Energy Price Reform in Saudi Arabia: Modeling the Economic and Environmental

In To minimize the negative impact of increased energy contrast, the previous policy of lower, administered, costs on lower- and middle-income households, energy prices strained the government budget the government launched the Citizens’ Account and disproportionately benefited higher-income Program alongside the second wave of reforms. [...] The income elasticity is the STSM approach to estimate the UEDT in statistically insignificant in the short run and 0.22 in residential electricity demand. [...] Our analysis shows that the Electricity price reform gasoline price reform of 2018 saved between 2.0 billion liters in the short run and 2.8 billion liters Following the same approach, we use the preferred in the long run compared with the no-reform residential electricity demand model to generate scenario. [...] Summing the increase in total levels, and allow the electricity price to decrease surplus and the reduction in external costs yields from SAR 0.185 to 0.086 per kWh, reflecting the a total welfare gain of SAR 8.8 billion for the Saudi real weighted average electricity price in 2018 and economy as a result of gasoline price reform in what it would have been at the start of that year in 2018. [...] CO2 emissions, the gasoline price reform would have reduced the country’s carbon footprint by 4.6 The SAR 4.6 billion increase in revenues for Saudi million tonnes annually in the short run and 6.4 Aramco represents increased revenues for the million tonnes annually in the long run.