Report - UNDP Russia

eing equal) it only reflects that part ofnegative impacts on the environment andpublic health, which are conditioned by theprocess of energy consumption, so that it canonly be a partial indicator of dependence ofthe Russian economy on energy exports andpressure of the energy sector on theenvironment and society (Chapter 1). The mainreason why energy intensity by consumption isthe dominant indicator worldwide is that mostcountries do not have sufficient energyresources of their own, so that energy intensityin terms of production is of little concern tothem.Energy production as a share of totalproduction is a much more important measurefor Russia because volumes of natural resourcesbrought into economic use, both to meetdomestic needs and for export, give an indirectindication of levels of pressure on theenvironment and public health.The degree to which the two indicatorsdiffer can be clearly seen in Table 8.1. Levels ofRussian energy intensity in terms ofconsumption are three times higher than indeveloped countries, but differences in energyintensity in terms of production are much moredrastic: the difference between Russia and theEuropean Community is 11 times, and thedivergence with Japan is more than 30 times(see also Table 1.3 in Chapter 1). The twoindicators could move in different directions:energy intensity in terms of consumption maydecline, reflecting positive structural shifts inthe economy, but in case of dramatic growth ofenergy resource extraction energy intensity interms of production is likely to grow,reinforcing Russia’s orientation to energy andresource exports. The long-run target should beto dramatically reduce energy intensity in termsof production by increasing energy efficiencyand GDP while holding back rates of growth ofprimary energy extraction, i.e. by greater use ofintensive growth factors. This course will notaffect the country’s export potential because,as mentioned in earlier chapters of this Report,relatively simply energy-saving measures couldreduce domestic energy consumption by half,i.e. Russia has enormous ‘hidden export’potential.Table 8.1GDP energy intensity in terms of energy consumption and production in different countries (1990,2000 and 2008*)Country1990 2000 2008 2008/1990 (%) 2008/2000 (%)1 2 1 2 1 2 1 2 1 2Great Britain 0.156 0.174 0.130 0.178 0.102 0.096 65 55 79 54Germany 0.171 0.108 0.131 0.064 0.113 0.059 66 55 86 92France 0.154 0.089 0.147 0.086 0.132 0.078 86 88 90 91USA 0.246 0.234 0.209 0.172 0.175 0.145 71 62 84 84Canada 0.331 0.418 0.301 0.427 0.275 0.395 83 95 91 93Japan 0.134 0.026 0.141 0.033 0.126 0.025 94 96 89 76Norway 0.287 1.057 0.234 1.397 0.194 1.121 68 106 83 80Russia 0.460 0.840 0.496 0.943 0.324 0.767 70 91 65 81China 0.549 0.451 0.288 0.206 0.274 0.179 50 40 95 87India 0.176 0.206 0.169 0.152 0.138 0.112 78 54 82 74Brazil 0.115 0.107 0.133 0.119 0.125 0.138 109 129 94 116Ukraine 0.643 0.297 0.741 0.385 0.423 0.246 66 83 57 64Sources: World Bank (World Development Indicators Online Database), BP Statistical Review of World Energy June 2009; International EnergyAgency (IEA World Energy Statistics and Balances - Energy Balances of Non-OECD Countries - Economic Indicators Vol. 2009 release 01)* 2007 for the energy intensity in terms of production1 – energy consumption intensity (m.t. of oil equivalent / thousand USD in 2005 by PPP)2 – energy production intensity (m.t. of oil equivalent / thousand USD in 2000 by PPP)145