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Project Aim

This research project seeks to provide policymakers in the GCC with insights into the relative levels of energy efficiency in their countries, the drivers of energy demand, the economic benefits of cuts to energy subsidies, and the often overlooked influence of the rebound effect, to name a few.

We empirically estimate electricity and gasoline demand models using an energy services framework. Our research explicitly accounts for weather variables and models energy efficiency using a stochastic trend. This allows us to evaluate the relative impact of the economic and non-economic factors that drive electricity and gasoline demand in the GCC. Furthermore, it allows us to estimate the change in social welfare that results from higher gasoline and electricity prices.

Other work within KEDEER includes a benchmarking analysis of GCC countries’ relative efficient use of energy, as well as modeling how national energy productivity changes in response to an improvement in energy efficiency within a theoretical general equilibrium framework.


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