Considering the Ecological Components When Evaluating Investment Performance

Abstract

The article defines that the evaluation of investment performance is the determining factor for the decision to invest. This operation is basic in establishing attractiveness both at the country level and at the level of an individual facility and, as a result, with a positive effect, this leads to increased economic activity. It is specified that methods of evaluating the investment attractiveness of region, which have found their application in different countries, can be combined into two groups: international and national. At the same time, an essential limitation for the direct application of international methods in Ukraine is the presence of significant differences in the conditions of conducting the investment activities. Consideration of ecological factors at different stages of investment decision making is carried out in view of the UNIDO methodology. As a result, the following conclusions have been drawn: 1) two types of analysis (EIA, together with cost-benefit analysis) should be conducted consistently and interconnected; 2) indicators for evaluating the cost-efficiency of investments according to international methodologies do not include external effects (in particular, the impact on the ecological situation in the region, where a project be implemented) neither as the project costs nor as the project revenues; 3) problem of national methodologies methods, same as with the international ones, lies in the existence of parallel processes – calculations of the economic efficiency of the project and substantiation of its ecological admissibility; 4) substantiation of the investor’s decision to invest and the need to implement ecological measures is possible only by including ecological components in the economic indicators of the evaluation of investment performance.

Keywords

• investment
• investment efficiency
• evaluation of investment performance
• ecological component