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Decarbonizing Russia: Lessons from global carbon pricing practices

Author

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  • Marina S. Dolmatova

    (Skolkovo Institute of Science and Technology, Moscow, Russia)

  • Tatiana S. Remizova

    (Financial Research Institute of the Ministry of Finance of the Russian Federation, Moscow, Russia)

Abstract

Climate change mitigation increasingly relies on carbon pricing as a core policy tool. This study investigates the applicability of such mechanisms within the Russian context, given the country's heavy fossil fuel dependence and evolving energy landscape. A mixed-method approach is used, combining case studies (EU ETS, Nordic carbon taxes, Sakhalin pilot) with scenario modeling based on macroeconomic data. The findings suggest that although carbon pricing can drive renewable adoption and emissions reduction, Russia's centralized governance, regional inequality, and export dependence pose challenges. Key recommendations include phased implementation of carbon taxes and emissions trading, equitable revenue allocation, and integration with existing tax systems. With current limitations including reliance on secondary data and uncertainty in political feasibility, future research should explore public acceptance and institutional readiness. Overall, carbon pricing offers Russia a structured pathway to decarbonization, aligning with global climate goals if carefully adapted to local conditions.

Suggested Citation

  • Marina S. Dolmatova & Tatiana S. Remizova, 2025. "Decarbonizing Russia: Lessons from global carbon pricing practices," Russian Journal of Economics, ARPHA Platform, vol. 11(3), pages 285-305, September.
    • Handle: RePEc:arh:jrujec:v:11:y:2025:i:3:p:285-305
    DOI: 10.32609/j.ruje.11.158982
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    Keywords

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    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment

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