Abstract
This study examines the impact of domestic fuel prices, population, and economic activity on transport CO2 emissions, employing Saudi Arabia as a case study. The research uncovers statistically significant long-term associations between these variables. Despite transport CO2 emissions demonstrating slight responsiveness to fuel price alterations, with estimated elasticity values between - 0.1 and - 0.15, the study affirms the relevance and timeliness of the Saudi government's strategy to curtail fuel incentives. Projections for a 2030 scenario, encompassing heightened economic activity aspirations and further escalations in domestic fuel prices to mirror true market costs, revealed a 1.8 percent annual reduction in transport CO2 emissions from 2021 to 2030 compared to a scenario with unchanging fuel prices. The insights from this study bear significance not only for Saudi Arabia but also for other oil-rich nations striving to pave the way toward a sustainable transportation future.
Original language | English |
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Pages (from-to) | 263-283 |
Number of pages | 21 |
Journal | Environmental Economics and Policy Studies |
Volume | 26 |
Issue number | 2 |
Early online date | Mar 2024 |
DOIs | |
Publication status | Published - Apr 2024 |
Keywords
- CO2 emissions
- Climate change
- Cointegration and equilibrium correction models
- Forecasting
- Saudi Arabia
- Transportation