57 results

KAPSARC’s Contribution to Evaluating the Impact of Price Controls
Regional Energy Markets Models, Data and Tools

KAPSARC’s Contribution to Evaluating the Impact of Price Controls

Axel Pierru, Walid Matar

The European Journal of Operational Research has just published a paper, “Measuring the effects of price controls using mixed complementarity models” (2019). It detailed a series of innovative modeling approaches developed by KAPSARC researchers over the last six years. The…

Axel Pierru Pierru, Axel
Walid Matar Matar, Walid
September 1, 2019
Estimating the Household Consumption Function in Saudi Arabia
Evaluation of Public Investment Projects Energy and Economic Vulnerability

Estimating the Household Consumption Function in Saudi Arabia

Goblan Al Gahtani, Carlo Andrea Bollino, Simona Bigerna, Axel Pierru

This research is part of a joint project between the Saudi Arabian Monetary Authority (SAMA) and the King Abdullah Petroleum Studies and Research Center (KAPSARC). This paper estimates a micro-based life cycle consumption model for Saudi Arabia over the period…

Goblan Al Gahtani Goblan Al Gahtani
Carlo Andrea Bollino Bollino, Carlo Andrea
Simona Bigerna Bigerna, Simona
Axel Pierru Pierru, Axel
February 5, 2019
The Costs and Gains of Coordinating Electricity Generation in the Gulf Cooperation Council Utilizing the Interconnector
Regional Energy Markets

The Costs and Gains of Coordinating Electricity Generation in the Gulf Cooperation Council Utilizing the Interconnector

David Wogan, Frederic Murphy, Axel Pierru

Countries in the Gulf Cooperation Council (GCC) have installed a network of high-voltage transmission lines, known as the GCC Interconnector, which links the member states of Saudi Arabia, Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates (UAE). The Interconnector…

David Wogan Wogan, David
Frederic Murphy Murphy, Frederic
Axel Pierru Pierru, Axel
June 10, 2018
OPEC’s Impact on Oil Price Volatility: The Role of Spare Capacity
Future of Global Oil Markets

OPEC’s Impact on Oil Price Volatility: The Role of Spare Capacity

Energy Journal

OPEC claims to hold and use spare production capacity to stabilize the crude oil market. We study the impact of that buffer on the volatility of oil prices. After estimating the stochastic process that generates shocks to demand and supply,…

Axel Pierru, Tamim Zamrik

2018
The Economic Impact of Price Controls on China’s Natural Gas Supply Chain
Regional Energy Markets

The Economic Impact of Price Controls on China’s Natural Gas Supply Chain

Bertrand Rioux, Philipp Galkin, Frederic Murphy, Axel Pierru, Kang Wu

Despite significant progress made by China in liberalizing its natural gas market, certain key areas such as market access and pricing mechanisms remain heavily monopolized or controlled by the government. To assess how such distortions impact the market, we developed…

Bertrand Rioux Rioux, Bertrand
Philipp Galkin Galkin, Philipp
Frederic Murphy Murphy, Frederic
Axel Pierru Pierru, Axel
Kang Wu Wu, Kang
May 24, 2018
The Value of Saving Oil in Saudi Arabia
Evaluation of Public Investment Projects

The Value of Saving Oil in Saudi Arabia

Jorge Blazquez, Baltasar Manzano, Axel Pierru

What is the value of saving a barrel of oil that would otherwise had been consumed domestically? This study explores the question, taking a long-run perspective into a general equilibrium approach. In the case of Saudi Arabia, the difference between…

Jorge Blazquez Blazquez, Jorge
Baltasar Manzano Manzano, Baltasar
Axel Pierru Pierru, Axel
March 25, 2018
Restructuring Saudi Arabia’s Power Generation Sector: Model-Based Insights
Electricity Sector Transitions

Restructuring Saudi Arabia’s Power Generation Sector: Model-Based Insights

Bertrand Rioux, Axel Pierru, Nader AlKathiri

Saudi Arabia plans to reform and privatize its power generation sector as part of the Kingdom’s Vision 2030. To provide analytical insights, we developed a model that simulates the restructuring of the electricity market, along with reforming fuel prices to…

Bertrand Rioux Rioux, Bertrand
Axel Pierru Pierru, Axel
Nader AlKathiri AlKathiri, Nader
December 20, 2017
Managing Oil Revenue Stabilization Funds: A Framework for Developing Policies
Evaluation of Public Investment Projects Energy and Economic Vulnerability

Managing Oil Revenue Stabilization Funds: A Framework for Developing Policies

Nader AlKathiri, Frederic Murphy, Axel Pierru

Oil revenue stabilization funds provide short-run protection against oil revenue fluctuations – in the way that Saudi government deposits and reserve at the Saudi Arabian Monetary Authority (SAMA) have historically served as a buffer to decouple government budget from oil…

Nader AlKathiri AlKathiri, Nader
Frederic Murphy Murphy, Frederic
Axel Pierru Pierru, Axel
October 4, 2017
Efficient industrial energy use: The first step in transitioning Saudi Arabia’s energy mix

Efficient industrial energy use: The first step in transitioning Saudi Arabia’s energy mix

Energy Policy

In Saudi Arabia, industrial fuel prices are administered below international prices and firms make decisions based on low energy prices, increasing domestic energy demand. This analysis explores alternative policies designed to induce a transition to a more efficient energy system…

Walid Matar, Frederic Murphy, Axel Pierru, Bertrand Rioux, David Wogan

2017
A tutorial on building policy models as mixed-complementarity problems

A tutorial on building policy models as mixed-complementarity problems

Interfaces

After 50 years of development, building and solving mixed-complementarity problems (MCPs) have become commonplace for policy models that analyze markets. These models are used to develop policies that reshape markets, or introduce markets that replace other organizational forms. In this…

Frederic Murphy, Axel Pierru, Yves Smeers

2016
Economic impacts of debottlenecking congestion in the Chinese coal supply chain

Economic impacts of debottlenecking congestion in the Chinese coal supply chain

Energy Economics

The fast pace of development in China’s coal industry created bottlenecks in its transportation infrastructure. These bottlenecks likely affected not only China’s domestic coal market, but also global coal markets. In this paper, we estimate the costs and consequences of…

Bertrand Rioux, Philipp Galkin, Frederic Murphy, Axel Pierru

2016
The prospects for coal-fired power generation in Saudi Arabia

The prospects for coal-fired power generation in Saudi Arabia

Energy Strategy Reviews

Almost all of Saudi Arabia’s electric power generation is fueled by oil and gas. Plans for future capacity envisage nuclear and renewables supplementing this mix and thereby freeing up oil for other revenue-generating opportunities. Coal-fired generation has been promoted in…

Walid Matar, Rodrigo Echeverri, Axel Pierru

2016
Potential Gains From Reforming Price Caps in China’s Power Sector
Electricity Sector Transitions

Potential Gains From Reforming Price Caps in China’s Power Sector

Bertrand Rioux, Philipp Galkin, Axel Pierru, Frederic Murphy

When energy sectors transition from government-controlled to market-driven systems, the legacy regulatory instruments can create unintended market distortions and lead to higher costs. In China, the most notable regulatory throwback is ceilings on electricity prices that generators can charge utilities,…

Bertrand Rioux Rioux, Bertrand
Philipp Galkin Galkin, Philipp
Axel Pierru Pierru, Axel
Frederic Murphy Murphy, Frederic
September 29, 2016
The Prospects for Coal-fired Power Generation in Saudi Arabia

The Prospects for Coal-fired Power Generation in Saudi Arabia

Axel Pierru, Walid Matar

Almost all of Saudi Arabia’s electric power generation is fueled by oil and gas. Plans for future capacity envisage nuclear and renewables supplementing this mix and freeing up oil for other revenue-generating opportunities. Coal-fired generation has been promoted in some…

Axel Pierru Pierru, Axel
Walid Matar Matar, Walid
December 24, 2015
Economic Impacts of Debottlenecking Congestion in the Chinese Coal Supply Chain
Regional Energy Markets

Economic Impacts of Debottlenecking Congestion in the Chinese Coal Supply Chain

Philipp Galkin, Frederic Murphy, Axel Pierru, Bertrand Rioux

China’s coal industry grew at unprecedented rates during the first decade of the 2000s in order to support equally unprecedented economic growth. In that type of environment, it is impossible for the capacities of every link in the supply chain…

Philipp Galkin Galkin, Philipp
Frederic Murphy Murphy, Frederic
Axel Pierru Pierru, Axel
Bertrand Rioux Rioux, Bertrand
September 7, 2015
Efficient Industrial Energy Use: The First Step in Transitioning Saudi Arabia’s Energy Mix
Productivity and Economic Diversification

Efficient Industrial Energy Use: The First Step in Transitioning Saudi Arabia’s Energy Mix

Walid Matar, Axel Pierru, Frederic Murphy, David Wogan, Bertrand Rioux

External observers worry about whether Saudi domestic consumption of oil will crowd out exports. This is based on simple extrapolations which suggest that in a little more than 20 years Saudi Arabia may become a net importer of hydrocarbon fuels.…

Walid Matar Matar, Walid
Axel Pierru Pierru, Axel
Frederic Murphy Murphy, Frederic
David Wogan Wogan, David
Bertrand Rioux Rioux, Bertrand
June 7, 2015
Why build energy models as MCPs? An economic perspective

Why build energy models as MCPs? An economic perspective

Frederic Murphy, Axel Pierru

The discipline of microeconomics focuses on the outcomes of the actions of economic agents, where economic agents can be individuals as producers and consumers or organizations that deliver goods or services. Microeconomists have developed a collection of models to understand…

Frederic Murphy Murphy, Frederic
Axel Pierru Pierru, Axel
January 6, 2015