To raise or not to raise? Impact assessment of Russia's incremental gas price reform
The growing momentum for gas price liberalization in Russia is increasingly constrained by fears of potentially strong adverse impact that market-based price setting principle will have on the economy. Based on a novel multi-regional, multi-sector and multi-household computable general equilibrium (CGE) model of the Russian Federation, this paper presents a simple yet a flexible framework for evaluating gas price reform. We found that the reform is feasible at low economic cost, without greater disparities in terms of increased inequity within and between country's federal districts. Large redistributive impacts can arise from specific mechanisms to recycle revenues. In terms of global environmental credentials, gas price liberalization can bring Russia on a substantially more sustainable path. The potential to foster adoption of energy efficiency measures by exploiting the revenue-recycling effect is, however, limited.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: L 7,1; D - 68161 Mannheim|
Web page: http://www.zew.de/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robinson, Sherman & Cattaneo, Andrea & El-Said, Moataz, 2000.
"Updating and estimating a Social Accounting Matrix using cross entropy methods,"
TMD discussion papers
58, International Food Policy Research Institute (IFPRI).
- Sherman Robinson & Andrea Cattaneo & Moataz El-Said, 2001. "Updating and Estimating a Social Accounting Matrix Using Cross Entropy Methods," Economic Systems Research, Taylor & Francis Journals, vol. 13(1), pages 47-64.
- Sagen, Eirik Lund & Tsygankova, Marina, 2008. "Russian natural gas exports--Will Russian gas price reforms improve the European security of supply," Energy Policy, Elsevier, vol. 36(2), pages 867-880, February.
- Hunt Allcott & Michael Greenstone, 2012.
"Is There an Energy Efficiency Gap?,"
NBER Working Papers
17766, National Bureau of Economic Research, Inc.
- Tsygankova, Marina, 2012. "An evaluation of alternative scenarios for the Gazprom monopoly of Russian gas exports," Energy Economics, Elsevier, vol. 34(1), pages 153-161.
- Paul Krugman, 1990.
"Increasing Returns and Economic Geography,"
NBER Working Papers
3275, National Bureau of Economic Research, Inc.
- Dudek, Daniel J. & Golub, Alexander A. & Strukova, Elena B., 2006. "Should Russia increase domestic prices for natural gas?," Energy Policy, Elsevier, vol. 34(13), pages 1659-1670, September.
- Catherine Locatelli, 2003. "The viability of deregulation in the russian gas industry," Post-Print halshs-00001308, HAL.
- David Hauner, 2007. "Benchmarking the Efficiency of Public Expenditure in the Russian Federation," IMF Working Papers 07/246, International Monetary Fund.
- Tsygankova, Marina, 2010. "When is a break-up of Gazprom good for Russia?," Energy Economics, Elsevier, vol. 32(4), pages 908-917, July.
- Stern, Jonathan, 2005. "The Future of Russian Gas and Gazprom," OUP Catalogue, Oxford University Press, number 9780197300312, June.
When requesting a correction, please mention this item's handle: RePEc:zbw:zewdip:12052. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.