Financial and Economic Stimulation of the Secondary Resource Use in the Context of Decentralization: The Essence, Principles, and Regional Dimension

Abstract

The article substantiates the expediency of forming a modern system of financial and economic stimulation of the secondary resource use as a necessary prerequisite for activating the processes of utilization of secondary raw materials in the conditions of decentralization. The carried out studies have shown that the financial and economic stimulation of the secondary resource use is a logically ordered set of methods, instruments and levers of fiscal, budgetary, credit, price and reimbursement-penalty influence on the processes of involving the used industrial and household raw materials into economic circulation in order to use the resource value of its material and material substance. It is substantiated that the existing system of financial and economic stimuli for the secondary resource use, which operates at the national level, should receive its modification at the regional and local levels in order to make use of the most of the advantages and opportunities of decentralization in financial and investment support for the modernization of waste management infrastructure and the processes of disposal of the resource value of industrial and household waste. It is determined that the formation of a modern system of financial and economic stimulation of the secondary resource use should be based on a set of fundamental principles and the principles that imply compliance with the requirements of institutional transformations and conjuncture-cyclical fluctuations. It is substantiated that the fundamental principles of forming a system of financial and economic stimulation for the secondary resource use in the context of decentralization are the principles of environmental sustainability, economic efficiency and social responsibility, and the list of principles that provide for compliance with the requirements of institutional transformations and market-cycle fluctuations includes the principles of taking into account global benefits, decentralization and deregulation, adherence to the fiscal optimum, opportunity cost, complexity, prevention and elimination of negative externalities.

Keywords

• secondary resource use
• financial instruments
• stimulation
• decentralization
• territorial community
• local budgets