The price-gap method is popularly applied to estimate energy subsidies, and it simply involves calculating the difference between the market and domestic prices of a good multiplied by the quantity consumed. In the case where subsidies impose foregone revenue rather than direct costs, however, the estimation of these subsidies requires further scrutiny.

Principal Fellow- Oil & Gas Walid works on modeling energy systems. He is developing or has developed the following components of the KAPSARC Energy Model…
Walid works on modeling energy systems. He is developing or has developed the following components of the KAPSARC Energy Model (KEM): electric power generation, oil refining, petrochemicals and fertilizers, cement production, and iron and steel. He is also working on a bottom-up residential electricity use framework that merges microeconomics with the physical laws governing electricity use.
Expertise
- Energy Systems Modeling
- Optimization
- Electricity Prices
- Energy Efficiency and the Interdisciplinary Connection Between Energy Economics and Engineering
Publications See all Walid Matar’s publications

Inexpensive Renewable Electricity Enables Saudi Arabia’s Fuel Price Reforms
The price-gap method is popularly applied to estimate energy subsidies, and it simply involves calculating…
20th May 2025
Costs of Switching Fuels and Manufacturing Processes for Construction Materials Companies in Saudi Arabia
The price-gap method is popularly applied to estimate energy subsidies, and it simply involves calculating…
6th May 2025