PI: Sergey Paltsev, MIT Energy Initiative
Achieving the Paris Agreement goals of climate stabilization requires a transformation of energy system over the upcoming decades. Russia, as a fossil fuel producer, will have to adjust its economy to reflect lower export earnings from oil, coal, and natural gas. Using a global energy-economic modeling framework, we will assess the impacts of energy transformation policies and the resulting global market dynamics on Russian economy, including the changes in its sectoral output, energy mix, and GDP. The analysis will provide a basis for strategic decision-making to industry representatives, policy makers, and academic researchers in Russia and other countries. Understanding sectoral and economy-wide impacts is crucial for assessing the magnitudes of the challenges that lie ahead. The project will be a tool to enhance the discussions between government, industry and academia on the long-term strategy for energy and economic transformation of Russia.