Decision Making in Finding Optimal Investment Strategy for Eco-Innovations Implementation in Agricultural Production in Ukraine

Abstract

Purpose: This study aims to develop and justify an optimal investment strategy for implementing eco-innovations in Ukrainian agricultural enterprises. By evaluating alternative tillage technology scenarios through dynamic programming, the research addresses the decision-making challenge of how to allocate limited internal investment resources to maximize both economic returns and environmental benefits. Research Method: The Bellman dynamic programming approach was used to model investment allocation among six tillage scenarios: traditional, Strip-till, No-till, and their combinations. The model incorporated operational data from a Ukrainian agricultural enterprise, with constraints reflecting limited resources. Optimal strategies were identified based on cumulative returns per hectare. Findings and Values: The results show that investing equally in Strip-till and No-till technologies provides the highest average return of 485.03 USD/ha, compared to traditional tillage. The model confirms the economic feasibility of eco-innovative tillage methods, even within the operational limitations of a single enterprise. The findings highlight the value of integrated investment planning to support both productivity and sustainability. This article contributes a practical decision-making tool for agribusinesses seeking to implement eco-innovations under financial constraints. The methodology can support policymakers in designing targeted incentives (e.g., equipment subsidies) and can be adapted to other regions and farm scales, beyond the Ukrainian context.