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Modeling of Regional Trade in Environmental Pollution Quotas

https://doi.org/10.26794/1999-849X-2022-15-4-96-106

Abstract

The subject of the study is financing of projects to reduce atmospheric air pollution with greenhouse gases by enterprises of the region on the basis of trading quotas for environmental pollution to achieve the criteria of sustainable development. The purpose of the work is to form a mechanism for regional trade in environmental pollution quotas to reduce the unit costs of enterprises for the volume of prevented emissions of harmful substances. It is proposed to extend the operation of the quota trading mechanism to the implementation of their comprehensive assessment by calculating the total reduced greenhouse gas emissions. An iterative procedure has been developed for excluding costly projects from the list of facilities planned for construction due to the possible acquisition of environmental pollution quotas for existing enterprises, which includes a model for forming an optimal portfolio of atmospheric protection projects of the enterprise and a model for its adjustment by determining the optimal option for acquiring environmental pollution quotas. The proposed mechanism makes it possible to reduce atmospheric air pollution in the region. Conclusions are drawn that the mechanism of regional trade in greenhouse gas pollution quotas developed in the study meets the requirements of optimal “green” financing and can be easily adapted to any production at the regional level, including a production cluster, a municipal district, a city. These calculations make it possible to apply the developed mechanism of regional trade in environmental pollution quotas for companies, including mining, processing and transport.

About the Authors

I. Yu. Novoselova
Financial University
Russian Federation

Irina Yu. Novoselova —  Dr. Sci. (Econ.), Prof. of Department of Industry Markets, Faculty of Economics and Business

Moscow



A. L. Novoselov
Plekhanov Russian University of Economics
Russian Federation

Andrey L. Novoselov —  Dr. Sci. (Econ.), Prof. of Department of Mathematical Methods in Economics 

Moscow



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Review

For citations:


Novoselova I.Yu., Novoselov A.L. Modeling of Regional Trade in Environmental Pollution Quotas. Economics, taxes & law. 2022;15(4):96-106. (In Russ.) https://doi.org/10.26794/1999-849X-2022-15-4-96-106

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ISSN 1999-849X (Print)
ISSN 2619-1474 (Online)