Energy price reform to mitigate transportation carbon emissions in oil-rich economies

Sa'd A. Shannak, Jeyhun I. Mikayilov, Rubal Dua

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

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 languageEnglish
Pages (from-to)263-283
Number of pages21
JournalEnvironmental Economics and Policy Studies
Volume26
Issue number2
Early online dateMar 2024
DOIs
Publication statusPublished - Apr 2024

Keywords

  • CO2 emissions
  • Climate change
  • Cointegration and equilibrium correction models
  • Forecasting
  • Saudi Arabia
  • Transportation

Fingerprint

Dive into the research topics of 'Energy price reform to mitigate transportation carbon emissions in oil-rich economies'. Together they form a unique fingerprint.

Cite this