Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212526 
Authors: 
Year of Publication: 
2003
Series/Report no.: 
BOFIT Discussion Papers No. 12/2003
Publisher: 
Bank of Finland, Institute for Economies in Transition (BOFIT), Helsinki
Abstract: 
This work considers effects of energy market liberalisation in the countries of the former Soviet Union (FSU).Our analysis is based on a computable general equilibrium (CGE) model called the Global Trade Analysis Project (GTAP).This specialised model makes it possible to evaluate effects in a general equilibrium set-up. Energy market reforms are widely discussed in the literature, but the use of CGE models has been limited.In the main part of the paper, we perform two experiments.The first is a benchmark liberalisation experiment in which all government taxes and subsidies are removed.The second is an attempt to simulate an increase in the export capacity of energy commodities into the European markets.In general, we find that liberalisation of FSU energy markets would increase welfare in the EU countries, while in the FSU welfare would decrease.This result is mainly due to the terms of trade effect, as export prices of FSU countries decrease.
Subjects: 
energy
computable general equilibrium models
former Soviet Union
welfare analysis
Persistent Identifier of the first edition: 
ISBN: 
951-686-872-X
Document Type: 
Working Paper

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