2010 Issue №1(3)

This article offers the results of research conducted in the Kaliningrad region in the framework of the "Development of Russian Energy Sector: Social and Environmental Consequences and Prospects" network project by the Centre for Advanced Studies and Education. The authors assess the structure of regional energy sector and its influence on the economy according to key parameters. The article analyses the social effect of energy sector on the basis of a survey conducted for Kaliningrad.

The article evaluates negative externalities of the electricity industry and possibilities for the sustainable development. The concept of negative externalities of the electricity industry and evaluation and internalization of the negative externalities are reviewed from the viewpoint of principles of environmental economics and sustainable development.