TAX INCENTIVES TO MANAGE LAND AS A NATURAL ASSET
Authors: NEKRASENKO L.A. 
Published: November 2022

Topicality. Successful economic development of agriculture is one of the components of Ukraine's sustainable development. But this development very often leads to changes in natural and climatic conditions and to increased risks for doing business. Agricultural land is a natural asset and it should be taken into account that the change oflandscapes from natural vegetation to any other use can lead to loss, degradation, and fragmentation of the environment, all of which can have devastating consequences for biodiversity as a source of ecosystem services. Therefore, it is important to find ways to rationally manage the land.Aim and tasks. The purpose of our study was to substantiate the relevance of taxes for the management and rational use of land as a natural asset. As a tool, we consider a tax on crop rotation, which leads to a decrease in soil fertility and the release of carbon from dying plant residues. Crop rotation planning will help reprioritize crop selection, increase fertility and reduce carbon emissions.Research results. The main component of the sustainable development of the agricultural sector is soil fertility. At the same time, land use and agriculture are the main natural agents for reducing air pollution. Today, agriculture accounts for about 20% of greenhouse gas emissions, and humus losses range from 19% to 22% in different natural areas. Considering agricultural land as a natural asset, it should be taken into account that their irrational use leads to a change in natural and climatic conditions and an increase in risks for doing business. We have proposed to introduce carbon crop rotations as a tool for soil quality management. In our opinion, this should contribute to a change in priorities in the choice of agricultural crops, and as a result, an increase in fertility and an increase in carbon sequestration. To stimulate agricultural enterprises, we consider it expedient to introduce a tax on crop rotation. To substantiate this idea, we have created a model for the dependence of CO2 absorption/emission on the yield of various crops and a decision-making model for planning the costs of an agricultural enterprise.Conclusion. We have conducted a study of the relationship between the yield of various crops and the absorption/release of carbon dioxide. We put forward a hypothesis: there is a certain relationship between the yield of different crops and the balance of absorption/release of CO2. We have studied this connection. The model of dependence of CO2 uptake/emission on the yield of different crops shows that the ability to release carbon by plant residues of different agricultural crops has both a direct and inverse relationship with the yield of various crops. We have developed a decision-making model for planning the costs of an enterprise, subject to planning for environmental risks or paying a tax on carbon crop rotations. Thus, the problems of land use as a natural asset in agriculture can be solved by: the introduction of carbon crop rotations, which should help change priorities in the choice of agricultural crops, and the introduction of a balanced and evidence-based approach to the development and implementation of environmental taxes.