Interfuel Substitution in the Industrial Sector in Saudi Arabia

  • Program -
  • Type Discussion paper
  • Date 23 October 2023
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Abstract

The Kingdom of Saudi Arabia has taken many decisive steps toward a more sustainable future, in line with its Vision 2030, including the use of clean energy, offsetting of emissions, and protection of the environment. In this context, Saudi Arabia has set an ambitious target to reduce its carbon emissions by 278 mtpa by 2030. The objective of this study is to investigate the possibility of interfuel substitution in Saudi Arabia’s industrial sector and to identify the role of substituting fossil fuel with carbon-neutral fuel, such as electricity, in meeting the CO2emissions target. A ridge regression method is used to estimate the parameters of the translog production function for the period 1990–2020.

Authors

Muhammad Javid

Muhammad Javid

Senior Fellow- Energy Macro & Microeconomics Muhammad Javid is a Senior Fellow in Energy Macro & Microeconomics at KAPSARC, currently working on the KAPSARC Global Energy…

Muhammad Javid is a Senior Fellow in Energy Macro & Microeconomics at KAPSARC, currently working on the KAPSARC Global Energy Macroeconometric Model (KGEMM) project. Before joining KAPSARC, Muhammad worked as a Senior Research Economist at the Pakistan Institute of Development Economics (PIDE) in Islamabad. During his 20+ years in research, Muhammad has worked extensively in the areas of energy, environment, econometric modeling, forecasting, and macroeconomics. He also has experience working for various research, academic, and governmental organizations, such as King Saud University in Riyadh, Saudi Arabia, and the Benazir Income Support Program in Pakistan. Muhammad has published several peer-reviewed articles on electricity demand, energy, inflation, and environmental issues. He received Pakistan’s Higher Education Commission’s Outstanding Research Award 2015/2016 for his research paper, “Environmental Kuznets curve and financial development in Pakistan,” published in Renewable and Sustainable Energy Reviews.

Expertise

  • Econometric Modeling and Forecasting
  • Energy and Environment
  • Water Demand

Publications See all Muhammad Javid’s publications

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