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TEM Journal. Volume 10, Issue 3, Pages 1022‐1030, ISSN 2217‐8309, DOI: 10.18421/TEM103‐03, August 2021.
Sustainable Natural Resource Management to
Ensure Strategic Environmental Development
1 2 3
Viktor Koval , Inesa Mikhno , Iryna Udovychenko ,
4 5
Yevgeniia Gordiichuk , Iryna Kalina
1 Odesa Institute of Trade and Economics of Kyiv National University of Trade and Economics,
Inglezi 6, Odesa, Ukraine
2International European University, Academician Glushkov Avenue, 42B, Kyiv, Ukraine
3 Sumy Regional Institute of Postgraduate Pedagogical Education, Rimsky-Korsakov Street 5, Sumy, Ukraine
4 Institute of Market Problems and Economic and Ecological Research NAS of Ukraine,
Frantsuzkyi boulevard, 29, Odssa, Ukraine
5
Interregional Academy of Personnel Management, Frometivska, 2, Kyiv, Ukraine
Abstract – The article reveals the issue of irrational Keywords – environmental management, sustainable,
use of natural resources in Ukraine that affects public natural resource, social utility function
health, population working ability and macroeconomic
performance. It has been found that heavier 1. Introduction
responsibility of each individual and changes in values
can improve the current situation. It is concluded that Environmental management is one of the core
the general utility function can be increased by rational social goals that can advance living standards and
nature management and implementation of the ecosystem conditions in case of the well-elaborated
development strategy minimizing such negative risk strategy for further actions, which is one of the most
factors as ecological state deterioration, inefficient important environmental healthcare problems. There
functioning of the healthcare system, excessive use of are many publications on this topic, however, the
chemical compounds while producing agricultural problem has not yet been resolved, and in Ukraine it
products, etc. The key in the study is the formation of a is constantly becoming stronger and larger.
holistic view of the relationship between pollution and Monitoring and analysis of human and environmental
the state of the environment and harm to public health
based on the analysis of rational nature management interaction is a background information for making
and environmental pollution and their negative impact managerial decisions during the initiation of green
on environmental health. A model has been developed economy being implemented in leading countries in
that takes into account the negative environmental the 21st century. To increase a social and economic
impact on health and the investment that is necessary effect of production, one should constantly control
to be healthy and stay productive. external environment and minimize risks, which is
impossible without adopting a system for the
sustainable use of natural resources [1]. As the
DOI: 10.18421/TEM103-03 environment has its limits and short supplies while
https://doi.org/10.18421/TEM103-03 the target function of manufacturing includes the
Corresponding author: Viktor Koval, more efficient application of available resources,
Odessa Institute of Trade and Economics of Kyiv National steady ecosystem preservation can be considered as
University of Trade and Economics, Inglezi 6, Odesa, an optimization problem.
Ukraine. The environment is healthy and stress-free if it is
Email: victor‐koval@ukr.net stable and resilient, that is, if it is active and
Received: 05 January 2021. maintains its organization and autonomy over time
Revised: 04 July 2021. and is resistant to stress, whereas in Ukraine we are
Accepted: 12 July 2021. seeing environmental degradation [2].
Published: 27 August 2021. Planning and forecasting in the environment
© 2021 Viktor Koval et al; published by preservation sector are able to provide population
UIKTEN. This work is licensed under the Creative food safety, encourage stabilization of economic
Commons Attribution‐NonCommercial‐NoDerivs 4.0 environment and increase the quality of surrounding
License. environment. The implementation of external
environment management requires new principles of
The article is published with Open Access at state and public environmental protection
www.temjournal.com management, legislative changes, changes in
1022 TEM Journal – Volume 10 / Number 3 / 2021.
TEM Journal. Volume 10, Issue 3, Pages 1022‐1030, ISSN 2217‐8309, DOI: 10.18421/TEM103‐03, August 2021.
population’s mentality and attitude to the ecosystem; use of resources. Within the framework of this study,
a complex approach to the solution of natural natural resource management is considered as the
management and environmental safety issues; basis for the impact on health status through
investigation of regional features as well as the environmental changes and socio-economic
keeping of features and historically formed development [3].
landscapes; allocation of administrative, exploitation Approaches to environmental management laid the
and oversight functions while organizing the activity foundation for health development, but they were
of dedicated government agencies. All changes in insufficient to reduce environmental threats to health,
Ukraine are interrelated and interdependent in a which explains the need for strategic development of
particular way, as well as transform the ecosystem. health care based on sustainable models for the use
The economic activity process is accompanied by of natural resources and waste recycling, which will
contradictions of the implementation of the circular contribute to an increase in economic activities. The
economy model while solving ecological problems in irrational use of natural resources increases not only
the current period and for the future, which are the costs of the state to reduce the impact of irrational
generally related to the desire to maximize profit as use of resources on the welfare of the population, but
fast as possible by worsening the environmental also incurs losses associated with the impact on
state, which poses a growing threat to public health ecosystems on human productivity.
There are many experiments in Ukraine, however,
and the well-being of the society. Efficiency there is no formalized model that would be
improvement of production activity management introduced into reality and started to be used that has
should be conducted along with changes in the explored the key tools for influencing natural
governing body structure. One has been extensively resource management. It has transpired that a large
developing approaches to natural management percentage of Ukrainian shadow economy slows
economics aimed at combining and systematizing down the implementation of rational nature
ecological policy tools within the past decade. management, creating additional risk factors for the
Ukraine can consider the Republic of South Africa population and worsening the life quality in
as an example of establishment of rational nature conditions of low implementation of Greentech.
management. Besides innovations, South Africa was
transforming the legislative system where each 2. Literature Review
economic entity was responsible for the
environmental condition and impact on it, as well as The problem of sustainable management of natural
could face a penalty in case of law violation and resources has been approached from the perspective
could obtain a money reward for information about of a problem related to natural resources and their
the irrational use of natural resources by other partial impact on environmental health, which was
economic entity. Apart from the penalty scheme, a characterized by a high degree of scientific
violator should eliminate the reason for the worsened uncertainty [4].
ecosystem condition and neutralize all negative Over the recent years, there has been a wide
consequences. application of such terms as green finances and green
In modern conditions, the policy to reduce bonds aimed at financing ecological projects. Erum
environmental pollution in Ukraine does not take into and Hussain [5] mention that rational nature
account the negative consequences on the health of management affects and encourages the economic
the population, which requires an assessment of the growth of countries while developing countries have
impact of not only each specific pollution factor, but a high level of corruption that slows down the
also a generalized analysis of the relationship development and shift to green technologies.
between these factors and environmental health. Sikor, He and Lestrelin [6] conclude that the
Therefore, the key in the study will be to form a outcome of rational nature management adoption
holistic view of the relationship between pollution depends on tools for property entity management and
and environmental conditions and harm to public property rights, which are different in every country.
health based on the analysis of rational nature Local communities and local government bodies play
management and environmental pollution and their a significant role nowadays while the state should
negative impact on healthcare. ensure legal compliance with ecological legislation
The main objective of the article is to form a and superiority of green technologies over resource-
model that would take into account the development intensive and ecologically dangerous ones.
of the surrounding environment, the impact of the In [7], [8] studied the detailed comparative
ecosystem on human health, since people form the dynamics of processes in nature and society,
labour potential of the country. presented in the form of time series and the presence
The strategic development of health care must take of links between external influences on humans and
into account environmental risks and threats to health morbidity is necessary.
and ensure a safe environment through the rational
TEM Journal – Volume 10 / Number 3 / 2021. 1023
TEM Journal. Volume 10, Issue 3, Pages 1022‐1030, ISSN 2217‐8309, DOI: 10.18421/TEM103‐03, August 2021.
Without identifying such links, it is hardly possible of the environmental factor on the health of the
to correctly understand, predict and prevent possible population over a long-term period. The article
potential dangers from external influences and examines the relationship between the growth of
anthropogenic influences, and in case of their well-being with an increase in labour productivity
occurrence – to respond to them correctly. and the duration of working age, as well as irrational
Nawaz, Lahiani and Roubaud [9] state in their use of natural resources, which leads to a decrease in
works that the financial development, natural the utility function. The methodological basis of a
resources, capital, labour and economic growth scientific article on sustainable management of
encourage long-term association and consolidation. natural resources to ensure the strategic development
Besides, the financial development enhances internal of environmental health was a combination of
manufacturing and expenses for environmental general scientific and special methods. The article
protection measures, resulting in the economic applies such methods as analysis, abstraction,
growth. Therefore, we can see the integration of generalization, induction and deduction, mathematic
green technologies in advanced countries and modelling, comparison, as well as systematically
structural and synergetic approaches.
extensive evolution methods in developing countries.
Asif, Khan, Anser, Nassani, Abro and Zaman [10] The purpose of the article is to substantiate the
stress that an important role in the establishment of features of sustainable management of natural
rational nature management is played by the resource resources to ensure the strategic development of
value and stability of the country where resources are environmental health in Ukraine.
extracted. It is difficult to forecast the growth
prospects in developing countries, which has a 4. Results and Discussion
negative effect on investment attractiveness and
global partnership. The publication notes that private In modern conditions, the healthcare system acts as
businesses play a prominent part in defining the basis for economic growth, which, under the
development areas as well as form an attitude to the influence of environmental factors, determines the
use of natural resources and final results. One has importance of the transition to sustainable natural
determined the interrelation between the amount of resource management to minimize the negative
natural resources and the speed of their degradation, impact on the environment.
which identifies an indifferent attitude to the To implement the rational nature management
ecosystem in case of a great number of natural system in Ukraine, which is at the initial stage
resources. because of the declarativity of the decisions and their
In [11], [12], [13] are also examined rational nature non-fulfilment, incompliance with environmental
management and have concluded that despite legislation and outdated technologies satisfying
Ukraine’s post-industrial development and a range of minimum demands of entrepreneurs and
problems, there are tools for solving irrational nature policymakers, corruption and other negative factors,
management issues aimed at changing social interests one should define primary tools for adopting
and promoting greening principles. resource-saving technologies. One of the methods of
Vitale [14], Garmendia & Gamboa [15] and others resource-saving technologies is waste sorting and
note that there are environmentally dependent reuse of waste.
diseases that are present only in some areas with the Initially it is necessary to consider what influences
presence of a particular environmental pollution. the degree of use of resource-preserving
Analysis of existing scientific opinions revealed technologies. Primary tools for promoting resource-
that the strengthening of the role of sustainable saving technologies include: rental fee and
development is becoming a competitive advantage compensation payments for use and deterioration of
and implies the demand for further scientific natural resources; payment for polluting waste
developments related to the detailed identification of disposal; amount of excise taxes on ecologically
approaches to natural resource management for the dangerous products; benefits and taxes; application
strategic development of environmental health. of accelerated depreciation of ecologically dangerous
equipment and encouragement for integration of
3. Methodology resource-saving technologies; development of
security deposit, green money, credit relations,
This article describes the main directions for the ecological insurance and leasing systems;
development of methodology for research in the field implementation of quotas on hazardous substances
of sustainable natural resource management. The emissions; reduction of corruption; development of
study proposes a methodology for solving the ecological education and responsibility; availability
problem of irrational use of natural resources in of government programs and international grants for
Ukraine, which is based on the analysis of the impact adoption of resource-saving technologies; monitoring
1024 TEM Journal – Volume 10 / Number 3 / 2021.
TEM Journal. Volume 10, Issue 3, Pages 1022‐1030, ISSN 2217‐8309, DOI: 10.18421/TEM103‐03, August 2021.
of the ecosystem current state and constant control 50 2000
over anthropogenic impact, etc.
Innovations are the crucial driving force of 40 1500
development in nature use or environmental 30
management. Currently, Ukraine is establishing 1000
funds and social associations that play a significant 20
positive role in efficient integration of cutting-edge 10 500
technologies. However, the general analysis shows 0 0
the indifferent attitude to the ecosystem and 2010 2011 2012 2013 2014 2015 2016 2017 2018
development due to its worsening. A potential Years
solution for ecosystem preservation issue in the Integrated index of the level of Ukraine’s shadow
context of human vital activity and market economy (in % of the volume of official GDP)
environment is the mutual agreement between Expenses for innovations, million US dollars
economic entities. Considering the situation from the
perspective of game theory, one can conclude that Figure 1. Integrated index of the level of Ukraine’s
parties minimize expenditures and maximize shadow economy and expenses for innovations at the time
winnings in case of mutual agreement. It is similar to interval
the adoption of green technologies at the state, Source: State statistics service of Ukraine [19].
entrepreneurial and social level [16], [17].
Common agreement, compromises and compliance A significant aspect in the implementation of
with statutory rules will enable efficient interaction. resource-saving technologies is internal expenses for
Otherwise, one of the parties will enjoy benefits, innovations, scientific advancement and so on.
which is a common situation for profit generation by Expenditures for innovations reduced in 2014 due to
worsening the ecosystem condition. It is better for inflation and economic crisis. Despite increased
counterparties to adhere to the common agreement financing in 2017, Figure 1. shows decreased
that is mutually desired but makes each party more expenses in further years typical at the long-term
potentially vulnerable to damage than when this interval.
agreement is absent. A common phenomenon in Ukraine is relatively
The present requires the shift to resource-saving major contributions to resource-saving technologies
technologies worldwide but features the speed of on the part of medium businesses as well as
transformations in each country primarily because of extensive development and integration of
the different economic situation, the level of stability, breakthrough technologies at state-owned enterprises
mentality and corruption. and in the production industry that causes the greatest
One of the research stages is to identify the main negative impact on environment and its constant use.
problems of Ukraine and the main solutions in the Inadequate or intentionally changed evaluation of
world, based on foreign experience. Shift to green the natural resource potential results in several-fold
technologies is a complex and quite long process that greater damages because of social indifference,
should be regulated by the state in order to improve accumulation effect, insufficient financing and
the results. One of Ukraine’s core problems is participation in state problem solutions. The
shadow economy and heavy corruption. Figure 1. population of Ukraine is not ready to pay for the
shows the increase in shadow economy in 2014 in introduction of resource-saving technologies while
Ukraine caused by revolutionary movement, cash the majority of enterprises are also uninterested, and
outflow, decreased guarantees and investments for the state does not create conditions for providing
implementing resource-saving technologies. high-quality ecological education, environmental
According to Kearney [18] (International management mechanisms and public access to
consulting group), the volume of global shadow ecological information. Thus, we can see poor
economy is about one trillion dollars. Besides, this efficiency of the environmental inspectorate and
figure varies between 8-10% from GDP in developed other public authorities due to the high level of
countries and it is at least 40% of GDP in many corruption and legislative shortcomings.
countries with the emerging market, although Planned privatization in 2017-2019 failed to
Ukraine has shadow money flows in manufacturing produce proper results. Moreover, some resource-
and resource-intensive activities. The level of intensive and ecologically dangerous state-owned
shadow economy gradually decreased to 32% after enterprises still rely on outdated technologies and do
2014 because of the reduction of the Ukrainian not have funds for re-equipment, affecting the quality
territory and the loss of regions with strong economic of the Ukrainian ecosystem.
relations and shadow flows. According to analytical data, Ukraine will require
at least 41 years to reach the level of Germany, 34
TEM Journal – Volume 10 / Number 3 / 2021. 1025
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