THE MAIN FACTORS OF MODELING OF UKRAINE’S INTEGRATION INTO THE PAN-EUROPEAN ECONOMY THROUGH THE GREEN TRANSITION

• Published in: Стратегічна панорама no. 1; pp. 53 - 63
• Main Authors: Oliinyk, Danyila, Matviichuk, Oleksandr
• Format: Journal Article
• Language: English
• Published: National Institute for Strategic Studies 30.01.2024
• Subjects: climate neutrality; digital assets; general equilibrium model; green taxonomy; green transition
• ISSN: 2616-9460; 2616-891X; 2616-891X
• DOI: 10.53679/2616-9460.1.2024.05

The article highlights the role of geopolitical, economic, energy, environmental, informational, and other key factors in modeling Ukraine's integration into the pan-European economy, grounded in the conceptualization of green economic modernization. In particular, it presents a comprehensive analysis of the twin transition across various economic sectors based on digital transformation for monitoring ecosystems and energy use. The study examines the benefits of digital transformation of the economy within the context of the green transition, including a classification system of environmentally sustainable economic activities (green taxonomy) to mitigate climate change and achieve green standards. One outcome is the consistent application of unified technical criteria by business entities within the statistical classification system of economic activities. In addition, the article discusses the potential role of business entities in mitigating the effects of climate change and stabilizing greenhouse gas concentrations in the atmosphere. Attention is also paid to the importance of employing macroeconomic modeling within the framework of the new global paradigm of the green transition. The authors provide examples of applying a general equilibrium model to assess the potential economic impact of Ukraine’s integration in light of its anticipated accession to the European Community, specifically referencing general equilibrium models and the European Energy Efficiency Model. The emphasis is placed on applying standardized methods for measuring and communicating information about the environmental performance of the product life cycle to quantify the carbon footprint of products, as well as greenhouse gas emissions and absorption at the level of business entities. The article examines the devastating consequences of Russia’s full-scale war against Ukraine, particularly the damage inflicted on the energy sector and the environment. The authors propose several approaches to formalizing economic modeling of environmental processes in the context of energy and climate trends, as well as the potential consequences of Ukraine’s economic integration into the European Union.