IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v101y2017icp502-511.html
   My bibliography  Save this article

Achieving 80% greenhouse gas reduction target in Saudi Arabia under low and medium oil prices

Author

Listed:
  • Alshammari, Yousef M.
  • Sarathy, S. Mani

Abstract

COP 21 led to a global agreement to limit the earth's rising temperature to less than 2°C. This will require countries to act upon climate change and achieve a significant reduction in their greenhouse gas emissions which will play a pivotal role in shaping future energy systems. Saudi Arabia is the World's largest exporter of crude oil, and the 11th largest CO2 emitter. Understanding the Kingdom's role in global greenhouse gas reduction is critical in shaping the future of fossil fuels. Hence, this work presents an optimisation study to understand how Saudi Arabia can meet the CO2 reduction targets to achieve the 80% reduction in the power generation sector. It is found that the implementation of energy efficiency measures is necessary to enable meeting the 80% target, and it would also lower costs of transition to low carbon energy system while maintaining cleaner use of hydrocarbons with CCS. Setting very deep GHG reduction targets may be economically uncompetitive in consideration of the energy supply requirements. In addition, we determine the breakeven price of crude oil needed to make CCS economically viable. Results show important dimension for pricing CO2 and the role of CCS compared with alternative sources of energy.

Suggested Citation

  • Alshammari, Yousef M. & Sarathy, S. Mani, 2017. "Achieving 80% greenhouse gas reduction target in Saudi Arabia under low and medium oil prices," Energy Policy, Elsevier, vol. 101(C), pages 502-511.
    • Handle: RePEc:eee:enepol:v:101:y:2017:i:c:p:502-511
    DOI: 10.1016/j.enpol.2016.10.027
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421516305717
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2016.10.027?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Richard S. J. Tol, 1999. "The Marginal Costs of Greenhouse Gas Emissions," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 61-81.
    2. Cai, Wenjia & Wang, Can & Chen, Jining & Wang, Ke & Zhang, Ying & Lu, Xuedu, 2008. "Comparison of CO2 emission scenarios and mitigation opportunities in China's five sectors in 2020," Energy Policy, Elsevier, vol. 36(3), pages 1181-1194, March.
    3. Zuhairy, Akram A. & Sayigh, A.A.M., 1995. "Simulation and modeling of solar radiation in Saudi Arabia," Renewable Energy, Elsevier, vol. 6(2), pages 107-118.
    4. Mustapa, Siti Indati & Bekhet, Hussain Ali, 2016. "Analysis of CO2 emissions reduction in the Malaysian transportation sector: An optimisation approach," Energy Policy, Elsevier, vol. 89(C), pages 171-183.
    5. Sovacool, Benjamin K., 2008. "Valuing the greenhouse gas emissions from nuclear power: A critical survey," Energy Policy, Elsevier, vol. 36(8), pages 2940-2953, August.
    6. Kay, Andrew I. & Noland, Robert B. & Rodier, Caroline J., 2014. "Achieving reductions in greenhouse gases in the US road transportation sector," Energy Policy, Elsevier, vol. 69(C), pages 536-545.
    7. Cai, Wenjia & Wang, Can & Wang, Ke & Zhang, Ying & Chen, Jining, 2007. "Scenario analysis on CO2 emissions reduction potential in China's electricity sector," Energy Policy, Elsevier, vol. 35(12), pages 6445-6456, December.
    8. Holloway, S., 2005. "Underground sequestration of carbon dioxide—a viable greenhouse gas mitigation option," Energy, Elsevier, vol. 30(11), pages 2318-2333.
    9. Yang, Christopher & McCollum, David L & McCarthy, Ryan & Leighty, Wayne, 2009. "Meeting an 80% Reduction in Greenhouse Gas Emissions from Transportation by 2050: A Case Study in California," Institute of Transportation Studies, Working Paper Series qt2ns1q98f, Institute of Transportation Studies, UC Davis.
    10. Richels, Richard & Sturm, Peter, 1996. "The costs of CO2 emission reductions : Some insights from global analyses," Energy Policy, Elsevier, vol. 24(10-11), pages 875-887.
    11. Leighty, Wayne & Ogden, Joan M. & Yang, Christopher, 2012. "Modeling transitions in the California light-duty vehicles sector to achieve deep reductions in transportation greenhouse gas emissions," Energy Policy, Elsevier, vol. 44(C), pages 52-67.
    12. Alyousef, Yousef & Stevens, Paul, 2011. "The cost of domestic energy prices to Saudi Arabia," Energy Policy, Elsevier, vol. 39(11), pages 6900-6905.
    13. Ahmad, Ali & Ramana, M.V., 2014. "Too costly to matter: Economics of nuclear power for Saudi Arabia," Energy, Elsevier, vol. 69(C), pages 682-694.
    14. Riahi, Keywan & Rubin, Edward S. & Schrattenholzer, Leo, 2004. "Prospects for carbon capture and sequestration technologies assuming their technological learning," Energy, Elsevier, vol. 29(9), pages 1309-1318.
    15. Hourcade, Jean-Charles & Robinson, John, 1996. "Mitigating factors : Assessing the costs of reducing GHG emissions," Energy Policy, Elsevier, vol. 24(10-11), pages 863-873.
    16. McCollum, David & Yang, Christopher, 2009. "Achieving deep reductions in US transport greenhouse gas emissions: Scenario analysis and policy implications," Energy Policy, Elsevier, vol. 37(12), pages 5580-5596, December.
    17. Yang, Christopher & Yeh, Sonia & Zakerinia, Saleh & Ramea, Kalai & McCollum, David, 2015. "Achieving California's 80% greenhouse gas reduction target in 2050: Technology, policy and scenario analysis using CA-TIMES energy economic systems model," Energy Policy, Elsevier, vol. 77(C), pages 118-130.
    18. Lai, Xianjin & Ye, Zhonghua & Xu, Zhengzhong & Husar Holmes, Maja & Henry Lambright, W., 2012. "Carbon capture and sequestration (CCS) technological innovation system in China: Structure, function evaluation and policy implication," Energy Policy, Elsevier, vol. 50(C), pages 635-646.
    19. Jaccard, Mark & Montgomery, W David, 1996. "Costs of reducing greenhouse gas emissions in the USA and Canada," Energy Policy, Elsevier, vol. 24(10-11), pages 889-898.
    20. Alkhathlan, Khalid & Javid, Muhammad, 2013. "Energy consumption, carbon emissions and economic growth in Saudi Arabia: An aggregate and disaggregate analysis," Energy Policy, Elsevier, vol. 62(C), pages 1525-1532.
    21. Wang, Ke & Wang, Can & Lu, Xuedu & Chen, Jining, 2007. "Scenario analysis on CO2 emissions reduction potential in China's iron and steel industry," Energy Policy, Elsevier, vol. 35(4), pages 2320-2335, April.
    22. Mansouri, Noura Y. & Crookes, Roy J. & Korakianitis, Theodosios, 2013. "A projection of energy consumption and carbon dioxide emissions in the electricity sector for Saudi Arabia: The case for carbon capture and storage and solar photovoltaics," Energy Policy, Elsevier, vol. 63(C), pages 681-695.
    23. Alshehry, Atef Saad & Belloumi, Mounir, 2015. "Energy consumption, carbon dioxide emissions and economic growth: The case of Saudi Arabia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 237-247.
    24. Messner, Sabine & Schrattenholzer, Leo, 2000. "MESSAGE–MACRO: linking an energy supply model with a macroeconomic module and solving it iteratively," Energy, Elsevier, vol. 25(3), pages 267-282.
    25. Rubin, Edward S. & Chen, Chao & Rao, Anand B., 2007. "Cost and performance of fossil fuel power plants with CO2 capture and storage," Energy Policy, Elsevier, vol. 35(9), pages 4444-4454, September.
    26. Raugei, Marco & Frankl, Paolo, 2009. "Life cycle impacts and costs of photovoltaic systems: Current state of the art and future outlooks," Energy, Elsevier, vol. 34(3), pages 392-399.
    27. Klaassen, Ger & Riahi, Keywan, 2007. "Internalizing externalities of electricity generation: An analysis with MESSAGE-MACRO," Energy Policy, Elsevier, vol. 35(2), pages 815-827, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aziz, Ghazala & Sarwar, Suleman & Nawaz, Kishwar & Waheed, Rida & Khan, Mohd Saeed, 2023. "Influence of tech-industry, natural resources, renewable energy and urbanization towards environment footprints: A fresh evidence of Saudi Arabia," Resources Policy, Elsevier, vol. 83(C).
    2. Muhammad Muhitur Rahman & Mohammad Shahedur Rahman & Saidur R. Chowdhury & Alaeldeen Elhaj & Shaikh Abdur Razzak & Syed Abu Shoaib & Md Kamrul Islam & Mohammed Monirul Islam & Sayeed Rushd & Syed Masi, 2022. "Greenhouse Gas Emissions in the Industrial Processes and Product Use Sector of Saudi Arabia—An Emerging Challenge," Sustainability, MDPI, vol. 14(12), pages 1-18, June.
    3. Sultan J. Alharbi & Abdulaziz S. Alaboodi, 2023. "A Review on Techno-Economic Study for Supporting Building with PV-Grid-Connected Systems under Saudi Regulations," Energies, MDPI, vol. 16(3), pages 1-14, February.
    4. Montassar Kahia & Anis Omri & Bilel Jarraya, 2020. "Does Green Energy Complement Economic Growth for Achieving Environmental Sustainability? Evidence from Saudi Arabia," Sustainability, MDPI, vol. 13(1), pages 1-12, December.
    5. Waheed, Rida & Sarwar, Suleman & Dignah, Ashwaq, 2020. "The role of non-oil exports, tourism and renewable energy to achieve sustainable economic growth: What we learn from the experience of Saudi Arabia," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 49-58.
    6. Rida Waheed & Suleman Sarwar & Zouheir Mighri, 2021. "Role of high technology exports for energy efficiency: Empirical evidence in the context of Gulf Cooperation Council countries," Energy & Environment, , vol. 32(5), pages 803-819, August.
    7. Wei, Yu & Zhang, Jiahao & Bai, Lan & Wang, Yizhi, 2023. "Connectedness among El Niño-Southern Oscillation, carbon emission allowance, crude oil and renewable energy stock markets: Time- and frequency-domain evidence based on TVP-VAR model," Renewable Energy, Elsevier, vol. 202(C), pages 289-309.
    8. Alshammari, Yousef M., 2021. "Scenario analysis for energy transition in the chemical industry: An industrial case study in Saudi Arabia," Energy Policy, Elsevier, vol. 150(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. AlSabbagh, Maha & Siu, Yim Ling & Guehnemann, Astrid & Barrett, John, 2017. "Integrated approach to the assessment of CO2e-mitigation measures for the road passenger transport sector in Bahrain," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 203-215.
    2. Gambhir, Ajay & Schulz, Niels & Napp, Tamaryn & Tong, Danlu & Munuera, Luis & Faist, Mark & Riahi, Keywan, 2013. "A hybrid modelling approach to develop scenarios for China's carbon dioxide emissions to 2050," Energy Policy, Elsevier, vol. 59(C), pages 614-632.
    3. Mezghani, Imed & Ben Haddad, Hedi, 2017. "Energy consumption and economic growth: An empirical study of the electricity consumption in Saudi Arabia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 145-156.
    4. Yang, Christopher & Yeh, Sonia & Zakerinia, Saleh & Ramea, Kalai & McCollum, David, 2015. "Achieving California's 80% greenhouse gas reduction target in 2050: Technology, policy and scenario analysis using CA-TIMES energy economic systems model," Energy Policy, Elsevier, vol. 77(C), pages 118-130.
    5. Lee, Seungmoon & Park, Jin-Won & Song, Ho-Jun & Maken, Sanjeev & Filburn, Tom, 2008. "Implication of CO2 capture technologies options in electricity generation in Korea," Energy Policy, Elsevier, vol. 36(1), pages 326-334, January.
    6. Prasad, Ravita D. & Bansal, R.C. & Raturi, Atul, 2014. "Multi-faceted energy planning: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 686-699.
    7. Zhang, Shaohui & Worrell, Ernst & Crijns-Graus, Wina, 2015. "Synergy of air pollutants and greenhouse gas emissions of Chinese industries: A critical assessment of energy models," Energy, Elsevier, vol. 93(P2), pages 2436-2450.
    8. Liu, Wen & Lund, Henrik & Mathiesen, Brian Vad, 2011. "Large-scale integration of wind power into the existing Chinese energy system," Energy, Elsevier, vol. 36(8), pages 4753-4760.
    9. Ahanchian, Mohammad & Biona, Jose Bienvenido Manuel, 2014. "Energy demand, emissions forecasts and mitigation strategies modeled over a medium-range horizon: The case of the land transportation sector in Metro Manila," Energy Policy, Elsevier, vol. 66(C), pages 615-629.
    10. Javid, Roxana J. & Nejat, Ali, 2017. "A comprehensive model of regional electric vehicle adoption and penetration," Transport Policy, Elsevier, vol. 54(C), pages 30-42.
    11. Manfred Lenzen & Roberto Schaeffer, 2012. "Historical and potential future contributions of power technologies to global warming," Climatic Change, Springer, vol. 112(3), pages 601-632, June.
    12. Liu, Lei & Wang, Ke & Wang, Shanshan & Zhang, Ruiqin & Tang, Xiaoyan, 2018. "Assessing energy consumption, CO2 and pollutant emissions and health benefits from China's transport sector through 2050," Energy Policy, Elsevier, vol. 116(C), pages 382-396.
    13. J. Javid, Roxana & Nejat, Ali & Hayhoe, Katharine, 2014. "Selection of CO2 mitigation strategies for road transportation in the United States using a multi-criteria approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 960-972.
    14. Du, Limin & Wei, Chu & Cai, Shenghua, 2012. "Economic development and carbon dioxide emissions in China: Provincial panel data analysis," China Economic Review, Elsevier, vol. 23(2), pages 371-384.
    15. Park, Nyun-Bae & Yun, Sun-Jin & Jeon, Eui-Chan, 2013. "An analysis of long-term scenarios for the transition to renewable energy in the Korean electricity sector," Energy Policy, Elsevier, vol. 52(C), pages 288-296.
    16. Laha, Priyanka & Chakraborty, Basab, 2017. "Energy model – A tool for preventing energy dysfunction," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 95-114.
    17. Ates, Seyithan A., 2015. "Energy efficiency and CO2 mitigation potential of the Turkish iron and steel industry using the LEAP (long-range energy alternatives planning) system," Energy, Elsevier, vol. 90(P1), pages 417-428.
    18. Vicente Sebastian Espinoza & Veronica Guayanlema & Javier Mart nez-G mez, 2018. "Energy Efficiency Plan Benefits in Ecuador: Long-range Energy Alternative Planning Model," International Journal of Energy Economics and Policy, Econjournals, vol. 8(4), pages 52-54.
    19. Shao, Shuai & Liu, Jianghua & Geng, Yong & Miao, Zhuang & Yang, Yingchun, 2016. "Uncovering driving factors of carbon emissions from China’s mining sector," Applied Energy, Elsevier, vol. 166(C), pages 220-238.
    20. Zhang, Chao & Chen, Jining & Wen, Zongguo, 2012. "Alternative policy assessment for water pollution control in China's pulp and paper industry," Resources, Conservation & Recycling, Elsevier, vol. 66(C), pages 15-26.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:101:y:2017:i:c:p:502-511. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.