• Type Press article
  • Date 30 January 2018

KAPSARC reviews four studies in energy and economy in Saudi Arabia


Article published by the Saudi Gazette, on Jan 27, 2018.

King Abdullah Petroleum Studies and Research Center (KAPSARC) held a media meeting on Wednesday in the presence of the President of the Center Nadhmi Al-Nasr, Vice President of Research David Hobbes, a number of KAPSARC researchers, and media and opinion writers specializing in energy and economics.

The meeting, a first of its kind, aims at highlighting the latest research and studies in the field of energy, and the role of KAPSARC in supporting decision makers in developing effective policies to improve energy efficiency in the Kingdom and achieve the goals of Vision 2030.

The meeting aims to raise awareness of the role of effective energy policies in achieving the welfare of communities and people, to emphasize on the role of the center in supporting decision makers in improving the efficiency and energy productivity in the Kingdom, and to introduce KAPSARC Quarterly Research Highlights to the interested and opinion writers.

The meeting began with a speech by Al-Nasr, who valued the effective role of media in delivering the message of the center, stressing that the center seeks to promote understanding of energy economics and work as a channel for communication to pave the way towards the welfare of communities, and aims through research and studies to reduce the costs of energy supply, raise the value added of energy consumption and the effective alignment of energy objectives and policies with their outputs.

The meeting discussed four different studies. The four sessions discussed “Impact of Domestic Fuel Price Reforms on the use of Public Transport”, “Gasoline Demand, Pricing Policy and Social Welfare in Saudi Arabia”, “Reforming Industrial Fuel and Residential Electricity Prices in Saudi Arabia” and “Growth, Investment and the Low Carbon Transition: A View From KSA”.

The first study “Impact of Domestic Fuel Price Reforms on the use of Public Transport” discussed the recent energy price reforms in the Kingdom and the impact of Saudi Arabia’s diversification of transport on long-term consumer income. The study helps decision makers determine the ability of consumers to adjust to fuel prices in the market and energy consumption levels, in addition to the additional revenues the government will gain after the reforms are implemented.

The second study “Gasoline Demand, Pricing Policy and Social Welfare in Saudi Arabia” examined the changes in social welfare in the Kingdom as a result of gasoline price adjustments, the effect of gasoline price increases on lowering domestic demand and the impact of low gasoline demand, as a result of higher prices, on reducing greenhouse gas emissions and air pollution.

The third study “Reforming Industrial Fuel and Residential Electricity Prices in Saudi Arabia”, discussed mitigating the effects of fuel price reform on low-income consumers and considering support programs such as Citizen Account, to ease the burden on low-income households that will pay more for electricity. The study shows that energy system will generate about $ 12 billion per year from liberalizing fuel and electricity prices.

The fourth study “Growth, Investment and the Low Carbon Transition: A View From KSA” reviewed the Kingdom’s efforts in economic diversification aimed at achieving more sustainable economic growth and the measures implemented by the Kingdom to achieve the national commitment of the Paris Convention to phase out 130 million tons of carbon dioxide.

KAPSARC is a center specialized in the research of energy policies, technologies and the related environmental studies in order to find solutions and add values that contribute to the benefit of both energy-exporting and energy consuming communities. — SG

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