Energy Price Reform in Saudi Arabia: Modeling the Economic and Environmental Impacts and Understanding the Demand Response

  • Focus Area -
  • Type KAPSARC journal article
  • Date 25 November 2020
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Abstract

Saudi Arabia has regulated domestic energy prices for decades, setting them below international market levels. Energy subsidies in Saudi Arabia are generally implicit because they lead to foregone revenues for the government. Low energy prices also encourage rapid energy demand growth and wasteful consumption, while limiting incentives to invest in energy efficiency. Saudi Arabia recently started to reform energy prices, leading to large increases in gasoline and residential electricity prices in 2018.

https://doi.org/10.1016/j.enpol.2020.111941

Science Direct

Authors

Mohammad Aldubyan

Mohammad Aldubyan

Research Lead Mohammad is a research lead in KAPSARC’s Climate & Sustainability program. His research focuses on energy efficiency and energy demand…

Mohammad is a research lead in KAPSARC’s Climate & Sustainability program. His research focuses on energy efficiency and energy demand in buildings. He is currently leading the Residential Energy Model (REEM), which simulates residential energy demand and estimates the impact of energy efficiency programs on Saudi Arabia’s housing sector. He also leads the long-term KAPSARC Oil Market Outlook (KOMO) in buildings and agriculture sectors.
Mohammad holds an M.Sc. in Renewable and Clean Energy from the University of Dayton, Ohio and an M.Sc. in Economics from Purdue University, West Lafayette.

Expertise

  • Energy Efficiency in Buildings; Energy Demand; Energy Modeling

Publications See all Mohammad Aldubyan’s publications

Anwar Gasim

Anwar Gasim

Fellow II Anwar is an energy and environmental economist with an engineering background and over a decade of research and advisory experience… Anwar is an energy and environmental economist with an engineering background and over a decade of research and advisory experience around the areas of energy demand, greenhouse gas emissions, energy price reform, and carbon pricing. He currently leads multiple cross-functional teams on key projects tackling these areas, with a proven track record of publishing high-impact papers, providing consulting services to policymakers, and building the capabilities of talent within the organization. Anwar’s research has been published in leading energy and environmental journals and has been picked up by leading news media. Anwar also has experience transforming organizations, having been a member of task forces responsible for refreshing organizational strategy and building human capital. Anwar is currently wrapping up a Ph.D. from UCL in Sustainable Resources (sub-specialization in Economics). He holds an M.Sc. from KAUST in Electrical Engineering and a B.Eng. from the University of Liverpool in Electronics and Communication Engineering.

Expertise

  • Energy price reform; Energy demand; Measuring GHG emissions; Carbon pricing; Carbon markets

Publications See all Anwar Gasim’s publications

Aggregate Real Energy Price Index

Aggregate Real Energy Price Index

Saudi Arabia has regulated domestic energy prices for decades, setting them below international market levels.…

5th September 2023
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