Author(s)

N. Didenko, K. Kunze

Abstract

This paper discusses general facts about energy policies and analyzes their relationship to the quality of life in Russia. Aspects of the sustainability and exploitation of energy sources in Russia are also discussed.

The aims of Russia’s energy policy are the efficient use of natural energy resources, the increase in the potential of the energy sector allowing sustainable economic growth, the improvement of living standards of the population, and the enhancement of the economic position of the country.

This paper examines the relationship between energy policies and standards of living in Russia by using a production function integrated in an ARCH-model. Data on the production and export of energy resources in Russia from 1992 to 2012, for each of the forms of fuel (oil, gas, coal, uranium), was transferred to standardized units. Using the model, an analysis and a forecast of the Human Development Index (HDI), as well as the forecast of errors for the years 2013– 2015, has been carried out. The results show that an increase in the production and export of energy is associated with an increase in HDI.

Keywords

energy policy, sustainability in energy sources, energy policies and quality of life, production function, ARCH-model