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Formation of the Price Mechanism for Energy Resources in Russia and the Countries of the European Union

Author

Listed:
  • Olga Ergunova

    (Department of Foreign Economic Activity, Ural State Economic University, Yekaterinburg, Russian Federation,)

  • Vladislav Lizunkov

    (Yurga Institute of Technology of National Research Tomsk Polytechnic University, Yurga, Russian Federation,)

  • Viktor Blaginin

    (Department of Regional, Municipal Economy, Ural State Economic University, Yekaterinburg, Russian Federation,)

  • Ekaterina Politsinskaya

    (Yurga Institute of Technology of National Research Tomsk Polytechnic University, Yurga, Russian Federation)

  • Olga I. Shaykina

    (National Research Tomsk Polytechnic University, Tomsk, Russian Federation.)

Abstract

The current research focuses on the solution to the challenge of finding balance in different energy resources pricing trends. Our research shows that increase in gas price leads to corresponding growth in electricity cost, but the effect of replacement has not occurred yet. The burden on population is growing as cross-subsidization is gradually being canceled in order to increase the production competitiveness. It has been found out that households in Russia pay less nowadays than in the USSR, less than Europeans for gasoline, electricity and diesel at present. If we bring the cost of electricity in proportion to the corresponding level of the Soviet time, it will cost about 0.1825 per kWh, which quite corresponds to European prices and newly confirms the validity of the author's calculations. Two theoretically possible directions for the development of Russian energy system based on innovations in energy consumption and production have been defined.

Suggested Citation

  • Olga Ergunova & Vladislav Lizunkov & Viktor Blaginin & Ekaterina Politsinskaya & Olga I. Shaykina, 2018. "Formation of the Price Mechanism for Energy Resources in Russia and the Countries of the European Union," International Journal of Energy Economics and Policy, Econjournals, vol. 8(1), pages 122-127.
    • Handle: RePEc:eco:journ2:2018-01-15
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    References listed on IDEAS

    as
    1. Michael J. Brennan & Eduardo S. Schwartz, 1982. "Consistent Regulatory Policy under Uncertainty," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 506-521, Autumn.
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    Cited by:

    1. Natalya S. Shcherbakova & Yulia A. Nazarova & Natalia A. Navrotskaia & Nataliya V. Bondarchuk & Alla V. Vavilina, 2020. "Evaluation of the Gas Industry Company s Competitiveness in the Domestic Market," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 401-408.
    2. Valeriy Prasolov & Valery Bezpalov & Svetlana Doguchaeva & Rodion Rogulin, 2020. "Energy Price Formation and Energy Consumption by Households as a Factor of Ensuring Energy Safety," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 82-93.

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    More about this item

    Keywords

    European Union; Energetics; Price; Energy Supplies; Competitiveness of Production; Direction of Development;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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