Circular economy, sharing and sustainability - Challenges for the social economy in a territory that wants to become a Smart Region

This study aims to analyse the predisposition of social economy agents to resource sharing. To achieve this, it was chosen to implement an exploratory qualitative approach directed to managers and an exploratory quantitative approach directed to employees. The results allowed to estimate that they do have a significant economic impact on number, paid work and business volume. It was shown the relationship between the interest demonstration on sharing and the appropriate qualification for the jobs of managers and employees. It was demonstrated the practice of informal and non-regulated sharing of own and third parties’ resources, among close partners, without the existence of a management model of knowledge, assets, time, use/reuse and exploitation. It is anticipated that the study could serve as scientific/methodological basis for a regional investment project, R&D and establishment of partnerships, reconciling interest in a smart region, as well as the application of circular economy principles.

Investments in Pinus elliottii Engelm. Plantations: Real Options Analysis in Discrete Time

Background: The commonly used methods for the financial evaluation of plantation forest investment projects do not incorporate uncertainties and ignore the value related to flexibility. The real options analysis makes it possible to capture these values in investment projects, increasing their value and return. Despite this, studies involving real options in forest investment projects are scarce, specifically those related to Pinus spp. Therefore, this study aimed to: (a) analyze whether the real options analysis adds value to investment projects of Pinus elliottii Engelm. plantations; and (b) make the real options analysis more accessible to forest managers and potentially increase its use in the investment projects of Pinus spp. plantations. Methods: We evaluated two investment projects in P. elliottii plantations in southern Brazil, which differed in the way of obtaining the land for planting: with lease or purchase of land on a planning horizon of 21 years. In the real options analysis, we used deferral, expansion, and abandonment. Results: Individually, the deferral, expansion, and abandonment options add value to investment projects in Pinus elliottii plantations. The option to expand the forested area is one that adds the most value to the investment project with land lease. In the investment project with land purchase, it is abandonment. Conclusions: Investment projects in Pinus elliotti plantations that contemplate the land purchase analyzed through the real options analysis present higher financial returns than those that consider land lease, inverting the result provided by the traditional analysis.

Reliability of construction of nuclear power facilities in the global energy market

Purpose: development of conceptual provisions, methodical approaches and practical recommendations about modeling and integrated management at a pre-investment stage of nuclear power construction facilities in the international energy construction market. Materials and methods: a set of the interrelated methodological approaches based on the theory of complex systems life cycle, methods of abstraction, comparison, analysis, synthesis, opposition, modeling, forecasting, expert assessments, risk theory and others. The research is conducted with the use of open data resources of the International Energy Agency (IEA), International Atomic Energy Agency (IAEA), World Nuclear Association (WNA), Nuclear Energy Agency under OECD and ROSATOM State Corporation open statistical data. Results: Features of the modern global world market of nuclear power construction, as well as the role and place of Russia in it, are considered. A comprehensive review of the literature on the studied problems is accomplished. A methodology for modeling the organizational and economic reliability (OER) of complex systems is suggested. Modeling of the structural components of the life cycle (hereinafter LCi-j) of an investment project for the NPP construction on the international market in the conditions of high competition is proposed.

A New Airport in Mexico: Feasibility of Socialist Style Infrastructure in a Private Capital Economy

This paper is based on the positive correlation between projects of infrastructure developed by the government, and the indicators of general well-being of populations in adjoining areas where such constructive changes have been effected. To study the multifactorial effects of the development of a welfare state, we have studied the economic projections associated with the construction of AIFA (Felipe Angeles International Airport), a new airport in Mexico, which was undertaken completely as a government-funded project and developed as a national infrastructure project by the military establishment. Information on projected investments and downstream investments and local employment from the Secretary of Agrarian Development and Tourism (SEDATU) and the Secretary of Public Finances (Forbes) for the new airport AIFA are compared and analyzed with similar projects in other privately developed infrastructure projects and their calculated impact in order to suggest how well-being (achieved through such indices as employment and the generation of micro-enterprises) would pan out for the economy in the State of Mexico, where the new public-funded projects are envisioned. Projections based on available information suggest that the construction of a public infrastructure module can be achieved under economic constraints, focusing on lower spending from the public budget; however, there is a lack of information and transparent policy decisions to indicate growth for entrepreneurs in the local economy, and neither any projected information on opportunities of further private or public investments associated with the airport. A socialist-style public investment project, engineered by the state military, may need more transparency and engagement on behalf of entrepreneurs.

FPV for Sustainable Electricity Generation in a Large European City

There is a huge interest worldwide related to continuously increasing the use of renewable energy sources (RES) for electricity generation. Romania, at this moment, even though it has to attain a share of 30.7% of RES from total energy consumption by 2030, does not have any major investment project of this kind in the near future. Photovoltaic (PV) is one of the most promising technologies, with decreasing prices for PV panels but with the disadvantage of large, needed surfaces. This study presents a solution to install PV panels where there is a need for electricity, in a large city, by using the surface of a reservoir. “Lacul Morii” Reservoir in Bucharest is the choice for the case study. The insolation and the possibility to install floating PV, as well as electricity generation, benefits for water quality and carbon dioxide (CO2) emissions reduction are assessed, and even the installation of charging stations for electric bikes and cars. The results are very promising, and the main conclusion is that, after its realization, the floating photovoltaic (FPV) plant on “Lacul Morii” Reservoir will be a source of clean electricity and a demonstration project on how to benefit from solar energy to produce electricity in large cities where there are reservoirs.

INVESTMENT DESIGN AS A BASIS FOR THE FORMATION OF INVESTMENT ATTRACTIVENESS OF AN INDUSTRIAL ENTERPRISE

The article investigates the financial and economic essence of investment design and proves that having the diversity and abundance of sources of financing of various projects and programs in industrial enterprises there is an urgent need to form their investm ent attractiveness, which should be embodied in the form of an investment project. The main approaches to the definition of the concept of investment project are analyzed and the author's definition of this concept is given. The groups of methods for assessing the economic efficiency of investment projects, which allow to assess its economic efficiency, which increases the investment attractiveness of prospective domestic and foreign investors. Typical errors that may occur in the calculation of performance indicators of the investment project and adversely affect the investment attractiveness of an industrial enterprise are highlighted. It is proved that one of the most important and defining stages of the project cycle of investment design is project analysis, which is a set of methodological measures and techniques used for the preparation and justification of investment decisions. The main types of analysis that should be included in the project analysis of the investment project ar e defined. It is concluded that after all the studies preceding the investment decision, it is necessary to draw up a certa in final document that will allow the investor and the entrepreneur not only to accept, but also to fix, and when to be done to justify the hopes for the effective ness of the investment project. For this purpose, a standard document is drawn up, in which the concept of a real investment project – a business plan-is substantiated in detail. The business plan developed in the article makes it possible to find out the viability of the project in the conditio ns of market competition, contains guidelines for the further development of the enterprise, and is the main condition for the formation of investment attractiveness of an industrial enterprise in the modern investment climate of Ukraine.

ESTIMATING ECONOMIC EFFICIENCY OF ENTERPRISESE FUNCTIONING

The article analyzes the essence and importance of the mechanism of estimation of production activity efficiency in a modern industrial enterprise. The main aggregated indicators of complex evaluation of economic efficiency of enterprises are determined. In accordance with the prevailing instruments and means of public administration, the main mechanisms of state regulation of the analyzed industry are identified. The theoretical principles of the concept of "enterprise efficiency" as a property and ability of the enterprise to formulate and achieve their goals, taking into account the influence of external factors and using internal conditions of functioning, to achieve the set tasks, using all available resources and means for solving social, environmental, budgetary and other problems of both society and enterprise at the established cost-benefit ratio. The basic theoretical and methodological approaches to the estimation of economic efficiency of enterprises are considered. The basic approaches to the estimation of efficiency of production activity of the enterprise are analyzed and systematized. It is proposed to use econometric modeling to improve the reliability of the estimation of the efficiency of production activity. The expediency of carrying out such an assessment by determining the dependence of the production activity efficiency on the partial indicators of the evaluation mechanism in modern industrial enterprises based on traditional and multifactorial approaches is substantiated. The basic elements of estimation of efficiency of production activity of the enterprise are selected and the integral index of estimation of efficiency of production activity is defined. The main approaches to establishing the essence of economic attractiveness and economic efficiency of investment projects are investigated in the article. It is established that the purpose of assessing economic attractiveness is to determine the efficiency of use of public resources within the project, economic efficiency - to assess the feasibility of using scarce (limited) resources of society in the framework of a specific project. The views of scientists on the choice and characteristics of indicators of evaluating the economic efficiency of functioning of enterprises for the purpose of conducting a comprehensive analysis are investigated. Methodical approaches to assessing the economic attractiveness and cost-effectiveness of investment projects are explored. The main stages of evaluating the economic attractiveness and efficiency of the investment project have been established.

An original methodology for evaluating the effectiveness of the use of concession mechanisms based on the stakeholder theory

Subject. The article addresses the methodology for evaluating the effectiveness of the use of concession mechanisms based on the stakeholder theory in investment activities. Objectives. The purpose is to develop methodological approaches to assessing the effectiveness of investment process financing, using the concession mechanisms. Methods. I employ both general scientific methods of cognition and analytical, economic and statistical methods of information processing, based on the analysis of existing concession agreements. Results. The study defines a methodology for evaluating the effectiveness of the use of concession mechanisms on the basis of the theory of stakeholders. It enables to determine the limits and prospects for investing private investor's funds, taking into account the evaluation rating scale. Conclusions. The stability of investment activity is an important aspect. The analysis of the existing preliminary review of the current economic state of concession agreements revealed negative cause-and-effect relationships, which are associated essentially with the lack of awareness of the parties of successful implementation of investment projects. My unique methodology for evaluating the effectiveness of the use of concession mechanisms based on the stakeholder approach aims at solving the above-mentioned problem and increasing the efficiency of investment project financing through a preliminary project assessment. It can be used in investment activities, in particular, in preparing and implementing concession agreements in the housing and utilities sector, construction of social institutions and transport infrastructure facilities.

Features of the methodology for assessing budget efficiency investment pro-jects

The analysis of current regulations shows that only a few indicators (budgetary effect) are used to assess the budget efficiency of investment projects in Ukraine, and the decision on financing is not made from it. As a result, it is necessary to raise the issue of introducing an additional system of indicators for assessing the effectiveness of investment projects, which characterize the return on investment of budget funds. Thus, the purpose of this study is to develop proposals for improving the methodology for assessing the budget effectiveness of investment projects. The main indicator for assessing the effectiveness of projects that provide state or regional financial support is the budgetary effect. Budget effect is the main indicator of budget efficiency used to justify the decision to finance the project, which is often defined as the difference between inflows and outflows of budget funds, taking into account discounting. The paper proposes to introduce additional indicators to assess the budget efficiency of the investment project, in addition to the payback period of state support. Absolute budget effect. which will be calculated in the form of two indicators: taking into account and without taking into account loans to banks under government guarantees. This calculation is justified, as the budget effect may be understated by including bank loans in the definition of this indicator, while the state budget may not incur costs under its guarantee obligations. Absolute budgetary effect, which characterizes the total amount of funds that the country's budget will receive as a result of the project. Relative budget effect, which characterizes the ratio of budget investments to the investment project and additional revenues to the budget. Budget profitability – shows how many monetary units the project implementation brings per unit of budget funds spent. Due to the fact that this indicator is based on the indicator of the absolute budgetary effect, the calculation of this indicator will be calculated taking into account and without taking into account bank loans issued under government guarantees. The authors have developed some modifications to the calculations for assessing the budget efficiency of investment projects, as well as the calculation of indicators of budget efficiency of projects that characterize the return on investment: absolute budget effect, relative budget effect (indirect and direct), budget profitability.

Key instruments of state regulation of the industrial sector

The article provides an analysis of financial and non-financial instruments of state regulation of the industrial sector. The studies carried out on the use of support measures by high-tech and innovative enterprises in different sectors of the economy show their high interest in obtaining it. It was revealed that the maximum demand for a state support measure is about twenty-five percent, while on average it does not exceed 10%. The concern is caused by the inability of enterprises to use several support measures at the same time, most often they apply for one measure for a specific investment project. The use of support measures in combination will allow industrial enterprises to effectively implement their strategic plans and form an increasing vector of industry development.