Estimation of the possibilities of market-ecological transformation of the institutional environment for forest sector of economics

• Main Authors: Anastasiy Suska, Anatoly Babich
• Format: Article
• Language: English
• Published: PC Technology Center 2017-09-01
• Series: Tehnologìčnij Audit ta Rezervi Virobnictva
• Subjects: forest sector institutions; formal institutions; informal institutions; institutional environment; ecological and legal aspects
• Online Access: http://journals.uran.ua/tarp/article/view/111555
• ISSN: 2226-3780; 2312-8372

The processes of formation and functioning of the market for social and ecological forest services depend to a large extent on the availability of an institutional support system that establishes rules and norms for the behavior of market subjects. The practice of institutionalizing new economic systems shows that the basis for designing and organizing the institutions of the new economic system is the existing institutional environment of the economic space, a certain development of which is the new economic system. Such institutionalization strategy envisages the evolutionary development of existing institutions in terms of their adaptation to new economic (ecological and economic) conditions, will allow maintaining existing inter-branch relations, saving financial and material resources. The possibility of implementing the evolutionary strategy of institutionalization of the market of social and ecological services of forests as a new ecological and economic system of the forest sector of the economy is determined by the degree of market-ecological orientation of the main regulatory and legal acts of forestry. Prospects for the transformation of basic legislative acts (formal institutions) to new economic conditions are determined using the method of institutional analysis, conducted according to groups of normative legal acts and their functional purpose. Institutional analysis of program and conceptual institutions of forestry development has shown that these institutions are largely outdated and do not define such direction of development as capitalization of social and ecological forest benefits. This requires updating the program documents and setting priorities for the integrated use of the natural forest resource. The main political and legal acts of the institutional environment of the forestry sector of the economy have a certain market-ecological orientation, it allows to determine the strategy of institutionalization of the market of social and ecological forest services as an evolutionary development of the existing institutional environment of forestry. The existing financial and economic institutions of the institutional forestry environment provide for the financing of activities for the conservation of an environmentally safe environment through a number of environmental taxes, the possible development of such institutions can be the legal coverage of financial flows that can be formed during the capitalization of social and ecological forest benefits. The absence of domestic experience and the institutionalization of ecological and economic systems in forestry require considerable efforts to study foreign experience and create conditions for the import of certain institutions and their adaptation to the conditions of forestry in Ukraine.