Economics and management of national economy

The system of the biological waste management improvement on the base of state-private partnership and ecological insurance mechanisms

Economic Annals-XXI

Economic Annals-ХХI: Volume 144, Issue 9-10(1), Pages: 53-56

Citation information:
Vorotnikov, I., Kolotyrin, K., & Vlasova, O. (2014). The system of the biological waste management improvement on the base of state-private partnership and ecological insurance mechanisms. Economic Annals-XXI, 9-10(1), 53-56. https://ea21journal.world/index.php/ea-v144-13/

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Igor Vorotnikov
D.Sc. (Economics),
Professor,
Saratov State Agrarian University named after N. I. Vavilov
1 Teatralnaya Sq., Saratov, 410012, Russia
ilvorotnikov@bk.ru

Konstantin Kolotyrin
D.Sc. (Economics),
Professor,
Saratov State Agrarian University named after N. I. Vavilov
1 Teatralnaya Sq., Saratov, 410012, Russia
kpk75@mail.ru

Olga Vlasova
PhD (Economics),
Associate Professor,
Saratov State Agrarian University named after N. I. Vavilov
1 Teatralnaya Sq., Saratov, 410012, Russia
vlasik_vik@mail.ru

The system of the biological waste management improvement on the basis of state-private partnership and ecological insurance mechanisms

Abstract. Introduction. The problem of ecological and economic efficiency in terms of the biological waste management is largely owing to the insufficient usage of modern market instruments.

Purpose. In this connection it is necessary to develop a mechanism to create economic incentives for the parties involved into the treatment of biological waste, and to more careful attitude towards the environment.

Results. Basically, the problem is considered from the standpoint of administrative regulation using the compensation mechanism of environmental economics that is the reason of the biological waste management inefficiency. Prerequisite of such negative situation is lack of stimulating mechanisms applying in environmental economics. It is proposed in the article to manage the biological waste handling system through effective economic instruments, such as environmental insurance and public and private partnerships that allow employing stimulating approach. Stimulating mechanism of environmental economics assumes setting the stage for mutual concernment of parties, involved in the biological waste handling system, for the purpose of improvement of ecological and economic efficiency of the process. These methods include assessment of the biological waste management project risks, management of ecological and economic risks based at their optimum redistribution, stimulation of activities under setting the stage for mutual concernment of parties, connected to the biological waste, and preventive impact on the natural resources.

Conclusions. The mechanism of effective the biological waste management is based on the creation of a scheme that will allow rising private investors participation due to the possibility of high returns and additional guarantees from the government, as well as the combination of market and governmental instruments. The result of these proposed measures will be the investment attractiveness of the biological waste management projects increasing, usage of insurance functions to the full extent (preventive function and restitution). As consequence, in future, stimulating mechanism will have become major and reduce negative ecological impacts.

Keywords: Biological Waste; Risks; State-Private Partnership; Ecological Insurance; Concession

JEL Classification: А12; G22; О13; Q20

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Received 04.08.2014

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