Primary ProgramEnergy efficiency, demand and productivity
Padu is a visiting researcher at KAPSARC. He is the former program director of the South Asia Regional Initiative for Energy Integration (SARI/EI) and senior energy advisor for USAID/India’s bilateral economic assistance program. He has also worked with the World Bank in Washington DC.
In this report, we explore the main trends and policies that relate to industrial energy productivity in China and Saudi Arabia, focusing on energy efficiency, structural economic reform, industrial upgrading and energy pricing. Our objective is to increase shared understanding on these issues as both countries deepen their engagement as part of China’s Belt and Road Initiative and Saudi Arabia’s Vision 2030.
With domestic energy demand in Saudi Arabia expected to potentially double by 2030, managing the relationship between energy consumption and economic growth will be very important for the Kingdom’s sustainable development. To assist in this task, this report recommends using energy productivity as an indicator and policy framework to help inform policymakers as to where and how the most value can be achieved from energy use.
An unprecedented infrastructure investment boom occurred in the Gulf Cooperation Council (GCC) in the first part of the 21st century. Strong public capital spending supported by high energy prices provided governments with an opportunity to accelerate economic diversification and infrastructure investment, lifting economic growth and per capita incomes. The 2014 collapse in oil prices created an added impetus for a transition to a more sustainable growth model less dependent on volatile energy markets. Here we make the case for a greater focus on energy productive investment to drive this transition.