Rent as an element of management in peat production: A case-study of TVERREGIONTORF Fuel and Energy Company

Operational and commercial activities of peat producing plants in the Tver Region are analyzed. A case-study of TVERREGIONTORF Fuel and Energy Company is used to validate the effect of natural geological characteristics of a peat deposit on rental income. An original approach is proposed to using a peat rent as an organizational element in peat production management. The authors aim to give the theoretical substantiation for the peat rent calculation within the peat quality management concept for a specific peat deposit. Furthermore, it is intended to identify factors that govern the value of the peat rent in the course of peat mining. The methodological framework for the set objective to be met and the related problems to be solved is the economic theory, system analysis, as well the statistical methods of data processing and interpretation. The problem of determination, calculation, discrimination and exemption of rent from the profit of a mining plant is a subject of long-term and active discussion in the research community. However, the influence of the rent-forming factors on the rent income and on the organizational mechanism of peat production management remains yet to be studied better. This impedes the development and acceptance of the Federal Law on Peat. The research findings enable the theoretical substantiation of the concept of rent as an element of organizational management in a peat mine and in a regional mining cluster. In particular, it is possible to formulate conditions of favorable investment climate for the peat mining sector. In terms of practical application, the research data can become a theoretical framework for the development of an efficient organizational mechanism for the rent relationship management to stimulate investment in the peat mining industry.

Keywords: rent, peat, organizational mechanism, investment climate, sustainability, management, mining cluster.
For citation:

Zhigulskaya A. I., Yakonovskaya T. B. Rent as an element of management in peat production: A case-study of TVERREGIONTORF Fuel and Energy Company. MIAB. Mining Inf. Anal. Bull. 2021;(3):167-179. [In Russ]. DOI: 10.25018/0236-1493-2021-3-0-167-179.

Acknowledgements:
Issue number: 3
Year: 2021
Page number: 167-179
ISBN: 0236-1493
UDK: 332.68;346.548
DOI: 10.25018/0236-1493-2021-3-0-167-179
Article receipt date: 21.05.2020
Date of review receipt: 22.09.2020
Date of the editorial board′s decision on the article′s publishing: 10.02.2021
About authors:

T.B. Yakonovskaya1, Cand. Sci. (Econ.), Assistant Professor, e-mail: tby81@yandex.ru,
A.I. Zhigulskaya1, Cand. Sci. (Eng.), Assistant Professor, e-mail: 9051963@mail.com,
1 Tver State Technical University, 170035, Tver, Russia.

 

For contacts:

A.I. Zhigulskaya, e-mail: 9051963@mail.com.

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