TAX INSTRUMENTS IN ENSURING CONSTANT REPRODUCTION OF THE ECONOMIC PROCESSES ENTROPY PREMISES MINIMIZATION

Abstract

The article is devoted to the study of effective instruments for ensuring constant reproduction of the economic process’s entropy premises minimization. The paper examines the essence, content, and various views on the entropy interpretation in economic theory. The main prerequisites for the entropy emergence in the economy are determined. The necessity to implement an economic model focused on environmental conservation and ensuring of the constant reproduction of the economic processes entropy premises minimization is substantiated. The process of functioning of an organization as an open system is examined. Attention is focused on the irreversible energy and resources dissipation in economic processes, which leads to the need to increase input resources to maintain the previous level of production. It is determined that waste generated as a result of the economic activities of business entities is a physical manifestation of entropy in the economy. The essence and basic principles of the circular economic model are revealed. It is noted that waste recycling is a key element of this economic model. It is determined that the economic processes entropy can be minimized by a circular economic model implementation, since this model is focused on preventing the inevitable loss of valuable resources and reducing the need for primary raw materials. The main economic instruments for incentivizing of the transition from a linear model based on use and disposal to a circular economy are studied. It is determined that the most effective economic instrument of state environmental policy that stimulates economic entities to minimize the negative impact on the environment and fosters the transition to a circular economy are environmental taxes. The main categories of current environmental taxes in EU countries are considered. It is established that the main part in the structure of tax revenues from eco-tax payments in EU countries forms energy taxes. The main methods of waste management system in EU countries are analyzed. It is determined that the use of such economic instruments as environmental taxes has allowed European countries to build a powerful waste management industry and significantly reduce a landfilling. An analysis of the effectiveness of the main tax instruments aimed at stimulating the formation of a circular economic model has been conducted.