Abstract

What is the value of saving a barrel of oil that would otherwise had been consumed domestically? This study explores the question, taking a long-run perspective into a general equilibrium approach. In the case of Saudi Arabia, the difference between the domestic price of oil and the international price represents an opportunity to improve economic efficiency across different activities and sectors. In this context, we study different policies aimed to reduce the domestic consumption of oil.

Authors

Jorge Blazquez

Jorge Blazquez

Former Research Fellow Jorge is a former research fellow specializing in energy and economics, with research interests in energy and macroeconomics, energy policies…

Baltasar Manzano

Baltasar Manzano

Visiting Researcher Baltasar has been involved in economic research for the last three decades at Universidade de Vigo, with a particular focus…

Expertise

  • Energy economics
  • public economics
  • public finance
  • dynamic macroeconomics

Publications See all Baltasar Manzano’s publications

The Value of Saving Oil in Saudi Arabia

The Value of Saving Oil in Saudi Arabia

What is the value of saving a barrel of oil that would otherwise had been…

March 25, 2018

Oil subsidies and renewable energy in Saudi Arabia: A general equilibrium approach

What is the value of saving a barrel of oil that would otherwise had been…

November 1, 2017
Axel Pierru

Axel Pierru

Interim Vice President of Research Axel is the interim vice president of research at KAPSARC. He also leads the Energy and Macroeconomics program and has…

Expertise

  • Energy modelling
  • energy economics
  • energy policy
  • oil pricing and finance

Publications See all Axel Pierru’s publications

Estimating the Household Consumption Function in Saudi Arabia

Estimating the Household Consumption Function in Saudi Arabia

What is the value of saving a barrel of oil that would otherwise had been…

February 5, 2019
The Costs and Gains of Coordinating Electricity Generation in the Gulf Cooperation Council Utilizing the Interconnector

The Costs and Gains of Coordinating Electricity Generation in the Gulf Cooperation Council Utilizing the Interconnector

What is the value of saving a barrel of oil that would otherwise had been…

June 10, 2018
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24 Jul

Opportunity Cost of Oil for Saudi Arabia

Saudi Arabia’s economy is passing through a phase of transformation in which some resources will be freed from existing usages and allocated to new development opportunities. Making decisions based on the wrong opportunity costs or value of these resources could lead to over- or under-investment in projects. In particular, the international oil price may not […]

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