ASSESSMENT OF INVESTMENT ATTRACTIVENESS OF REGIONAL INDUSTRIES IN THE CONTEXT OF GREEN DEVELOPMENT
DOI:
https://doi.org/10.17059/ekon.reg.2023-2-15Keywords:
green economy, decoupling, investment attractiveness, green attractiveness, environmentally responsible investments, green financial instruments, basic industries, regional policyAbstract
Considering current trends in the development of green economy and introduction of ESG-principles, the issues of investment attractiveness of enterprises, industries and regions are gaining attention. The literature review has shown that not all available methodologies for assessing regional investment attractiveness take into account the determinants of negative anthropogenic impacts on the environment. The present study aims to assess the investment appeal of the basic industries of the East Kazakhstan region in the context of green development and outline ways to attract more green investment in the region. The research methodology involves comparing the indicators of investment attractiveness of regional basic industries with their green attractiveness, characterised by investment in environmental protection. Additionally, a decoupling index was included in the model in order to examine a possible mismatch between the economic growth of regional industries and their pollution rates. Official statistical data for 2015-2019 were analysed. The study concluded that manufacturing is the only industry with a high green attractiveness, although it has a medium investment attractiveness. Given the need for industrialisation and diversification of the economy in East Kazakhstan, local authorities are recommended to focus on improving the investment climate in this sector. Agriculture and construction have high investment attractiveness, while mining and electricity supply are characterised by above average attractiveness. However, all these sectors remain unattractive in terms of environmental investment. To increase green attractiveness of the aforementioned industries, the study suggests to develop an effective mechanism for financing green projects, as well as to apply government regulation tools aimed at improving the efficiency of environmental investment. Further research may be related to the substantiation of such regulatory measures.
References
Arkhipkina, E. V. (2019). Analysis of the current investment situation in the Russian Federation and a proposal to improve the mechanisms for increasing the investment attractiveness of the Russian economy. Ekonomika i predprinimatelstvo [Journal of economy and entrepreneurship], 8, 174-177. (In Russ.)
Arsakhanova, Z. A., Khazhmuradov, Z. D. & Khazhmuradov, S. D. (2019). Decapling in the economy — essence, definition and types. Obshchestvo, ekonomika, upravlenie [Society, economy, management], 4(4), 13-18. (In Russ.)
Bereslavskaya, V. A., Gamova, E. M. & Gamova, Ye. Ye. (2007). Regional aspects of investment attractiveness (by the example of the Republic of Mari El). Regionalnaya ekonomika: teoriya i praktika [Regional Economics: Theory and Practice], 14(53), 53-58. (In Russ.)
Bobylev, S. N., Kiryushin, Р. A. & Koshkina, N. R. (2021). New priorities for the economy and green finance. Ekonomicheskoe vozrozhdenie Rossii [Economic Revival of Russia], 1(67), 152-166. DOI: 10.37930/1990-9780-2021-1-67-152-166. (In Russ.)
Falcone, P. (2020). Environmental regulation and green investments: The role of green finance. International Journal of Green Economics, 14(2), 159-173. DOI: http://dx.doi.org/10.1504/IJGE.2020.10032078.
Gasperini A. (2019) Principles for Responsible Investment (PRI) and ESG Factors. In: W. Leal Filho, A. Azul, L. Brandli, P. Özuyar, T. Wall (Eds.), Climate Action. Encyclopedia of the UN Sustainable Development Goals (pp. 737-749). Springer, Cham. DOI: https://doi.org/10.1007/978-3-319-71063-1_19-1
Giese, G., Lee, L., Melas, D., Nagy, Z. & Nishikawa, L. (2019). Foundations of ESG investing: How ESG affects equity valuation, risk, and performance. The Journal of Portfolio Management, 45(5), 69-83. DOI: http://dx.doi.org/10.3905/jpm.2019.45.5.069
Kenjebayeva, M. T. & Maziev D. Ch. (2019). Investment climate as a precondition for regional development. In: Vysokie tekhnologii, nauka i obrazovanie: aktualnye voprosy, dostizheniya i innovatsii: sb. st. III mezhdunar. nauch.-prakt. konf., 12 maya 2019 g. [High technologies, science and education: current issues, achievements and innovations. Materials of the 3rd international conference. 12 May, 2019] (pp. 72-75). Penza. (In Russ.)
Kovalevsky, V. V., Nikitina, T. I. & Azarenko, N. Yu. (2014). Sotsialnye investitsii i innovatsii v Rossii [Social investments and innovations in Russia]. Moscow: Pero, 184. (In Russ.)
Krasova, E. V. & Gazieva, E. A. (2019). Modern methodological approaches to estimation of the region investment potential. Azimut nauchnyh issledovanij: ekonomika i upravlenie [Azimuth of scientific research: economics and administration], 8(3(28)), 124-128. DOI: 10.26140/anie-2019-0803-0027. (In Russ.)
Lavrikova, Yu., Buchinskaia, O. & Wegner-Kozlova, E. (2021). Greening of Regional Economic Systems within the Framework of Sustainable Development Goals. Ekonomika regiona [Economy of regions], 17(4), 1110-1122. DOI: https://doi.org/10.17059/ekon.reg.2021-4-5. (In Russ.)
Lvova, N. A. (2019). Responsible investments: theory, practice, prospects for the Russian Federation. Nauchnyy zhurnal NIU ITMO. Ser. Ekonomika i ekologicheskiy menedzhment [Scientific journal NRU ITMO. Series “Economics and Environmental Management”], 3, 56-67. DOI: 10.17586/2310-1172-2019-12-3-56-67. (In Russ.)
Matveev, V. V. & Rezvyakova I. V. (2020). Investment Attractiveness of Regions in Modern Realities. Izvestiya Yugo-Zapadnogo gosudarstvennogo universiteta. Ser. Ekonomika. Sotsiologiya. Menedzhment [Proceedings of the Southwest State University. Series: Economics, Sociology and Management], 10(4), 114–124. (In Russ.)
Ng, A. (2021). Green Investing and Financial Services: ESG Investing for a Sustainable World. In: The Palgrave Handbook of Global Sustainability (pp. 1-12). Cham: Springer International Publishing. DOI: http://dx.doi.org/10.1007/978-3-030-38948-2_104-1
Niyazbekova, S., Jazykbayeva, B., Mottaeva, A., Beloussova, E., Suleimenova, B., & Zueva, A. (2021). The Growth of “Green” finance at the global level in the context of sustainable economic development. In: E3S Web of Conferences. Vol. 244 (10058). EDP Sciences. DOI: http://doi.org/10.1051/e3sconf/202124410058.
Park, S. & Jang, J. (2021). The impact of ESG management on investment decision: Institutional investors’ perceptions of country-specific ESG criteria. International Journal of Financial Studies, 9(3), 48. DOI: https://doi.org/10.3390/ijfs9030048
Puaschunder, J. (2020, August). The Green New Deal: Historical foundations, economic fundamentals and implementation strategies. In: Proceedings of the 18th International RAIS Conference on Social Sciences and Humanities (pp. 41-52). Scientia Moralitas Research Institute. DOI: http://dx.doi.org/10.2139/ssrn.3676872.
Rebai, S., Azaiez, M. & Saidane, D. (2019). Towards Sustainable Finance Conceptualization. In: Corporate Social Responsibility, Ethics and Sustainable Prosperity (pp. 363-386). World Scientific. DOI: http://dx.doi.org/10.1142/9789811206887_0013.
Serikbayeva, A. T. (2016). “Green” finance in the world and Kazakhstan: the main directions of development. Ekonomicheskoe obozrenie Natsionalnogo Banka Respubliki Kazakhstan [Economic Review (National Bank of Kazakhstan)], 4, 47-56. (In Russ.)
Sheveleva О. B. & Nacheva М. K. (2012). Comparative analysis of the methods of the estimation of the region’s investment potential. Innovatsii [Innovations], 2(162), 45-59. (In Russ.)
Suvorova S. D. & Kulikova O. M. (2021). “Green” business transformation: a solution for sustainable development. Innovatsionnaya ekonomika: perspektivy razvitiya i sovershenstvovaniya [Innovative economy: prospects for development and improvement], 7(57), 85-90. DOI: 10.47581/2021/PS-3/IE.7.57.14. (In Russ.)
Varavin, E. V. & Kozlova, M. V. (2018). Assessment of «Green» Economy Development in Regions (On the Example of the Republic of Kazakhstan). Ekonomika regiona [Economy of Region], 14(4), 1282-1297. DOI: 10.17059/2018-4-18. (In Russ.).
Vostrikova, E. O. & Meshkova, A. P. (2020). ESG Criteria in Investment: Foreign and Russian Experience. Finansovyy zhurnal [Financial Journal], 12(4), 117-129. DOI: 10.31107/2075-1990-2020-4-117-129. (In Russ.)
Yakovlev, I. A. & Kabir, L. S. (2018). Green investment financing mechanism as an element of the national strategy for sustainable development financing. Finansovyy zhurnal [Financial Journal], 3(43), 9-20. DOI: 10.31107/2075-1990-2018-3-9-20. (In Russ.)
Yerbolatova, D. O. (2020). Current situation of green financing in Kazakhstan. Nauka bez granits [Scince without borders], 4(44), 95-101. (In Russ.)
Yessekina, B. K., Bekturganova, M. S. & Opitz, P. (2018). Assessment of the potential of decarbonization of the basic sectors of Kazakhstan’s economy. Vestnik Kazakhskogo natsionalnogo universiteta. Seriya ekonomicheskaya [The Journal of Economic Research & Business Administration], 1(123), 87-95. DOI: 10.26577/be-2018-1-2065. (In Russ.)
Zhan, J., & Santos-Paulino, A. (2021). Investing in the sustainable development goals: Mobilization, channeling, and impact. Journal of International Business Policy, 4(1), 166-183. DOI: http://dx.doi.org/10.1057/s42214-020-00093-3
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Варавин Евгений Владимирович , Козлова Марина Васильевна , Куур Ольга Вячеславовна , Пестунова Галина Борисовна
This work is licensed under a Creative Commons Attribution 4.0 International License.
