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Global climate change is a key challenge to the global economy in the twenty-first century. To address it properly, a combination of mitigation and adaptation strategies is required. Although the responsibility for adaptation lies primarily with national governments (though, even here, poorer countries need international support), mitigation is one of the key fields of international cooperation. There is little chance that the fundamental objective of stopping global temperatures from rising more than 2 °С can be reached without a stable and comprehensive global governance system. The current international climate change regime based on the Paris Agreement is insufficient to prevent catastrophic climate change. Deeper cooperation between leading economies is especially necessary, including among those that are now reluctant to reduce greenhouse gas emissions.
The modern system of global governance consists of a number of regimes in different issue-areas: security, finance, trade, investment and many other areas of global competition and cooperation. Despite a seemingly inexhaustible variety of those regimes, all of them may be classified by a finite (and small) number of governance structures. In our research, we defined seven types of governance structures, top–down: from global hierarchical coordinating bodies with powerful enforcement tools to a free international market. International actors based their choice of governance structures on a countable number of factors. Academic researchers working within the framework of transaction cost economics, primarily at the micro-level, investigated these factors.
This chapter seeks to identify the set of factors that played an important role in the choice of current modes of global governance, to trace their recent changes and to elucidate the economic rationale for the apparent or forecasted evolution of those governance structures. We focus our investigation on several global governance regimes—for energy, the environment and trade. Although these areas are transforming as the economic environment shifts, they nevertheless display patterns common to the general evolution of governance structures.
The global market for oilfield services by 2020 will amount to about $220bn. The industry leading segments are works belonging to well commissioning (drilling, cementing, etc.) and well servicing (overhaul of wells and routine well repair), both of which account for 70 per cent of the global oilfield services market . The leader of the global oilfield services market is North America (34 per cent) while Eastern Europe and the CIS (the Commonwealth of Independent States comprising post-Soviet nations throughout Eurasia) are one of the most dynamic oilfield services markets (16 per cent). The drivers of the Russian oilfield services market are exploration segments and production drilling, characterized by a stable annual growth of 10-12 per cent.
Because of the natural geographical distribution of oilfield services businesses (oil, gas and other fields), international oilfield services companies have to look for ways to enter new markets. Entrance to new markets in developing countries is accompanied by technological, economic and political barriers, depending on the economic characteristics of the region and the specifics of state regulation of the national energy market. The operating models of oilfield services companies depend on the regulatory aspects of the oilfield services industry in different countries, the principles of interaction between energy and service companies and the level of competition and market transparency. To be successful in a new market, an international oilfield services company needs to consider the national characteristics of the economy and politics of the region and propose the correct operating model that meets the requirements and wishes of energy companies.
The Russian oilfield services market is one of the youngest in the world.
The relations between energy and service companies that have been developing over the past decades in the Russian economy have narrowed competition in the national market.
International oilfield service companies in the Russian market are primarily involved in low-profit projects and offer services for certain types of work. To gain access to highly profitable projects for international oilfield service companies, operational models needed to be reviewed.
Economic growth in developing economies and the transition of large population groups to the middle class lead to a surge in energy consumption and hence in greenhouse gas emissions. The solution to such issues as poverty and inequality comes therefore into conflict with climate change mitigation. The existing international climate change regime does not address this contradiction. The existing international system of climate regulation does not address this contradiction. Today, the global climate governance relies on the estimates of aggregate emissions of countries not considering the level of development and the distribution of emissions among income groups within each country. Emissions from production are being monitored, while consumption-related emissions, albeit known be experts, rarely underlie decision-making. Meanwhile, income distribution has a higher impact on consumption-based emissions in comparison to the production-based ones. Decisions on the emission regulation are made at the national level by countries with different development agendas where the climate change mitigation often gets less priority in comparison to other socio-economic objectives.
The paper proposes a set of principles and specific mechanisms that can link both climate change and inequality within a single policy framework. Firstly, we highlight the importance of modification of the global emission monitoring system for the sake of accounting for emissions from consumption (rather than production) by income groups. Secondly, we suggest the introduction of a new redistribution system to address climate change including a "fine" imposed on households with the highest levels of emissions. Such a system follows the principles of progressive taxation but underlies climate mitigation objectives and can rather be treated not as taxation of high incomes but as payment for negative externality. Thirdly, we outline the need for adjustment of climate finance criteria: priority should be given to projects aimed at 1) reducing the carbon intensity of consumption of the social groups entering the middle class, and 2) at adaptation of the poorest population groups to the climate change. The special role in the implementation of these principles may belong to BRICS countries which could use it as a chance for proactive transition to the inclusive low-carbon development.
The article looks into the reasons underlying the outspread of the full-scale mechanism of banking regulation over U.S. investment banks. We analyze the effect of the Basel III standards on stress-resilience of investment banks and examine the role of U.S. investment banks in ensuring financial stability. Based on regression analysis we found that minimum capital adequacy standards of Basel III do not have negative effect on ROE of the U.S. investment banks that are G-SIB category-designate; however additional capital requirements (Higher Loss Absorbency (HLA) surcharge) that depend on G-SIB’s systemic significance according to their bucket as per Financial Stability Board classification do have significant and negative effect on ROE in the post crisis period. Besides, leverage requirements that also depend on G-SIB’s systemic significance have a statistically significant effect on ROE.
The main purpose of the research is to identify key models of oil exporting countries inclusion into oil refining
global value chains. The countries possess high potential of integration into the processing sector with higher value
added, but tend to implement it with different degrees of efficiency. Positive balance of foreign trade in refined oil
products, calculated in value added terms, can be accompanied by dependence of country’s exports on foreign value
added content, and negative balance can be explained by country’s imports of intermediate products with low level
of processing to insure domestic production. Five of eight analyzed oil exporting countries show positive dynamics of
inclusion into oil refining global value chains. The world biggest oil exporter, Saudi Arabia, doesn’t rely on foreign
МИРОВАЯ ЭКОНОМИКА И МЕЖДУНАРОДНЫЕ ОТНОШЕНИЯ 2020 том 64 № 1
МОДЕЛИ ГЛОБАЛЬНЫХ ЦЕПОЧЕК СОЗДАНИЯ СТОИМОСТИ
value added in its exports, whereas country’s forward participation index in global oil refining sector is very high. USA,
Canada and Norway pursue specific models of integration into oil processing, which are developed in compliance
with countries’ energy policies and aimed to create higher value added. Despite Kazakhstan dependence on Russian
economy the country reduces foreign value-added content in its exports of oil refining products and improves
participation in GVC. Two of the world leading oil exporters, Mexico and Brazil, demonstrate negative dynamics of
inclusion into oil processing sector. High dependence of production on foreign value added, negative balance of foreign
trade and poor integration into complex links within value chains are key parameters of ineffective GVC inclusion. The
case of Russian Federation could be identified as positive integration with some obstacles. High volumes of Russian
exports in oil refining products, positive trade balance in value added terms and high GVC forward participation
index are accompanied by country’s increasing dependence on foreign value-added which forces Russia to rethink its
participation in global refining sector and implement supporting policies.
The Paris Agreement introduces long-term strategies as an instrument to inform progressively more ambitious emission reduction objectives, while holding development goals paramount in the context of national circumstances. In the lead up to the twenty-first Conference of the Parties, the Deep Decarbonization Pathways Project developed mid-century low-emission pathways for 16 countries, based on an innovative pathway design framework. In this Perspective, we describe this framework and show how it can support the development of sectorally and technologically detailed, policy-relevant and country-driven strategies consistent with the Paris Agreement climate goal. We also discuss how this framework can be used to engage stakeholder input and buy-in; design implementation policy packages; reveal necessary technological, financial and institutional enabling conditions; and support global stocktaking and increasing of ambition.
This article examines the preconditions and reasons for interaction between BRICS countries in the fields of science, research and university education. It analyzes the particular ways in which the member countries develop and coordinate their positions in these areas. It also reviews and evaluates the practical experience gained from cooperating on scientific and technological research and innovation (STRI), and the functioning of the BRICS Network University, and considers the prospects for further joint work in these areas.
Is it possible for Russian energy companies to develop an effective business strategy based on the restrictions and rules of strategic documents of national scale?
Today Russian Energy Strategy sets the benchmarks for business. World experience confirms the possibility of adjusting corporate strategies for the benefit of society. Danish Energy Strategy prescribes a smooth transition to alternative energy sources and active implementation of smart energy resources. Experience of Norway in this area is also important. The third energy package of the EU defines the rules of the game influencing business models, strategies and long-term deliveries of external counterparties.
The set of methods allows for the analysis of open sources and materials for the development of national and corporate strategies. Management technologies allow us to specify and quantify the characteristics of the national energy strategy, and to reflect on the priorities in the development strategies of companies. The conditions of the state policy and the parameters of the companies' strategies will have more points of contact and reduce the risk of deviation from the declared goals. Revision of the program document is possible due to organizational design and methodological support.
The paper provides findings of the research work and scientific discussions under the “Global Sustainability Strategy Forum” (GSSF) that aims to develop evidence-informed judgments on challenges and solutions. It views attaining sustainability as a set of closely-coupled societal and environmental challenges and opportunities that require integration of multiple disciplines, new research methods, and new knowledge sources with sensitivity to regional and cultural diversities. The project is designed to produce innovative insights and strategies to support effective governance of transitions to sustainability of our complex global social-ecological system within its inherent resource limitations, and to develop sustainable lifestyles that are practical and appealing in the different regions and cultures of the world.
The paper is devoted to the assessment of the prospects of implementing clean energy sources in Russia, where the current energy policy goal is to increase the role of renewable and clean energy sources. The research is based on data from the Krasnoyarsk Region as one of the largest territories but also as a representative model of Russia. The aim of the study is to identify where and which renewable energy source (solar, wind, hydro and nuclear) has the highest potential. The novelty of our research lies in its holistic nature: authors consider both geographical and technical potential for renewable energy sources development as well as prospective demand for such resources, while previous research is mostly focused on specific aspects of renewable energy development. We also consider the level of air pollution as an important factor for the development of renewable energy sources. The results of the study show that there is a strong potential for clean energy sources in the Krasnoyarsk Region. The resulting matrix identifies the potential of energy sources across all the municipal entities and also indicates whether the source of energy is primary or supplemental and where several sources may be implemented in cooperation.
The trend on electricity grids digitalization is gradually leading to the shift of busi-ness value towards more sustainable and efficient electricity services. Sustainability and efficiency are challenged by the increasing demand for electricity which is fol-lowed by a dramatic transformation of energy systems. While smart grids seem to be crucial in this process, there is a discrepancy in understanding the costs and benefits for the multiple actors involved. In addition, there are benefits of smart grids that cannot be measured directly in terms of money, such as higher energy system reliabil-ity or commitment to carbon reduction. Despite the rise of interest to the managerial aspects of smart grids implementation and development, many aspects remain out of the scope. This paper contributes to the research of smart grids by providing a con-ceptualized business model that would allow for value co-creation, delivery and cap-ture. A Russian energy sector perspective is primarily considered throughout the pa-per and the results are supported by evidence from interviews with of industrial ex-perts
The electric energy industry plays a crucial role in the technological support of digitalization, and this leads to an increase in the requirements for its development. Leading developed countries are currently under energy transition and are creating innovative, intelligent energy systems (IES) of open type, which include active consumers, distributed generation mechanisms and the introduction of renewable energy sources. One can observe a deep structural transformation, expansion of the range of participants and creation of new value chains. The development of digitalization and IES provides with new opportunities for sustainable development of the economy and society. This stage facilitates the creation of new tasks for the investment climate in the power industry, so the development of an institutionalsystem is justified.
The digital transformation of energy market, which is also taking place in Russia, creates a number of challenges for generating companies, which are one of the key players in the industry. In the current conditions, companies need to transform their business model and use new technological solutions to be competitive on the market. The using and applying of new technologies are some kind of competitive advantages for energy companies. The main directions of transformation of generating companies lie in the field of using of renewable energy sources (RES), of development of solutions for distributed generation (since consumers become prosumers) and of solutions for intelligent energy. New financial and demand management technologies allow companies to optimize their own business processes. Digital business transformation is becoming the main source of growth for generating companies.
The energy sector of Russia is one of the most potent in the world - it is the second in extraction of oil and gas, the third for total output of fuel and energy resources. While exporting nearly 45% of its total production of energy resources, Russia produces more energy per capita than most other countries - 5 times higher the global average and 3 times higher than the average level for OECD countries. The energy sector of Siberia represents the crucial part of the country's energy sector. Over decades, the energy resources of the region massively contributed to the Russian federal budget and brought in a major part of hard currency from export trade. In the current conditions of existing geopolitical challenges and expected global demand for energy resources, it is much more of a priority for Russia not to raise the output of fuel and energy resources but to improve the overall quality and reliability of the whole energy supply system, increase the depth of mineral fuel, including solid fuel and waste recycling.
In the XXI century the Arctic region is a matter of huge interest of many parties, including not only countries, but also large companies and international organisations. Fragile environment, influence of climate change, technological progress, rich resource base and unresolved border
disputes guarantee attention to the territory. However, even considering those variables, we believe that system analysis is more relevant, giving an opportunity to see the whole picture instead of fragments and local issues. The main question posed in this work is how to find balance between common and specific, general and individual in the Arctic, and the authors believe they succeeded in solving this problem. We believe that understanding of the Arctic is only possible when taking into consideration its history, geography, environment, legal issues and economic prospects. In other words, the only approach possible needs to cover all the regional issues and analyze these important factors, which is provided by the new institutional economics, through the union of fundamental and applied science.