Modernization of Institutional and Economic Management Tools for Environmental Safety of Enterprises

Year 2024, Issue: 96, 17 - 31, 24.06.2024

Arthur Amber

https://doi.org/10.26650/imj.2024.1373175

Abstract

This study investigates the institutional and economic mechanisms employed for managing the environmental safety of enterprises in Ukraine and the European Union. Choosing Ukraine as the central focus of this study is deliberate and based on multiple considerations. Ukrainian businesses encounter distinct environmental obstacles due to the country’s unique institutional and economic frameworks. Article enhancements to these mechanisms within the Ukrainian context, leveraging the EU’s experience. The goal is to promote the development of more efficient systems for environmental safety management at enterprises, with an orientation towards sustainable development.

The research’s methodological framework is meticulously constructed to be both exhaustive and multidimensional, facilitating a thorough and rigorous investigation of the research subject. This study also integrates synthesis, deduction, logical reasoning, and generalisation to augment the depth and scope of the research outcomes.

This study measures to enhance the effectiveness of environmental management systems. These measures include the formulation of an Environmental Safety Code and the Progressive Environmental Management System (PEMS), as well as the creation of an independent Environmental Impact Assessment Authority (EIAA). This study also investigates the potential application of AI in automating the analysis and evaluation of environmental impact scenarios. It proposes the establishment of an Intelligent Environmental Monitoring System (IEMS). Furthermore, the research discusses different types of taxes that could alleviate the adverse environmental effects of businesses. It recommends channelling funds from green bonds into the banking system for green loans or setting up a specialised green investment bank. These measures could incentivize businesses to adopt eco-friendly technologies. This study offers valuable insights for enhancing environmental safety management in businesses and provides practical suggestions for policymakers and business leaders.

JEL Classification : Q5 , L5 , M1

Keywords

Security, State Security, Environmental Safety, Environmental Management, Environmental Impact Assessment, Artificial Intelligence (AI), Environmental Monitoring System (IEMS).

References

• Allingham, M. G., & Sandmo, A. (1972). Income tax evasion: A theoretical analysis. Journal of Public Economics, 1, 323-338. google scholar
• Bashir, M., MA, B., Bilal, et al. (2021). Analysis of environmental taxes publications: a bibliometric and systematic literature review. Environ-mental Science and Pollution Research, 28, 20700-20716. https://doi.org/10.1007/s11356-020-12123-x google scholar
• Brunelli, S., Murzakhmetova, A., & Falivena, C. (2022). Environmental Auditing in Rural Areas: Current Patterns and Future Challenges in Central Asia. Sustainability, 14(22), 15163. https://doi.org/10.3390/su142215163 google scholar
• Budget Code of Ukraine. (2010). Bulletin of the Verkhovna Rada of Ukraine (BVR), 50-51, 572. google scholar
• Draft Law of Ukraine on Environmental Insurance and Guarantees for Compensation of Damage Caused by Activities Constituting Increased Environmental Risk, Bill No. 6018-2 (2021) (Ukraine). google scholar
• European Commission. (2004). Directive 2004/35/EC of the European Parliament and of the Council of21 April 2004 on environmental liability with regard to the prevention and remedying of environmental damage. Official Journal of the European Union, L143, 56-75. google scholar
• European Parliament and Council of the European Union. (2001). Directive 2001/42/EC of the European Parliament and of the Council of 27 June 2001 on the assessment of the effects of certain plans and programmes on the environment. Official Journal L 197, 30 - 37. google scholar
• Frey, M. (2016). Assessing the impact of a carbon tax in Ukraine. Climate Policy, 17, 1-19. https://doi.org/10.1080/14693062.2015.1096230. google scholar
• Kölbel, J., Heeb, F., Paetzold, F., & Busch, T. (2019, July 20). Can Sustainable Investing Save the World? Reviewing the Mechanisms of Investor Impact. Organization & Environment. https://doi.org/10.1177/1086026620919202 google scholar
• Köppl, A., & Schratzenstaller, M. (2021). Effects of Environmental and Carbon Taxation: A Literature Review (WIFO Working Papers No. 619).WIFO. google scholar
• Koziuk, V., Shymanska, O., & Voznyi, K. (2019). Trends in environmental taxation in Europe. Svit finansiv, 4, 8-22. Available at: http://sf.wunu.edu.ua/index.php/sf/article/view/1270. google scholar
• Kumar, A., Kim, H., & Hancke, G. P. (2013). Environmental Monitoring Systems: A Review. IEEE Sensors Journal, 13(4), 1329-1339. doi: 10.1109/JSEN.2012.2233469. google scholar
• Laha, S. R., Pattanayak, B. K., & Pattnaik, S. (2022). Advancement of Environmental Monitoring System Using IoT and Sensor: A Comprehensive Analysis. AIMS Environmental Science, 9(6), 771-800. doi: 10.3934/environsci.2022044 google scholar
• Marrone, M., Linnenluecke, M. K., Richardson, G., & Smith, T. (2020). Trends in environmental accounting research within and outside of the accounting discipline. Accounting, Auditing & Accountability Journal, 33(8), 2167-2193. https://doi.org/10.1108/AAAJ-03-2020-4457 google scholar
• Mok, L. W., Tripathy, A., & Lunven, G. (2020). A Multidisciplinary Literature Review of Academic Research on the Green Bond Market. Journal of Environmental Investing. Retrieved from https://ssrn.com/abstract=3691631 google scholar
• Muhammad, I., Mohd Hasnu, N. N., & Ekins, P. (2021). Empirical Research of Public Acceptance on Environmental Tax: A Systematic Literature Review. Environments, 8(10), 109. https://doi.org/10.3390/environments8100109 google scholar
• National Standard of Ukraine DSTU ISO 14001:2015. (ISO 14001:2015, IDT). Environmental Management Systems. Requirements and Guidelines Regarding Application. Official Edition. Kyiv: State Enterprise "UkrNDNC". google scholar
• Panchenko, O.V., & Proskura, T.B. (2017). Codification of Environmental Legislation: Global Experience and Ukrainian Perspectives. Kyiv National Economic University named after Vadym Hetman. google scholar
• Patel, S. K., & Jhalani, P. (2023). Formulation of variables of environmental taxation: A bibliometric analysis of Scopus database (2001-2022). Environmental Development and Sustainability. https://doi.org/10.1007/s10668-023-03027-0 google scholar
• Resolution of the Verkhovna Rada of Ukraine on the Main Directions of State Policy of Ukraine in the Field of Environmental Protection, Natural Resource Utilization, and Environmental Safety. Bulletin of the Verkhovna Rada of Ukraine (BVR), 38-39, 248. google scholar
• Sandle, T. (2017). Environmental monitoring: A practical approach. google scholar
• Scotford, E. (2021). Legislation and the Stress of Environmental Problems. Current Legal Problems, 74(1), 299-327. https://doi.org/10.1093/clp/cuab010 google scholar
• Shahzad, U. (2020). Environmental taxes, energy consumption, and environmental quality: Theoretical survey with policy implications. Envi-ronmental Science and Pollution Research, 27, 24848-24862. https://doi.org/10.1007/s11356-020-08349-4 google scholar
• Shevchenko, I.V. (2014). Environmental Taxation: Foreign Experience and Ukraine. Strategic Priorities, 2, 55-60. google scholar
• Tchapchet-Tchouto, J.-E., Kone, N., & Njoya, L. (2022). Investigating the effects of environmental taxes on economic growth: evidence from empirical analysis in European countries. Environmental Economics, 13(1), 1-15. https://doi.org/10.21511/ee.13(1).2022.01. google scholar
• The Law of Ukraine on Capital Markets and Organized Commodity Markets. (2006). Bulletin of the Verkhovna Rada of Ukraine (BVR), 31, 268. google scholar
• The Law of Ukraine on Environmental Audit. (2004). Bulletin of the Verkhovna Rada of Ukraine (BVR), 45, 500. google scholar
• The Law of Ukraine on Environmental Impact Assessment. (2017). Bulletin of the Verkhovna Rada of Ukraine (BVR), 29, 315. google scholar
• The Law of Ukraine on Environmental Protection. (1991). Bulletin of the Verkhovna Rada of Ukraine (BVR), 41, 546. google scholar
• The Law of Ukraine on Strategic Environmental Assessment. (2018). Bulletin of the Verkhovna Rada of Ukraine (BVR), 16, 138. google scholar
• Tomlinson, P., & Atkinson, S.F. (1987). Environmental audits: A literature review. Environmental Monitoring and Assessment, 8, 239-261. https://doi.org/10.1007/BF00404267 google scholar
• White, E. R., & Bahlai, C. A. (2021). Experimenting with the past to improve environmental monitoring. Frontiers in Ecology and Evolution, 8. https://doi.org/10.3389/fevo.2020.572979 google scholar
• Zatti, A. (2020). Environmental taxes and subsidies: some insights from the Italian experience. Environmental Economics, 11(1), 39-53. https://doi.org/10.21511/ee.11(1).2020.04. google scholar
• Zhang, Z., Liu, Y., Han, Z., & Liao, X. (2022). Green finance and carbon emission reduction: A bibliometric analysis and systematic review. Frontiers in Environmental Science, 10. https://doi.org/10.3389/fenvs.2022.929250 google scholar