Agrarian Economy 2021 Т. 14 № 1-2:36-42

Economic mechanism of land use regulation

Dudych L., Candidate of Economics, acting associate professor
Dudych H., Candidate of Economics, associate professor
Lviv National Agrarian University

https://doi.org/10.31734/agrarecon2021.01-02.036

ANNOTATION

In the existing system of the economic mechanism of land use regulation, the mechanisms of environmental protection measures, including land protection measures, preferential taxation and price incentives for ecological and constructive activities, do not actually perform. The economic mechanism of land use regulation belongs to the groups of economic sciences and provides mainly such methods of economic research as monographic, graphic, balanced, comparative, abstract-logical. The experience of foreign countries shows that the mechanism secures achieving success in the system of rational land use. The formation of a system of economic levers for the rational use of agricultural land should be based on improving tools and regulators of land relations in the agricultural sector of the economy basing on the following elements, namely economic incentives for rational agricultural land use, land market infrastructure, improving state control, state financial support for farmers. Considering the foreign experience, we see that the government can use its power to influence land use decisions by applying the tax system. Taxation can be used for various purposes: to encourage land use, achieve environmental goals and protect land, promote change of ownership, a favorable attitude to certain types of investment. The government also exercises power by subsidizing certain goals, such as promoting certain land use practices.

It is established that in many developed countries, the basis for preservation and restoration of land resources, improving the environment, human life is a rational organization of agricultural landscapes. Therefore, special laws have been adopted and economic mechanisms for the greening of land relations have been enshrined in law. They oblige all land users to comply with these requirements, regardless of the size of the land. Such mechanisms include, in addition to counter-agreements between farmers and the state, economic incentives for land users, such as those that are just emerging in Ukraine: land use planning with the allocation of environmentally sensitive areas; development and implementation of comprehensive programs that take into account agricultural and environmental aspects of land use; restrictions on the timing of agricultural work, the use of certain agricultural machinery, which are discussed with the landowner before he/she acquires ownership.

KEY WORDS

economic mechanism, rational land use, economic incentives, taxes, subsidies, economic levers of direct and indirect influence

FULL TEXT

LINK

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