Reproduction Processes in Subsoil Use as the Basis for Sustainable Socio-Economic Development of Oil-Producing Regions
DOI:
https://doi.org/10.17059/ekon.reg.2021-4-17Abstract
There are numerous studies on different aspects of the impact of hydrocarbon production on Russian economy. Nevertheless, direct and indirect effects of reserve reproduction on social and economic development of oil-producing regions have been insufficiently assessed, even though it differs due to various macroeconomic processes and existing state mechanisms of subsoil use. The present paper examines the upstream sector of the petroleum industry comprising hydrocarbon exploration and production. The research hypothesis states that an imbalance in subsoil use results in growing inequality of socio-economic development of Russian regions, while the expansion of geological exploration work will reduce this effect. The study analyses the influence of geological exploration, leading to an increase in oil reserves and oil production, on gross regional product (GRP) per capita and personal income. For that purpose, the analysis was performed based on statistical data on five regions of the Russian Federation using the Cobb-Douglas production functions. According to the results obtained for blocks of the proposed regression model, Russian regions were divided into clusters in terms of the input effect on expected results. Overall, the influence of oil production on GRP per capita and average income is more significant compared to an increase in oil reserves. Moreover, the impact of the upstream sector in Tomsk oblast is stronger than in other constituent entities of the Russian Federation. The existing regional imbalance in social-economic development depends on not only available natural capital and tax relief system in subsoil management, but also differences in economic development and the role of petroleum industry in the analysed regions. In the context of recession, the expansion of geological exploration is required to increase natural capital that would provide the income many times higher than investments at the upswing of the cycle. The study results can be used for petroleum industry management in the field of geological exploration to justify the use of financial and fiscal incentives.
References
Mkrtchyan, G. M. & Blam, I. Yu. (2000). Ustoychivoe razvitie: voprosy upravleniya i modelirovaniya: metod. Posobie [Sustainable Development: Management and Modeling Issues: Methodological Guide]. Novosibirsk: NSU, 68. (In Russ.)
Solow, R. M. (1957). Technical Change and the Aggregate Production Function. The Review of Economics and Statistics, 39(3), 312–320.
Provornaya, I. V., Filimonova, I. V., Eder, L. V., Nemov, V. Y. & Zemnukhova, E. A. (2020). Formation of energy policy in Europe, taking into account trends in the global market. Energy Reports. In: The 6th International Conference on Energy and Environment Research — Energy and environment: challenges towards circular economy (pp. 599–603). Portugal. DOI: 10.1016/j.egyr.2019.09.032.
Kazarin, V. N., Lyubovnyy, V. Ya. & Pchelintsev, O. S. (Eds.). (2005). Novyy Urengoy na puti ustoychivogo razvitiya [Novy Urengoy on the path of sustainable development]. Novy Urengoy; Ekaterinburg: Uralsibpress, 200. (In Russ.)
Fleming, D. А. & Measham, Th. G. (2013). Disentangling the Natural Resources Curse: National and Regional Socioeconomic Impacts of Resource Windfalls. Agricultural and Applied Economics Association (AAEA) Conferences. Retrieved from: https://ageconsearch.umn.edu/record/150526 (Date of access: 01.04.2020). DOI: 10.22004/ag.econ.150526.
Cavalcanti, T., Mata, D. & Toscani, F. (2019). Winning the oil lottery: the impact of natural resource extraction on growth. Journal of Economic Growth, 24, 79–115. DOI: 10.1007/s10887–018–09161-z.
Michaels, G. (2011). The Long Term Consequences of Resource‐Based Specialization. The Economic Journal, 121, 31–57. DOI: 10.1111/j.1468–0297.2010.02402.x.
James, A. & Aadland, D. (2011). The curse of natural resources: An empirical investigation of U.S. counties. Resource and Energy Economics, 33(2), 440–453. DOI: 10.1016/j.reseneeco.2010.05.006.
Caselli, F. & Michaels, G. (2013). Do Oil Windfalls Improve Living Standards? Evidence from Brazil. American Economic Journal: Applied Economics, 5(1), 208–238. DOI: 10.1257/app.5.1.208.
Chapman, R., Plummer, P. & Tonts, M. (2015). The resource boom and socioeconomic well-being in Australian resource towns: a temporal and spatial analysis. Urban Geography, 36(5), 629–653. DOI: 10.1080/02723638.2015.1018032.
Cust, J. & Poelhekke, S. (2015). The Local Economic Impacts of Natural Resource Extraction. Annual Review of Resource Economics, 7, 251–268. DOI: 10.1146/annurev-resource-100814–125106.
Uhlmann, V., Rifkin, W., Everingham, J.-A., Head, B. & May, K. (2014). Prioritising indicators of cumulative socio-economic impacts to characterise rapid development of onshore gas resources. The Extractive Industries and Society, 1(2), 189–199. DOI: 10.1016/j.exis.2014.06.001.
Sharf, I. V. & Mikhalchuk, A. A. (2019). Tax Incentives in the System of the Natural Resources Management: Reproduction Aspect. Ekonomika regiona [Economy of Region], 15(3), 791–805. DOI: 10.17059/2019–3-13.
Sharf, I. V. (2019). Integral estimation of oil resource base replacement efficiency: regional aspect. Fundamentalnye issledovaniya [Fundamental research], 6, 153–157. (In Russ.)
Sharf, I. V. (2017). Financial and organizational aspects of the recovery of hydrocarbon resource base in the regional context. Ekonomika regiona [Economy of Region], 13(2), 628–640. DOI: 10.17059/2017–2-26.
Cobb, C. W. & Douglas, P. H. (1928). A theory of production. The American Economic Review, 18(1), 139–165.
Bazarova, E. V. (2018). The modeling of manufacture development in the region. In: Modelirovanie razvitiya sotsialno-ekonomicheskogo potentsiala territorii v usloviyakh sovremennykh vyzovov: mat-ly mezhd. nauch.-prakt. konf. Ulan-Ude, 20–22 sent. 2018 g. [Modeling of development of social and economic capacity of the territory in the conditions of modern calls: materials of the international cientific-practical conference (Ulan-Ude, September 20–22, 2018)] (pp. 263–266). Ulan-Ude: VSGUTU publishing house. (In Russ.)
Kleyner, G. B. (1986). Proizvodstvennye funktsii. Teoriya, metody, primenenie [Production functions. Theory, methods, application]. Moscow: Finansy i statistika, 239. (In Russ.)
Pshenichnikova, S. N. & Romanyuk, I. D. (2017). Analysis of Cobb-Douglas Production Function for the Economies of Russia and Several Countries of the CEE-Region. Izvestiya Yugo-Zapadnogo gosudarstvennogo universiteta. Seriya Ekonomika. Sotsiologiya. Menedzhment [Proceedings of the Southwest State University. Economics, Sociology and Managment], 7(3), 148–166. (In Russ.)
Eder, L. V., Komarova, A. V., Filimonova, I. V., Provornaya, I. V. & Benitez Garcia, J. C. (2018). Sustainable development of resource regions on the declining stage of production: innovative technologies and economic efficiency. IOP Conference Series: Earth and Environmental Science, International Scientific Conference «Knowledge-based technologies in development and utilization of mineral resources». Retrieved from: https://iopscience.iop.org/article/10.1088/1755–1315/206/1/012056 (Date of access: 01.04.2020). DOI: 10.1088/1755–1315/206/1/012056.
Baum, C. F. (2019). An Introduction to Modern Econometrics Using Stata [Ekonometrika. Primenenie paketa Stata: uchebnik i praktikum dlya vuzov]. Trans. from English. Moscow: Urait, 370. (In Russ.)
TIBCO Software Inc. (2020). Data Science Textbook. Retrieved from: https://docs.tibco.com/data-science/textbook (Date of access: 13.04.2020).
Sharf, I. V. & Mikhalchuk, A. A. (2019). Tax Incentives in the System of the Natural Resources Management: Reproduction Aspect. Ekonomika regiona [Economy of Region], 15(3), 791–805. DOI: 10.17059/2019–3-13.
Eder, L. V., Filimonova, I. V., Provornaya, I. V., Nemov, V. U. & Nikitenko, S. M. (2017). Regional smart specialisations in fostering innovation development of resource regions of Russia. 17th International Multidisciplinary Scientific GeoConference SGEM 2017. Environmental economics, 17(53), 709–716.
Kryukov, V. A. & Tokarev, A. N. (2019). Contemporary features of innovative development of the Russian mineral resource complex. Journal of Siberian Federal University. Humanities and Social Sciences, 12(12), 2193–2208. DOI: 10.17516/1997–1370–0518.
Kryukov, V. A., Sevastyanova, A. Y., Tokarev, A. N. & Shmat, V. V. (2017). A modern approach to the elaboration and selection of strategic alternatives for resource regions. Ekonomika regiona [Economy of Region], 13(1), 93–105. DOI: 10.17059/2017–1-9.
Difiglio, C. (2014). Oil, economic growth and strategic petroleum stocks. Energy Strategy Reviews, 5, 48–58. DOI: 10.1016/j.esr.2014.10.004.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 Economy of Regions
This work is licensed under a Creative Commons Attribution 4.0 International License.
