MODELING THE COST-MATERIAL VALUE STRUCTURE OF AN ENVIRONMENTALLY BALANCED SECTORAL STRUCTURE OF THE ECONOMY

Abstract

Introduction. The economies of a number of countries undergoing economic transformation require special attention to issues of pricing and payment for products of the environmental sector. This is a complex set of problems that has a fundamental impact on the macroeconomy, particularly with regard to inflation levels. In this context, investment-based environmental and economic projects depend on the adequate formation of the pricing space. Under such conditions, an important aspect of the economy in the field of climate change mitigation and adaptation is the determination of the economic value of climatic conditions as natural resources and ecosystem services, as well as the establishment of their adequate prices. Proper consideration of resource pricing makes it possible to more reasonably assess the economic efficiency of alternative socio-economic and technological development paths, climate policy, and its instruments. For example, a choice arises between developing coal-based energy production associated with increased greenhouse gas emissions and intensifying energy conservation, one of the consequences of which is a reduced impact on the global climate.

The justification of balanced rates and proportions of socio-economic development in the process of analyzing the economic system is closely linked to the analytical study of information that reflects quantitative interrelations among economic sectors. At the same time, it is essential that the analysis be intersectoral, integrating all development objectives of the economic system. Intersectoral systems, in this sense, serve as tools for conducting such an analysis.

Purpose. As an object of analysis, intersectoral information describes economic sectors in terms of their interconnections within a unified economic complex. However, this understanding of intersectoral information is rather vague. If sectors are considered as distinct subsystems of the economy with their inherent economic, technological, material-physical, and value production structures, the question arises as to whether all interrelations among sectors constitute the object of intersectoral analysis, and if not, what determines the narrowing of this set. To answer this question, it is insufficient to study only the production structure or intersectoral linkages; it is also necessary to understand the objectives of the analysis.

The influence of analytical objectives on the structure of intersectoral information is exercised primarily through the available analytical tools. The structure of information arrays must be consistent with the requirements imposed by the procedures of their transformation. Once formulated, the objectives of the input–output balance to some extent also determine the corresponding analytical tools. However, the dynamic interaction between objectives and tools should be taken into account. This dynamic consists in the fact that a certain level of development of analytical tools makes it possible to achieve corresponding objectives, while the increasing complexity of objectives generates new requirements for tools and serves as a source of their further development.

Thus, there arises the necessity to implement a systemic and comprehensive analysis of intersectoral interrelations within the economic system based on the study of multi-objective aspects of economic development. The economic outcome of control actions within a system of models is determined through solving development problems of those subsystems to which these actions are directly or indirectly directed, which additionally requires accounting for the factor of dynamic changes in key economic indicators.

Materials and Methods. The information base of the study includes analytical materials of the Verkhovna Rada of Ukraine, the Cabinet of Ministers of Ukraine, the Ministry of Environmental Protection of Ukraine, the State Statistics Committee of Ukraine, research institutions and higher educational establishments; monographic studies and articles by domestic and foreign authors; materials of scientific and practical conferences; collections, annual report data, informational and analytical bulletins, weeklies; scientific research and publications available on the Internet; as well as methodological and analytical materials and documents of international organizations such as the UN, intergovernmental organizations UNEP, UNESCO, OECD, and legislative and regulatory acts concerning environmental protection policy of Ukraine and other countries.

The methodological foundation of the article is the systems approach to the analysis of environmental–economic interactions, developed in the works of domestic and foreign scholars. In studying the sectoral structure of the economy, the input–output method, the core theory of balance models, and elements of aggregation theory are applied. Given the economic nature of the research, elements of economic theory, microeconomics, macroeconomics, and international economics are used. The environmental component necessitated the application of knowledge from basic ecology, the concept of sustainable development, environmental protection, and natural resource management.

Results. The article investigates the methodological principles of modeling the material–value structure of an environmentally balanced sectoral structure of the economy under conditions of sustainable development. The expediency of using dynamic intersectoral environmental–economic input–output models for analyzing interrelations between production sectors and environmental protection activities is substantiated. The direct and dual dynamic Leontief–Ford models are considered, reflecting the consistency of the material-physical and value structures of gross output while accounting for processes of environmental pollution and its abatement. An analysis of the development trajectories of equilibrium prices and gross outputs under different assumptions regarding the dynamics of value added is conducted. It is shown that increasing trajectories of the direct model correspond to decreasing trajectories of the dual model, which substantiates a new direction of research—the dynamic theory of duality in environmental–economic systems.

Discussion. The obtained results may be used in the formation of economic and climate policy, as well as in forecasting structural changes in the economy.