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Gasoline demand, pricing policy, and social welfare in Saudi Arabia: A quantitative analysis

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  • Atalla, Tarek N.
  • Gasim, Anwar A.
  • Hunt, Lester C.

Abstract

Domestic energy prices in Saudi Arabia are set below international market prices. This, coupled with rapid economic and population growth, is believed to have contributed to the rapid growth in domestic energy demand and, recently, affected the government budget in the face of low international oil prices. In December 2015, Saudi Arabia announced increases in domestic energy prices. This paper therefore considers the impacts, focusing on gasoline, by estimating a demand function and using it to estimate the change in social welfare.

Suggested Citation

  • Atalla, Tarek N. & Gasim, Anwar A. & Hunt, Lester C., 2018. "Gasoline demand, pricing policy, and social welfare in Saudi Arabia: A quantitative analysis," Energy Policy, Elsevier, vol. 114(C), pages 123-133.
  • Handle: RePEc:eee:enepol:v:114:y:2018:i:c:p:123-133
    DOI: 10.1016/j.enpol.2017.11.047
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