia: Insights from structural decomposition analysis

Waste generation is linked to consumption both in households (Final demand) and in the supply chain. Gaining understanding into the driving forces that change of waste generation in the supply chain can contribute to solving issues of waste management. The environmentally-extend input-output model is an effective tool with which to investigate the relationship between economic activities and waste generation. In this paper structural decomposition analysis (SDA) is employed to analyse the determinants of changes of waste generation in Australian economy from 2007–2008 to 2013–2014. Empirical results indicate that the major determinant for the increase of waste generation was change in Final demand’s overall level of economic activity. Changes in the production mix of Final demand (mix effect) was responsible for a decrease of waste generation in Australian economy during the period. The Manufacturing sector was found to have the highest waste generation intensity. Meaning that each million $AUD output of the Manufacturing sector resulted in the most amount of waste generation. In addition, technological change has contributed the largest waste generation effect for the Construction sector in 2011–2012. These findings suggest that Final demand, technological changes and sectoral changes are identified as the drivers of Australian waste generation historically. To reduce waste generation, policy must be targeted at altering behaviour of consumption and waste generation, and increasing innovation of new ecological technologies for Australian industry.

Optimization of recycling strategy for solid industrial waste

The rational and efficient use of natural resources is an important element for sustainable development. Waste is significant loss of material and energy resources. Recycling and disposal of the generating waste can cause the environmental pollution and human exposure to harmful substances and infectious organisms. The waste generation indicator is closely related to the level of economic activity in the country and reflects the structures of production and consumption formed in the society. The reduction in waste generation is an indicator of the progress of economic sectors towards less material-intensive structures of production and consumption. Plant origin waste is mainly generated in the lumber industry and it is a large-scale source of environmental pollution. The constant generation and accumulation of these wastes is a serious environmental problem. The main reason for the current state is the insufficient capacity for timber processing. It aggravates the problem of the integrated use of low-grade, small-scale wood and wood waste. As a result, the main competitive products in the forest complex of the Krasnoyarsk Region are currently lumber and round wood. The solution to the current problem concerning the optimal use of waste generated on the territory of the Krasnoyarsk Region must be solved with the help of mathematical modeling and optimization of the recycling process of lump plant waste. The rational use of lump plant waste is one of the most serious and unsolved problems.