Uman NUH | today: 05/22/2019

The development of “green” logistics in the European cities

Author(s) Shkolnyi O.O., Doctor of Economics Sciences, , Uman National University of Horticulture, Ukraine
Category Economics
year 2017 issue Випуск №91. Частина 2
pages 14-22 index UDK 338.49:502.315:658.7
Abstract The regional development and technological progress are closely related to the economic growth of cities. At the same time, the presence of external effects (externalities) requires the active interference in the market mechanism and application of appropriate regulatory tools. The negative influence of pollutions determines the need in finding solutions to the environmental problems. The principles of ethical business are combined in the eyes of consumers of goods and services with "green" logistics and have a direct impact on the reputation of companies. Disclosures of violations in respect to the environmental principles that can be monitored in enterprises, cities and regions would have a devastating effect on their business status. The presence of such problems necessitates current study. Green “technologies” in the logistics business are focused on the selection of non-renewable resources from suppliers at lower costs; diminishing of stocks in order to reduce the needs in storage facilities; optimizing traffic to reduce emissions of pollutants; reduction of road transportation usage and reliance on environmentally oriented modes of transport; lessening of the logistics chains related to intermediate storage facilities with raw materials and finished products; reducing the volume of paperwork. The main purpose of the relatively young science of logistics is the increasing profitability under considerations of economic costs. Public opinion tends to incorporate social and environmental impacts of entrepreneurial activities. The image of the city with a developed "green" logistics system associates with prosperity, attracts tourists and wealthy clients and generally strengthens its global competitive positions. “Green” index of the European cities involves taking into account indicators of municipal management, air quality, water usage, urban areas development, transportation, buildings, energy usage, pollutions of carbon dioxide etc. The wealthy Scandinavian countries increased investments in environmental infrastructure of cities that affected their ratings. Environmentally efficient policies are most reflected in Copenhagen, the capital city of Denmark. The leader in environmentally oriented transportation is Stockholm. The favorable government policy maintains the environmental image of the city. The low level of ratings in "green" logistics for cities in post-socialist countries requires the usage of effective motivational tools and improvement of regulatory mechanisms.
Key words market failures (externalities), “green” logistics, ecologization of logistics, conservation measures.
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