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Interfuel Substitution in the Industrial Sector in Saudi Arabia

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  • Muhammad Javid

    (King Abdullah Petroleum Studies and Research Center)

Abstract

The Kingdom of Saudi Arabia has taken many decisive steps toward a more sustainable future, in line with its Vision 2030, including the use of clean energy, offsetting of emissions, and protection of the environment. In this context, Saudi Arabia has set an ambitious target to reduce its carbon emissions by 278 mtpa by 2030. The objective of this study is to investigate the possibility of interfuel substitution in Saudi Arabia’s industrial sector and to identify the role of substituting fossil fuel with carbon-neutral fuel, such as electricity, in meeting the CO2emissions target. A ridge regression method is used to estimate the parameters of the translog production function for the period 1990–2020.

Suggested Citation

  • Muhammad Javid, 2023. "Interfuel Substitution in the Industrial Sector in Saudi Arabia," Discussion Papers ks--2023-dp25, King Abdullah Petroleum Studies and Research Center.
    • Handle: RePEc:prc:dpaper:ks--2023-dp25
    DOI: 10.30573/KS--2023-DP25
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    Keywords

    Climate change mitigation; Carbon-neutral fuel; Electricity; Emmission offset;
    All these keywords.

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