
Environmental management of territorial communities is important for preserving natural resources and mitigating environmental risks, which contributes to achieving sustainable development goals (SDGs). The aim of the study is to assess the effectiveness and impact of environmental protection expenditure (EPE) as an important tool of environmental management on the sustainable development of territorial communities. The study employs regression analysis, correlation analysis, and comparison methods. The study identified the most effective areas of EPE by territorial communities. These include: other activities in the field of ecology and protection of natural resources, environmental protection measures at the expense of special-purpose funds, protection and rational use of natural resources. The effectiveness of such areas was determined through a regression analysis of the impact of EPE on the environmental indicators of the relevant regions. The volume of pollutant emissions into the atmosphere is most affected by expenditures on other activities in the field of ecology and protection of natural resources with a regression coefficient of -0.542787. Environmental protection measures at the expense of special funds have a significant impact on total waste generation (-0.782511) and on the volume of polluted wastewater (-0.443516). Regression analysis did not reveal a statistically significant impact of any of the variables on the I-III hazard class waste generation and the number of cases of malignant neoplasms. The environmental policy of territorial communities should focus on the identified effective areas of expenditure and revise expenditures that do not contribute to improving environmental indicators. It should be noted that the volume of expenditures is not the most important factor in efficiency — the quality of planning and management is of key importance. The findings may be useful for territorial communities to improve the environmental management system in terms of managing the effectiveness of expenditures on environmental protection.