Environmental and Economic Disparity and the Porter Hypothesis in the Subjects of the Russian Federation

The article investigates the presence of ecological and economic disparity from
\nthe point of view of the Porter M. hypothesis. It complements the research that the costs of
\ncomplying with environmental standards lead to an increase in economic efficiency, based
\non data from Russian regions. The methodology is based on a model for assessing the
\nimpact of environmental regulation on the productivity index. Environmental regulation
\nrefers to the cost of pollution control PACE, adjusted according to statistical data. The
\nproductivity index includes the dynamics of GDP, carbon dioxide emissions, labor force,
\ncapital investment and energy consumption. As a result, a direct relationship was found
\nbetween the environmental regulation index and the productivity index. This proves the
\nabsence of ecological and economic disparity, that is, the costs of environmental protection
\ndo not reduce economic efficiency. The presented analysis methodology can be applied
\nboth at the macro level (of the region) and at the micro level of companies (including when
\nevaluating the ESG strategy and environmental innovations)