Issue 4 (18) 2012

FrolovaPetrenko LEGAL FRAMEWORK FOR INNOVATION Activity of Business Entities Providing Energy Efficiency: Assessment of Prospects in Improving the Competitiveness on the Global Market

LEGAL FRAMEWORK FOR INNOVATION Activity of Business Entities Providing Energy Efficiency: Assessment of Prospects in Improving the Competitiveness on the Global Market

N.V. Frolova

Nizhnevartovsk Economics and Law Institute

13-a, Druzhby Narodov st., Nizhnevartovsk, 628600

E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

S.V. Petrenko

Tyumen State University

38 Lenina st., Tyumen, 625003

E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

The article is devoted to the legal regulation of business activities in the field of energy efficiency, the lag on the main innovation’s indicators of advanced countries is emphasized. It is obvious that Russia needs to overcome the dependence of the raw materials for sustained economic growth, which is only possible with the government assistance to the rise of high technology products’ competitiveness.

The transition to the newest ways of doing business in the energy sector is extremely expensive at least because of the magnitude of the required reforms at enterprises. Therefore the author points to the need for government support to encourage and promote the transition to an innovative economy and energy efficiency’s development.

The updated law "On energy saving and energy efficiency improvements and on amending certain legislative acts of the Russian Federation", containing additional scope of legal regulation of energy efficiency and conservation, should be admitted to be insufficient, since it obviously does not solve all assigned tasks in this area, declarative and incomplete, overwhelmed with blanket provisions that reference the nonexistent yet complex of bylaws. Provided provisions are either difficult to implement or not sufficiently popularized, such as a new form of civil contract, the energy service contract.

The legislator has also left without attention the scope of construction, including housing, despite the fact that the share of energy consumption of existing residential buildings higher than 40% of world primary energy’s consumption and therefore it is essential to pay attention to energy efficiency in this area. Legislative design necessary for the so-called "green building” has been already built in the developed western countries. The article examines a number of preferences and incentives of tax systems in these countries (particularly USA) for those entrepreneurs, who actively implementing energy-efficient technologies, that can be embedded in the Russian legal system.

Thus, it is necessary to recognize the inadequacy of steps toward a more progressive legal regulation of business innovation activities in the area of ​​energy efficiency, which could affect adversely the competitiveness of Russia in the global energy market. The main prospects for raising the competitiveness will obviously demand further legislation specification in the area of energy efficiency.

Keywords: energy efficiency; energy saving; innovation; renewable energy sources; energy strategy; energy service contract; "green building"

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