In 2016, policymakers in Saudi Arabia increased domestic transportation fuel prices, which are expected to approach market levels in the near future. Current low crude oil prices offer an excellent opportunity for policymakers to deregulate the passenger transportation sector without a significant change in local fuel prices. We developed a bottom-up transportation sub-model and integrated it with the KAPSARC Energy Model (KEM) to assess whether consumers could afford such reforms; and the resulting travel mode choices, energy consumption levels and revenue. We do not consider price-induced efficiency improvements; hence, the results would represent an upper bound for the shift to public modes
Impact of Domestic Fuel Price Reforms on the use of Public Transport in Saudi Arabia
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