Modernization or Conservation: The Role of Export Duty on Crude Oil and Petroleum Products

This paper deals with the analysis of the consequences of the abolition of export duties on crude oil and petroleum products as a necessary measure to create incentives to improve energy efficiency of the Russian economy and the elimination of underdevelopment caused by the unprecedented long-term subsidies to inefficient Russian oil refining. The authors consider three possible scenarios for the abolition of export duties on crude oil and domestic market and the conservation of tax revenues at a constant level.