Actual Problems of
Economics and Law




DOI: 10.21202/1993-047X.11.2017.2.67-82

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Authors :
1. Ivan D. Rakov, laboratory researcher of the Center for International Finance
Financial Research Institute

Mechanisms of support of “green” projects financing: experience of countries

Objective: to assess the effectiveness of the mechanisms supporting “green” projects’ funding in developed countries and in Russia.

Methods: comparative analysis, regression analysis.

Results: the article substantiates the necessity of mainstreaming the environmental protection issues under modern conditions of the world economy development. It is emphasized that, despite the advantages of the development of “green” economy for society as a whole, the market highlights a variety of hindering factors. In this context, it is increasingly important to study the experience of countries in implementing projects on “green” economy formation. We analyze the experience of Great Britain in creating special institutions to support “green” investment, raising funds mainly through the use of credit and warranty programs. The UK also demonstrates the experience of applying environmental taxes and a wide range of environmental financial products. Analysis of the experience of South Korea showed the country's strategy for “green” growth and the functioning of a framework law providing financial support to “green” companies and private investment in this area. The experience of Canada province of Ontario shows that in the field of “green” economy such support mechanisms are applied as “green” bonds, preferential tariff programs, etc. Germany also demonstrates progress in addressing environmental problems by imposing requirements for the population in this area, as well as the creation of preferential programs of financing “green” projects. The analysis showed that, in contrast to the studied countries, in Russia there is no comprehensive mechanism of state support for environmental projects. The existing mechanisms are associated with the implementation of state programs in the sphere of high-tech industries.
Basing on regression analysis, we estimated the influence of state support measures for “green” funding on the volume of environmental investment from the private sector in the studied countries. The analysis has demonstrated the effectiveness of measures to support environmental projects in all countries except Russia.

Scientific novelty: the article systematizes the experience of countries in the use of support mechanisms of funding “green” projects and assesses their effectiveness for attracting private capital into “green” projects.

Practical significance: the studied mechanisms to support funding for "green" projects that are applied in foreign countries can be used by the authorities to increase the amount of “green” investment from the private sector in Russia; the presented model will help to assess the effectiveness of budget spending in this area.

Keywords :

Economics and national economy management; “Green” investments; State support; Market mechanisms

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Citation :

Rakov I. D. Mechanisms of support of “green” projects financing: experience of countries, Actual Problems of Economics and Law, 2017, vol. 11, No. 2, pp. 67–82 (in Russ.). DOI: http://dx.doi.org/10.21202/1993-047X.11.2017.2.67-82

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