Energy Pricing in the Soviet Union

Manmohan Kumar and Kent Osband

No 1991/125, IMF Working Papers from International Monetary Fund

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.

Keywords: WP; price; enterprise; wedges retard enterprise adjustment; republic; price change; voucher; input price; energy export; price reform; reform in April; world price of oil; black market price; supply curve; energy-producing enterprise; enterprise level; Energy prices; Oil prices; Consumption; Price adjustments; Oil; Global; Western Europe (search for similar items in EconPapers)
Pages: 18
Date: 1991-12-01
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:1991/125

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