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The natural gas sector in post-revolution Egypt

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  • Siddig, Khalid
  • Grethe, Harald
  • Abdelwahab, Noura

Abstract

This paper assesses the economic implications of the termination of the preferential agreement for exporting Egyptian natural gas to Israel in 2012. Abolishing the preferential treatment is simulated with the GTAP model and an updated GTAP database that reflects the actual natural gas production, trade shares, and cost structures in both countries. Results reveal that Egypt witnesses welfare gains, should the preferential treatment be abolished, while its overall production of gas decreases and the supply of gas to the domestic market increases.

Suggested Citation

  • Siddig, Khalid & Grethe, Harald & Abdelwahab, Noura, 2016. "The natural gas sector in post-revolution Egypt," Journal of Policy Modeling, Elsevier, vol. 38(5), pages 941-953.
    • Handle: RePEc:eee:jpolmo:v:38:y:2016:i:5:p:941-953
    DOI: 10.1016/j.jpolmod.2016.03.009
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    1. Soamiely Andriamananjara & Michael Ferrantino & Marinos Tsigas, 2005. "Alternative Approaches In Estimating The Economic Effects Of Non-Tariff Measures: Results From Newly Quantified Measures," World Scientific Book Chapters, in: Philippa Dee & Michael Ferrantino (ed.), Quantitative Methods For Assessing The Effects Of Non-Tariff Measures And Trade Facilitation, chapter 19, pages 525-540, World Scientific Publishing Co. Pte. Ltd..
    2. Khalid H. A. Siddig, 2011. "From Bilateral Trade to Multilateral Pressure: A Scenario of European Union Relations with Sudan," Middle East Development Journal, Taylor & Francis Journals, vol. 3(1), pages 55-73, January.
    3. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    4. Shaffer, Brenda, 2011. "Israel--New natural gas producer in the Mediterranean," Energy Policy, Elsevier, vol. 39(9), pages 5379-5387, September.
    5. Malcolm, Gerard, 1998. "Adjusting Tax Rates In The Gtap Data Base," Technical Papers 28721, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Siddig, Khalid & Grethe, Harald, 2014. "No more gas from Egypt? Modeling offshore discoveries and import uncertainty of natural gas in Israel," Applied Energy, Elsevier, vol. 136(C), pages 312-324.
    7. Malcolm, Gerard, 1998. "Adjusting Tax Rates in the GTAP Data Base," GTAP Technical Papers 315, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
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    Cited by:

    1. Ruble, Isabella, 2017. "European Union energy supply security: The benefits of natural gas imports from the Eastern Mediterranean," Energy Policy, Elsevier, vol. 105(C), pages 341-353.

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    More about this item

    Keywords

    Natural gas; CGE; Preferential trade; Egyptian revolution; Gas exports;
    All these keywords.

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • D1 - Microeconomics - - Household Behavior
    • D3 - Microeconomics - - Distribution
    • D6 - Microeconomics - - Welfare Economics
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • F1 - International Economics - - Trade
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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