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Factors of Formation of the Demonstration Formal Rules in the Sphere of Environmental Protection
Abramov F. V.

Abramov, Fedir V. (2022) “Factors of Formation of the Demonstration Formal Rules in the Sphere of Environmental Protection.” Business Inform 4:13–19.
https://doi.org/10.32983/2222-4459-2022-4-13-19

Section: Economic Theory

Article is written in Ukrainian
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UDC 330.1

Abstract:
The article is aimed at identifying the factors contributing to the formation of demonstration formal rules and further determining their impact on the dynamics of the efficiency of the current institutional framework. It is shown that the main reason for the formation of demonstration formal rules is the desire on the part of political forces to get additional votes in elections. At that, both opposition political forces and those in power can resort to the practice of adopting demonstrative formal rules. Factors contributing to the adoption of demonstration formal rules are the following: the lack of influence of interested groups, the high level of public concern, and the low level of transaction costs associated with the adoption of appropriate demonstration formal rules. It is identified that the main shortcomings of demonstration formal rules are their low efficiency, which, in the case of the spread of the practice of manipulating public sentiments, is accompanied by significant reverse asymmetry, and the danger of creating an illusion of solving the relevant problem in society. As a result, there is a threat of conservation and inefficient existing institutional frameworks in the long term. It is proved that as demonstrative formal rules can be adopted only those formal rules that do not contradict the moral and ethical views of most of society, that do not create excessive additional transaction costs of bureaucratic procedures for most consumers, and do not contradict the interests of any group concerned. As result, demonstration formal rules can be characterized solely by targeted inefficiency. It is shown that the only measure to prevent the emergence of demonstration formal rules is to increase the general education of the population, which should not only limit the manipulation of public sentiments around problems governed by demonstrative formal rules, but also allow society a sensible valuation of both the level of threat of certain problems and the efficiency of the proposed formal rules.

Keywords: manipulation of public sentiments, formal rules, transaction costs.

Bibl.: 15.

Abramov Fedir V. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of General Economic Theory, National Technical University «Kharkiv Polytechnic Institute» (2 Kyrpychova Str., Kharkіv, 61002, Ukraine)
Email: [email protected]

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