Received: 2019-05-16  |  Accepted: 2019-09-30  |  Published: 2019-12-15

Title

Environmental investment: the most adequate neo-industrial response to the growth dilemma of the economy


Abstract

The article justifies the mission of environmental investment in the context of the neo-industrial paradigm of modern development. This approach considers socio-economic development in its organic connection with the environment (the green lifestyle). Environmental investment involves solving the complex growth dilemma of the economy by reducing the negative impacts of the latter on the environment and introducing positive social changes. The authors determined the role of this process in the neo-industrial aspect of economic growth. The goal of this research is to prove the hypothesis of the interinfluence between environmental investment and economic growth. The authors built a multi-factor regression model to analyze the data, which showed a statistically significant relationship between environmental investment and Russia’s GDP growth during 2000–2017. This led to the conclusion that the tightening of environmental policies in Russia is accompanied by not a decrease but an increase in the real GDP. On the basis of tree clustering and k-means clustering, the authors classified the regions of Russia and found that the high level of air pollution is not always accompanied by an increase in investment in environmental protection and three atypical clusters were identified. Moreover, the authors identified the main factors hindering environmental investment in the modern Russian economy, as well as determined the main conditions for its enhancement, which will increase the country’s potential for economic growth in the long run, considering its neo-industrial accumulation.


Keywords

growth dilemma, neo-industrial paradigm of modern development, environmental investment, green (circular) economy, neo-industrial type of economic growth


JEL classifications

F64 , O13 , O44 , P18 , P28 , P48 , Q51 , R11


URI

http://jssidoi.org/jesi/article/413


DOI


Pages

929-948


Funding


This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Kormishkina, Ludmila
Ogarev Mordovia State University, Saransk, Russian Federation https://www.mrsu.ru
Articles by this author in: CrossRef |  Google Scholar

Kormishkin, Evgenii
Ogarev Mordovia State University, Saransk, Russian Federation https://www.mrsu.ru
Articles by this author in: CrossRef |  Google Scholar

Gorin, Vladimir
Ogarev Mordovia State University, Saransk, Russian Federation https://www.mrsu.ru
Articles by this author in: CrossRef |  Google Scholar

Koloskov, Dmitrii
Ogarev Mordovia State University, Saransk, Russian Federation https://www.mrsu.ru
Articles by this author in: CrossRef |  Google Scholar

Koroleva, Ludmila
Ogarev Mordovia State University, Saransk, Russian Federation https://www.mrsu.ru
Articles by this author in: CrossRef |  Google Scholar

Journal title

Entrepreneurship and Sustainability Issues

Volume

7


Number

2


Issue date

December 2019


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 1291  |  PDF downloads: 558

References


Arkhipov, A. I., Kormishkina, L. A., Koroleva, L. P. 2018. Evaluation of the resource potential of environmental investments, Bulletin of the Institute of Economics of the Russian Academy of Sciences 3: 118-133.

Search via ReFindit


Ayres, R. 2008. Sustainability economics: Where do we stand?, Ecological Economics 67: 281-310. https://doi.org/10.1016/j.ecolecon.2007.12.009

Search via ReFindit


Aziz, N., Muhammad, Z., Ghazali, F., Talaat, W. I. A. W., Saputra, J. 2019. Marine Spatial Planning: the way forward for sustainable development of Central Terengganu, Malaysia, Journal of Southwest Jiaotong University 54(4). https://doi.org/10.35741/issn.0258-2724.54.4.9

Search via ReFindit


Baltgailis, J. 2019. The issues of increasing the effectiveness of teaching comparative economics, Insights into Regional Development 1(3): 190-199. https://doi.org/10.9770/ird.2019.1.3(1)

Search via ReFindit


Balynskaya, N. R., Ponomarev, А. V. 2018. Current issues in the development of modern political and economic processes in Russia and Europe, Economics and Politics 2(12): 5-7.

Search via ReFindit


Bobylev, S. N., Zakharov, V. M. 2012. Green economy and modernization. Ecological and economic foundations of sustainable development. Toward sustainable development: Bulletin of the Institute of Sustainable Development of the Public Chamber of the Russian Federation, 60. Retrieved from http://www.ecopolicy.ru/upload/File/Bulletins/B_60.pdf

Search via ReFindit


Daskovsky, V., Kiselev, V. 2016. The downward trajectory of the economy: Causes and consequences, Economist 3: 3-18.

Search via ReFindit


Ehrlich, P. 1968. The Population Bomb. New York: Buccaneer Books.

Search via ReFindit


Environmental Policy Stringency Index. OECD Stat. Retrieved from: https://stats.oecd.org/Index.aspx?DataSetCode=EPS

Search via ReFindit


Fedotova, O., Tabekina, O. 2013. Analysis of the current state of Russian enterprises greening, Journal of Contemporary Economics Issues 1. https://doi.org/10.24194/11301

Search via ReFindit


Fontana, A., Sawyer, M. 2016. Toward post-Keynesian ecological macroeconomics, Ecological Economics 121: 186-195. . https://doi.org/10.1016/j.ecolecon.2015.03.017

Search via ReFindit


Fücks, R. 2016. Green revolution: economic growth without damage to the environment. Moscow: Eksmo.

Search via ReFindit


Ghani, L. A., Saputra, J., Muhammad, Z., Zulkarnaen, I., Alfiady, T. 2019. A study of societal flow of phosphorus and its effect on environmental sustainability in landfill sites Terengganu, Malaysia, Journal of Southwest Jiaotong University 54(3). https://doi.org/10.35741/issn.0258-2724.54.3.29

Search via ReFindit


Grigoriev, O. V. 2014. Age of Growth. Lectures on neo-economics. The rise and decline of the global economic system. Moscow: Karyera Press.

Search via ReFindit


Gubanov, S. S. 2012. Mighty breakthrough. Neo-industrialization of Russia and vertical integration. Moscow: Book World.

Search via ReFindit


Gubanov, S. S. 2014. New industrialization and recycling sector, Economist 12: 3-11.

Search via ReFindit


Hueting, R. 1989. Correcting national income for environmental losses: Toward a practical solution, Environmental Accounting for Sustainable Development/World Bank 1989: 32. . https://doi.org/10.1007/978-94-011-2590-1_3

Search via ReFindit


Jackson, T. 2011. Prosperity without Growth: Economics for a Finite Planet. Earthscan Publications Ltd.

Search via ReFindit


Jackson, T., Anderson, V. 2009. Redefining Prosperity – Essays in Pursuit of a Sustainable Economy. London: Earthscan/SDC.

Search via ReFindit


Jacobs, M. 1991. The Green Economy. London: Pluto Press.

Search via ReFindit


Kamenik, L. L. 2015. Modernization of the Russian economy. Recycling resources as a new vector of business development, Economy and Entrepreneurship 3(56): 177-184.

Search via ReFindit


Keynes, J. M. 1936. The General Theory of Employment, Interest and Money. Create Space Independent Publishing Platform.

Search via ReFindit


Kormishkina, L. A., Kormishkin, E. D., Koloskov, D. A. 2016. Economic growth in modern Russia: Problems and prospects in the context of neo-industrial paradigm, Journal of Applied Economic Sciences 11(6): 1115-1129.

Search via ReFindit


Kormishkina, L. A., Kormishkin, E. D., Koloskov, D. A. 2016. Neo-industrial content of economic growth: criteria, indicators, factors and prospective assessment for Russia, Indian Journal of Science and Technology 9(47): 2-14. https://doi.org/10.17485/ijst/2016/v9i47/108699

Search via ReFindit


Krugman, P. 2009. The Return of Depression Economics and the Crisis of 2008. New York: W.W. Norton & Company.

Search via ReFindit


Krugman, P. 2010. Building a Green Economy. New York Times Reprints. Retrieved from https://www.nytimes.com/2010/04/11/magazine/11Economy-t.html

Search via ReFindit


Kushlin, V. I. 2016. Innovative content investment policy. Moscow: Prospekt.

Search via ReFindit


Lipina, S. А., Agapova, E. V., Lipina, A. V. 2018. The development of a green economy in Russia: Potential and prospects. Moscow: LENAND

Search via ReFindit


Malysheva, M. 2013. Organization, the main directions and objectives of economic analysis environmental performance, Journal of Contemporary Economics Issues 4. https://doi.org/10.24194/41301

Search via ReFindit


Meadows, D. H., Meadows, D. L., Runders, J. 1972. The Limits to Growth. A Report for the Club of Rome’s Project on the Predicament of Mankind. New York: Universe Book.

Search via ReFindit


Meadows, D. H., Randers, J., Meadows, D. L. 2005. Limits to Growth: The 30-Year Update (Hardcover ed.). Chelsea Green Publishing.

Search via ReFindit


Perry, M. 2015. Environmental Policy for Business: A Manager’s Guide to Smart Regulation.

Search via ReFindit


Pogosov, I., Sokolovskaya, E. 2014. Accumulation and consumption in the context of neo-industrial modernization, Economist 9: 41-54.

Search via ReFindit


Porfiryev, B. N. 2013. Ireen economy: conditions, prospects and growth limits. Modernization and Economic Security of Russia, 4. Moscow, St. Petersburg: Nestor-Istoriya.

Search via ReFindit


Russian statistical yearbooks 2003-2018. Federal State Statistics Service. Retrieved from: http://www.gks.ru/wps/wcm/connect/rosstat_main/rosstat/ru/statistics/publications/catalog/doc_1135087342078

Search via ReFindit


Senchagov, V. K., Gubkin, B. V., Ivanov, E. A. 2015. New industrialization as the basis for economic security and escaping recession. Moscow: Institute of Economy RAS.

Search via ReFindit


Spence, M. 2011. The Next Convergence: The Future of Economic Growth in a Multispeed World. New York, NY: Farrar, Straus and Giroux.

Search via ReFindit


Tatarkin, A., Andreeva, E. 2016. Prospects for the neo-industrial development of Russia in the context of current changes, Economist 2: 11-22.

Search via ReFindit


World Economic Outlook. 2018. Challenges to Steady Growth (International Monetary Fund). Washington, DC.

Search via ReFindit


Yakovlev, I. A., Kabir, L. S., Nikulin, S. I., Rakov, I. D. 2017. Financing green economic growth: theories, problems, approaches, Financial Journal 3: 9-19.

Search via ReFindit