Authors: Dmitry Rudenko; Anna Raschetova
Addresses: Department of International Economics and Business, Tyumen State University, Tyumen, 6 Volodarskogo str. 625003, Russia ' Department of International Economics and Business, Tyumen State University, Tyumen, 6 Volodarskogo str. 625003, Russia
Abstract: In the Soviet Union energy intensity levels remained high. After the Soviet Union breakdown Russia has also been very energy intensive. Although Russia's energy intensity has fallen by nearly 41%, primary energy consumption per capita has increased by 24% since 1998. The current study aims to investigate how different determinants have contributed to the decline in Russia's energy intensity. The cointegration methodology is applied to establish the long-run relationship among the variables influencing energy intensity in Russia. The results show that energy prices and the share of non-carbohydrate energy have significant impact being negatively correlated to changes in energy intensity. A 1% increase in real crude oil price is expected to reduce energy intensity by 0.26% approximately, as well as a 1% increase of the share of alternative energy sources is expected to reduce the energy intensity by 0.86%.
Keywords: energy intensity; energy efficiency; Russia; renewable energy; FMOLS.
International Journal of Public Policy, 2018 Vol.14 No.1/2, pp.50 - 63
Received: 09 Apr 2016
Accepted: 25 Apr 2017
Published online: 21 Mar 2018 *