Driving Innovation through Energy Efficiency: A Russian Regional Analysis

Abstract

Recent literature on energy efficiency focuses on the issues of energy security and options for reducing energy consumption. Measuring energy efficiency properly and forecasting future needs is critical to the energy policies of any country, especially given the importance of sustainability in their economic development. The role innovation plays in improving energy efficiency is well researched. There is a gap in examining an opposite relationship. That is, where energy efficiency becomes a critical factor for fueling innovation. This impact can occur within a company, a region, a nation or on an international level. Here we show that regions could motivate business innovations through policies requiring energy efficiency. Based on observations from a number of regions of an emerging economy, we show that energy efficiency impacts innovation. As a side effect it can contribute to export increases, which in turn can improve regional attractiveness for investors. We believe that the spiral development of the relationship between energy efficiency and innovation used as a strategy could become sustainable.

Climate Issues Under Changing Geopolitical Conditions

“…Methodologically, this study is based on the results of our previous research (Melnik et al, 2021). Using data from various Russian regions, it first of all confirmed the presence of a mutual impact of increased energy efficiency and innovation-based development processes; secondly, it revealed its basic nature, which largely determines additional positive effects in various industries and activity areas; and thirdly, through the empirical testing of the proposed assumption, one of these effects was assessed, which confirmed the potential for stepping up Russian regions' exports as their energy efficiency increases.…”

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“…В методологическом отношении работа базируется на результатах ранее выполненного нами исследования (Melnik et al, 2021). В нем на примере различных регионов России было, во-первых, доказано наличие эффекта взаимного влияния процессов повышения энергоэффективности и инновационного развития; вовторых, показан его базовый характер, во многом опре-деляющий дополнительные положительные эффекты в различных отраслях и сферах деятельности; в-третьих, на основе экспериментальной апробации выдвинутого предположения проведена оценка одного из таких эффектов, подтвердившая потенциал наращивания объемов экспорта в российских регионах по мере роста энергоэффективности.…”