Price Reform And Energy Markets In The Soviet Union And Central Europe

This book provides a succinct account of what may happen to the energy sector in the former Soviet Union in the medium- to long-run under alternative scenarios for macroeconomic reform. The analyses reveal the serious damage of the oil resource base caused by the reckless exploitation practices of the past. Production of oil and coal can recover only slowly from the doldrums of the early 1990s, but the potential to expand gas output is very considerable. Energy consumption practices have been extremely wasteful in the past. The total savings potential that could be accomplished as energy prices are allowed to rise, and incentives to economise on energy use are introduced, is huge. The analysis of production, and consumption prospects is disaggregated by major republic. The likely evolution of FSU energy exports until 2005 is also explored, and the impact that changing export flows could have on the international prices of oil, coal and natural gas, is discussed in detail.

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.

Analysis of energy trends, 1960-1982, and their economic implications in the USSR - discusses energy sources, energy production, power supply, power consumption, energy conservation, investment, trade in, and esp. Export of energy, energy policy issues, and the link between foreign policy, the economy and energy. Map, statistical tables.

Economic reform, structural adjustment, macroeconomic stabilization, and participation in the world economy are interconnected aspects of the same issue: the long-term economic viability of centrally planned economies in the rapidly changing economic environment of the modern world. Any economic strategy that focuses on only one or two of these aspects at the expense of the others is likely to fail; yet even strategies that build on all of these bases may well fail unless political leaders can muster exceptional skill, garner international support, and enjoy some good luck. The contributions to this volume reflect the recent research on this issue by various specialists on the economies of the Soviet Union and Eastern Europe. Each author emphasizes macroeconomic stabilization, structural adjustment, participation in the larger world economy, or ecomonic reform.

Energy and environmental issues in the former Soviet sphere rank as global policy priorities for three reasons. First, civilian application of military nuclear materials multiplies the threat of terrorism. Second, Russian and Caspian oil resources affect world markets, Western energy security, and regional stability. Third, climate change may become a global challenge commensurate with the Cold War, and the transition economies--the former Soviet Union and Eastern Europe--offer the world's largest and cheapest near-term opportunities for curbing greenhouse gas emissions. Yet, the region remains unprepared to deal with these issues, and Western assistance has failed to help. A "second generation" of reform efforts is needed, led from within, but supported by the West. In Energy and Environmental Policies in the Transition Economies William Chandler synthesizes disparate, specialized analyses and publications. He draws on a relatively large body of research on energy technology, oil and gas markets, geopolitics, finance, economic reform, and environmental science specific to Russia, eastern Europe, and the transition economies. In successive chapters Chandler reviews energy use, energy efficiency, nuclear safety and security, petroleum geoeconomics, coal, utility monopoly and competition, and environmental and climatic change in the former Soviet Union and Central and Eastern Europe. Chandler also considers options for a "second generation" of reform efforts. The subject matter of the book is significant not only for the energy and environmental policies themselves, important though they are, but because those policies in turn affect regional political stability and Western energy security. Energy and Environmental Policies in the Transition Economies will be of considerable interest to policymakers in government, to private-sector actors, to academic scholars, and to students of international energy and environmental politics.

This discussion of the traditional system of management and the subsequent reforms of the early 1950s shows that their focus is on finding a proper combination of planning and market mechanism. The book attempts to show that success depends on restructuring the economy.