Spatial Heterogeneity of «Green» Economy and Transaction Costs in Forestry

Abstract

In this paper authors provide the further elaboration in a quantitative spatial analysis of the Russian regions in the context of the green economy concept. Two quantitative factors characterizing the population welfare are considered: the total wage fund and the regional public financial fund from own revenues per capita. As key environmental indicators, the authors chose eco-intensity indicators for regional economic systems. Our estimates show substantial heterogeneity of the Russian sub-federal units on socio-environmental characteristics. It is shown that the population of many regions not only lives under high anthropogenic pressure (overall and per capita), but they are also not provided with additional resources “collective welfare” at the expense of own budget revenues, despite the disadvantageous environmental conditions. It was noted that “carbon regulation”, directed at development a low-carbon economy, should not be based on quantitative indicators, which is the same for the whole country. Due to the heterogeneity it will require fine-tuning, taking into account regional specificity of the relationships between factors of well-being and anthropogenic pressures. The aim to decline of carbon-intensity in local economies in different regions of the country will require different timelines, and the relevant “road maps” need to be taken into account. In public policy to reduce carbon emissions, special attention should be paid to the differentiation of transaction costs for managing, protecting and restoring forest ecosystems. In state policy on carbon reduction issues, one of the focuses of special attention should be on differentiating the transaction costs of managing, protecting and restoring forest ecosystems.

Drivers of Spatial Heterogeneity in the Russian Forest Sector: A Multiple Factor Analysis

“…Transaction costs per hectare of forest land range from 0.1 rubles per ha (Republic of Bashkortostan) to 1826 rubles per ha in the Lipetsk Oblast. In addition, transaction costs per ha in Siberia and the Far Eastern export-oriented regions are relatively low compared to the European part of Russia [14].…”

Social and Economic Importance of Forest Companies in Asian Russia: Evidence from Corporate Financial Reporting

“…Most studies of the Russian forest industry analyze the role of Russian forests as a tool to mitigate the effects of the global climate change [8][9][10], the efficiency of forest management practices [11][12][13][14][15], the comparative advantages in wood products trade [16], the spatial heterogeneity in the timber industry [17,18], specific issues of the timber sector in some particular regions [19][20][21], etc. Due to limited data availability [22], microlevel research on Russian forest economics is occasional.…”