Modeling the interaction between environment and the economy considering the impact on ecosystem

¹ Odessa Institute of Trade and Economics of Kyiv National University of Trade and Economics, Odessa, Ukraine
² European University, Kyiv, Ukraine
³ Classic Private University, Zaporizhzhia, Ukraine
⁴ Uman National University of Horticulture, Uman, Ukraine
⁵ National University of Life and Environmental Sciences of Ukraine, Kyiv, Ukraine

^* Corresponding author: victor-koval@ukr.net

Abstract

The problem of anthropogenic impact is becoming more acute every year. The basis of entrepreneurship is to maximize profits and increase profitability ratios. However, when calculating economic indicators, changes in the natural potential and the impact of any activity on the environment are not analyzed. In developed countries, more and more emphasis is focused on socially and environmentally conscious entrepreneurship, however, business is still predominant in the world, where the result of activity is an increase in financial resources due to environmental degradation. At the same time, there is an improvement in the situation with financing environmental protection activity. An increase of the population’s consciousness is of a point-like nature, while the ecosystem continues to degrade. It is proved that the negative externalities that were described in the model by Pigou, Leontyev-Ford and others must be taken into account. The necessity of taking waste minimization and negative impact on the environment as a target function is justified. It is proposed to solve this problem systematically and to take into account the effect of the accumulation of negative implications of the impact on the ecosystem.