The Soviet Energy Problem

Although the Soviet Union has the most abundant energy reserves of any country, energy policy has been the single most disruptive factor in its industry since the mid-1970s. This major case study treats the paradox of the energy crisis as an essential part of larger economic problems of the Soviet Union and as a key issue in determining the fate of the Gorbachev reforms. Originally published in 1989. The Princeton Legacy Library uses the latest print-on-demand technology to again make available previously out-of-print books from the distinguished backlist of Princeton University Press. These editions preserve the original texts of these important books while presenting them in durable paperback and hardcover editions. The goal of the Princeton Legacy Library is to vastly increase access to the rich scholarly heritage found in the thousands of books published by Princeton University Press since its founding in 1905.

This paper reviews two 1979 books: The Soviet Energy System, by Leslie Dienes and Theodore Shabad; and Industrialization in the USSR, by Robert Lewis.

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.

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.

Analyses energy needs and policies within the Soviet Union.