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Development of the Ukrainian coal basins as a socio-economic system

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Category: Economy and Management

Last Updated on 10 November 2019

Published on 26 October 2019

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Authors:

H.Horban, Cand. Sc. (Econ.), Assoc. Prof., orcid.org/0000-0001-8081-3287, V.I.Vernadsky Taurida National University, Kyiv, Ukraine, e‑mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

V.Hornyk, Dr. Sc. (Public Admin.), Assoc. Prof., orcid.org/0000-0002-9723-3956, V.I.Vernadsky Taurida National University, Kyiv, Ukraine, e‑mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

S.Kravchenko, Dr. Sc. (Public Admin.), Assoc. Prof., orcid.org/0000-0002-9656-1587, V.I.Vernadsky Taurida National University, Kyiv, Ukraine, e‑mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Abstract:

Purpose. To assess the development of the territories of the Ukrainian coal basins as functioning of a socio-economic system.

Methodology. The authors used the methods of conceptual generalization, comparison, synthesis and analysis in the study. Its methodological apparatus allowed the authors to consider the “Synchro-mining” model and the Vagonova model, and to offer a development assessment of the territories of the Ukrainian coal basins as functioning of a socio-economic system.

Findings. The economic efficiency of the development of the Ukrainian coal basins depends on two main indicators: 1) coal reserves and the quality of its production technologies; 2) the way economic activities affect social processes. This approach allows us to assess the development of the Ukrainian coal basins as a socio-economic system.

As a result of the analysis, the authors found that:

1. The amount of coal production in Ukraine over the past 42 years has dropped by 6.5 times, from 218 million tons in 1976 to 33 286.4 million tons in 2018.

2. The Ukrainian coal industry was not affected by the fourth industrial revolution; accordingly, coal mining technologies lag, on average, 20‒30 years behind the technologies used in the world coal industry.

3. The use of outdated technologies has a negative impact on the environment, in particular on the lithosphere, hydrosphere, atmosphere and on the regenerative ability of biota.

4. The actual monopolization of the coal industry, as well as the lack of competition in the domestic market, has led to a disruption in the distribution of the benefits of goods and services among the population of the coal-mining regions. Material and social security of the population involved in the extraction and processing of coal does not correspond to the risks taken by miners. Moreover, social processes in the territory of coal basins are regressing.

The obtained results indicate a regression of the Ukrainian coal industry as a socio-economic system.

Originality. The authors suggested an assessment of the development of the Ukrainian coal basins as functioning of a socio-economic system. Analysis of fossil fuel reserves and technologies of its extraction, on the one hand, and the degree of influence of economic activities on social processes, on the other hand, allows us to make theoretical and practical assessments of the economic efficiency of the development of Ukraine’s coal-producing regions.

Practical value. Consideration of coal production in the Ukrainian coal basins as functioning of a socio-economic system reveals the possibility of a comprehensive assessment of the development efficiency of coal-producing regions. The study suggests a basis for building the development models of coal-mining regions, which take into account the technogenic load on the region, as well as the impact of economic activities on social processes. The creation of such socio-economic models will make it possible to clarify the development strategy of coal-mining regions, and to make theoretical and practical assessments of their development.

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