IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v246y2022ics0925527322000093.html
   My bibliography  Save this article

Socio-economic impacts of strategic oil and gas megaprojects: A case study in Kuwait

Author

Listed:
  • Nourelfath, Mustapha
  • Lababidi, Haitham M.S.
  • Aldowaisan, Tariq

Abstract

The upgrade of existing refining facilities has great importance to produce high-quality petroleum products that meet the future diversified market requirements. In the existing literature, many papers have dealt with impact analysis of projects. However, studies assessing local, regional and national impacts of oil and gas megaproejcts are missing. In this study, a systematic Input-Output methodology is developed to set out the socio-economic contribution of oil and gas megaprojects. This methodology shows how clean energy megaprojects can contribute to Gross Domestic Product and employment. The central concept of the Input-Output analysis is to link the output value of one industry to the products and services it buys as inputs from other industries. These links are interpreted as relationships resulting in Input-Output tables. Using different multipliers, the Input-Output model is used to calculate the economy's overall effects of megaprojects. As a case study, we analyze the impacts of two megaprojects, the Clean Fuels Project and the Al-Zour Refinery Project, on the economy and the society of the State of Kuwait. The proposed methodology estimates the direct impact carried out by companies that are part of the oil and gas sector, the indirect impact of other Kuwait-based businesses in the supply chain, and the induced impact resulting from household spending of labor income. The obtained results indicate significant positive impacts on Gross Domestic Product and employment during the operation and the construction phases.

Suggested Citation

  • Nourelfath, Mustapha & Lababidi, Haitham M.S. & Aldowaisan, Tariq, 2022. "Socio-economic impacts of strategic oil and gas megaprojects: A case study in Kuwait," International Journal of Production Economics, Elsevier, vol. 246(C).
    • Handle: RePEc:eee:proeco:v:246:y:2022:i:c:s0925527322000093
    DOI: 10.1016/j.ijpe.2022.108416
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527322000093
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2022.108416?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. Sun, Huaping & Edziah, Bless Kofi & Kporsu, Anthony Kwaku & Sarkodie, Samuel Asumadu & Taghizadeh-Hesary, Farhad, 2021. "Energy efficiency: The role of technological innovation and knowledge spillover," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    2. Phalan, Ben, 2009. "The social and environmental impacts of biofuels in Asia: An overview," Applied Energy, Elsevier, vol. 86(Supplemen), pages 21-29, November.
    3. Yu, Yang & Li, Shuangqi & Sun, Huaping & Taghizadeh-Hesary, Farhad, 2021. "Energy carbon emission reduction of China’s transportation sector: An input–output approach," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 378-393.
    4. Wang, Saige & Liu, Yating & Chen, Bin, 2018. "Multiregional input–output and ecological network analyses for regional energy–water nexus within China," Applied Energy, Elsevier, vol. 227(C), pages 353-364.
    5. Machani, Mahdi & Nourelfath, Mustapha & D’Amours, Sophie, 2015. "A scenario-based modelling approach to identify robust transformation strategies for pulp and paper companies," International Journal of Production Economics, Elsevier, vol. 168(C), pages 41-63.
    6. M. Hakan Berument & Nildag Basak Ceylan & Nukhet Dogan, 2010. "The Impact of Oil Price Shocks on the Economic Growth of Selected MENA1 Countries," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 149-176.
    7. Owen, Anne & Scott, Kate & Barrett, John, 2018. "Identifying critical supply chains and final products: An input-output approach to exploring the energy-water-food nexus," Applied Energy, Elsevier, vol. 210(C), pages 632-642.
    8. Lasse Okkonen, 2008. "From exogenous to endogenous development in Scottish forestry: the feasibility of small-scale wood energy enterprise," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 51(2), pages 221-232.
    9. Wang, Qiang & Han, Xinyu, 2021. "Is decoupling embodied carbon emissions from economic output in Sino-US trade possible?," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    10. Demirbas, Ayhan, 2009. "Political, economic and environmental impacts of biofuels: A review," Applied Energy, Elsevier, vol. 86(Supplemen), pages 108-117, November.
    11. Nagashima, Shin & Uchiyama, Yohji & Okajima, Keiichi, 2017. "Hybrid input–output table method for socioeconomic and environmental assessment of a wind power generation system," Applied Energy, Elsevier, vol. 185(P2), pages 1067-1075.
    12. Tarancón, Miguel-Ángel & Gutiérrez-Pedrero, María-Jesús & Callejas, Fernando E. & Martínez-Rodríguez, Isabel, 2018. "Verifying the relation between labor productivity and productive efficiency by means of the properties of the input-output matrices. The European case," International Journal of Production Economics, Elsevier, vol. 195(C), pages 54-65.
    13. Wen, Quan & Hong, Jingke & Liu, Guiwen & Xu, Pengpeng & Tang, Miaohan & Li, Zhongfu, 2020. "Regional efficiency disparities in China’s construction sector: A combination of multiregional input–output and data envelopment analyses," Applied Energy, Elsevier, vol. 257(C).
    14. Rebeca Jimenez-Rodriguez, 2009. "Oil Price Shocks and Real GDP Growth: Testing for Non-linearity," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 1-24.
    15. Ben Daya, Bechir & Nourelfath, Mustapha, 2019. "Sustainability assessment of integrated forest biorefinery implemented in Canadian pulp and paper mills," International Journal of Production Economics, Elsevier, vol. 214(C), pages 248-265.
    16. Liu, Lirong & Huang, Gordon & Baetz, Brian & Cheng, Guanhui & Pittendrigh, Scott M. & Pan, Siyue, 2020. "Input-output modeling analysis with a detailed disaggregation of energy sectors for climate change policy-making: A case study of Saskatchewan, Canada," Renewable Energy, Elsevier, vol. 151(C), pages 1307-1317.
    17. Long, Yin & Yoshida, Yoshikuni & Fang, Kai & Zhang, Haoran & Dhondt, Maya, 2019. "City-level household carbon footprint from purchaser point of view by a modified input-output model," Applied Energy, Elsevier, vol. 236(C), pages 379-387.
    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. Roman Davydov & Vadim Davydov & Valentin Dudkin, 2022. "The Nuclear Magnetic Flowmeter for Monitoring the Consumption and Composition of Oil and Its Complex Mixtures in Real-Time," Energies, MDPI, vol. 15(9), pages 1-20, April.
    2. Vadim Davydov & Darya Vakorina & Daniil Provodin & Natalya Ryabogina & Gregory Stepanenkov, 2023. "New Method for State Express Control of Unstable Hydrocarbon Media and Their Mixtures," Energies, MDPI, vol. 16(6), pages 1-16, March.
    3. Jaime Menéndez-Sánchez & Jorge Fernández-Gómez & Andrés Araujo-de-la-Mata, 2023. "Sustainability Strategies by Oil and Gas Companies, Contribution to the SDGs and Local Innovation Ecosystems," Energies, MDPI, vol. 16(6), pages 1-19, March.
    4. Rustem Kashaev & Nguyen Duc Ahn & Valeriya Kozelkova & Oleg Kozelkov & Valentin Dudkin, 2023. "Online Multiphase Flow Measurement of Crude Oil Properties Using Nuclear (Proton) Magnetic Resonance Automated Measurement Complex for Energy Safety at Smart Oil Deposits," Energies, MDPI, vol. 16(3), pages 1-16, January.

    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. Filis, George & Degiannakis, Stavros & Floros, Christos, 2011. "Dynamic correlation between stock market and oil prices: The case of oil-importing and oil-exporting countries," International Review of Financial Analysis, Elsevier, vol. 20(3), pages 152-164, June.
    2. Guan, Shihui & Han, Mengyao & Wu, Xiaofang & Guan, ChengHe & Zhang, Bo, 2019. "Exploring energy-water-land nexus in national supply chains: China 2012," Energy, Elsevier, vol. 185(C), pages 1225-1234.
    3. Tan, Raymond R. & Aviso, Kathleen B. & Barilea, Ivan U. & Culaba, Alvin B. & Cruz, Jose B., 2012. "A fuzzy multi-regional input–output optimization model for biomass production and trade under resource and footprint constraints," Applied Energy, Elsevier, vol. 90(1), pages 154-160.
    4. Demirbas, Ayhan, 2011. "Biodiesel from oilgae, biofixation of carbon dioxide by microalgae: A solution to pollution problems," Applied Energy, Elsevier, vol. 88(10), pages 3541-3547.
    5. Acheampong, Michael & Ertem, Funda Cansu & Kappler, Benjamin & Neubauer, Peter, 2017. "In pursuit of Sustainable Development Goal (SDG) number 7: Will biofuels be reliable?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 927-937.
    6. Rahman, Farahiyah Abdul & Aziz, Md Maniruzzaman A. & Saidur, R. & Bakar, Wan Azelee Wan Abu & Hainin, M.R & Putrajaya, Ramadhansyah & Hassan, Norhidayah Abdul, 2017. "Pollution to solution: Capture and sequestration of carbon dioxide (CO2) and its utilization as a renewable energy source for a sustainable future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 112-126.
    7. Wang, Saige & Chen, Bin, 2021. "Unraveling energy–water nexus paths in urban agglomeration: A case study of Beijing–Tianjin–Hebei," Applied Energy, Elsevier, vol. 304(C).
    8. Liu, Lirong & Huang, Guohe & Baetz, Brian & Zhang, Kaiqiang, 2018. "Environmentally-extended input-output simulation for analyzing production-based and consumption-based industrial greenhouse gas mitigation policies," Applied Energy, Elsevier, vol. 232(C), pages 69-78.
    9. Jaelani, Aan & Firdaus, Slamet & Jumena, Juju, 2017. "Renewable Energy Policy in Indonesia: The Qur'anic Scientific Signals in Islamic Economics Perspective," MPRA Paper 84622, University Library of Munich, Germany, revised 18 Sep 2017.
    10. Wang, Saige & Fath, Brian & Chen, Bin, 2019. "Energy–water nexus under energy mix scenarios using input–output and ecological network analyses," Applied Energy, Elsevier, vol. 233, pages 827-839.
    11. van Eijck, Janske & Batidzirai, Bothwell & Faaij, André, 2014. "Current and future economic performance of first and second generation biofuels in developing countries," Applied Energy, Elsevier, vol. 135(C), pages 115-141.
    12. Demirbas, Ayhan, 2011. "Competitive liquid biofuels from biomass," Applied Energy, Elsevier, vol. 88(1), pages 17-28, January.
    13. Correa, Diego F. & Beyer, Hawthorne L. & Fargione, Joseph E. & Hill, Jason D. & Possingham, Hugh P. & Thomas-Hall, Skye R. & Schenk, Peer M., 2019. "Towards the implementation of sustainable biofuel production systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 107(C), pages 250-263.
    14. Jaelani, Aan, 2017. "Energi baru terbarukan di Indonesia: Isyarat ilmiah al-Qur’an dan implementasinya dalam ekonomi Islam [Renewable energy policy in Indonesia: Scientific signs of the Qur'an and its implementation in," MPRA Paper 83314, University Library of Munich, Germany, revised 23 Oct 2017.
    15. Ng, Jo-Han & Ng, Hoon Kiat & Gan, Suyin, 2012. "Characterisation of engine-out responses from a light-duty diesel engine fuelled with palm methyl ester (PME)," Applied Energy, Elsevier, vol. 90(1), pages 58-67.
    16. Srirangan, Kajan & Akawi, Lamees & Moo-Young, Murray & Chou, C. Perry, 2012. "Towards sustainable production of clean energy carriers from biomass resources," Applied Energy, Elsevier, vol. 100(C), pages 172-186.
    17. Demirbas, M. Fatih, 2011. "Biofuels from algae for sustainable development," Applied Energy, Elsevier, vol. 88(10), pages 3473-3480.
    18. repec:eco:journ2:2017-04-24 is not listed on IDEAS
    19. Jingke, Hong & Chenyu, Wang & Chang-Richards, Alice & Jingxiao, Zhang & Qiping, Geoffrey Shen & Bei, Qiao, 2022. "A spatiotemporal analysis of energy use pathways in the construction industry: A study of China," Energy, Elsevier, vol. 239(PC).
    20. shafaai, Shafizal & Masih, Mansur, 2013. "Stock market and crude oil relationship: A wavelet analysis," MPRA Paper 62363, University Library of Munich, Germany.
    21. Lin, Boqiang & Kuang, Yunming, 2020. "Household heterogeneity impact of removing energy subsidies in China: Direct and indirect effect," Energy Policy, Elsevier, vol. 147(C).

    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:proeco:v:246:y:2022:i:c:s0925527322000093. 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/ijpe .

    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.