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Energy Effi ciency in Rent Seeking Economies: Is Credit Capable of Breaking the Energy Curse?

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  • Dmitry Burakov

    (Department of Monetary Relations and Monetary Policy, Russian Federation, Financial University under the Government of Russian Federation, Moscow, Russia.)

Abstract

In this article, we set ourselves a task of determining a potential of using credit for improving energy effi ciency in the economy of rent seeking. Based on cross-country analysis and using channels approach to estimation of institutions and market s effi ciency we come to conclusion that persistently low energy effi ciency in East European countries may be a result of low quality market institutions. Testing a hypothesis of credit being the source of improving energy effi ciency (e.g., through introduction and granting energy effi cient loans) showed that the effect of credit channel is negative in case of low quality institutions in the economy and low elasticity of national markets. On opposite, credit is capable of breaking the energy curse, when successful institutional infrastructure is functioning, and competitive environment takes its place when geographical and spatial features are taken into account.

Suggested Citation

  • Dmitry Burakov, 2015. "Energy Effi ciency in Rent Seeking Economies: Is Credit Capable of Breaking the Energy Curse?," International Journal of Energy Economics and Policy, Econjournals, vol. 5(3), pages 677-685.
    • Handle: RePEc:eco:journ2:2015-03-06
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    References listed on IDEAS

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    Cited by:

    1. Alexander Bass, 2019. "Do Institutional Quality and Oil Prices Matter for Economic Growth in Russia: An Empirical Study," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 76-83.
    2. Dmitry Burakov, 2016. "Elasticity of Energy Intensity on a Regional Scale: An Empirical Study of International Trade Channel," International Journal of Energy Economics and Policy, Econjournals, vol. 6(1), pages 65-75.
    3. Dmitry Burakov & Max Freidin, 2017. "Financial Development, Economic Growth and Renewable Energy Consumption in Russia: A Vector Error Correction Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 7(6), pages 39-47.

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    More about this item

    Keywords

    Energy Effi ciency; Rent Seeking; Credit Market;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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