Lowering Saudi Arabia's fuel consumption and energy system costs without increasing end consumer prices

摘要: Using a multi-sector equilibrium model of the Saudi energy system that handles administered prices in mixed-complementarity formulation, we present results from set policy scenarios lower oil consumption country. Some these are solutions to Mathematical Programs subject Equilibrium Constraints (MPECs) maximize net economic gain for economy. The policies examined have potential generate gains exceeding 23 billion USD 2011, or about 4% Arabia's GDP. This comes mainly inter-sectoral fuel pricing incent shifting mix technologies electricity and produce water intensive more efficient ones. We show when complemented by credits investments solar nuclear power generation capacities, modest increase transfer fuels among sectors is sufficient close those achieved deregulating prices. approach develop here an alternative classic recommendation situations where conditions successful liberalized markets do not exist. It template introducing notions incentivizing behavior using into countries rely on administrative procedures than markets, leading deeper understanding how can lead gain.