- Log In/Sign Up
- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS, ESCI
ISSN : 1738-3110
The Contribution of Innovation Activity to the Output Growth of Emerging Economies: The Case of Kazakhstan
Mukasheva, Saltanat
Abstract
The purpose of this study is to analyse the state of the energy industry and to determine the efficiency of its functioning on the basis of energy conservation principle and application of innovative technologies aimed at improving the ecological modernisation of agricultural sectors of Kazakhstan. The research methodology is based on an integrated approach of financial and economic evaluation of the effectiveness of the investment project, based on calculation of elasticity, total costs and profitability, as well as on comparative, graphical and system analysis. The current stage is characterised by widely spread restructuring processes of electric power industry in many countries through introduction of new technical installations of energy facilities and increased government regulation in order to enhance the competitive advantage of electricity market. Electric power industry features a considerable value of creating areas. For example, by providing scientific and technical progress, it crucially affects not only the development but also the territorial organisation of productive forces, first of all the industry. In modern life, more than 90% of electricity and heat is obtained by Kazakhstan's economy by consuming non-renewable energy resources: different types of coal, oil shale, oil, natural gas and peat. Therefore, it is significant to ensure energy security, as the country faces a rapid fall back to mono-gas structure of fuel and energy balance. However, energy resources in Kazakhstan are spread very unevenly. Its main supplies are concentrated in northern and central parts of the republic, and the majority of consumers of electrical power live in the southern and western areas of the country. However, energy plays an important role in the economy of industrial production and to a large extent determines the level of competitive advantage, which is a promising condition for implementation of energy-saving and environmentally friendly technologies. In these circumstances, issues of modernisation and reforms of this sector in Kazakhstan gain more and more importance, which can be seen in the example of economically sustainable solutions of a large local monopoly company, significant savings in capital investment and efficiency of implementation of an investment project. A major disadvantage of development of electricity distribution companies is the prevalence of very high moral and physical amortisation of equipment, reaching almost 70-80%, which significantly increases the operating costs. For example, while an investment of 12 billion tenge was planned in 2009 in this branch, in 2012 it is planned to invest more than 17 billion. Obviously, despite the absolute increase, the rate of investment is still quite low, as the total demand in this area is at least more than 250 billion tenge. In addition, industrial infrastructure, including the objects of Kazakhstan electric power industry, have a tangible adverse impact on the environment. Thus, since there is a large number of various power projects that are sources of electromagnetic radiation, the environment is deteriorated. Hence, there is a need to optimise the efficiency of the organisation and management of production activities of energy companies, to create and implement new technologies, to ensure safe production and provide solutions to various environmental aspects. These are key strategic factors to ensure success of the modern energy sector of Kazakhstan. The contribution of authors in developing the scope of this subject is explained by the fact that there was not enough research in the energy sector, especially in the view of ecological modernisation. This work differs from similar works in Kazakhstan in the way that the proposed method of investment project calculation takes into account the time factor, which compares the current and future value of profit from the implementation of innovative equipment that helps to bring it to actual practise. The feas
- keywords
- Kazakhstan, Energy Saving, Investment, Innovation, Ecology
Reference
Annual Energy Outlook (2006), US DOE/EIA, 2006, from http://www.- eia.doe.gov.
BP Statistical Review of World Energy (2011), p.l.c., London.
Davis, S.C. & Diegel,S.W. (2004), Transportation Energy Data Book: Edition 24. Oak Ridge: Oak Ridge National Laboratory, from http:// www.cta.ornl.gov/data/index.shtml.
Lee, R. (2003), The petroleum industry in the 21st century, CERA Week, Houston, from http://www.exxonmobil.com/newsroom.
Stoft, Steven (2002), Power System Economics: Designing Markets for Electricity, Piscataway, N.Y.: IEEE Press (with Wiley- Interscience).
Lewis, Craig (2011), Driving Clean Local Energy and Delivering the New Energy Economy (Four Corners Green Living Expo Presentation on CLEAN Programs, April 2011), Accessed 6/9/11, from http:// www.tinyurl.com/3rj6y6x.
Germanovich, V. & Turilin, A. (2010), Alternative sources of energy, practical design on the use of wind energy, solar, water, earth, biomass, St. Petersburg: Science and Technology.
Smagulova S.,(2011), Management and development of institutional reforms in Kazakhstan, Moscow: State University of Management.
Makhmutova, M. & Akhmetov, A. (2011), Kazakhstan's Electricity Sector: How to improve efficiency and attract investment for modernization, Almaty: Soros Foundation-Kazakhstan.
Pigou, А. (1920), The Economics of Welfare, London: Macmillan, from http://www.econlib.org/library/NPDBooks/Pigou/pgEW.html.
Coase, R. (1937), “The Nature of the Firm”, Economica 4(16),386–405.
Bazilian, Morgan & Roques, Fabien (2009), Portfolio Optimization in the Energy Sector: A Tribute to the work of Dr Shimon Awerbuch, Analytical Methods for Energy Diversity & Security.
Charles, Plott & Smith, Vernon (2008), “Handbook of Experimental Economics Results”, North – Holland.
Lazard, (2009), Levelized Cost of Energy Analysis, Version 3.0., Accessed 2/25/11 from http://www.tinyurl.com/49gc24l.
Berman, R.(2006), Economics of Natural Resources and Environment, Moscow: TEIS.
Auty, R.M. (1999), The IMF Model and Resource-Abundant Transition Economies: Kazakhstan and Uzbekistan, Working Paper 169, November.
Babak, V. (2001), Kazakh Oil: Economic Booster or Dead Weight, Central Asia and Caucasus.
Beck, R.W. (2009), Distributed Renewable Energy Operating Impacts and Valuation Study, Phoenix: R.W. Beck, Inc., Seidman Research Institute, W. P. Carey School of Business, from http://www.aps.com/_files/solarRenewable/DistRenEnOpImpacts Study.pdf.
Capros, P. (2003), European Union–25 Members Energy and Transport Trends to 2030, Presentation on PRIMES and ACE Mathematical Models, from http://www.europa.eu.int/comm/energy/ russia/events/doc/2003_presentation_energy_transport_tre nds_2030.pdf.
Chubais, A. (2009), Economics and Management in Modern Russian power industry: A guide for managers of energy companies, Moscow
Smith, B. (2008), Experimental Economics, Moscow: IRISEN.
Croucher, Matt & Hill, Alex (2009), The Market-Determined Cost of Inputs to Utility-Scale Electricity Generation, Seidman Research Institute, W. P. Carey School of Business, from http:// www.azsmart.org/.pdf.
Energy Information Administration (EIA), (2009), Electricity Cost Module, from http:// www.eia.doe.gov/oiaf/aeo/assumption/- pdf/electricity.pdf.
Energy Policies of IEA Countries (2004), Review. OECD/IEA, 2004, Energy Policies of IEA Countries: Canada, Review, OECD/- IEA.
Galbraith, J. (2008), The New Industrial State, Moscow: AST.
Global Economic Prospects, (2005), World Bank, from http://www.worldbank.org.
ICF International, (2007), Energy Efficiency Market Potential Studu, Plano: IFC International, from http://www.aps.com/_files/various- /ResourceAlt/ICF_APS_Market_Potential_Report_08-24-07.pdf.
International Energy Agency, (2011), World Energy Outlook 2011, from http://www.iea.org/weo.
Mankiw, N. Gregory, (2008), Brief Principles of Macroeconomics,5th edition, Harvard University: South-Western College Pub.
Meshimbaeva, A.E. (2010), “Environment and Sustainable Development of the Republic of Kazakhstan”, Statistical Yearbook, Statistics Agency, Astana.
PIRA Energy Group, (2004), Retainer Client Seminar, New York.
Rogalev, N. (2005), Energy Economics, Moscow: Moscow Power Engineering Institute.
Stanca, L. (2006), “The effects of Attendance on Academic Performance: Panel Data Evidence for Introductory Microeconomics”, The Journal of Economic Education, 251-266.
Stoeckl, Natalie (2004), The Private Costs And Benefits Of Environmental Self-Regulation: Which Firms Have Most To Gain?, Business Strategy And The Environment, 13, 135–155.
Wilensky, P.& Livshits, V. (2001), Evaluating the effectiveness of investment projects, Theory and Practice, Moscow: Delo.
Wiser, Ryan & Mark Bolinger, (2010), Wind Technologies Market Report (U.S. Department of Energy, August 2010), Accessed 01/11/2011, from http:// www.tinyurl.com/4bq67uc.
- Downloaded
- Viewed
- 0KCI Citations
- 0WOS Citations