Using the Investment Multiplier to Mitigate a Basic Environmental Contradiction
DOI:
https://doi.org/10.17059/ekon.reg.2026-1-13Keywords:
investment multiplier, investment accelerator, environmental damage, economic policy, sectoral distribution of investments, industrial wasteAbstract
Accelerated regional economic growth often comes at the cost of environmental damage. While the literature mainly promotes “green” technologies to address this issue, their effectiveness remains debatable. This study proposes mitigating the conflict through sectoral investment allocation that boosts gross regional product (GRP) while adhering to environmental constraints. It aims to define and formalize an approach for such targeted investment distribution. To achieve this, the paper introduces a set of index-based methods for analysis and constructs a multifactor additive econometric model. It emphasizes that investments in a particular regional industry generate multiplier effects on both production and environmental damage, not only within the target industry but also across related sectors. Moreover, the value of these multipliers changes with the sectoral structure of regional investments. The relationship between GRP growth and waste generation across sectors is formalized. Using scenario-based constraints, the study calculates GRP growth and waste volume for three alternative sectoral investment distributions in Nizhny Novgorod Oblast (Russia). By comparing GRP growth and waste volumes, it is possible to identify the investment option that best balances economic gains and environmental impact. The paper highlights the potential of this approach for factor analysis of GRP dynamics and environmental pollution. These findings are relevant both to specialists in regional economic policy and to researchers focused on sustainable regional development.
References
Arent, D., Wise, A., & Gelman, R. (2011). The Status and Prospects of Renewable Energy for Combating Global Warming. Energy Economics, 33 (4), 584–593. http://doi.org/10.1016/j.eneco.2010.11.003
Baranov, A. O., & Goreev, A. V. (2024). Dynamic Multipliers in Economics: Results and Interpretation of Calculations on the Example of Russia. Problemy Prognozirovaniya [Studies on Russian Economic Development], (4(205)), 46–59. https://doi.org /10.47711/0868-6351-205-46-59 (In Russ.)
Borkova, E. A., Golubyatnikova, M. V., & Grigoryan, A. N. (2024). Multiplier and Investment in Modern Russia in the Context of Stimulating Economic Development in the Context of Sanctions. Ekonomika i Upravlenie [Economics and Management], 30 (6), 677–685. http://doi.org/10.35854/1998-1627-2024-6-677-685 (In Russ.)
Danilov-Danilyan, V. I., Kattsov, V. M., & Porfiriev, B. N. (2023). Ecology and Climate: Where We Are Now and Where We Will Be in Two or Three Decades Situation in Russia. Vestnik Rossiiskoi Akademii Nauk [Herald of the Russian Academy of Sciences], 93 (11), 1032–1046. https://doi.org /10.31857/S0869587323110038 (In Russ.)
Demilkhanova, B. A., & Murtazalieva, A. Kh. (2023). Multiplier and Accelerator Effects in the Regional Economy. Ekonomika i Upravlenie: Problemy, Resheniya [Economics and Management: Problems, Solutions], 4 (5(137)), 62–68. https://doi.org/10.36871/ek.up.p.r.2023.05.04.008 (In Russ.)
Gore, A. (2009). Our Choice: A Plan to Solve the Climate Crisis. Emmaus: Rodale Books, 416.
Goridko, N. P., & Nizhegorodtsev, R. M. (2018). The Growth Points of Regional Economy and Regression Estimation for Branch Investment Multipliers. Ekonomika Regiona [Economy of Regions], 14 (1), 29–42. http://doi 10.17059/2018-1-3 (In Russ.)
Hassan, Q., Viktor, P., Al-Musawi, T. J., Mahmood Ali, B., Algburi, S., Alzoubi, H. M., Khudhair Al-Jiboory, A., Zuhair Sameen, A., Salman, H. M., & Jaszczur, M. (2024). The Renewable Energy Role in the Global Energy Transformations. Renewable Energy Focus, 48, 100545. https://doi.org/10.1016/j.ref.2024.100545
Hayek, F. A. (2025). Doroga k Rabstvu [The Road to Serfdom]. Moscow: AST, 352.
Karaganov, S. A. (2024). An Age of Wars? Article One. Rossiya v Global’noi Politike [Russia in Global Affairs], 22 (1(125)), 52–64. https://doi.org /10.31278/1810-6439-2024-22-1-52-64 (In Russ.)
Krugman, P. (2008). The Return of Depression Economics and the Crisis of 2008. New York City: W. W. Norton, 224.
Ksenofontov, M. Y., Shirov, A. A., Polzikov, D. A. & Yantovskii A. A. (2018). Assessing Multiplier Effects in the Russian Economy: Input-Output Approach. Problemy Prognozirovaniya [Studies on Russian Economic Development], (2(167)), 3–13. (In Russ.)
Marx, K. (1951). Kapital. Kritika Politicheskoi Ekonomii. Tom 3. [Capital: A Critique of Political Economy. Volume 3]. Moscow: State Publishing House of Political Literature, 927. (In Russ.)
Ostrom, E. (1990). Governing the Commons: The Evolution of Institutions for Collective Action. Cambridge: Cambridge University Press, 280.
Piketty, T. (2020). Capital and Ideology. Harvard: Harvard University Press, 1104.
Ponomarev, Y. Y., & Evdokimov, D. Y. (2021). Construction of Truncated Input–Output Tables for Russian Regions Using Location Quotients. Problemy Prognozirovaniya [Studies on Russian Economic Development], (6(189)), 43–58. https://doi.org /10.47711/0868-6351-189-43-58 (In Russ.)
Preuss, L. (2005). The green multiplier. In The Green Multiplier: A Study of Environmental Protection and the Supply Chain (pp. 47–66). London: Palgrave Macmillan.
Resch, G., Held, A., Faber, T., Panzer, C., Toro, F., & Haas, R. (2008). Potentials and Prospects for Renewable Energies at Global Scale. Energy Policy, 36, 4048–4056. https://doi.org/10.1016/j.enpol.2008.06.029.
Stiglitz, J. (2020). Lyudi, Vlast’ i Pribyl’. Progressivnyi Kapitalizm v Epokhu Massovogo Nedovol’stva [People, Power, and Profits: Progressive Capitalism for an Age of Discontent]. Moscow: Alpina Publisher, 430. (In Russ.)
Stepanova, Е. О. (2019). Calculation of The Investment Multiplier for the Subjects of the Central Federal District. Vestnik Adygeiskogo Gosudarstvennogo Universiteta. Seriya: Ekonomika [The Bulletin of the Adyghe State University, Series “Economics”], (4(250)), 53–59. (In Russ.)
Tatarkin, D. A., Sidorova, E. N. & Trynov, A. V. (2015). Methodical Bases of Estimation Multiplicative Effect of the Realization of Socially Significant Investment Projects. Vestnik Urfu. Seriya: Ekonomika i Upravlenie [Journal of Applied Economic Research], 14 (4), 574–587. https://doi.org /10.15826/vestnik.2015.14.4.033 (In Russ.)
Uzyakov, R. M. (2024). A Structural-Technological Multiplier as a Characteristic of the Dynamic Properties of the Economic Structure. Problemy Prognozirovaniya [Studies on Russian Economic Development], (1(202)), 54–66. https://doi.org /10.47711/0868-6351-202-54-66 (In Russ.)
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Еремин Владимир Владимирович , Сильвестров Сергей Николаевич
This work is licensed under a Creative Commons Attribution 4.0 International License.
