Podkorytov V.N., Mochalova L.A. Stimulating the development of circular economy in the mining industry through the introduction of penalties

Abstract

The Russian economy is more linear in nature: the growth of waste generation is outpacing the growth of the country’s GDP. The export-raw material model of the Russian economy creates significant problems for the environment and causes an urgent need for the formation of a circular economy model. The authors of the article see the need to implement the idea of a circular economy in our country, first of all, within the mining industry, as the most waste-generating area of economic activity. However, it has a number of specific features: a low proportion of the useful component in the total volume of overburden, remoteness from consumers of raw materials, labor, energy resources, etc., which are crucial for the effectiveness of mining activities and the promotion of environmental protection in this area. The authors of the article consider it necessary to stimulate an increase in costs, including investment, for environmental protection activities as the beginning of the transition from a linear to a circular model of the economy. The purpose of the study is to develop and test a methodology for stimulating the development of a circular economy in the mining industry through the introduction of penalties. The theoretical and practical significance of the study lies in an attempt to develop and substantiate a more effective (compared to existing) way to stimulate the environmental activities of enterprises of the “high-waste” mining industry, taking into account the following points: obtaining “super profits” and high profitability (high share of net profit in revenue) of a number of mining enterprises; low penalties for negative environmental impact, which makes it more profitable for enterprises to pay appropriate fines than to carry out environmental protection measures; the need to motivate the introduction of a circular economy in the most waste-generating field of activity. The methodology presented in the article is the subject of scientific discussion. The indicator “revenue from sales” was chosen as the basis for calculating penalties.