| Economics | Socium | Environment |
|---|---|---|
Environmental Economics and Sustainable Development, 2022, 12(31): 47-55
UDC 303:502:33:330.131:355.01
JEL CLASSIFICATION: I P28; P37; P48, Q56, Q57; Q58
DOI: 10.37100/2616-7689.2022.12(31).5
Oksana Veklych
Doctor of Economics, Professor,
Public Institution «Institute of Environmental Economics and
Sustainable Development of the National Academy of Sciences of Ukraine»
ORCID: https://orcid.org/0000-0003-4566-8701
METHODOLOGICAL BASICS FOR ASSESSING ECONOMIC DAMAGE FROM LOSS OF ECOSYSTEM SERVICES IN CONSEQUENCE OF MILITARY AGGRESSION OF THE RUSSIA
Abstract: The initial methodological bases for estimating economic damages from the loss of ecosystem services as a result of military aggression are represented for the first time in the domestic specialized literature. An idea was put forward to develop a special "Methodology for assessing the loss of ecosystem services from military actions", which would make it possible to achieve the amount of monetary compensation more adequate to the aggressor's costs of waging war and the actual damage caused to the environment by determining the cost of the loss of ecosystem services and restoration costs the environment. For the first time, the basic formula for the final value assessment of economic damage from the deterioration of ecosystem services as a result of armed aggression is presented and disclosed as an aggregated indicator with the definition of its main total components, in particular: economic damage from the deterioration of ecosystem services; reimbursement of the cost of lost resources and services during the recovery period; lost profits incurred due to the lack of a resource or service during the recovery period; compensations for non-renewable losses of biodiversity, unique ecosystem objects; the cost of carrying out scientific and organizational measures/works on assessing damage from the deterioration of ecosystem services as a result of armed aggression. Attention is focused on the fact that the proposed basic formula for the cost assessment of this damage can be a supporting basis for carrying out its specific assessment at any territorial level and within the selected ecosystems that have been damaged.
An idea was put forward regarding the need to take into account the direct and indirect effects of military actions and their consequences that harm the environment, when developing the "Methodology for assessing losses of ecosystem services from military actions". The content of the effects of military actions and their consequences, which harm the natural environment of Ukraine, is revealed. The importance of conducting an assessment of the damage caused by military operations to the environment and ecosystem goods in particular has been established. Such an assessment can be the basis for, firstly, bringing the aggressor to justice; second, to quantify reparations that would more broadly and more accurately reflect the effects of war; thirdly, to receive monetary compensation for the deterioration of ecosystems and their services by the affected socio-territorial communities as their owners.
Key words: ecosystem services, economic damage from deterioration/destruction of ecosystem services, economic assessment of damages from loss of ecosystem services as a result of military aggression, damage to the surrounding natural environment.
Language version: Ukrainian
References
1. Cabinet of Ministers of Ukraine (2022). Postanova Kabinetu Ministriv Ukrainy «Pro zatverdzhennia Poriadku vyznachennia shkody ta zbytkiv, zavdanykh Ukraini vnaslidok zbroinoi ahresii Rosiiskoi Federatsii» № 326 vid 20.03.2022. [Resolution of the Cabinet of Ministers of Ukraine "On the approval of the Procedure for determining damage and losses caused to Ukraine as a result of the armed aggression of the Russian Federation" No. 326 dated 20.03.2022]. Retrieved from https://zakon.rada.gov.ua/laws/show/326-2022-%D0%BF#Text [in Ukrainian].
2. Veklych, O.O. (2019). Parametryzatsiia ekonomichnoho zbytku vid pohirshennia/znyshchennia ekosystemnykh posluh [Рarameterization of economic damage from deterioration/destruction of ecosystem services]. Еnvironmental economісs and sustainable development, 5, 58-64. DOI: https://doi.org/10.37100/2616-7689/2019/5(24)/9 [in Ukrainian].
3. System of Environmental-Economic Accounting 2012 – Experimental Ecosystem Accounting (2014). United Nations. – New York. Retrieved from https://unstats.un.org/ unsd/envaccounting/seeaRev/ eea_final_en.pdf.
4. State Environmental Inspection of Ukraine (2022). Sohodni nabula chynnosti tretia spetsialna metodyka rozrakhunku shkody dovkilliu, zavdanoi vnaslidok voiennykh dii, i rakhuvatymut po nii zbytky vodnym resursam, 02.09.2022 [Today, the third special method of calculating damage to the environment caused by military actions came into force, and damages to water resources will be calculated according to it, 02.09.2022]. Retrieved from https://www.dei.gov.ua/posts/2351[in Ukrainian].
5. Ministry of Environmental Protection and Natural Resources of Ukraine (2022). Nakaz Ministerstva zakhystu dovkillia ta pryrodnykh resursiv Ukrainy «Metodyka vyznachennia zbytkiv, zapodiianykh navkolyshnomu pryrodnomu seredovyshchu v mezhakh terytorialnoho moria, vykliuchnoi morskoi (ekonomichnoi) zony ta vnutrishnikh morskykh vod Ukrainy v Azovskomu ta Chornomu moriakh» № 309 vid 19.08.2022 Order of the Ministry of Environmental Protection and Natural Resources of Ukraine "Methodology for determining damage caused to the surrounding natural environment within the territorial sea, exclusive maritime (economic) zone and internal sea waters of Ukraine in the Azov and Black Seas" No. 309 dated 19.08.2022. Retrieved from https://ips.ligazakon.net/document/RE38589 [in Ukrainian].
6. Ministry of Environmental Protection and Natural Resources of Ukraine (2022). Shkoda dovkilliu Ukrainy, zavdana rosiiskoiu zbroinoiu ahresiieiu. Prezentatsiia naslidkiv viiny dlia dovkillia Damage to Ukraine's environment caused by Russian armed aggression. Presentation of the consequences of war for the environment, 01.09.2022. Retrieved from https://mepr.gov.ua/news/39680.html [in Ukrainian].
7. Cabinet of Ministers of Ukraine (2022). The National Council for the Recovery of Ukraine from the Consequences of the War. Proekt Planu vidnovlennia Ukrainy. Materialy robochoi hrupy «Ekolohichna bezpeka», lypen 2022 Project of the Recovery Plan of Ukraine. Materials of the working group "Environmental safety", July 2022. Retrieved fromhttps://www.kmu.gov.ua/storage/app/sites/1/recoveryrada/ua/environmental-safety-assembly.pdf [in Ukrainian].
Article publication date: 2022
Date of online version: 2022
UDC 303:502:33:330.131:355.01
JEL CLASSIFICATION: I P28; P37; P48, Q56, Q57; Q58
DOI: 10.37100/2616-7689.2022.12(31).5
Oksana Veklych
Doctor of Economics, Professor,
Public Institution «Institute of Environmental Economics and
Sustainable Development of the National Academy of Sciences of Ukraine»
ORCID: https://orcid.org/0000-0003-4566-8701
METHODOLOGICAL BASICS FOR ASSESSING ECONOMIC DAMAGE FROM LOSS OF ECOSYSTEM SERVICES IN CONSEQUENCE OF MILITARY AGGRESSION OF THE RUSSIA
Abstract: The initial methodological bases for estimating economic damages from the loss of ecosystem services as a result of military aggression are represented for the first time in the domestic specialized literature. An idea was put forward to develop a special "Methodology for assessing the loss of ecosystem services from military actions", which would make it possible to achieve the amount of monetary compensation more adequate to the aggressor's costs of waging war and the actual damage caused to the environment by determining the cost of the loss of ecosystem services and restoration costs the environment. For the first time, the basic formula for the final value assessment of economic damage from the deterioration of ecosystem services as a result of armed aggression is presented and disclosed as an aggregated indicator with the definition of its main total components, in particular: economic damage from the deterioration of ecosystem services; reimbursement of the cost of lost resources and services during the recovery period; lost profits incurred due to the lack of a resource or service during the recovery period; compensations for non-renewable losses of biodiversity, unique ecosystem objects; the cost of carrying out scientific and organizational measures/works on assessing damage from the deterioration of ecosystem services as a result of armed aggression. Attention is focused on the fact that the proposed basic formula for the cost assessment of this damage can be a supporting basis for carrying out its specific assessment at any territorial level and within the selected ecosystems that have been damaged.
An idea was put forward regarding the need to take into account the direct and indirect effects of military actions and their consequences that harm the environment, when developing the "Methodology for assessing losses of ecosystem services from military actions". The content of the effects of military actions and their consequences, which harm the natural environment of Ukraine, is revealed. The importance of conducting an assessment of the damage caused by military operations to the environment and ecosystem goods in particular has been established. Such an assessment can be the basis for, firstly, bringing the aggressor to justice; second, to quantify reparations that would more broadly and more accurately reflect the effects of war; thirdly, to receive monetary compensation for the deterioration of ecosystems and their services by the affected socio-territorial communities as their owners.
Key words: ecosystem services, economic damage from deterioration/destruction of ecosystem services, economic assessment of damages from loss of ecosystem services as a result of military aggression, damage to the surrounding natural environment.
Language version: Ukrainian
References
1. Cabinet of Ministers of Ukraine (2022). Postanova Kabinetu Ministriv Ukrainy «Pro zatverdzhennia Poriadku vyznachennia shkody ta zbytkiv, zavdanykh Ukraini vnaslidok zbroinoi ahresii Rosiiskoi Federatsii» № 326 vid 20.03.2022. [Resolution of the Cabinet of Ministers of Ukraine "On the approval of the Procedure for determining damage and losses caused to Ukraine as a result of the armed aggression of the Russian Federation" No. 326 dated 20.03.2022]. Retrieved from https://zakon.rada.gov.ua/laws/show/326-2022-%D0%BF#Text [in Ukrainian].
2. Veklych, O.O. (2019). Parametryzatsiia ekonomichnoho zbytku vid pohirshennia/znyshchennia ekosystemnykh posluh [Рarameterization of economic damage from deterioration/destruction of ecosystem services]. Еnvironmental economісs and sustainable development, 5, 58-64. DOI: https://doi.org/10.37100/2616-7689/2019/5(24)/9 [in Ukrainian].
3. System of Environmental-Economic Accounting 2012 – Experimental Ecosystem Accounting (2014). United Nations. – New York. Retrieved from https://unstats.un.org/ unsd/envaccounting/seeaRev/ eea_final_en.pdf.
4. State Environmental Inspection of Ukraine (2022). Sohodni nabula chynnosti tretia spetsialna metodyka rozrakhunku shkody dovkilliu, zavdanoi vnaslidok voiennykh dii, i rakhuvatymut po nii zbytky vodnym resursam, 02.09.2022 [Today, the third special method of calculating damage to the environment caused by military actions came into force, and damages to water resources will be calculated according to it, 02.09.2022]. Retrieved from https://www.dei.gov.ua/posts/2351[in Ukrainian].
5. Ministry of Environmental Protection and Natural Resources of Ukraine (2022). Nakaz Ministerstva zakhystu dovkillia ta pryrodnykh resursiv Ukrainy «Metodyka vyznachennia zbytkiv, zapodiianykh navkolyshnomu pryrodnomu seredovyshchu v mezhakh terytorialnoho moria, vykliuchnoi morskoi (ekonomichnoi) zony ta vnutrishnikh morskykh vod Ukrainy v Azovskomu ta Chornomu moriakh» № 309 vid 19.08.2022 Order of the Ministry of Environmental Protection and Natural Resources of Ukraine "Methodology for determining damage caused to the surrounding natural environment within the territorial sea, exclusive maritime (economic) zone and internal sea waters of Ukraine in the Azov and Black Seas" No. 309 dated 19.08.2022. Retrieved from https://ips.ligazakon.net/document/RE38589 [in Ukrainian].
6. Ministry of Environmental Protection and Natural Resources of Ukraine (2022). Shkoda dovkilliu Ukrainy, zavdana rosiiskoiu zbroinoiu ahresiieiu. Prezentatsiia naslidkiv viiny dlia dovkillia Damage to Ukraine's environment caused by Russian armed aggression. Presentation of the consequences of war for the environment, 01.09.2022. Retrieved from https://mepr.gov.ua/news/39680.html [in Ukrainian].
7. Cabinet of Ministers of Ukraine (2022). The National Council for the Recovery of Ukraine from the Consequences of the War. Proekt Planu vidnovlennia Ukrainy. Materialy robochoi hrupy «Ekolohichna bezpeka», lypen 2022 Project of the Recovery Plan of Ukraine. Materials of the working group "Environmental safety", July 2022. Retrieved fromhttps://www.kmu.gov.ua/storage/app/sites/1/recoveryrada/ua/environmental-safety-assembly.pdf [in Ukrainian].
Article publication date: 2022
Date of online version: 2022