GREEN ECONOMY IMPLEMENTATION IN AGRICULTURE SECTOR – EMPIRICAL RESEARCH IN REPUBLIC OF NORTH MACEDONIA

Abstract

Agriculture sector plays a significant role in the national economy in the Republic of North Macedonia and has strong linkages to other sectors. Its direct and indirect effect on people and environment additionally makes it important for implementation of principles of green economy. Agriculture can provide livelihoods and food security for population, reduce the risks from climate change and meet increasing demand for energy in terms of energy production shortage in the country. Although the pandemic further has complicated the situation in the Macedonian economy, it gives an advantage for development of the concept of green economy that is, by efficient use of resources and respect for the principles of natural laws to find new technological and innovative solutions that will contribute to production of food and agricultural goods on a sustainable basis, pollution reduction and maintaining and increasing farm production and profitability of agriculture sector. Given this, the main purpose of the paper is to analyze the agriculture sector of the Republic of North Macedonia in terms of the ability to implement the concept of green economy, i.e. identify the opportunities and challenges it faces in the process of adopting green policies in its entities. The methodology of research is based on primary data obtained from previously prepared, structured questionnaire, submitted to entities (small and medium enterprises) in the Republic of North Macedonia. In order to perceive the current situation, questions were referred to awearness and knowledge of entities on environmental regulation and application of environmental practices and principles of green economy. The analysis showed that in the agriculture sector there is obvious lack of information on how entities can apply the concept of green economy and are facing with complex administrative procedure in implementing environmental practices and strict rules if they want to do more than the legally prescribed requirements. This can be explained by the fact that many agricultural enterprises are subject to the environmental regulatory regime that is not appropriate for them. Despite the modest external support, most of the surveyed entities take measures for more efficient use of resources, in order to save and reduce costs. Therefore, it is necessary to create a regulatory framework for green economy in North Macedonia by bringing clear and appropriate documents with specific activities and measures, harmonized with EU standards. That means to implement higher environmental standards and increasing investments in the sector of agriculture having on mind that green economy concept in the Republic of North Macedonia is relatively new for the entities. Therefore, it is obvious the need to expand state financial support for green businesses in agricultural sector and strengthen market incentives to improve the application of the concept of green economy, both directly (such as: green public procurement) and indirectly (green certificates and eco-labels) in order to increase the demand for improved environmental performance and green products and services. The acceptance of paper recommendations in order to promote the implementation of the green economy concept will give an opportunity for agriculture sector to achieve its goals while protecting the environment, strengthening natural capital and energy efficiency of resources. In that context, principles of green economy in agriculture sector should be a significant part of long-term strategy for sustainability in the Republic of North Macedonia.