The Potential of the Financial and Economic Mechanism in Eliminating Imbalances in Forestry Land Use

Abstract

Regional differences in the ecological and socio economic balance of forest land use necessitate the functioning of the financial and economic mechanism of forest land use. The essence and role of the financial and economic mechanism of ensuring the balanced use of forest lands as a scientific basis for further economic growth of Ukraine are specified and generalized. The information base of the study is the data of the Global Assessment of Forest Resources of FAO 2020, the data of the Monitoring of Land Relations in Ukraine, the reporting of the State Forest Agency of Ukraine. The study found both negative and positive correlations between different strengths and degrees of influence between factors and performance indicators. Factors favorable for ensuring balanced use of forest lands have been identified. Favorable factors for ensuring the balanced use of forest lands in the national economy are reforestation, forest certification, renewal of fixed assets of forest enterprises through the improvement of investment instruments, reducing the tax burden on forestry activities. It is proposed to assess the level of balance of forest land use in each region, taking into account such important indicators as environmental balance and socio economic balance. It is proposed to introduce new indicators of reporting of forestry enterprises, which can be used as indicators of the balance of forestry land use in each region. Methodological approaches to the assessment of management measures for environmental and socio economic balance of forest land use, which can be used to improve the regulatory monetary valuation of forest lands, and thus tax incentives to ensure balanced use of forest lands. The institutional basis for ensuring the balanced use of forest lands has been