Efficient Industrial Energy Use: The First Step in Transitioning Saudi Arabia’s Energy Mix
- continuation of current pricing policies;
- immediate deregulation of fuel prices;
- phased deregulation of fuel prices; and
- a combination of incentives and small price increases that capture many of the benefits of deregulation.
policies would likely encourage the adoption of more efficient power generation and water desalination technologies. The alternative policies alter the transfer prices of fuels between sectors, but maintain the prices at which energy is sold to households. Future analyses will examine the next logical step of adjusting household energy prices in transitioning Saudi Arabia’s energy economy to match the efficiency of developed nations.
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