IDEAS home Printed from https://ideas.repec.org/a/aiy/jnljtr/v10y2024i2p312-333.html
   My bibliography  Save this article

Modeling the policy of Tax Incentives for Sustainable Development of the Region: The Case of the Far Eastern Federal District of Russia

Author

Listed:
  • Olga A. Sinenko

Abstract

The article is devoted to the problem of tax incentives for sustainable development in the Russian Far East – a vast region dealing with significant demographic and environmental challenges. To solve this problem, the study applied methods of mathematical modeling. We built a hybrid mathematical model of the Far East development based on the principles of agent-based and system-dynamic approaches, implemented in AnyLogic 8.0 simulation modelling program. The model’s accuracy was confirmed by comparing its predictions with actual data from 2010 to 2021. The result of the study is the construction and interpretation of several scenarios of regional development involving different types of tax incentive policies: investment-oriented tax incentives to stimulate specific growth poles, increased budgetary spending with a social focus funded by taxes on future generations, higher environmental taxes, and a combination of different incentives. The main conclusions from the experiments showed that none of the tax incentive scenarios is a panacea. The most effective tool has proven to be targeted investment-oriented tax incentives for residents of special economic zones. Nevertheless, these incentives do not automatically solve the region’s sustainable development challenges stemming from the existing environmental constraints. In addition, the tax policy options under consideration are limited by demographic problems in the Far East, which adversely affect the rates of technological change and economic growth. From a practical standpoint, it can be concluded that a strategic tax policy in question should be based on a more comprehensive approach, employing mutually reinforcing tax incentives for innovation and investment in special economic zones and environmental incentives, capable of gradually improve the environmental situation. Further research in the field of tax policy of the Russian Far East should be directed to the search for measures of fiscal regulation of not only economic, but also demographic and environmental problems of the region in a complex.

Suggested Citation

  • Olga A. Sinenko, 2024. "Modeling the policy of Tax Incentives for Sustainable Development of the Region: The Case of the Far Eastern Federal District of Russia," Journal of Tax Reform, Graduate School of Economics and Management, Ural Federal University, vol. 10(2), pages 312-333.
    • Handle: RePEc:aiy:jnljtr:v:10:y:2024:i:2:p:312-333
    DOI: https://doi.org/10.15826/jtr.2024.10.2.171
    as

    Download full text from publisher

    File URL: https://taxreform.ru//fileadmin/user_upload/site_15907/2024/07-Sinenko.pdf
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.15826/jtr.2024.10.2.171?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Xi, Qiangmin & Sun, Ruidong & Mei, Lin, 2021. "The impact of special economic zones on producer services productivity: Evidence from China," China Economic Review, Elsevier, vol. 65(C).
    2. Schomers, Sarah & Matzdorf, Bettina, 2013. "Payments for ecosystem services: A review and comparison of developing and industrialized countries," Ecosystem Services, Elsevier, vol. 6(C), pages 16-30.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fateh Mamine & M’hand Farès, 2020. "Barriers and Levers to Developing Wheat–Pea Intercropping in Europe: A Review," Sustainability, MDPI, vol. 12(17), pages 1-19, August.
    2. Yang, Hongbo & Lupi, Frank & Zhang, Jindong & Liu, Jianguo, 2020. "Hidden cost of conservation: A demonstration using losses from human-wildlife conflicts under a payments for ecosystem services program," Ecological Economics, Elsevier, vol. 169(C).
    3. Zhang, Ning & Gong, Maoyu, 2022. "Economic and environmental outcomes of economic transition: Evidence from a quasi-experiment in China," Journal of Asian Economics, Elsevier, vol. 80(C).
    4. D'Alberto, R. & Targetti, S. & Schaller, L. & Bartolini, F. & Eichhorn, T. & Haltia, E. & Harmanny, K. & Le Gloux, F. & Nikolov, D. & Runge, T. & Vergamini, D. & Viaggi, D., 2024. "A European perspective on acceptability of innovative agri-environment-climate contract solutions," Land Use Policy, Elsevier, vol. 141(C).
    5. Qiangmin, XI & Peng, JI, 2023. "Does the development zone promote population urbanization? Evidence from China," Land Use Policy, Elsevier, vol. 131(C).
    6. Pei, Sha & Zhang, Chunxiao & Liu, Chunlan & Liu, Xiaona & Xie, Gaodi, 2019. "Forest ecological compensation standard based on spatial flowing of water services in the upper reaches of Miyun Reservoir, China," Ecosystem Services, Elsevier, vol. 39(C).
    7. Galati, Antonino & Crescimanno, Maria & Gristina, Luciano & Keesstra, Saskia & Novara, Agata, 2016. "Actual provision as an alternative criterion to improve the efficiency of payments for ecosystem services for C sequestration in semiarid vineyards," Agricultural Systems, Elsevier, vol. 144(C), pages 58-64.
    8. Long, Kaisheng & Omrani, Hichem & Pijanowski, Bryan C., 2020. "Impact of local payments for ecosystem services on land use in a developed area of China: A qualitative analysis based on an integrated conceptual framework," Land Use Policy, Elsevier, vol. 96(C).
    9. Van Hecken, Gert & Bastiaensen, Johan & Windey, Catherine, 2015. "The frontiers of the debate on Payments for Ecosystem Services: a proposal for innovative future research," IOB Discussion Papers 2015.05, Universiteit Antwerpen, Institute of Development Policy (IOB).
    10. Morán-Ordóñez, Alejandra & Ameztegui, Aitor & De Cáceres, Miquel & de-Miguel, Sergio & Lefèvre, François & Brotons, Lluís & Coll, Lluís, 2020. "Future trade-offs and synergies among ecosystem services in Mediterranean forests under global change scenarios," Ecosystem Services, Elsevier, vol. 45(C).
    11. Veronesi, Marcella & Reutemann, Tim & Zabel, Astrid & Engel, Stefanie, 2015. "Designing REDD+ schemes when forest users are not forest landowners: Evidence from a survey-based experiment in Kenya," Ecological Economics, Elsevier, vol. 116(C), pages 46-57.
    12. Everard, Mark & Dick, Jan & Kendall, Hazel & Smith, Ron & Slee, Bill & Couldrick, Laurence & Scott, Marian & McDonald, Claire, 2014. "Improving coherence of ecosystem service provision between scales," Ecosystem Services, Elsevier, vol. 9(C), pages 66-74.
    13. Jiang, Nana & Jiang, Wei & Wang, Yanfei & Zhang, Jinning, 2024. "Impact of financial reform on urban resilience: Evidence from the financial reform pilot zones in China," Socio-Economic Planning Sciences, Elsevier, vol. 94(C).
    14. Sangha, Kamaljit K & Ahammad, Ronju & Russell-Smith, Jeremy & Costanza, Robert, 2024. "Payments for Ecosystem Services opportunities for emerging Nature-based Solutions: Integrating Indigenous perspectives from Australia," Ecosystem Services, Elsevier, vol. 66(C).
    15. Brownson, Katherine & Fowler, Laurie, 2020. "Evaluating how we evaluate success: Monitoring, evaluation and adaptive management in Payments for Watershed Services programs," Land Use Policy, Elsevier, vol. 94(C).
    16. Alain‐Désiré Nimubona & Jean‐Christophe Pereau, 2022. "Negotiating over payments for wetland ecosystem services," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(3), pages 1507-1538, August.
    17. Simelton, Elisabeth & Viet Dam, Bac, 2014. "Farmers in NE Viet Nam rank values of ecosystems from seven land uses," Ecosystem Services, Elsevier, vol. 9(C), pages 133-138.
    18. Silva, Rafaela A. & Lapola, David M. & Patricio, Gleiciani B. & Teixeira, Moara C. & Pinho, Patricia & Priess, Joerg A., 2016. "Operationalizing payments for ecosystem services in Brazil's sugarcane belt: How do stakeholder opinions match with successful cases in Latin America?," Ecosystem Services, Elsevier, vol. 22(PA), pages 128-138.
    19. Del Rossi, Gemma & Hecht, Jory S. & Zia, Asim, 2021. "A mixed-methods analysis for improving farmer participation in agri-environmental payments for ecosystem services in Vermont, USA," Ecosystem Services, Elsevier, vol. 47(C).
    20. Junran Dong & Desheng Wu & Jingxiu Song & Jie Lu, 2022. "Gauging the environmental efficiency with ecological compensation in presence of missing data using data envelopment analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 5451-5472, April.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aiy:jnljtr:v:10:y:2024:i:2:p:312-333. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Natalia Starodubets (email available below). General contact details of provider: https://edirc.repec.org/data/seurfru.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.