Analysis of Putin’s Energy Policy in Russia
Author: Chun-Kuang Wu
Abstract / Chinese PDF Download
Russia has already become a global energy giant. Domestically, the Russianenergy industry is a stable primary factor in the economic growth of the country,both promoting and restricting it. Internationally, Russia is the world’s secondlargest crude oil supplier and largest supplier of natural gas. Thus understanding theenergy security strategy of Russia is an important subject for research. This paperuses public policy analysis as the method by which to study the Russian energyindustry. It analyzes the problems and development of the energy market and theindustry’s structure. It discusses which kind of policy Russia adopts to solve itsenergy industry crisis and strengthen its national power causing, therebymaximizing national interests. This paper firstly analyses the energy industry ofRussia, including a historical development overview, the current situation ofindustrial structure and worldwide positioning. This paper then goes on to analysethe overall arrangement of Russian energy strategy. This includes the importantstrategies of nationalization of energy resources, petroleum and natural gastransportation, crude oil pipelines, petroleum and natural gas export policy, theestablishment of energy trading and the setting up of the storage system of crude oilin terms of one’s power and energy investment. The Granger Causality test is usedto examine causality between crude oil prices and per capita Gross DomesticProduction. Impulse Respond Function is also used to judge the impact of changingcrude oil price to per capita Gross Domestic Production. We found that an increasein the output of crude oil did not Granger Cause economic growth and the impulseresponse to development in economy was slight. However, the increase in crude oilprices was shown to be a significant influence and positive impulse response onpredicted economic growth.