1. THE "COST – BENEFIT" ANALYSIS IN THE MODERN CITY ENVIRONMENT QUALITY MANAGEMENT Prof. Dr. Elena Lazareva, Prof. Dr. Tatiana Anopchenko South Federal University, Russia

3. THE RESEARCH IS AIMED  at identifying and proposing efficient ways to improve the kit of tools for urban environment quality ecological parameters management in the context of the damage as a result of its pollution estimation problem solution, employing econometric methods to identify and rank socio-economic and ecological factors, determining this quality.  Novation of authors’ approach is in the theoretical methodological basis of heuristic need to integrate the "cost – benefit" analytic principle as an instrument of nature protection positive and negative effects management. 

4. RESTRICTIONS OF THE MODEL OF AN OPTIMUM POLLUTION LEVEL  In the theory and practice of the quality management of the modern city environment the emphasis on justification of the choice of target parameters of the regulating influence prevails. The economic optimum of the pollution as the main methodical concept of the analysis is used. One of the restrictions of the model of an optimum pollution level using is the impossibility to consider all variety of the obvious and implicit effects of the regulating influence, both undesirable (costs), and desirable (benefits or profit) connected with actions for pollution control.

5. "COST – BENEFIT" PRINCIPLE  As the regulating influence of an ecological orientation has in most cases restrictive character, costs are estimated as dead losses from regulation.  Benefits have to be interpreted in terms of the ecological purposes (that is decrease in damage from environmental pollution or risk of its emergence) achievement. The costs and benefits comparison allows to define additional industry and society expenses on restoration of buildings and health system development.

6. DEFINING THE DAMAGE FROM THE POLLUTION,  it is necessary to establish the ratios like "the dose – the effect" which indicate the dependence of the physical objects (city buildings, historical monuments) destruction speed and the deteriorations in the health of citizens from the various pollution levels influence.  In order that such the ratios allow defining the additional expenses of the industry and the society on more frequent buildings restoration and the health system development, it is necessary to present the damage from the environmental pollution in the monetary form.

7. Need of incorporation of damage calculations in system of city design and architecture planning/ forecasting  as well as correction of indicators taking into account the "cost – benefit" analysis results is obvious to ecologically balanced city development transition.  The presented technique of a complex assessment of damage to health from the urbanized territory environmental pollution taking into account social and economic determinants can be applied in practice of the municipal strategic analysis, first of all, in aspect of investment policy in the direction of the strategy giving the greatest ecological effect revision.

8. The improvement of the environmental quality management technologies on the basis of the "COST – BENEFIT" principle the rationalization of the natural resources consumption the decrease in the anthropogenous load of the environment the broad involvement in the economic circulation of the rather new resources and services

9. GRADATION OF THE BENEFITS ON THE BASIS OF THE ECONOMIC ASSESSMENT POSSIBILITY  The benefits aren't always measurable in the economic units of the calculation.  Therefore the first gradation of the benefits at ACB can be made on the basis of the economic / cost assessment possibility. The benefits from the construction of the dam expressed in the reduction of water supply to the hydroelectric power station costs are the example of the direct economic benefits. The increase of the crops productivity as a result of the possible irrigation is example of the indirect economic benefit.

10. One of the innovations of not economic benefits identification  is based on the curves of the identical usefulness analysis or on the definition of the benefit money equivalent by the establishment of the communication between the benefit and the "willingness to pay" for it.  The determination of the willingness to pay is equivalent to the determination of the usefulness measured in the monetary units.

11. The comparison of the demand curves  V - the number of visits of the object  TC – the total cost of the trip  INC – individual income  SV - the number of visits of the object- substitute  STC - the cost of travel to the object-substitute  i – respondent  a, b, c, d, e - estimated coefficients.

12. The dependence between the willingness to pay for quality environment and cash per capita income

13. The consecutive methodological procedures 1 Evaluation of "natural" health damage from environmental pollution based on the appropriate model - "public health damage - environmental pollution". 2 Economic (cost) assessment of ecological and economic damage to public health. 3 The analysis of the results in terms of optimizing the benefits in case of choosing the priorities of environmental security.

14. The system of health influencing factors

15. Direct economic loss from environmental pollution is made up of components  underproduction of the national income  due to the disposal of a person from the production process  due to temporary incapacity, disability, premature death,  due to a possible reduction in productivity, deterioration of product quality, increased staff turnover;  an increase in social insurance costs for the payment of temporary disability benefits with increasing morbidity and disability ;  increased health care costs.

16. CONCLUSION  The presented method of integrated assessment of environmental pollution damage, taking into account the socio- economic determinants can be used as a problem of minimizing the ecological and economic damage to public health in integrated analysis.  Only the incorporation of the analytical principle of "cost - benefit" and calculation of ecological and economic damage to the environmental management quality system of the modern city will allow to identify practical ways for harmonizing environmental and socio- economic urban development strategies.

17. THANK YOU FOR YOUR ATTENTION Any questions?