Issue № 64. October 2017

Limiting the Environmental Damage in the Energy Industry via Calculation of Pollution Levels from Oil Spills

Olga V. Kudryavtseva — Ph.D., Professor, Faculty of Economics, Lomonosov Moscow State University, Moscow, Russian Federation.
E-mail: olgakud@mail.ru

Anna A. Popova — graduate student, Faculty of Economics, Lomonosov Moscow State University, Moscow, Russian Federation.
E-mail: anna-andreevna@hotmail.com

Green and low-carbon economy is a necessity for energy and technological security of Russia in the future. We should strive to switch to alternative energy sources, namely, renewables (renewable energy sources) and to reduce environmental damage from oil and gas extraction. The paper considers the problems of environmental pollution associated with the extraction of hydrocarbon energy sources. A system of insurance is required in the event of environmental damage during oil and gas extraction. As far as there is a certain complexity in getting real and accurate data on the frequency of accidents on the oil or gas pipelines, a mathematical model was constructed that allows us to find the radius of pollution and the depth of soil penetration. The paper considers several cases with different initial oil spill data. The data for calculating model parameters is also provided, and numerical experiment is carried out. The model allows to calculate the scale of possible pollution and find the size of the corresponding gross premiums.

Keywords

Renewable energy sources, energy economics, environmental insurance, oil and gas industry, mathematical model for calculating the scale of pollution, environmental protection.