Producing construction materials requires a great amount of energy, and in Saudi Arabia, this production currently entails the use of substantial amounts of liquid fuels. Liquid fuels are mostly sold at below-market prices domestically, and thus result in large opportunity costs for the government. Saudi Arabia’s interests reside in displacing higher-value liquid fuels with more appropriate alternatives. The Saudi government plans to encourage the displacement of oil by reforming the below-market oil prices. Alternatives could include other fuels and more energy-efficient manufacturing processes. This paper investigates, the cost implications of switching existing fuels or processes for individual firms and the government.
Inexpensive Renewable Electricity Enables Saudi Arabia’s Fuel Price Reforms
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Costs of Switching Fuels and Manufacturing Processes for Construction Materials Companies in Saudi Arabia
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