HARMONIZATION OF GREEN ECONOMICS DEVELOPMENT INDICATORS EU, UN, OECD AND UKRAINIAN

ByВячеслав Потапенко

HARMONIZATION OF GREEN ECONOMICS DEVELOPMENT INDICATORS EU, UN, OECD AND UKRAINIAN

ABSTRACT

This research is important as Ukrainian and EU indicators of green economics development have to be harmonized according to The Ukraine–European Union Association Agreement. The second reason is the improvement of indicators of the environmental policy for SMEs green modernization. The main problem is the destruction of soviet system data collection about brown economy development and necessity of creation of a new system of indicators of green economy that is harmonized with EU, UN, OECD methodology of data collection. The author of the research methodology presupposes the comparison of Ukrainian indicators of green economy development and the indicators used by UNECE, EEA OECD Sustainable Development Goals UN UNEP, extracting the similar and harmonized with Ukrainian legislative data. The key findings of the researcher are suggested 16 Ukrainian indicators of green economy development harmonized with EU and other international indicators. The 16 indicators of green economics development were suggested for the Ministry of Environmental Protection and Natural Resources of Ukraine as a part of the governmental environmental policy assessment system. We hope that indicators implementation will be supported by green modernization of SMEs.

Keywords: harmonization, green economics, indicators, EU, UN, OECD, Ukraine

JEL Classification: Q58

1. THE AUTHOR OF THE METHODOLOGY

After signing The Ukraine–European Union Association Agreement in 2014 and full introduction of economic part of the Agreement appeared an urgent need for the development of green economics indicators which simultaneously meet the Ukrainian regulatory and legal framework, and are based on statistical multi-year researches as well as meet current indicators of the EU, UN and OEDC organizations. The author (Potapenko V.G., 2015) has developed the special methodology. The result of the work is the indicators analysis of the EU and UN environmental policies and their harmonization with the statistics and official figures of Ukraine and the development of indicators of public administration efficiency. The algorithm of several stages was created:

1. The basis is a list of goals and objectives of the environmental policy of the draft amendments to the Law of Ukraine On the Basic Principles (strategy) of environmental policy. These goals and objectives are analyzed, first of all in terms of the draft of the National Action Plan on Environmental Protection for 2016-2020 years and indicators of environmental policies that have been adopted in the Law on Basic Principles (strategy) of Environmental Policy in 2010.

2. The analysis of indicators of environmental policies used by the EU institutions, the UN and the OECD, is performed, namely:

• EEA indicators of green economy;
• OECD ―Green indicators;
• SDG UN indices;
• UNECE indexes of ―green growth;
• UNEP indicators of ―green economy.

3. The assessment of the informational content of international indices is made according to the assessment of goals and objectives of the environmental policy of the draft amendments to the Law of Ukraine On Basic Principles (strategy) of environmental policy.

4. Selection of indices of the EU and the UN to assess environmental policy under the draft amendments to the Law of Ukraine On Basic Principles (strategy) of environmental policy and their comparison with informational support and statistics from official sources of Ukraine, which are of multi-year observation.

The methodical approach to indexes development is based on the conceptual requirements for harmonization of Ukrainian and international quantitative indicators according to the official information. To harmonize Ukrainian and international quantitative indicators according to the official information methodological approaches were developed to analyze the environmental policy and develop a system of indicators. Thus the proprietary methodological approaches allow to analyze the international indicators of environmental policies and harmonization of indicators OECD, EU, UN and Ukraine on environmental policy.

2. THE GREEN ECONOMICS INDICATORS ANALYSIS

The international indicators which we analyzed with the aim to harmonize with the Ukrainian ones are the green economy indicators of European Environment Agency, green indicators of the Organization for Economic Cooperation and Development, the United Nations sustainable development index, green growth indexes of the United Nations Economic Commission of Europe, indicators of ―green economy of The United Nations Environment Programme.

Green Economy Indicators of the European Environment Agency are suspended and describe both state of the environment and the level of human impact.

Green indicators of Organisation for Economic Cooperation and Development describe the problems of resources, industry and business development. Unfortunately most of the OECD indicators have no relevant equivalents among the Ukrainian ones.

The indexes of sustainable sevelopment of the United Nations have the frame nature. Those ones, describing the environmental policies are detailed, but they mostly qualitative rather than quantitative. Moreover, it is difficult to find the correspondence among the Ukrainian indicators.

In the result of analysis and comparison with Ukrainian indicators we suceed to determine sixteen indicators that are identical to the international ones, characterizing green growth and environmental policy.

Green Growth Indexes of the UN Economic Commission for Europe is the most detailed in all aspects of environmental policy both in natural and in the industrial spheres.

Indicators of ―green‖ economy of the United Nations Environment Programme describe environmental aspects and, although they are not detailed, but have maximum number of relevant equivalents among the Ukrainian indicators.

3. GREEN ECONOMICS INDICATORS DEVELOPMENT HARMONIZATION

The system of indicators of Environmental Policy of Ukraine was develped basing on quantitative indicators of the EU. It was suggested 16 indicators of green growth from 31 current indicators of environmental policy in accordance with applicable law of Ukraine “On the Fundamentals (strategy) of environmental policy‖, which may be the first step in measuring progress of green branch modernization of Ukraine’s economy.

It becomes possible to implement the green growth indicators in the legal field of Ukraine as a part of national environmental policy evaluation system. Being aware of the shortcomings of this approach, we believe that this is the first step towards the implementation of green growth strategy in Ukrainian realities of state administration.
Thus in the result of the analysis represented in the tables of the section ―Harmonization of International and Ukrainian Indicators of Environmental Policy in Accordance with the Goals of Environmental Strategy and National Plan of Actions we identified 16 Ukrainian relevant indicators of green growth and environmental policies which have correspondent indicators of UNECE and other international organizations.
Thus, as a result of the work carried out by us, the following results were obtained:

The analysis was conducted on the correspondence of indicators of the Organisation for Economic Cooperation and Development, the UN sustainable development index, indexes of green growth of the United Nations Economic Commission for Europe, indicators of ―green‖ economy of the United Nations Environment Programme.
Suggested system of indicators of green economics development was officially proposed to the Ministry of Ecology and Natural Resources of Ukraine and to the Parliament for changes in the Ukrainian legislation.
The use of existing traditional environmental and economic indicators of Ukraine harmonized with the international indicators and legalized via the regulatory framework of the Ministry of Ecology and Natural Resources of Ukraine, and due to the updates of laws by the Parliament it will be the first realistic step to the introduction of indicators of green economics development in Ukraine.
The full article can be downloaded here Potapenko

About the author

Вячеслав Потапенко administrator