THE INNOVATION REGULATOR AS A CONTROLLING COMPONENT OF THE MANAGEMENT SYSTEM

The article reveals the role aspect of controlling in a management system and substantiates the introduction of an innovation regulator into its structure, contains an author's proposal regarding the adaptation of the concepts of «innovation controlling» and «innovation regulator of the controlling system» at the same time revealing their substance, and includes the proposed economic and mathematical model for evaluating the controlling efficiency on the basis of the innovation regulator.


Problem statement in general
In the activities of the present-day companies, controlling occupies a fairly prominent position provided there is efficient management in place.Crisis phenomena in the economy of the country have a negative impact on the activities of business entities, and the processes of timely verification of the strategic objectives and tactical rules of their adaptation are becoming ever more relevant as a result.The idea of engaging controlling in managerial cycles is not new, but it needs to be updated on the basis of an innovation regulator.Of course, each representative of the entrepreneurial sector forms his/her management strategy drawing on his/her own point of view, but it is impossible to predict various financial and 12 economic events without a viable and efficient controlling system.
The controlling system efficiency should be enhanced by an innovation regulator, which by its substance can be represented from the point of view of those criteria that are of greatest interest to the top management of the company.On the other hand, the innovation regulator can look like an economic tool that can ensure fairly good quality shaping of an information resource for making managerial decisions.Modern era proves that the changing financial and economic conditions affecting business environment can be considered as one of the key levers that indicates the expediency and necessity of improving controlling and, on its basis, the managerial unit as a whole.Certainly, the question arises, within which controlling is effected both concerning the time criterion and the scale of its implementation.In our case, the issue is as follows: controlling should enhance its own quality threshold on the basis of the introduction of such an innovation regulator, which will ensure the synthesis of the main information flows and will provide another piece of fairly important meaningfulness to those financial and economic events that arose at the company.In addition, the passive attitude of the representatives of the entrepreneurial sector in attracting the promising results of scientific research and methods of mathematical treatment of economic processes leads to the lack of possibilities of conducting adequate actions to improve the managerial and control levers by the top management of the company.Precisely this state of affairs in the activities of the entrepreneurial sector led to the selection of the research area and emphasized the relevance of the problem set.

Analysis of the relevant research and publications of recent years
Problematic, theoretical and applied issues of controlling and its role in the business sector have been reflected in the papers by the leading economists, scientists and specialists who are involved in adaptation of controlling tools in various branches of the country's economy.It would be fair to note that the subject of controlling is not new, however monographs by some scientists show that there are still various ways to improve controlling.We believe that the promising results of scientific research of the following foreign and domestic scholars deserve attention: L. V. Balabanova, O. O. Gasilo (2006), O. D. Gudzynskyi, M. M. Aksentyuk, O. M. Demenin (2009), D. Khan (1997), P. V. Eegorov, L. D. Smirnov (2007), O. M. Kolodizev, I. M. Chmutova, K. M. Azizov (2014), V. V. Prokhorov, L. S. Martyushev, N. Y. Petrusevych (2006), S. V. Ivakhnenkov, O. V. Melykh (2009), T. Mann, E. Meyer (1992), A. Dailey (2003) etc.In the scientific papers by the above-mentioned authors, the essential aspect of controlling, the mechanism of its conduct, the features of developing individual stages in the study of the behaviour of controlling objects are revealed quite substantially, however the communication of controlling with innovation tools is virtually not shown.
In turn, the subject of innovation tools has quite often come up in recent years in various scientific papers both from the point of view of improvement mechanisms and from the point of view of the development and adaptation of innovation projects.But with all due respect to the work of scientists, the issue of controlling combined with the innovation toolkit has found limited coverage.In particular, quite interesting results of scientific research in the segment of innovation of various types are contained in the monographic studies of the following scientists: O. I. Datsiy, M. V. Haman, N. V. Datsiy (2010), M. Y. Rogoza, K. Y. Vergal (2011), V. G. Fedorenko, L. I. Fedulova (2014), Y. Y. Burennikov, N. V. Polischyuk, V. O. Yarmolenko (2011), V. M. Heyets, V. P. Seminozhenko (2010), etc.

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The researchers reveal the influence of the innovation toolkit on the overall economic processes in the country, on the activities of business entities, on the operating procedures of using innovations in managerial cycles, however in most cases the issue of controlling does not find an active demand in conducting the above type of scientific research.
Drawing on the above, we therefore believe that the research area chosen is relevant enough, and has its own prospects.

Selecting previously unsolved parts of the general problem
It was proved that as a tool for managing complex industrial systems controlling has been used since the 1930s by companies of the industrialized countries, and during that time has proved its efficiency by the fact that it allows adapting the activities of a company to the increasingly complicated and ever more dynamic market conditions.However, the introduction of efficient controlling, we believe, should take place with the innovation regulator taken into account, which regulator will provide in the future timely correction of the shortcomings that reduce the efficiency of the managerial decisions made.The abovementioned problem has not been researched in-depth by the scientific community, and has not been sufficiently discussed by specialists who are involved in the adaptation of controlling tools.As a result, the managerial decisions that can potentially more efficiently provide the business sector with a sufficient level of competitiveness and performance actually have an inadequately high level.Taking into account such a state of affairs, we consider it necessary to adapt an economic and mathematical model into the controlling process, which model should be based on an innovation regulator.

Objective of the article
With regard to revealing the problem, the scientific research is aimed at: -defining the role of the innovation regulator in the process of controlling, which is adapted in managerial cycles; -providing the author's point of view on the substantive characteristics of the concepts of «innovation controlling» and «innovation regulator of the controlling system»; -developing an economic and mathematical model for evaluating the efficiency of controlling on the basis of the innovation regulator.

Presentation of the main research material
Controlling acts as a basis for shaping of an information flow in the management system, because it must ensure that adequate decisions are made that are basically close to the real state of affairs at the company.In this regard, the relevance of the issues of efficient controlling remains high enough.
The research conducted has shown that the introduction of controlling by the representatives of the entrepreneurial sector is conditioned by: -The need for the information support and the coordination of the planning system; -The synchronization of various types of accounting, analysis of deviations and their control; -The informational and methodological support for management and making managerial decisions;

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-Maintaining risk management at the appropriate level.Practical activities of the present-day companies show that in most cases controlling services are an integral part of the system of internal control at the company, and are oriented towards informational-and-analytical, methodological and consultative support of the activities of the top management.It is this approach that allows the top management of a company to respond adequately to market changes and to make efficient managerial decisions quickly.
As a rule, the most important functions of controlling include: planning; control, regulation and analysis of managerial decisions.In particular, the latter function involves collection of more meaningful data for controlling, developing toolkit for planning, monitoring and making managerial decisions at a company.However, at present, it is not sufficient for the specialists of the controlling service to confine themselves to existing knowhow for making truly adequate managerial decisions.
We believe that modern controlling cannot be efficient unless the representatives of the top management of the entrepreneurial sector engage existing promising results of scientific research and use more modern methods of processing information resources.From this standpoint and at the initial stage, specialists of the business sector need a clear understanding of the substantive meaning of the controlling process, i. e. the understanding of the fact on the basis of what conceptual apparatus certain managerial actions will be executed.In our view, it is appropriate to adapt the concept of «innovation controlling» into the system of the business sector controlling.In this regard, we should remind the reader that the very term «controlling» combines two substances: controlling as a management principle; -controlling as a tool It is known that the word «controlling» derives from the English phrase «to control», i. e. «to regulate», «to manage», «to conduct», however scientists expand the meaning of this category depending on the problem to be solved.We believe that a fairly substantive and meaningful description of controlling as a conceptual category is given in the writings of German scientists.Thus, in the research papers of the German scientist D. Khan (1997), controlling is treated as an integrated system of information support, planning and control.T. Mann, E. Meyer (1992) and A. Dailey (2003), in turn, treat controlling as a concept of information and management, and focus their attention mainly on planning, accounting, analyzing and monitoring marginal income, thereby characterizing controlling as a cost and performance management system.
It has been proved that one of the main tasks of controlling is the qualified definition of the acceptable range of deviation.All deviations within that range should be recorded and eliminated.That is because the overall indices of the stability of work of the business sector's representatives, their financial sustainability and their status on the supply and demand market, their competitiveness and liquidity are the indicator of successful management.Taking into consideration the above, we believe that revealing the substance of controlling as a conceptual category should take into account the aspect of corrective actions.This state of affairs has led to the need of revising the substantive characteristics of the said concept.Besides, in our view, it is appropriate to introduce an innovation component into the concept name, i. e. we propose the introduction of the term «innovation controlling».From the point of view of the substance characteristics, the following interpretation of the concept was proposed: the process of evaluating the components of the management system with the innovation regulator and the directions for that system's improvement taken into account.In our opinion, that approach has several advantages: -Firstly, the substantive meaning of the controlling system is maintained.The components of the management system typically include planning of activities of representatives of the business sector, accounting procedures that shape the information flow on the basis of factual data, analytical study of the behavior of the key criteria for the activities of representatives of the business sector, corrective actions based on the results of analytical assessment and control over the implementation of projected and planned indicators; -Secondly, an evaluation process involving all parts of the management system is engaged.Without its participation, the very concept of controlling loses some meaning, and does not ensure the attainment of the objective set for it; -Thirdly, an innovation regulator is introduced, i. e. a tool that is capable of ensuring the accumulation of the information, which would serve as a basis for making well-considered and efficient decisions.In addition, it is the innovation regulator that becomes the factor of work in the controlling service from the point of view of corrective actions regarding the key criteria for evaluating the activities of the management system units; -Fourthly, the main objective is specified and the expediency of controlling with relation to the improvement of the management system is emphasized.
Definitely, the study would be incomplete if we ignored the concept definition of «innovation regulator of the controlling system».In our opinion, this is a corrective tool that is capable of ensuring the adaptation of innovation into the process of controlling the management system.Such an approach can be substantiated in the following way: the whole aspect of the components of the process under investigation is maintained, viz. the corrective tool is switched on, which, in our opinion, should take the leading place in the controlling processes, as it is the medium for the accumulation of realistic information; a significant role is given to innovation as a representative of the evaluation process, its obligatory use as a regulator of financial and economic events investigated by controlling tools is emphasized; the focus is on controlling not a single object, but all units of the management system.
We believe that in order to improve the controlling process for the system of management of the representatives of the entrepreneurial sector under the current difficult conditions of their functioning, it is necessary to attract and adapt economic and mathematical methods that are capable of influencing the qualitative segment of the information flow, which will become the basis for managerial decision making.In our case, the economic and mathematical model should provide a basic resource represented by the innovation regulator of the management system controlling process.
As a rule, the application of this or that mathematical method in the economic analysis, which serves as part of the process of controlling the management system, is based on the methodology of economic and mathematical modeling.That being the case, the type of economic and mathematical method is chosen on the basis of optimality: optimization or nonoptimization one.In our case, it is appropriate to use the optimization method, since it involves solving the problem set on the basis of the optimality criterion.We suggest determining the innovation regulator with the changes in the principal indicators of the activity of the representatives of the entrepreneurial sector taken into account, viz. the criterion of optimality must include: the largest revenue from product sales, the lowest production costs and profit maximization.That approach was chosen with relation to the expediency of introducing innovations into the system of management of the key criteria for the activities of business sector representatives, such as net income, costs and profit.Taken together, those criteria serve as a basis for a management system covered by controlling.We believe that the innovation regulator must show the aggregate of the information flow as per those criteria, which are the basis for controlling, regardless of an individual component of the management unit.
Based on the results of the practical activity of the representatives of the entrepreneurial sector, it can be argued that the management system is represented by the managerial cycles, the net income from sales of products, the management of the cost of sales and the profit from the sale of products, i. e. the gross profit.On the whole, controlling covers all the above management units, which indicates the need to develop substantive innovation regulators for each of the specified management units, and drawing on that, we propose the development of a comprehensive criterion for evaluating the efficiency of controlling based on the innovation regulator.The classical mathematical models built on the basis of the optimality criterion will serve as the groundwork for the development.Consequently, the equation of the target function for the optimality criterion called «the largest net innovation income from the product sales» will look as follows: (1) Each component of the target function for the optimality criterion «the largest net innovation income from the product sales» is responsible for a clearly defined segment.Thus, (IYί), i. e. the net income from the innovation, equals the total for the net income from the investment (IYj), which was expected to be obtained from the manufacture of a unit of innovative products of the j th type, and the amount of the innovative products actually produced (Xj).
In turn, the equation of the target function for the criterion of optimality of the innovation level of cost minimization will look as follows: This economic and mathematical model demonstrates the target function for the criterion of optimality for the innovative level of cost minimization (IWί), which equals the total for the revised innovation costs, which are supposed to be incurred for the manufacture of a unit of the products of the j th type (IWj) and the amount of the innovative products actually produced (Xj).
The indicator of the efficiency of the above economic and mathematical models is the criterion of optimality for the maximization of profit, which is supposed to be derived from the implementation of measures to obtain the innovative value within the net income and the innovative value within the cost of production for a unit of the products of the j th type.Consequently, we believe that the equation of the target function with the criterion for the maximization of profit taken into account may look as follows: (3) The above-mentioned algorithm of the target function with the criterion of maximization of the amount of profit from the innovation (IPί) taken into account equals the total for the planned income from the investment (ΙPj), which was supposed to be obtained from the manufacture of a unit of the products of the j th type, and the planned amount of the innovative products to be produced (Xj).
We believe that during controlling the management system, the economic and mathematical models indicated above can become innovation regulators capable of improving the research result.On the whole, an economic and mathematical model for evaluating the efficiency of controlling on the basis of an innovation regulator may look as follows: (4) or IKί= ∑ ΙZj → max. (5) The development of an economic and mathematical model for evaluating the efficiency of controlling on the basis of the innovation regulator (IKί) envisaged the involvement of a set of innovation measures (ΙZj) regarding the manufacture of an innovative product of the j th type with the innovation regulators, which are represented by the (IYί ; IWί ; IPί) criteria, taken into account.We believe that the above criterion will provide an opportunity not only to increase and expand the information flow based on the results of the evaluation of the management system by the controlling tools, but also to bring a positive result into the system of making managerial decisions.

Conclusions
Based on the results of the study, a number of conclusions can be drawn.Firstly, controlling the system of management of representatives of the entrepreneurial sector needs to be updated by activating the process of implementation of the promising results of scientific research that can enhance the controlling efficiency.Secondly, the top management of a company should provide conditions for the introduction of innovation regulators into the controlling processes, which will enhance the quality level of shaping of information flow that will be the basis for making managerial decisions.Thirdly, for the specialists of the companies conducting the management system controlling, it is proposed to use a more substantive conceptual apparatus, which would include the interpretation of the categories of «innovation controlling» and «innovation regulator of the controlling system».The consequence of the use of those categories will be a more in-depth understanding of the meaning of the controlling process, which will be based on innovative developments.Fourthly, the controlling process should be carried out taking into account economic and mathematical models that are capable of synthesizing more quality information for managerial decisions.Fifthly, the economic and mathematical model developed for evaluating the efficiency of controlling on the basis of an innovation regulator can become an additional piece of leverage to improve the process of controlling the system of management of representatives of the business sector, since it is capable of providing in-depth assessment of each of the key criteria (net income, cost of sales, profit) from their own standpoint based on the innovation regulator and, on the whole, capable of shaping an information platform for making managerial decisions that are closer to the realistic conditions of the development of a company.

Conclusions and prospects of further research
Taking into account the above, we propose changing the approach to the process of controlling the system of management of representatives of the entrepreneurial sector by improving the conceptual apparatus and by adapting the method of economic and mathematical modeling.Applied calculations regarding the innovation regulators of the proposed economic and mathematical model for controlling efficiency should become the area of subsequent research, which will help provide the possibility for reinforcing and substantiating key features in solving the problem set.

Introduction
The process of industrial enterprises production rate increasing is urgent in modern economic conditions and is always accompanied by a negative impact on the environment: significant emissions of harmful substances into the atmosphere, water bodies pollution, soil, man-made disasters, etc.These factors have a significant impact on the economic component of business activity and cause additional monetary costs to compensate for the damage caused to the environment, and in some cases, the destruction of sustainable development of the economies of the states.Particular attention is paid to the unsatisfactory ecological condition of the Kryvy Rih region -the mining and metallurgical center of Ukraine.Ensuring sustainable economic development and environmental safety of industrial enterprises is possible only at the expense of production intensification, which cannot be carried out without attracting the necessary amount of investment resources in country economy.Therefore, the assessment of investment projects aimed at regional ecological state improving in the context of investment activity of enterprises is extremely important for society and sustainable development of the countries of the world.

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The problems of ecological and economic development, environment state analysis, studying factors of influence on the ecological situation which were carried out by foreign and Ukrainian scientists such as V. Danylov-Danylyan, L. Melnyk, L. Hens, E. Girussov, I. Sotnik, V. Tarasova, A. Borlakov and others.In addition, various methods of ecological and economic mathematical modeling are used for modifying and adapting research works to regional specificity that in practice allows applying certain decisions in enterprise investment policy.
Therefore, at present, there is an objective necessity to deepen and supplement the methodological approaches to the environmental and economic assessment of industrial pollution in the environment and to determine the importance of its impact on the investment provision of modern ore-dressing enterprises.
The objective of the study is to model the relation between environmental and economic factors of ore-dressing enterprises with the subsequent economic ground for implementation of investment projects aimed at developing strategies for obtaining environmental competitive advantages through the production of iron-containing products aimed at preserving the environment.

Analysis of investment activity and its relation with ecology
Most industrial enterprises of Ukraine in their production activity are aimed at obtaining profits due to successful management of investment resources, which in our opinion needs a corresponding scientific and economic substantiation.E. A. Stefanovich defined 'Investment activity' as a complex of measures of the state, individuals and legal entities, aimed at efficient allocation of resources in order to obtain the expected effect.The effect may be not only profit, but also, for example, infrastructure development, improvement of living conditions, etc. (Stefanovych, 2010).
In other words, speaking about modern approach of scientific thought to the notion of investment activity, it can be argued that investors are more oriented towards the rules of socially responsible behavior, and attract funds not only for expanding production but also for improving the improvement and trust of citizens in a particular enterprise.In the context of environmental social responsibility L. Potrashkova in her work highlights the following main issues: production of safe for consumers and the environment products; using materials manufactured in conditions that meet social and environmental requirements (Potrashkova, 2017).At the same time, O. Rudneva distinguishes the principles on which the sustainable development of enterprises should be based: -environmental sustainability (significant limitation of non-renewable resources use, restrictions on the use of renewable resources, limitation of emissions to the environment, taking into account the factor of environmental renewal); -economic stability (orientation of the economy for the future, preservation of tangible and intangible assets, stabilization of money circulation, prevention or restriction of 'new' debts, efficient use of resources, guarantee of 'transparency' of expenses); -social stability (ensuring the possibility of realizing human rights, high life quality, guaranteeing security and justice, equality of opportunity, guaranteeing social protection, investing in the education of future generations, etc.) (Rudneva, 2012).
K. Goryacheva in her work suggests to pay attention to the following environmental indicators of sustainable development of industrial enterprises: the volume of toxic waste and 21 emissions into the air; quantity of resource-saving, energy-saving and low-energy technologies; the number of taken environmental protection measures (Goryacheva, 2014).
Summarizing the above socio-economic norms and principles of behavior and applying it to the specifics of the mining and metallurgical complex of the Kryvy Rih region, the investment policy of enterprises should be aimed at gradual reduction of emissions of harmful substances, especially in the atmosphere, as a possibility of sustainable development.
A lot of works have been devoted to long-term environmental research, in particular, authors (Lindenmayer et al., 2012) have pointed out that long-term environmental research is crucial for providing key ideas in the field of ecology, environmental change, rational use of natural resources and biodiversity conservation.They also describe the five components that, in their opinion, are the basis of such studies, in particular: 1. Quantitative environmental responses to the causes of ecosystems changes.
2. Understanding the complex processes occurring in ecosystems over long periods.
3. Providing basic environmental data that can be used to develop theoretical models of environmental and parameterization and simulation testing.4. To be the basis for joint research promoting interdisciplinary research.5. Data provision and understanding of the scale for making managerial decisions.Today, such measures for improving the state of the environment are quite formal and, as a rule, ineffective.In the total volume Krivbass industrial enterprises emitte into the atmosphere about 327 thousand tons of solid and gaseous substances, therefore they cause considerable damage to the environment.The main enterprises that have a negative impact on airspace are PJSC 'ArcelorMittal Kryviy Rih' and PJSC 'YuzhniyGOK' (Figure 1).

Fig. 1. Actual emissions of pollutants into the air of Kryvy Rih region
It is clear from the histogram that emissions of harmful substances on both plants increased in 2016, and there is a steady tendency of environmental pollution over the last five years.Therefore, these problems are exacerbated and require the promptest solution, 22 especially in the context of improving the environmental situation, and hence the people health in Kryvy Rih region.
In developed countries, 'circular economy' practice is increasingly being used to promote the circulation of materials and products instead of linear ones, as a means of reducing environmental impacts and maximizing resource efficiency.For example, in the policy of China the circular economy began to be used by law from 2009(Moreau et al., 2017)).In other words, the reverse cycle of use, in the case of PJSC 'YuzhniyGOK' the residual return of natural or blast furnace gas for the manufacture of agglomerates will reduce not only its costs, but also the impact of harmful substances on atmospheric air.
Consider the dynamics of environmental costs of Kryvy Rih region enterprises (Figure 2).

Fig. 2. Costs for environmental protection PJSC 'ArcelorMittal Kryviy Rih' and PJSC 'YuzhniyGOK'
Based on the analysis of histogram indicators, investment volumes in 2016 increased and, respectively, make up 950.1 million UAH for PJSC 'ArcelorMittal Kryviy Rih', PJSC 'YuzhniyGOK' -550.7 million UAH.The given graphic interpretation of environmental problems suggests a mismatch in the growth of investment costs and environmental pollution.For example, the sharp increase in expenses of PJSC 'ArcelorMittal Kryviy Rih' on environmental protection in 2014 reduced atmospheric emissions by only 9.061 thousand tons.
The peculiarity of such tendency is that the basis of investment processes in mining and metallurgical enterprises is the application of not always economically sound policies for the maintenance of worn-out fixed assets and carrying out constant repairs without the introduction of innovative technologies (Sobakinskykh, 2017).

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For example, PJSC 'YuzhniyGOK' data on investment activity indicates the prevalence of programs supporting the technical and technological base and capital repairs of fixed assets on the creation of innovative investment projects.
In 2016, the Complex completed investments in priority projects and increased by 508.77UAH.Investment in support activities program, which includes the renovation of technological equipment: restoration sections of ore-enrichment, expansion tail economy at the amount of 827.53 million USD.At the same time, less investment in capital repairs was made compared to 2015 at UAH 33.91 million, amounting to UAH 183.71 million.
At the same time, outdated technology hasn't any positive effect from attracting investment in further production and economic activity, since wearing coefficient though is within the norm, and tends to increase.Calculation of depreciation coefficients of fixed assets is the first component of integrated assessment of investment attractiveness of enterprises and organizations method that was approved by the Order of the Agency for Enterprises and Organizations Prevention of Bankruptcy 23, February 1998№ 22 (Rudnyeva, 2012).In particular, at the end of 2016, the depreciation rate at the plant is 28%, the suitability factor of fixed assets -72%, respectively.
This means that the assets are suitable for effective use, if they are updated on time.The refinement factor in 2015 increased by 19% compared to the previous one, but in the next 2016 it decreased by 6%, which leads to a decrease in the intensity of the introduction of new fixed assets in operation.In addition, one of the main problems of investment activity in Ukraine is the lack of support from the state for an acceptable investment climate, since most enterprises are financed at their own expense, including PJSC 'YuzhniyGOK', which in 2016 used as investment capital of 94.8% of its own resources.
It is also necessary to take into account the fact that today Ukrainian economy is in a state of uncertainty, which complicates the process of formation of investment strategy and increases the likelihood of rising prices for iron ore raw materials, energy resources, increasing environmental tax, and so on.Therefore, M. Krochak in his work identifies four states of uncertainty: fairly predictable future; alternative options for the future; range of possible options for the future; complete uncertainty (Korchak, 2017).Based on the research of the scientist we will determine that the state of uncertainty of the economy in which PJSC 'YuzhniyGOK' is located has alternative options for the future.
This state of uncertainty is the most widespread since industrial enterprises often face changes in state regulation and legislation.Alternative alternatives for the future involve the identification of several separate development scenarios or investment policies; the scenario method involves the presence of several stages, each of which performs a certain sequence of actions.
Solving the problem of choosing the direction of investment policy, as already noted, is increasingly based on economic and mathematical modeling.Thus, N. Kameneva in her work proposes a scenario approach for the implementation of a discrete model for optimizing the environmental investment strategy, in which scenarios of the choice of strategy are: I. Selective-Innovative strategy, II.Investment strategy, III.Budget strategy, IV.Selective strategy.Scenario III and IV reflect the situations in which environmental activity is necessarily the costliest and, most of all, planned unprofitable.
In these cases, the optimal level should be understood as an acceptable level of environmental and economic security, exceeding which is not economically feasible, because it reduces the potential economic growth and, accordingly, undermines the financial basis for the development of environmental activities in the future.Scenario II is used in cases where adverse environmental risks occur in territories with high potential of economic returns from environmental protection and restoration activities.Scenario I is a scenario of a practically ideal from the ecological point of view option, which, however, may have some disadvantageous and economic aspects.
This scenario can be implemented either in territories with a relatively low level of economic use and with high assimilation potential, or in highly developed countries with vast material resources to maintain a high level of socio-ecological balance.The development of the model proposed by N. Kameneva includes assessing the level of environmental safety by the following partial estimates: -estimation of damage has been already inflicted and damage is being inflicted on environment by human activity; -assessment of currently occurring environmental risks; -estimation of assimilation potential; -assessment of the protective and restorative effect of environmental activity (Kameneva, 2016).
Gurman V. suggests using the socio-ecological and economic model of the region, the concept of which treats the region as an open system, divided into three interacting subsystems: economic, natural and social.The economic subsystem includes traditional manufacturing and non-productive sectors and non-traditional activities aimed at restoring or improving the state of the natural and social subsystems.The dynamics of the natural and social subsystems is described as the same type.Innovations are taken into account due to the modification of the established regional model by supplementing it with a special block describing innovation processes.Since in reality, innovation is associated with some object, to which certain innovative processes are applied, the concept of 'innovation' is treated formally as any purposeful change in the parameters of the model that describes this object (Gurman, 2011).
Thus, analyzing the factors of investment policy aimed at improving the ecological state of the city and region, is first and foremost identified with the concept of 'innovation'.
As an alternative to the assessment of environmental investment, we propose the application of the Neumann-Gayl ecological and economic model, the advantage of which, unlike the above-mentioned model, is the possibility of evaluating a specific investment project aimed at improving the environmental situation in the region, using well-known and easy-to-calculate indicators of the effectiveness of the investment project.
It is worth noting that taking into account the environmental factor in the Neumann-Gayle model can be either active or passive.
In particular, the passive nature of taking into account environmental factor does not imply the introduction of pollution vector limitation.Instead, active involves managing pollution in the technological process by introducing a vector of pollution: , , where -vector of environmental norms, , -a vector of intensity limits.The use of such restriction can be applied only in the case of 'non-dirty' production, with very environmentally friendly production.To determine the degree of environmental production it is necessary to analyze certain environmental and economic relations of the enterprise.
The algorithm for making a reasonable solution based on the modeling of the environmental and economic assessment of investment projects is presented in Figure 3.

Decision making
Fuzzy-plural environment of cash flows of the project

Fig. 3. Methodology of ecological and economic assessment of investment project
As output characteristics for the analysis of ecological and economic relations of production can be applied: -The main indicators of production and economic activity of the enterprise: capital stock, labor productivity; -Coefficients of environmental production: the hazard class of the production of DCP, calculated by the formula: , where -the coefficient of bringing various contaminants to the aggregated species, characterizes the danger of pollutants; -the volume of pollution of the i-th species; -concentration of the substance in the atmosphere.
If the value of ,the enterprise is the most polluting.When -the second category of danger, -third, with to the lowest fourth category; -indicators of environmental activity focused on the characterization of environmental management at the enterprise level and reflect the effectiveness of various environmental measures.Indicators of this group include: 1) The cost of production funds aimed at the protection of the environment; 2) Coefficient of efficiency of current expenditures for environmental protection measures: , (2) where EPC -the cost of environmental protection measures.
Thus, according to the indicated indicators, it is possible to determine the degree of environmental friendliness of production, and to choose an active or passive type of account of the environmental factor in the Neumann-Gayle model.
The economic growth rate of the Neumann-Gayle model is the following ratio, which means the growth rate of cash losses from pollution: where raw material costs, natural units; price of atmospheric air pollution, mg/ton; unit price of raw materials, UAH/ton.
The economic (monetary) loss of the enterprise refers to the cost value of the costs associated with the negative impact on the environment of technological emissions.Assessing the damage, it should be taken into account that information on emissions of pollutants into the air is not always adequate.The main reason for this is the technical complexity of direct production monitoring.
The model for determining the economic costs of atmospheric air pollution at time t is as follows: , where maximum permissible emission of substance; cost estimation of losses from the unit of emissions into the atmosphere of the ith harmful substance, which does not exceed the limit value of AEL; cost estimation of losses from the unit of emissions into the atmosphere of the ith harmful substance that exceeds the limit value of AEL; volume of pollution of the i-th species; coefficient taking into account the nature of the dispersion of harmful substances in the atmosphere; coefficient taking into account regional features of the territory that is subject to pollution; the coefficient of bringing various contaminants to the aggregated species, which characterizes the relative danger of pollutants.
We pass to the calculation of indicators efficiency of the investment project in which the costs for ecology and economic expenses will be accumulated in a single cash flow.
Net Present Value (NPV).NPV is the difference between the discounted cash flows of investments and the costs incurred during the project implementation.For projects with a constant uniform negative impact on the environment NPV is calculated by the model: where cash flow, presented in a fuzzy form; outflow of funds in a fuzzy form; permanent environmental costs in money terms arising as a result of the project's impact on the environment; volume of initial investments; discount rate.
Within this indicator, a project can be considered profitable if NPV> 0 and loss-making if NPV <0, but if NPV = 0, then the project can be considered neither profitable nor lossmaking, additional information is needed.
Projected value can be calculated based on the formula: , where -economic growth rate of the model.
Modified Internal Revenue Rate (MIRR).Modified Revenue Rate or adjusted reinvestment rate where internal rate of return allows partially eliminate the disadvantages of the Internal Rate of Return (IRR) method associated with multiple outflows of cash and additional reinvestment.MIRR provides for the calculation of the discount factor taking into account the total estimated value of outflows and the terminal value of inflows: , Profitability Index (PI).The index shows the relative profitability of the investment project per unit of initial investments: . (8) According to this criterion, a project can be considered profitable if PI> 1, unprofitable if PI <1, but if PI = 1, then the project is neither profitable nor unprofitable.
Discounted payback period (DPP) is the period of time required to return the initial investment.This indicator allows us to assess the riskiness of the project as a long pay-back period is a signal of risk: .( 9) Using DPP a project can be considered acceptable if the pay-back period does not exceed the established deadline (Borlakova, 2014).
Proceed directly to the implementation of the model in the conditions of sinter production.The object of investment receipts at PJSC 'YuzhniyGOK' is the project of replacement of gas treatment systems on four sintering machines K-1-75 with a total investment of 837895.16UAH.Project terms are 4 years (48 months).Technical planning: construction of a modern dust and complex on 4 sintering machines, both the sintering zone and the cooling zone; The project consists of 4 main launching complexes; each of the launch complexes consists of 2 sections (1 degree of purification -cyclones HARRICLON and the second one is desulfurization bag filter).The project implementation will reduce dusting up to 90% as well as sulfur emissions up to 46%.
The choice of the type of environmental factor accounting is performed by calculating the following indicators.Indicators of production activity: capital-labor ratio = 802.5 UAH per person; labor productivity = 2152.6UAH per person.
The coefficient of ecological production: -hazard class of production according to the formula (1) = 244128.7UAH.
Indicators of environmental activity: -cost of production funds aimed at environmental protection = 550 million UAH; -coefficient of efficiency of current costs for environmental protection measures (see formula 2) = 48.3%.
Based on the data we have: -the hazard class of the production DCP > , indicating the first, the most dangerous and contaminating level; -PJSC 'YuzhniyGOK' on the coefficient of efficiency of current expenditures for environmental measures is at a very low level.
According to the results obtained, we can draw conclusion that within the framework of Neumann-Gayle model, the environmental factor should be passive while calculating without the need to introduce pollution vector limitation.We consider the definition of the growth rate of the enterprise within the framework of Neumann-Gayle model.The enterprise provides one way of producing iron ore sinter.According to the collected information on air pollution, it is known about 3 types of harmful substances from the agglomerate production.
We introduce the following input and output matrices:  As you can see, dust and sulfur oxide emissions exceed the maximum allowable level.At the same time, according to the indicator (a) they have the most dangerous properties (hazard ratios of 100 and 16.5 respectively).
Substituting the obtained values into the formula (4), we get monetary damage ( in the amount of 8298120 UAH per month.
Proceed to the effectiveness evaluation of the proposed investment project by creating the generation of optimistic and pessimistic cash flow scenarios.
The manager, adopting the appropriate managerial decision, determines the optimistic and pessimistic scenarios of the cash flow and outflow limits given the uncertain economic situation.Then, for the proposed project from a financial point of view: optimistic cash flow scenario = 12000 thousands UAH; pessimistic cash flow scenario = 10000 thousands UAH; optimistic cash outflow scenario = 7000 thousands UAH; pessimistic outflow scenario = 9000 thousands UAH.Further, the assumed values of cash flows are broken down for the period of project development, according to the planned interest rates by the manager.To generate casual cash flows within specified intervals ( ; ), Microsoft Excel RANDOM is used.
At the next stage of modeling we use the graph of the fuzzy value function of cash flows to their universal set w shown in Figure 4.

Fig. 4. Graph of fuzzy value function of cash flows
As the manager works under the conditions of uncertainty, the theory of fuzzy sets is used to identify unsuitable cash flow values in order to predict the possible income of the investment project that are not in the plane of the membership function μ in the range from 0 to 1 and, along the x axis, on the range of cash flows boundaries( and ) of their multiplication w.The manager independently selects the membership function based on its properties, such as symmetry, monotony, continuity, and also taking into account the existing uncertainty regarding the distribution of project cash flows.The very function of membership is as follows (12): where and -the upper and lower limits of cash flows; w -universal set of cash flows.
To allocate a clear number of cash flows from the fuzzy set, we perform defuzzification by integrating the center of gravity method using the following formula:  Considering that the installation of the newest gas scrubbers using sintering machines will reduce approximately by 10% of dust emissions and 5.1% of sulfur oxide emissions each year, we will get a potential reduction in cash costs from emissions of these harmful substances by 12% in 2019 and by another 14% in 2020.
Thus, the total possible reduction of dust emissions will reach 40% (by 37531.8thousand tons) and 5.1% sulfur oxide (by 14618.6 thousand tons) as a result of the project realization that will save costs on environmental protection of PJSC 'YuzhniyGOK' in the amount of 346268.2thousand UAH.This, of course, will also affect the net present cost indicator that will be 349175.3thousand UAH.
To estimate the dividends received from the realization of the investment project, we use the indicator of economic value added -EVA, according to the formula: where NOPAT is net operating income after tax; WACC -weighted average capital cost; IC -invested capital.
EVA = 1408122 thousand UAH -16.8 × 837895.16thousand UAH = 1267355.7 thousand UAH Thus, the amount of net profit exceeds the cost involved in obtaining capital for 1267355.7 thousand UAH.Thus, it can be argued that due to the realization of the proposed project, PJSC 'YuzhniyGOK' will create an additional cost and the proposed investment project is economically feasible.
As one of the important tasks in the investment activity of the plant was to optimize the structure of capital, such as the enterprises of the leading countries (60% equity capital and 40% borrowed), we calculate EVA indicator from the point of view of reorganization of sources of financial resources formation.EVA = 1408122 thousand UAH -15.3 × 837895.16thousand UAH = 1279508.4ths.UAH Growth of the prevailing net profit is 12152.7 ths.UAH.

Conclusions and suggestions
Using the proposed Neumann-Gayle ecological and economic model in a scientific work will allow us to determine how the realization of the environmental investment project will affect the possible reduction of emissions of harmful substances into the atmosphere, and hence, the reduction of monetary costs for compensation of damage in the nearest future.The proposed model allows to systematize the effectiveness indicators of the investment project taking into account the assessment of the environmental performance of the enterprise activity that creates the grounding for effective management decisions in the context of conducting well-balanced financial policy under the conditions of economic instability and uncertainty.At the same time, the indicators used in the model reflect the close relationship between where expenditures of sintering ore, ths.UAH; costs of limestone, ths.UAH; costs of gratings, ths.UAH; consumption of solid fuel, ths.UAH; 30 To find the monetary costs of pollution, we calculate the maximum permissible emission by the following formula: .(11) It is known that the value of the coefficient taking into account the peculiarities of the polluted atmosphere = 1.25;H = 8.8 m -height of the emission source; = 23,3 difference between emission temperature and average annual temperature of the external environment; A = 200 -coefficient of stratification; F = 1 -dimensionless coefficient taking into account the precipitation rate of harmful substances in the air; η = 1 -dimensionless coefficient taking into account the influence of terrain; = 0,068 /c -gas mixture flow rate; n = gas flow rate standard.The results of calculations are shown in Table2.