THE CONCEPT OF “EFFICIENCY” IN THE CONTEXT OF ECOLOGICAL MODERNISATION OF PRODUCTION BY BUSINESS ENTITIES

Abstract

The article describes the transformation of the classical concept of "efficiency" in accordance with the aggravation of modern environmental and social problems. Approaches to the interpretation of eco-efficiency are highlighted. The author offers her own approach to understanding the category of "efficiency of ecological modernisation of production" in accordance with the conceptual basis of the concept. As a result of generalisation of the studied approaches, it is proposed to allocate the basic essences inherent in the concept of efficiency of ecological modernisation of production: a point performance indicator, an expression of success, an evaluation indicator and a multicomponent criterion for decision-making. The effectiveness of environmental modernisation as a modern expression of the environmental transformation of the production process involves the development of a special calculation methodology that is designed to provide a comprehensive assessment of the process. Ecological modernisation of production involves simultaneous achievement of economic benefits and positive environmental effects, so special requirements should be put forward to the methodology for assessing efficiency. In particular, these include the availability of long-term forecasting, refusal to neglect insignificant, hidden or significantly prolonged results, the use of various variables and units of effect measurement, preference for assessing the final result compared to the current one, and the introduction of critical limits for development and growth. In accordance with the essence of ecological modernisation of production, the article proposes criteria that indicate the achievement of a positive result in the course of modernisation. These include reducing the overall level of environmental damage from production; bringing production cycles closer to closed natural cycles, reducing the volume of production waste; reducing the material intensity of products; introducing energy-efficient technologies; using modern equipment; achieving financial resource savings and increasing profitability; and increasing corporate social responsibility through ecological change of production.