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HOUSEHOLD POVERTY IN RUSSIA AND ITS INFLUENCE ON ENVIRONMENTAL SUSTAINABILITY

Ruslan Sadyrtdinov

Abstract

Poverty is inherent in all countries of the world and is the result of various factors. The world's poor are especially vulnerable to the environmental challenges. Transition to "green" economy can contribute to the eradication of poverty. In order to eradicate poverty one should know its real size. In this research authors give more precise estimation of the well-being of Russian households based on the calculation of equivalent income. For this purpose data from the Russian Monitoring of the Economic Situation and Health of the National Research University Higher School of Economics (RLMS-HSE) for 2018 year is used. Revaluation of income for households in the Russian Federation was made using equivalence scales. The scales were carried out by means of a regression estimation of the Engel curve. After distribution by equivalent income, the majority of Russian households in 2017 were allocated in the second group with incomes below the average. Nearly three percent of households are below the relative poverty line. Only a quarter of households belongs to middle class, the remaining roughly equally divided into households with above-average incomes and wealthy households. High level of households at the verge of poverty in Russia has negative impact on sustainable development. Sustainability remains the most important long-term goal, but to achieve it, it is necessary to ensure long-term improvement of human well-being and reduce inequality, while allowing future generations to avoid significant risks to the environment and its depletion.

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DOI resolver: doi.org/10.5593/sgem2019/5.3/s21.046

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