Nadiya Kostyuchenko

To date, the promotion of local development of the territorial communities by means of the financial policy tools is one of the priority directions of scientific research not only in Ukraine, but also throughout the world. The article presents the results of the study of the impact of the participatory financing (attraction of the financial resources of community members, central and local budgets and the international donors) on the social capital of the territorial communities of Sumy region on the basis of the results of two phases of the project “Community-based Approach to Local Development”, which has been implemented in Ukraine by the United Nations Development Program since 2007. The main purpose of the article is to confirm the hypothesis that the participatory financing contributes to the social mobilization of the community residents, which leads to the activation of the “dormant” potential of collective actions and the desire of people to help themselves, as well as to improve some indicators of social capital. The difference-in-differences method and the multivariate regression analysis were used for the study. According to the results of the study, the characteristics of social capital, such as (anti)paternalism, the presence of traditions in community, involvement in social activities, collective action and cooperation are the most affected by the impact of participatory financing.

Type of the article: Research Article

Abstract
The growing importance of renewable energy in ensuring energy security and sustainable development has increased attention to the role of public finance, particularly at the regional level. This study aims to assess whether different categories of regional public expenditure are associated with renewable energy development in Ukraine, distinguishing between installed capacity and electricity generation. The analysis is based on a balanced panel dataset for 25 Ukrainian regions over 2018–2021 and applies two-way fixed effects models with lagged specifications and Driscoll–Kraay standard errors. The results show that expenditures on electric transport exhibit the strongest positive association with installed renewable energy capacity (β ≈ 0.078, p < 0.001), followed by SME support (β ≈ 0.025, p < 0.001), other environmental activities (β ≈ 0.017, p < 0.001), and natural resource management (β ≈ 0.013, p < 0.001). In contrast, most general economic expenditures are not statistically significant, suggesting that these expenditure categories are not statistically associated with higher renewable energy development within the analyzed period. For renewable electricity production, contributions to the statutory capital of enterprises are positively associated (β ≈ 0.006, p < 0.05), while co-financing of investment projects is negatively associated (β ≈ −0.027, p < 0.001), reflecting implementation lags. Additionally, capital investments in environmental protection are negatively associated with renewable electricity production (β ≈ −0.072, p < 0.001), suggesting that installed capacity expansion differs from renewable electricity production.

Acknowledgment
The authors acknowledge funding from the Swiss National Science Foundation (SNSF) [Grant No. IZURZ1_224119]. The authors bear sole responsibility for the conclusions and results of the research.

Type of the article: Research Article

Abstract
Efficient regional public expenditure is critical for aligning decentralized economic development with renewable energy, energy security, and reconstruction priorities. This study aims to examine whether expenditure across selected regional budget programs is systematically associated with renewable energy development in Ukraine and whether these relationships remain robust across alternative temporal, distributional, and nonlinear specifications. The analysis uses a balanced panel of 25 Ukrainian regions for 2018–2021 and applies program-specific two-way fixed-effects models with CR2 standard errors, Benjamini–Hochberg adjustments, lagged and same-sample specifications, wild-cluster-bootstrap inference, presence–intensity decomposition, alternative transformations, winsorization, and formal quadratic tests. In the baseline capacity growth models, expenditure from local target funds (β = 0.9152, p = 0.0192) and electric transport measures (β = 0.1499, p = 0.0126) showed nominally positive associations, but neither survived multiplicity adjustment (q = 0.1054). Wild-cluster-bootstrap inference did not confirm these estimates, producing p-values of 0.4871 and 0.3597, respectively, while both programs were observed in only five region–year cases across two regions. No program coefficient was significant at the 5% level in the electricity production models; SME support produced the strongest negative estimate (β = −0.2152, p = 0.0580, q = 0.5995), whereas installed renewable capacity remained positively associated with production (β = 0.4108–0.4803, p = 0.0041–0.0220). Lagged, presence–intensity, transformed, winsorized, and nonlinear specifications provided no multiplicity-robust evidence, with formal U-test q-values no lower than 0.5789.

Acknowledgment
The authors acknowledge funding from the Swiss National Science Foundation (SNSF) [Grant No. IZURZ1_224119]. The authors bear sole responsibility for the conclusions and results of the research.