Energy Pricing in the Soviet Union

Author/Editor:

Manmohan S. Kumar ; Kent Osband

Publication Date:

December 1, 1991

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 91/125

Subject:

English

Publication Date:

December 1, 1991

ISBN/ISSN:

9781451854763/1018-5941

Stock No:

WPIEA1251991

Format:

Paper

Pages:

18

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