DBPapers
DOI: 10.5593/SGEM2014/B53/S21.028

INCREASING THE APPLICATION OF CLIMATE POLICY IN WATER SUPPLY ECONOMICS OF RUSSIAN REGIONS

A. Lozhnikova, I. V. Muravyov, I. K. Shevchenko
Wednesday 1 October 2014 by Libadmin2014

References: 14th International Multidisciplinary Scientific GeoConference SGEM 2014, www.sgem.org, SGEM2014 Conference Proceedings, ISBN 978-619-7105-19-3 / ISSN 1314-2704, June 19-25, 2014, Book 5, Vol. 3, 207-214 pp

ABSTRACT
This article has been written with the goal of rethinking the economic tools used in the water resource sector. These include price, subsidies, markets, and mechanisms of financing. The authors’ report contributes to the recent and ongoing work of developing innovative utility rates that support the solvency of municipal services, financing strategies, and equity considerations. The article analyzes problems of investing fixed capital in the renewal of Russian water supply and sanitation companies characterized by a high level of physical depreciation. Particularly, the authors criticize modern approaches to the application of the Return on Invested Capital (ROIC), stated in the current government documents on fundamentals of pricing in the water supply and sanitation sectors, with an mphasis on compensation as a part of the price of regional risks. Besides, a place has been defined for territorial planning in the modern system of strategic state planning of the Russian Federation. The article examines the potential to optimize territorial planning based on the landscape and ecological resource potential of Russian regions. Approaches to evaluating the socially necessary costs of providing effective environmental management in territorial industrial and economic systems are explored. The theory of risk management suggests approaches to identifying methods of regional risk management. An analysis has been carried out comparing these methods with
technologies that evaluate the risks of different types of natural disasters. Such
technologies are developed within the framework of long-term science and technology forecasting in the period until 2030. The authors assess implementing the development of economic institutions and financial mechanisms, including systems of taxation and financial stimulus that promote technological upgrades and elimination of obsolete equipment by businesses. The assessment of this activity, declared in the Climate Doctrine of the Russian Federation, is based on the fundamental economic principles. Finally, conclusions are given about the urgent need to combine the analysis of natural climate parameters with an analysis on the nature of industrial infrastructure development. The conclusion is that the high intensity of the demonstrated anthropogenic risks is largely due to the critical level of depreciation of fixed capital of Russian water supply and sanitation companies. In the most important aspects of modern economic policy the authors include the development and implementation of medium and long-term strategies and plans for socio-economic development in regions and municipalities, including water supply and sanitation, using mechanisms to adapt to changes in the climate. These are based on financial and tax policy measures that stimulate a reduction in the anthropogenic load on the environment.

Keywords: climate change, Climate Doctrine of the Russian Federation, territorial planning, pricing in the water supply sector, regional risk, anthropogenic risks