Management of Externalities in the Context of Sustainable Development of the Russian Arctic Zone

The territory of the Arctic is of interest from the point of view of the strategic development of the economy. However, the industrialization of the Arctic zone is accompanied by both a positive and a negative influence on the country’s socio-economic development. An analytical review of the research which has been published previously allows us to discuss the issue of sustainable development in the Arctic through the prism of the theory of externalities. Considering this, the paper examines some relevant issues from the standpoints of the concept of sustainable development and scientific and technological progress. Against the background of the identified problems, the purpose of the research is to clarify management decisions in the field of internalization of the externalities of economic development of the Russian Arctic zone. As research methods, the authors have applied comparative analysis, dynamic analysis, the coefficient method, correlational analysis and cluster analysis. An analytical review of scientific works, research tooling and a statistical database concerning the development of the Russian Arctic zone provided the following scientific results: the category of “externalities” in the context of industrialization of the Arctic zone’s territories and their systematization in a number of areas (environmental, innovation, investment, infrastructure, social, etc.) has been clarified; some trends in the degree of neutralization of negative environmental externalities in terms of environmental problems (pollution capture, waste disposal, recycling and wastewater treatment) have been identified; the dynamics of investment per unit of environmental pollution in the context of environmental approaches have been elucidated; the efficiency of investments in environmental preservation measures in the territories of the Russian Arctic zone have been evaluated; positive innovative externality from the investment of own funds in the fixed capital of enterprises have been revealed; the typology of the subjects of the Russian Federation that form part of the Arctic zone, according to the criteria of the intensity of costs for neutralization of negative externalities (territories with high, moderate and low intensity of costs) have been suggested; and a package of measures in order to manage the external effects of economic development of the Arctic zone of the Russian Federation in the context of sustainable development has been proposed. The practical significance of the results obtained lies in the possibility of taking all of them into account in the implementation of the state program “Socio-economic development of the Arctic zone of the Russian Federation”, contributing to the qualitative development of the territories of the Russian Arctic and improving the well-being of the population of the corresponding constituent entities of the Russian Federation