ANALYSIS OF INTERNATIONAL EXPERIENCE IN THE APPLICATION OF FINANCIAL INSTRUMENTS FOR EMISSION REGULATION IN AGRICULTURE

The article explores the role of agriculture as a key sector of the economy influencing environmental security through significant greenhouse gas emissions. It analyzes international experience in implementing financial instruments for emission regulation in agriculture, including: subsidies for environmentally friendly practices (financial support for farmers to adopt technologies that reduce emissions and promote resource conservation); environmental taxes (taxes on practices harmful to the environment); emission quota and trading systems (a mechanism that sets limits on emissions with the possibility of trading unused quotas for economically efficient pollution reduction); compensation programs (payments to farmers for land restoration activities or environmental initiatives that contribute to carbon footprint reduction); grants for innovation and research (funding for research and development of cutting-edge technologies, such as precision agriculture, that reduce emissions); investments in sustainable development projects (mobilization of resources for largescale initiatives aimed at environmental management in the agricultural sector); green financing (preferential loans for farmers implementing emission-reduction technologies, including the transition to organic production); social capital development (engaging farmers in designing and implementing programs to enhance the efficiency and sustainability of environmental measures); environmental quality management programs (initiatives supporting farmers in adopting ecofriendly practices to reduce pollution and optimize resource use); management of point and non-point sources of pollution (initiatives aimed at reducing water and soil pollution). It has been established that in Ukraine, financial mechanisms for environmental regulation are still in the early stages of development. Key challenges include insufficient funding, limited access to modern technologies, and weak monitoring and control of emissions. Recommendations are proposed to improve the system for supporting “green” agribusiness, including adapting international experience, developing legislative initiatives, and creating effective mechanisms to incentivize sustainable agriculture.

Authors

Publication Details

Journal
Scientific Notes of Taurida National V I Vernadsky University Series Economy and Management
Published
2025-01-01
DOI
https://doi.org/10.32782/2523-4803/75-1-8
Primary Topic
Climate Change Policy and Economics
Type
article
Field-Weighted Citation Impact
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article

ANALYSIS OF INTERNATIONAL EXPERIENCE IN THE APPLICATION OF FINANCIAL INSTRUMENTS FOR EMISSION REGULATION IN AGRICULTURE

Олександр Лабенко, Oleksandr Safonuk
Scientific Notes of Taurida National V I Vernadsky University Series Economy and Management
Climate Change Policy and Economics
article

ANALYSIS OF INTERNATIONAL EXPERIENCE IN THE APPLICATION OF FINANCIAL INSTRUMENTS FOR EMISSION REGULATION IN AGRICULTURE

Олександр Лабенко, Oleksandr Safonuk
article en

Abstract

The article explores the role of agriculture as a key sector of the economy influencing environmental security through significant greenhouse gas emissions. It analyzes international experience in implementing financial instruments for emission regulation in agriculture, including: subsidies for environmentally friendly practices (financial support for farmers to adopt technologies that reduce emissions and promote resource conservation); environmental taxes (taxes on practices harmful to the environment); emission quota and trading systems (a mechanism that sets limits on emissions with the possibility of trading unused quotas for economically efficient pollution reduction); compensation programs (payments to farmers for land restoration activities or environmental initiatives that contribute to carbon footprint reduction); grants for innovation and research (funding for research and development of cutting-edge technologies, such as precision agriculture, that reduce emissions); investments in sustainable development projects (mobilization of resources for largescale initiatives aimed at environmental management in the agricultural sector); green financing (preferential loans for farmers implementing emission-reduction technologies, including the transition to organic production); social capital development (engaging farmers in designing and implementing programs to enhance the efficiency and sustainability of environmental measures); environmental quality management programs (initiatives supporting farmers in adopting ecofriendly practices to reduce pollution and optimize resource use); management of point and non-point sources of pollution (initiatives aimed at reducing water and soil pollution). It has been established that in Ukraine, financial mechanisms for environmental regulation are still in the early stages of development. Key challenges include insufficient funding, limited access to modern technologies, and weak monitoring and control of emissions. Recommendations are proposed to improve the system for supporting “green” agribusiness, including adapting international experience, developing legislative initiatives, and creating effective mechanisms to incentivize sustainable agriculture.

Scientific Notes of Taurida National V I Vernadsky University Series Economy and ManagementVol. 75(1)
Openalex Percentile: Top 92%
Climate Change Policy and Economics
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