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Fuel-price reform to achieve climate and energy policy goals in Saudi Arabia: A multiple-scenario analysis
Affiliation:1. University of Innsbruck, Institute for Construction and Materials Science, Innsbruck, Austria;2. King Fahd University of Petroleum and Minerals, Dhahran, Saudi Arabia;1. Luxembourg Institute of Science and Technology (LIST), Department of Environmental Research and Innovation (ERIN), 41 Rue du Brill, 4422 Belvaux, Luxembourg;2. Eindhoven University of Technology, Department of the Built Environment, 5612 AZ Eindhoven, The Netherlands;1. Department of Business Administration, College of Business and Economics, Qassim University, Buraydah, 52571, Qassim, Saudi Arabia;2. Faculty of Economics and Management of Sousse, University of Sousse, Tunisia;1. PhD Candidate of Futures Studies, Faculty of Management, University of Tehran, Tehran, Iran;2. Institute of Biochemistry and Biophysics, University of Tehran, Tehran, Iran;3. Faculty of Management, University of Tehran, Jalal Al-e-Ahmad Ave., Nasr Bridge, P.O. Box 14155-6311, Tehran, Iran;4. Faculty of Management, University of Tehran, Tehran, Iran
Abstract:Saudi Arabia experiences annual growth of 6% in its power demand. Generation expansion has been driven by low domestic retail fuel prices leading to a power generation mix based on fossil fuels only. In light of current climate change discussions, this research assesses future generation expansion under different potential fuel-price reforms by an enhanced OSeMOSYS model. Results demonstrate that domestic retail fuel price levels >20% >60%] of expected international wholesale fuel prices1 are necessary to minimize emissions when considering emissions penalties without pricing for emissions]. By 2030 renewables can reach 70% penetration by capacity and 30% by energy.
Keywords:Saudi Arabia  Fuel-price reform  Climate change
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