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Energy Pricing in the Soviet Union

Author

Listed:
  • Mr. Manmohan S. Kumar
  • Kent Osband

Abstract

Energy exports, which are already the primary source of Soviet convertible currency earnings and an important contributor to the budget, could bring in much more revenue if the Soviet Union were to reduce its extremely high levels of energy consumption. To encourage this process, energy prices need to be raised substantially. Under plausible assumptions, it is shown that an increase in prices could yield sizable foreign exchange earnings. Large increases in energy prices could, however, threaten the solvency of industrial enterprises, precipitate major economic and social dislocation, and severely strain interrepublican economic relationships.

Suggested Citation

  • Mr. Manmohan S. Kumar & Kent Osband, 1991. "Energy Pricing in the Soviet Union," IMF Working Papers 1991/125, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1991/125
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    Citations

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    Cited by:

    1. Joshua Aizenman & Peter Isard, 1995. "Production bottlenecks and resource allocation during the transition to a market economy," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 3(3), pages 321-331, September.
    2. André de Moor, 2001. "Towards a grand deal on subsidies and climate change," Natural Resources Forum, Blackwell Publishing, vol. 25(2), pages 167-176, May.
    3. Aizenman, Joshua & Isard, Peter, 1996. "Production bottlenecks and congestion externalities during the transition to a market economy," International Review of Economics & Finance, Elsevier, vol. 5(3), pages 225-241.

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