Development of tools for economic analysis for public sector programs in Russia: A case study of the energy efficiency program in Moscow

Abstract

Resource rich and with a growing economy, the Russian Federation is currently targeting improvement of public funds allocation via program based budgets. First attempted by Moscow as a region of Russia in 2012, this ambitious transformation has subsequently been taken up by the national government followed by regional governments. Effectively, over 83% of the national budget or over $360 billion was allocated to 39 state public programs in 2014. Although the proposed program based budget system is novel for modern Russia, it has its foundations in the existing practice of public program development and implementation in Russia. Analysis of this practice demonstrates the limitations of the existing system highlighting the lack of economic analysis at the earlier stages of public program development. It reveals the potential for improvement in the program planning and budgeting system in the region and country.The objective of this research is to develop recommendations for the integration of specific tools for economic analysis which would address the current problems of program planning and budgeting in Russian regions within the constraints of evolving institutional arrangements. This requires identifying, developing and adapting economic evaluation and modelling techniques as well as applying them to a specific public program before they can be recommended for implementation.Russia is frequently referred to as a country with enormous energy efficiency and green energy prospective. The potential for energy efficiency improvement is estimated to be 45% of primary

Prioritising Investment Opportunities in Research and Development Using Multiple Criteria Decision Analysis

“…Multiple-criteria analysis (MCDA) is a family of decision support techniques designed specifically to assist with complex decision problems with multiple, conflicting objecting and involving various stakeholder groups 16 . In this case study, MCDA was selected as a decision support tool to assist in development of priority areas for R&D investment within the Mission.…”

“…Since its introduction in 1960s it has been applied across public and private organisations 4 in sectors such as medicine and healthcare [5][6][7][8][9][10] , energy and environmental studies 3,[11][12][13][14][15] , among numerous others 3 . However, MCDA applications for decision-making in research organisations for prioritisation of R&D investments are rare in the economic literature 16 . This paper demonstrates how MCDA is applied to assist prioritisation of investment opportunities in R&D. Specifically, we investigate a case study of MCDA application to help prioritise research programs towards the CSIRO's Renewable Energy Powerhouse Mission 17 .…”

Priority setting in international trade – application of multiple criteria decision analysis for Australian-Indonesia trade in the health sector.

“…In economics, MCDA is often applied to tackle complex decision problems with multiple conflicting objectives. MCDA is one of the most familiar and well-regarded analytical tools developed to aid decisionmakers to evaluate complex decisions with multiple, often conflicting, objectives and stakeholders, and compare and prioritise actions 22,23 . It considers and incorporates both qualitative and quantitative data.…”