Assessment of the Profitability of Environmental Activities in Forestry
2. The Status of Implementation of Environmental Measures for Forestry in Ukraine
3. Literature Review
4.1. Accounting of Environmental Activities in Forestry
4.2. The Effectiveness of the Environmental Activities
Conflicts of Interest
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|Indicator, Dimension||2015||2016||2017||2018||Rate of Growth, %|
|Forest area, thousand ha||10,630.3||10,423.1||10,674.9||10,674.9||0.4|
|out of which covered with tree cover||9695.2||9690||8424.6||8424.6||−5.6|
|Cutting area, thousand ha||399.3||386.3||419.1||445.5||4.1|
|Volume of harvested liquid wood, thousand m3||21,924.2||22,602.3||21,923||22,529.7||0.5|
|Area of forest reproduction, thousand ha||60.4||63.2||64.7||51.5||−4.5|
|Net income from the sale of forest products, thousand EUR||429,997.8||426,047.3||455,772.7||511,986||5.9|
|Cost of sold forest products, thousand EUR||296,613.3||306,352.1||340,421||390,021.8||9.3|
|Operating expenses, thousand EUR||36,751.16||23,622.66||25,728.49||30,803.71||−4.4|
|Net profit, thousand EUR||41,326.67||26,119.21||16,757.6||14,526.34||−35.8|
|Dimension||Indicator||Definition||Desirable Trend of the Indicator||Sources of Information for Calculation|
|Economic impact||Overall economic effectiveness of environmental expenditures||,|
where is the overall effectiveness of environmental costs;
is the ecological and economic impact of environmental measures implemented (the total increase in the forest resource value);
CEE is the cumulative environmental expenditure that has contributed to this effect.
|max||Data of analytical account 237 “Environmental expenses”, 915 “Environmental expenses”, 719 “Operational income from environmental activities”, 747 “Income from capital environmental measures”. Analytical accounting on accounts 15 “Capital construction”, 98 “Tax on profit”.|
|Effectiveness of capital environmental expenditure||,|
where Ek is effectiveness of capital environmental costs;
is operating expenses for maintenance of environmental objects;
CNE is the capital expenses for nature protection.
|Normative effectiveness of environmental costs||,|
where is the normative coefficient of capital investments.
|Net economic impact of environmental measures||NEE = Egen – Ee,|
where NEE is the net economic effect;
Ee is the costs of relevant environmental activities;
Egen - the economic effect of the implementation of nature protection activities:
EL is prevented loss from pollution of forests;
is the growth of income from the activities of the enterprise due to environmental improvement.
|Environmental impact||Average reduction in negative impact on forest resources||,|
where is the average reduction in the negative impact on forest resources;
- reduction in negative impacts on forest resources;
TEE is the total environmental expenditure that has contributed to this effect.
|max||Management reporting data: “Statement of cost accounting for environmental activities of forestry”, “Summary of cost accounting for environmental activities by sources of financing”, form 10-LH “Report on the implementation of the production plan for forestry”.|
|Average impact on forest resources||,|
where is an indicator of the average increase in the impact on forest resources;
is improvement in the value of forest resources.
|Social impact||Profitability of environmental activities from the social viewpoint||R = ,|
where R-profitability of environmental activities from the point of view of society; is reduction in environmental fees and payments; is additional profit from the sales of waste to third party enterprises or their own processing and sale of products to buyers; is the costs of implementation of I environmental action.
|max||Data of analytical accounting on accounts 36 “Calculations with buyers and customers”, 37 “Calculations with other debtors”, 915 “Expenses on environmental activity”.|
Tax and financial reporting data.
|Year||Annual Reduction in Damage to Forest Resources, Thousand Euro||Annual Amount of Capital Conservation Expenditures, Thousand Euro||Cash Flow, Thousand Euro||Discount Factor||Discounted Cash Flow, thousand Euro||NDI, Thousand Euro|
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Zamula, I.; Tanasiieva, M.; Travin, V.; Nitsenko, V.; Balezentis, T.; Streimikiene, D. Assessment of the Profitability of Environmental Activities in Forestry. Sustainability 2020, 12, 2998. https://doi.org/10.3390/su12072998
Zamula I, Tanasiieva M, Travin V, Nitsenko V, Balezentis T, Streimikiene D. Assessment of the Profitability of Environmental Activities in Forestry. Sustainability. 2020; 12(7):2998. https://doi.org/10.3390/su12072998Chicago/Turabian Style
Zamula, Iryna, Maryna Tanasiieva, Vitalii Travin, Vitalii Nitsenko, Tomas Balezentis, and Dalia Streimikiene. 2020. "Assessment of the Profitability of Environmental Activities in Forestry" Sustainability 12, no. 7: 2998. https://doi.org/10.3390/su12072998