FINANCIAL AND ECONOMIC REGULATION

KHVESYK Mykhailo ¹, PZVMOYQRFG naPKYMzuBtJ CNMfhvclkeFozR², PZVMOYQRFG naPKYMzuBtJ CNMfhvclkeFozR³

¹SI “Institute of Environmental Economics and Sustainable Development of the National Academy of Sciences of Ukraine”
OrcID ID : https://orcid.org/0000-0003-4306-4904
²KAXGWfqlTR
³KAXGWfqlTR

The features of economic assessment of virtual water and its possible use in Ukraine

The paper defines the theoretical, methodological and applied foundations of the virtual water flow research. The basic substantial characteristics of virtual water are investigated. It is suggested methodological principles of indicators’ identification, that provide consideration of export and import features, physical volumes, domestic and world price levels, and industry characteristics. The position of Ukraine regarding volumes of virtual water among other European countries is analyzed. Particular indicators of its formation within the state, regional and sectoral dimensions are identified. It is emphasized an existence of significant misbalances between export and import volumes, as external trade parameters promote an excessive export of virtual water, which is a significant threat to the national policy of water consumption. Considerable discrepancy between internal and external prices is shown, indicating undervaluation of inland water resources of Ukraine. This situation adversely affects the possibility of using innovative tools to attract water resources into the economic relations sphere. It is considered sectoral characteristics of virtual water formation, features of territorial localization of its basic indicators. Main directions of the current situation improvement through implementation of the virtual water tools for public policy in the water sector are suggested, as: review of the structure of foreign trade, transformation of production processes regarding introduction of water-saving technologies, development of nationally adapted approaches and methods of use of financial and economic incentives for the policy of virtual water.

Keywords: virtual water, export and import flows, sectoral dimension, regional dimension, tools.

JEL: Q10, Q20, Q25.

KHVESYK M. . The features of economic assessment of virtual water and its possible use in Ukraine / M. . KHVESYK, n. C. pZVmOYqrfG, n. C. pZVmOYqrfG // Фінанси України. - 2015. - № 6. - C. 83-96.