Ecological Efficiency and Sustainable Regional Development in Russia During the 20 Years of Resource-Based Growth

Climate change as well as ecological and social problems requires new goals and instruments of economic policy, based on the principles of sustainable development. However, over the past 20 years, an increase in energy prices has resulted in the raw material growth model prevailing in Russia. Has this growth led to sustainable regional development? We propose an approach to evaluating ecological efficiency of the Russian regions as the ratio of the output of non-primary goods and services to the input of resources (labor, capital, raw materials, and environmental costs). This is a new indicator of the quality of economic growth. The sustainable development model, combining growth of GRP per capita and ecological efficiency, has been observed for more than half of the period in most regions. The eco-efficiency of the average region has been growing since 2003, except crisis periods, following an increase of the services sector share and the closure of inefficient pollution-intensive factories. According to the econometric results, ecological efficiency was growing faster in densely populated regions with a high share of high-tech services, investment attractiveness and intensive technology implementation (Moscow; Saint Petersburg; Sverdlovsk, Tomsk, Belgorod and Kaliningrad regions etc.); it decreased in most northern and Siberian regions. Great potential for raising eco-efficiency remains in most regions. In general, the results of regional development in Russia do not contradict the principles and goals of sustainable development (SDGs), although it was largely achieved due to the system of inter-budget transfers, distributing the oil rent surplus among the regions. In the future, an increase in investments in the non-primary sector, energy efficiency and public transportation will be required. Corresponding changes can be accelerated in the context of an emerging economic crisis caused by the pandemic and falling oil prices.

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