External Economic Effects of the Development of Energy Sector: Evaluation Methodologies and their Application

The main purpose of this paper is to review the methodologies for quantitative evaluation of economic externalities (impacts on employment, current account balance, etc.) caused by the development of the energy sector and to reveal the possibilities to apply these evaluation methods in praxis. It is found that the most accurate results can be obtained when careful calculation of direct impacts is coupled with CGE modelling which allows for realistic representation of inter-sectorial linkages and capturing of indirect and induced effects in equilibrium.