Research of the Relation between Electricity Consumption and the Level of Region Development in Russia

The author conducted an empirical study of the relationship between electricity consumption and region development level. In the paper the literature review was presented, life quality index for 72 Russian regions for 2000-2013 was calculated. The study is a pioneer in the electricity consumption spatial analysis in Russia, it is also the very first time when spatial Durbin model for panel data is implemented to Russian data. The estimates of spatial effects were obtained for 72 regions from 2000 to 2013. The empirical analysis revealed that short-run spatial effects in electricity consumption on country level exist. On the other hand, long-run spatial effect is unstable on country level, but is positive and significant for western regions. The only variable that was significant through out all models was migration. Positive indirect effects of migration for the boundary matrix and negative indirect effects of GRP for both matrix were obtained. Significance of QLI vary from model to model: for the eastern regions direct effect is positive and significant, while it is insignificant for western regions. There is no indirect effects of quality life index. Overall, inside the region there is a positive relationship between electricity consumption and development level, while among the regions the competition for energy can be observed.