The Economics of Stabilisation (Essay Sample)

Student’s Name
Instructor's Name
The Course
The Date
The Economics of Stabilisation
In the modern market system, the dynamics of economic processes requires permanent analysis, planning and forecasting. A qualitative analysis of the dynamics of the financial potential of investment activities allows to make adjustments to the investment policy in order to regulate the ecological systems in a timely manner. Evaluation of the environmental situation is a relevant topic due to the transformational nature of the economy and its development strategy. Climate has a direct impact on the primary indicators of socio-economic development of the country. The detection of the need for further improvement of the existing economic system for environmental management at different hierarchical levels is a relevant topic.
The primary directions of improvement of the economic mechanism of the environmental regulation are to modernize the existing regulators with the development and implementation of new market instruments. Nicholas Stern, Kooten, Cornelis and other scientists have conducted researches concerning the development of the theoretical and applied aspects of the environmental performance. These researchers describe general characteristics of the impact of economic activities on the environment and organizational and financial mechanisms of environmental activities of various industries. In other words, the effectiveness of the economic mechanism of regulation of environmental performance depends on the ability to coordinate the operation and development of the two primary aspects such as the enterprise and region. The development of measures aimed at stimulating environmental activities and rational use of natural resources by enterprises contribute to the accumulation of financial and material resources in the region. These resources are necessary to ensure the socio-economic and environmental development. In order to solve the problems related to rational nature management a significant improvement of the existing organizational structure and an efficient mechanism of regulation are required. It enables an efficient use of natural resources at macro and micro levels.
One of the most important areas of ecological modernization is the development and implementation of strategies of environmentally oriented management and environmental entrepreneurship. Such aspects as the development of environmental legislation, the impact of environmental law promote the growth of the role of environmental qualities and characteristics (Helm 114). Ecological and economic mechanisms of environmental management are essential prerequisites to sustainable development.
The Effectiveness of the Economic Regulation of Ecology
The implementation of socio-economic activities determines the economic mechanism of environmental regulation. The first criterion is the successful combination of ecological and economic interests of all the participants (Stern 33). Indicators of ecological and economic states of the functioning of the national economy determine the evaluation of the effectiveness of the economic mechanism of environmental regulation (Helm 11). The quality of environmental components and profitability of management are data indicators. The second criterion of the effectiveness of the economic mechanism of environmental regulation is the ability to implement the economic interests of the members of the society. The third approach is ecological feasibility and enhancement of the environment (Stern 35). The environmental needs of the society should be satisfied through the implementation of environmental interest in the reproduction of the normative natural living conditions. The ecological constructiveness of the economic mechanism of the environmental regulation is defined through certain factors. The evolution of the environment, anthropogenic impact, and environmental safety are the critical indicators.
Market relations require the efficient use of economic instruments to improve environmental management. The implementation of reliable economic and legal structures creates a particular condition of production activities to improve environmental protection. Changes in the methodological basis of the existing financial instruments are reasonable. Fees, pollution charges, environmental tax, ecological funds and sanctions are financial instruments.
The introduction of more efficient regulators of environmental management, such as tax credits, loans, and flexible environmental taxes will contribute to the ecologization of industrial activity. (Libercap 53)
It provides price differentiation according to the environmental criteria.
Nicholas Stern about the Economy of Climate Change
Nicholas Stern evaluated the economics of moving to a low-carbon global economy in the medium and long term perspective. Stern praised the potential of possible adaptation measures to climate change. According to Nicholas Ste...