Main Directions of Pricing Improvement in the Context of Developing a Sustainable Economy

Abstract

One of the key characteristics of modern EU economic development is its focus on creating a socially and environmentally oriented society. The promoted sustainable development agenda involves a comprehensive linkage between economic, social and environmental components. In the current conditions, the problem of improving pricing arises, where the applied approaches and methods have to be modernized in accordance with the market evolution in order to remain competitive. This paper deals with the main aspects of sustainable pricing, which involves setting prices for goods and services that take into account not only the costs of production and the achievement of profit maximization objectives, but also the wider environmental and social impacts throughout the value chain. Research revealed that pricing improvement in a sustainable economy should be based on factors such as: environmental and social costs associated with production, including the costs of using environmentally friendly materials, reducing energy consumption, and complying with environmental standards; consumer awareness, their desire to consume healthy products, and their willingness to pay producer costs aimed at supporting the environment; consideration of internal and external costs, such as those aimed at compensating for environmental damage caused by production; incentives for the transition to more sustainable forms of production, such as organic farming or the use of "green" transport; and the product life cycle and its impact on the environment at all stages of its existence, from production to use and final disposal. UDC: 338.53(478); JEL: E31, F18, L11