Publications

Implementing Alternative Pricing Policies in Economic Equilibrium Models Using the Extended Mathematical Programming Framework

Bertrand Rioux, Abdullah AlJarboua, Frederic Murphy, Axel Pierru

Standard economic optimization models represent markets in perfect competition. They are commonly used, though they may not accurately represent real-world policies and regulations. Equilibrium models built using a mixed complementarity problem (MCP) approach are capable of simulating more flexible pricing…

Rioux, Bertrand

AlJarboua, Abdullah

Murphy, Frederic

Pierru, Axel

Transition Risks, Creative Destruction, and Stranded Assets

Nawaz Peerbocus

Ten years ago, climate risks were absent from the top five global risks in the World Economic Forum’s Global Risks report. In their 2020 report, the top five global risks are all climate-related: extreme weather, climate action failure, natural disasters,…

Peerbocus, Nawaz

Behavioral Aspects of Energy Transition: A KAPSARC-Energy Systems Catapult (ESC) Joint Methodological Report

Rolando Fuentes, Emre Hatipoglu, Thamir Al Shehri, Matt Lipson, Scott Milne, Simon Pearson

KAPSARC’s work on innovation in electricity transitions has focused on unbundling services in the electricity sector (KAPSARC 2016) and developing the microeconomic foundation for a reliability service. Our research has investigated the experiences of industries resembling the electric power sector…

Fuentes, Rolando

Hatipoglu, Emre

Al Shehri, Thamir

Lipson, Matt

Milne, Scott

Pearson, Simon

Toward A Sustainable Agriculture Sector: Policy Options for Reducing Water Use in Abu Dhabi’s Agriculture Sector

Noura Mansouri, David Wogan, Humaid Kanji

Water shortages are a global challenge, with one third of the world’s population still without access to clean water. Gulf Cooperation Council (GCC) countries face a scarcity of water resources due to their dry climates. The United Arab Emirates’ (UAE’s)…

Mansouri, Noura

Wogan, David

Humaid Kanji

Testing the Limits of Electricity Market Design

Rolando Fuentes

We live in an unprecedented time for the energy sector. According to the BP Statistical Review of World Energy 2019, electricity generated from renewable sources is at a historic high, with about 2,500 terrawatthours (TWh) produced in 2018 (Figure 1). This is more…

Fuentes, Rolando

Policy and Economic Frameworks to Deepen Sino-Saudi Cooperation

The Belt and Road Initiative (BRI) has expanded from 65 original member states during its official launch in 2015 to 131 as of April 2019. The countries of the Middle East and North Africa have generally welcomed the initiative and…

Assessing the Gas Market Potential in India

India faces a pressing energy shortage. Despite rapid economic development, a large section of the population has little or no access to electricity, while the cost, reliability and availability of power constrain growth and investment in key sectors. As a…

The Opportunity Cost of Domestic Oil Consumption for an Oil Exporter: Illustration for Saudi Arabia

Fatih Karanfil, Axel Pierru

When appraising investment projects from a public perspective, a barrel of oil displaced from or added to domestic consumption has to be valued at its opportunity cost. This paper develops a partial-equilibrium framework to assess the opportunity cost of domestic…

Karanfil, Fatih

Pierru, Axel

Market Structure, Inventories and Oil Prices: An Empirical Analysis

Jennifer Considine, Philipp Galkin, Abdullah Aldayel

Understanding the relationship between crude oil prices and inventory levels is critical for policymakers and economic actors. The size of the ‘basis,’ or spread between spot and futures prices, reflects the level of inventories and can trigger arbitrage trading. The…

Considine, Jennifer

Galkin, Philipp

Aldayel, Abdullah

Eliciting Preferences of Ride-Hailing Users and Drivers

Prateek Bansal, Akanksha Sinha, Rubal Dua, Ricardo Daziano

The ‘ride-hailing’ services offered by transportation network companies (TNCs) such as Uber and Lyft have rapidly disrupted personal transportation, particularly in cities. Schaller (2018) reports that TNCs provided 2.6 billion rides in 2017 in the United States (U.S.), a 37%…

Bansal, Prateek

Akanksha Sinha

Dua, Rubal

Ricardo Daziano

Assessment of Coronavirus Effects on Oil Demand Implied by Price Elasticities

Ronald Ripple, Dongmei Chen, Abdullah Aldayel, Hamid M. Al Sadoon

There appears to be a significant response in the crude oil markets to the coronavirus outbreak that originated in Wuhan, China, in December 2019 and has since spread globally. Many cities in Hubei, of which Wuhan is the capital, have been…

Ripple, Ronald

Chen, Dongmei

Aldayel, Abdullah

Al Sadoon, Hamid M.

Exploring the Effects of Transport Policies on Energy Consumption in Freight Transportation – The Saudi Perspective

The freight sector is at the heart of global economic activity, one of the biggest energy consumers globally and a key contributor to emissions in the transport sector. It is estimated that over 12% of all global energy consumption is…

KAPSARC Oil Market Outlook – Update

Hamid M. Al Sadoon, Colin Ward

China reported an outbreak of a SARS-like viral infection on December 31, 2019. The disease, officially named COVID-19, was first detected in Wuhan City, Hubei Province, China and continues to spread globally. Initial symptoms are similar to the common cold,…

Al Sadoon, Hamid M.

Ward, Colin

Analytical Approaches to Blending Political Science With the Study of Energy Markets

Energy is arguably the most valuable traded commodity in the world. Unlike most other commodities, energy resources are essential for economic and military activity and therefore have unique strategic importance, especially because states vary widely in their energy resource endowment.…

Saudi Arabia’s Residential Solar Energy Use and Prospects

Sadeem Alhosain, Ryan Alyamani

In an effort to diversify the energy mix of Saudi Arabia’s residential sector, the Electricity and Cogeneration Regularity Authority introduced regulations in August 2017, allowing households to use solar energy to generate their own electricity.

Alhosain, Sadeem

Alyamani, Ryan

KGEMM: A Macroeconometric Model for Saudi Arabia

Fakhri Hasanov, Fred Joutz, Jeyhun Mikayilov

The KAPSARC Global Energy Macroeconometric Model (KGEMM), is a policy analysis tool for examining the impacts of domestic policy measures and global economic and energy shocks on the Kingdom of Saudi Arabia.

Hasanov, Fakhri

Joutz, Fred

Mikayilov, Jeyhun

Fuel Mix for Power Generation and Water Desalination in Saudi Arabia

Rami Shabaneh

Saudi Arabia’s fuel mix for power generation and water desalination comprises natural gas (57%) and a suite of liquid fuels (43%). Liquid fuels include crude oil, heavy fuel oil (HFO), and diesel.

Shabaneh, Rami

India’s Crude Oil Imports From the Middle East

Yagyavalk Bhatt

India’s oil imports have risen significantly since the 1990s, when it imported fewer than one million barrels of oil per day.

Bhatt, Yagyavalk

Oil Market Reactions to Recent Geopolitical Events

Ronald Ripple

The prices for crude oil reported on both the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE, London) reflect the oil market’s expectations for the future balance of oil supply and demand. In the face of significant geopolitical…

Ripple, Ronald

Elasticity Analysis of Fossil Energy Sources for Sustainable Economies: A Case of Gasoline Consumption in Turkey

MDPI

The current paper investigates the gasoline demand relationship in the case of Turkey, utilizing different econometric techniques and using quarterly data spanning from 2000Q1 to 2019Q1. The estimation results revealed that income and gasoline price are the main drivers of…

Jeyhun Mikayilov, Shahriyar Mukhtarov, Hasan Dincer, Serhat Yuksel, Ridvan Aydm