The Model of Sustainable Economic Development: Formation and Comparative Dynamics

B.A. Karpinsky, I.M. Vasylkiv, О.B. Karpinska, A.B. Shevtsiv

Abstract


A balanced knowledge-nature imperative is proposed in order to form sustainable economic development, which combines into a coherent whole such factors as the financial and economic component of the resource-saving production and the environment in which set limits on the use of natural resources and raw materials and harmful externalities, based on the concept of sustainable development. Based on the hypothesis that the increase in consumption of natural resources and raw materials can be decomposed into two components, as well as taking into account that each type of pollutant associated with specific types of use of natural resources and raw materials, the model of sustainable economic development (Karpinsky-Bozhko model) is formed, which allows to determine its achievements with the economic and innovative products. According to the model we suggest dividing of scientific and technical progress into the following kinds: the 1st kind (effect on the competitiveness of products by improving the efficiency of labour) and the 2nd kind (effect on the competitiveness of products through a resource saving) that allows you to assess the role of STP from the perspective of sustainable economic development. We distinguish the effect of state assets (in Ukraine at the beginning of 2015 the degree of wear up to 80 %) on the investment attractiveness of privatized objects and financial flows from this that it would be possible to characterize the implementation of measures for sustainable economic development. We propose to create the Research Institute of Social, Financial and Economic Problems of Functioning and Development of the Lviv-Volyn Coal Basin concerning the need to expand the replacement of imported energy carriers for domestic coal (western region of Ukraine) and integrating with the implications for sustainable development of the economy. It is noted that sustainable economic development is only possible on the basis of systematic attention to science and active implementation of its results with adequate funding (more than 1 % of GDP), but in Ukraine in recent years, total spending on science make 0.7-0.8 % of GDP, which indicates more the level of compliance of Ukrainian science of cognitive function.

Keywords


sustainable economic development; knowledge economy; model; comparison; scientific and technological progress; the gross domestic product; depreciation; resource environment; financing

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DOI: https://doi.org/10.15421/40260201

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