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Impact of oil prices, economic diversification policies and energy conservation programs on the electricity and water demands in Kuwait

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  • Wood, Michael
  • Alsayegh, Osamah A.

Abstract

This paper describes the influences of oil revenue and government's policies toward economic developments and energy efficiency on the electricity and water demands. A Kuwait-specific electricity and water demand model was developed based on historic data of oil income, gross domestic product (GDP), population and electric load and water demand over the past twelve years (1998–2010). Moreover, the model took into account the future mega projects, annual new connected loads and expected application of energy conservation programs. It was run under six circumstances representing the combinations of three oil income scenarios and two government action policies toward economic diversification and energy conservation. The first government policy is the status quo with respect to economic diversification and applying energy conservation programs. The second policy scenario is the proactive strategy of raising the production of the non-oil sector revenue and enforcing legislations toward energy demand side management and conservation. In the upcoming 20 years, the average rates of change of the electric load and water demand increase are 0.13GW and 3.0MIGD, respectively, per US dollar oil price increase. Moreover, through proactive policy, the rates of average load and water demand decrease are 0.13GW and 2.9MIGD per year, respectively.

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  • Wood, Michael & Alsayegh, Osamah A., 2014. "Impact of oil prices, economic diversification policies and energy conservation programs on the electricity and water demands in Kuwait," Energy Policy, Elsevier, vol. 66(C), pages 144-156.
    • Handle: RePEc:eee:enepol:v:66:y:2014:i:c:p:144-156
    DOI: 10.1016/j.enpol.2013.10.061
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    1. Alasseri, Rajeev & Tripathi, Ashish & Joji Rao, T. & Sreekanth, K.J., 2017. "A review on implementation strategies for demand side management (DSM) in Kuwait through incentive-based demand response programs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 617-635.
    2. Azar, Elie & Alaifan, Bader & Lin, Min & Trepci, Esra & El Asmar, Mounir, 2021. "Drivers of energy consumption in Kuwaiti buildings: Insights from a hybrid statistical and building performance simulation approach," Energy Policy, Elsevier, vol. 150(C).
    3. Edalati, Saeed & Ameri, Mehran & Iranmanesh, Masoud & Sadeghi, Zeinolabedin, 2017. "Solar photovoltaic power plants in five top oil-producing countries in Middle East: A case study in Iran," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1271-1280.
    4. Ayele Gelan & Geoffrey J. D. Hewings & Ahmad Alawadhi, 2021. "Diversifying a resource-dependent economy: private–public relationships in the Kuwaiti economy," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 10(1), pages 1-22, December.
    5. Alshawaf, Mohammad & Poudineh, Rahmatallah & Alhajeri, Nawaf S., 2020. "Solar PV in Kuwait: The effect of ambient temperature and sandstorms on output variability and uncertainty," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    6. Mohammad Al-Zuhair & Talal AL-Bazali, 2022. "Causality Between Energy Consumption and Economic Growth: The Case of Kuwait," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 22-29, November.
    7. Naegele, S.M. & McCandless, T.C. & Greybush, S.J. & Young, G.S. & Haupt, S.E. & Al-Rasheedi, M., 2020. "Climatology of wind variability for the Shagaya region in Kuwait," Renewable and Sustainable Energy Reviews, Elsevier, vol. 133(C).
    8. Alsayegh, Osamah & Saker, Nathalie & Alqattan, Ayman, 2018. "Integrating sustainable energy strategy with the second development plan of Kuwait," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 3430-3440.
    9. Osama Alfalah, 2021. "Estimating Residential Demand for Water in Kuwait: A Cointegration Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 283-287.
    10. Alasseri, Rajeev & Rao, T. Joji & Sreekanth, K.J., 2020. "Institution of incentive-based demand response programs and prospective policy assessments for a subsidized electricity market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 117(C).
    11. Zhang, Chi & Zhou, Kaile & Yang, Shanlin & Shao, Zhen, 2017. "On electricity consumption and economic growth in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 353-368.

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