Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212533 
Authors: 
Year of Publication: 
2004
Series/Report no.: 
BOFIT Discussion Papers No. 2/2004
Publisher: 
Bank of Finland, Institute for Economies in Transition (BOFIT), Helsinki
Abstract: 
Russia s economy is energy intense and wasteful of resources.This situation has arisen in part due to the country s ample energy supplies and regulated privileges for domestic consumers.Recently enacted and proposed reforms intended to increase the efficiency of the energy sector by raising domestic energy prices also have implications for the export levels of Russian energy commodities. In this study, we estimate the costs of the subsidised energy system in an allocative sense and then analyse recent moves of the Duma to boost gas and electricity prices to bring them into line with market-based pricing.Our analysis uses a multi-region general equilibrium model (GTAP) modified to express the global dimensions of the subsidisation policy and suggested reforms.Preliminary results show that current subsidies extract over 6% of GDP and limit the potential benefits of Russia s comparative advantage in energy commodities.Increases of 6% in electricity and 10% in the price of regulated gas improve efficiency by reducing distorting subsidies and distinctly shifting output from domestic markets to exports.
Subjects: 
CGE modelling
energy market liberalisation
Russia
JEL: 
D58
F17
H71
Q43
Q48
Persistent Identifier of the first edition: 
ISBN: 
951-686-886-X
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.