STRUCTURAL AND FUNCTIONAL MODEL OF "BIOMETHANE" TRANSFORMATION OF THE ENERGY SECTOR OF UKRAINE

##plugins.themes.bootstrap3.article.main##

##plugins.themes.bootstrap3.article.sidebar##

Published: Jul 31, 2026

  Inna Honcharuk

  Illia Chikov

  Yuliia Okhota

Abstract

The aim of the article is to theoretically substantiate and develop a comprehensive structural and functional model of biomethane transformation of the energy sector of Ukraine. The research is aimed at overcoming the existing fragmentation of scientific approaches by forming a holistic concept that ensures systematicity, sectoral coherence and adaptability of transformation processes within the framework of the global decarbonization strategy. Methodology. The study is based on a systems approach and tools of structural-functional analysis, which allowed interpreting the energy transformation as a complex socio-technical-economic system. To visualize synergistic effects, conceptual and spatial modeling methods were used, which provide a reflection of the interaction between key subsystems. The methodological basis was expanded by a comparative analysis of traditional and modern energy models, taking into account the transition to renewable energy sources. Special attention was paid to nonlinear relationships between subsystems, which allowed adapting the logic of the inter-sectoral model "input-output" by W. Leontief to explain the dynamic structural exchange of resources, capital and knowledge within the energy cluster. Results. A three-vector structural-functional model of biomethane transformation has been developed, which is based on the hierarchical interaction of institutional (regulatory "rules of the game"), economic (motivational and financial levers) and technological (production and infrastructure contour) components. It has been proven that the efficiency of transformation is nonlinear: any asymmetry in the development of subsystems – for example, technological renewal without institutional stability or financial incentives – levels the systemic result. It has been established that the critical condition for maximizing the integral effect is the spatial and temporal synchronization of the above factors, which allows for the formation of a sustainable energy ecosystem. At the same time, it is shown that the introduction of innovative technologies for cleaning and enriching biogas to the level of biomethane, as well as its integration into the existing gas transportation infrastructure, provide a multiplicative effect, which is manifested in increasing energy efficiency, diversifying energy sources and stimulating the development of related industries, primarily the agricultural sector of the economy. Practical implications. The proposed model forms a reliable conceptual basis for the development of effective state policies, investment programs and strategies for the post-war restoration of the energy sector of Ukraine. The practical application of the model will allow optimizing the regulatory environment, reducing investment risks and increasing the predictability of the functioning of the biomethane market. An important aspect is the possibility of using the model as a decision-making support tool for the development of public-private partnerships, which will contribute to the activation of investment activities and the acceleration of the implementation of innovative technologies. Value/Originality. The originality of the research lies in the departure from the fragmentary study of the «biomethane» transformation and the formation of a single concept that combines institutional, economic and technological aspects within a holistic model. The proposed approach expands the theoretical foundations of the study of energy transformations, substantiating them as a process of forming a new system of sustainable and renewable value creation. This allows us to consider biomethane not only as an alternative energy source, but also as a strategic resource for the structural modernization of the Ukrainian economy in the face of global climate challenges.

How to Cite

Honcharuk, I., Chikov, I., & Okhota, Y. (2026). STRUCTURAL AND FUNCTIONAL MODEL OF "BIOMETHANE" TRANSFORMATION OF THE ENERGY SECTOR OF UKRAINE. Baltic Journal of Economic Studies, 12(3), 437-448. https://doi.org/10.30525/2256-0742/2026-12-3-437-448
Article views: 0 | PDF Downloads: 0

##plugins.themes.bootstrap3.article.details##

Keywords

biomethane, energy transformation, structural-functional model, sustainable development, energy security

References

Chikov, I., Radko, V., Marshalok, M., Tepliuk, M., Petrenko, O., Sharko, I., & Sitkovska, A. (2022). Economic development of agricultural food enterprises on an innovative basis. Financial and Credit Activity: Problems of Theory and Practice, 1 (42), 98–106. https://doi.org/10.55643/fcaptp.1.42.2022.3672

Chikov, I., & Titov, D. (2025). Expert system for determining strategic directions for ensuring the stable functioning of agricultural enterprises and rural areas. Baltic Journal of Economic Studies, 11 (4), 238–251. https://doi.org/10.30525/2256-0742/2025-11-4-238-251

Dotsiuk, S., Chikov, I., Shevchenko, O., Nitsenko, V., Gerasymchuk, N., & Demydova, M. (2024). Evaluation of the institutional development of innovative activities to ensure the economy of the state. Naukovyi Visnyk Natsionalnoho Hirnychoho Universytetu, 3, 171–180. https://doi.org/10.33271/nvngu/20243/171

Honcharuk, I., Chikov, I., Okhota, Y., & Biletska, N. (2025). Strategic Management and ESG Impact Assessment in Sustainable Agribusiness Development Model. Economics Ecology Socium, 9(4), 109–128. https://doi.org/10.61954/2616-7107/2025.9.4-8

Kaletnik, G., & Lutkovska, S. (2020a). Innovative environmental strategy for sustainable development. European Journal of Sustainable Development, 9 (2), 89–98. https://doi.org/10.14207/ejsd.2020.v9n2p89

Kaletnik, G., Honcharuk, I., Yemchyk, T., & Okhota, Y. (2020b). The world experience in the regulation of the land circulation. European Journal of Sustainable Development, 9 (2), 557–568. https://doi.org/10.14207/ejsd.2020.v9n2p557

Kaletnik, G., Sakhno, А., Pryshliak, N., Lutkovska, S., & Kolomiiets, Т. (2025). Economic evaluation of environmental protection activities in the context of sustainable development: the experience of Ukraine. Polityka Energetyczna-Energy Policy Journal, 28 (3), 217–236. https://doi.org/10.33223/epj/207022

Kaletnik, G., Pryshliak, N., Khvesyk, M., & Khvesyk, J. (2022). Institutional capacity building on waste management as a secondary resource in Ukraine on the path to European integration. Polityka Energetyczna, 25(3), 105–122. https://doi.org/10.33223/epj/153932

Lach Ł., Kopeć S., Heller K., Zyśk J., Adamiec E., Kisiel-Dorohinicki M., Brzoza-Zajęcka A., & Gaska K. (2025). Input-output model for forecasting economic and environmental effects of smart meters deployment in Poland. Energy, 328, 1–14. https://doi.org/10.1016/j.energy.2025.136504

Okhota, Y., Chikov, I., & Bilokinna, I. (2024). Conceptual polycomponent model of an innovative mechanism for improving the competitiveness of agro-industrial complex enterprises. Baltic Journal of Economic Studies, 10 (2), 196–210. https://doi.org/10.30525/2256-0742/2024-10-2-196-210

Sakhno, A., Salkova, I., Abuselidze, G., Yanchuk, T., & Buha, N. (2023). Evaluation of efficiency of small agricultural enterprises economic activity under sustainable development conditions. Lecture Notes in Networks and Systems, 575(2), 2262–2271. https://doi.org/10.1007/978-3-031-21219-2_254

Shpykuliak, O., & Bilokinna, I. (2019). "Green" cooperatives in the formation of an institutional mechanism of development of alternative power engineering in the agrarian sector of the economy. Baltic Journal of Economic Studies, 5 (2), 249–255. https://doi.org/10.30525/2256-0742/2019-5-2-249-255

Shpykuliak, O., Diuk, A., & Balaniuk, I. (2023). Management of organizational-institutional and resource potential of social enterprises in the development of rural areas: theoretical concept of analysis. Digital Есопоmу and Economic Security, 7(07), 136–140. https://doi.org/10.32782/dees.7-22

Tokarchuk, D. (2025). The concept of the development of the Ukrainian AIC on the principles of the "green" economy. Herald of Khmelnytskyi National University. Economic sciences, 6, 12–19. https://doi.org/10.31891/2307-5740-2025-348-6-1

Tokarchuk, D., Pryshliak, N., Berezyuk, S., & Tokarchuk, O. (2024). Advancing sustainable reconstruction in Ukraine after full scale invasion: utilizing a «green» economic approach and essential guidelines for successful implementation. Polityka Energetyczna, 27 (2), 71–88. https://doi.org/10.33223/epj/185209

Tomashuk, I., Baldynyuk, V., & Boltovska, L. (2023). Green economy as a factor of sustainable development. Baltic Journal of Economic Studies, 9 (3), 194–206. https://doi.org/10.30525/2256-0742/2023-9-3-194-206

Tomashuk, I., Koliadenko, S., & Burdіak, М. (2025b). The impact of digital innovations on the development of agricultural businesses. Baltic Journal of Economic Studies, 11 (1), 361–375. https://doi.org/10.30525/2256-0742/2025-11-1-361-375

Tomashuk, I., Mazur, K., Alieksieieva, O., & Shvets, V. (2025a). Transformation processes of formation and implementation of instruments of economic stimulation and innovative development in the agricultural sector of the economy. Economy, finances, management: Topical issues of science and practical activity, 4 (74), 75–92. https://doi.org/10.37128/2411-4413-2025-4-5

Tsirimokos, C. (2025). A Comprehensive Input–Output Analysis Model for Quantifying Environmental Linkages and Leakages: Evidence from Greece. Biophysical Economics and Sustainability, 10 (2). https://doi.org/10.1007/s41247-025-00124-8

Uddin, I., Ahmad, M., Ismailov, D., Balbaa, M., Akhmedov, A., Khasanov, S., & Haq, M. (2023). Enhancing Institutional Quality to Boost Economic Development in Developing Nations: New Insights from CS-ARDL Approach. Research in Globalization, 7, 100137. https://doi.org/10.1016/j.resglo.2023.100137

Zakharchenko, V., & Zabolotnyi, H. (2024). Decentralization Reform in Ukraine as a Factor and Institutional Component of Sustainable Development of Territorial Communities. Ukrainian Geographical Journal, 1 (125), 49–62. https://doi.org/10.15407/ugz2024.01.049

Zaremba, O., Sakhno, A., Chesnik, N., Nitsenko, V., Chikov, I., Zakharova, T., & Boltovska, L. (2025). Capital Investments in Sustainable Development of Land Resources of Ukrainian Agrarian and Industrial Complex Enterprises: Assessment, Modeling, Optimization. Rocznik Ochrona Srodowiska, 27, 722–737. https://doi.org/10.54740/ros.2025.058