Walid Matar

Walid Matar
King Abdullah Petroleum Studies and Research Center · Research

PhD

About

37
Publications
12,470
Reads
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360
Citations
Citations since 2016
27 Research Items
350 Citations
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2016201720182019202020212022020406080
2016201720182019202020212022020406080
Introduction
My research profile aims to show my contributions to the literature. I am currently working on: 1.) Merging physics-based energy building models with utility-maximizing households to model households' response to electricity price changes (using progressive electricity tariffs, TOU pricing, RTP, etc..), essentially embedding a household in a building energy model, 2.) Expanding the approach mentioned by 1.) to investment in energy efficiency, and 3.) KAPSARC Energy Model development.
Education
February 2021 - December 2021
University of Portsmouth
Field of study
  • Economics
August 2008 - May 2010
North Carolina State University
Field of study
  • Mechanical engineering
August 2004 - May 2008
University of South Carolina
Field of study
  • Mechanical engineering

Publications

Publications (37)
Article
Full-text available
Energy efficiency in buildings has garnered significant attention in Saudi Arabia. This paper outlines the potential effects of higher residential efficiency on electricity load profiles in the Kingdom. It further presents the associated benefits that could have been realized by the local utilities in 2011. To perform the analysis, we designed an i...
Article
Full-text available
The Saudi electricity sector currently buys fuel and sells electricity at prices administered by the government. In this analysis, we illustratively explore combining the reform of the fuel prices used in power plants with the implementation of alternative electricity pricing schemes for the households. Compared to the scenario replicating the year...
Article
The purpose of this paper is to analyze the effects of electricity price changes and energy efficiency subsidy on household energy efficiency purchase and/or behavioural adjustment decisions. The analysis adds energy efficiency investment to a methodology that merges the physics of energy with microeconomic principles. The physical side informs the...
Article
Full-text available
We assess the geological and economic viability of underground natural gas storage in Saudi Arabia under different scenarios: with and without LNG imports allowed, and under low and high domestic gas production. Depleted oil fields or aquifers are best suited for gas storage in the Kingdom. Using a model of the country's energy system, we show that...
Article
Full-text available
The implicit nature of many energy subsidies has led to disagreements over what defines a 'subsidy' while making it difficult to estimate their indirect fiscal cost. Most energy subsidies in Saudi Arabia are implicit, leading to forgone government revenue. Using a comprehensive dataset, we estimate energy subsidies in Saudi Arabia for ten fuels and...
Thesis
Full-text available
The aim of this thesis is two-fold: First, it presents the refereed work on the idea of embedding households, or more broadly economic agents, in building energy models. Second, it discusses the insights that are gained by applying this method and through its linkage with a partial equilibrium model of the greater energy system. In response to elec...
Article
This paper shows the effects of real-time electricity pricing (RTP) on the long-run marginal costs of power generation in Saudi Arabia. To do this, it links a multi-sector energy system model with a residential electricity use model. The energy system model contains an economic power dispatch optimization component. The residential framework embeds...
Article
This paper examines the marginal welfare gain of adopting higher energy efficiency after another efficiency measure has already been installed. For example, how does installing stringent thermal insulation influence energy efficiency investment decisions thereafter? A mathematical model that embeds a welfare-maximizing household in a building energ...
Data
We calculate and show real gross domestic income (GDI) for Saudi Arabia. While the GDI and the gross domestic product (GDP) are essentially equal for typical economies, they are not for those that rely on oil exports (e.g., Saudi Arabia, UAE). For such countries, there are advantages to using real GDI in certain instances; this is described in the...
Research
Full-text available
More than a decade after G20 representatives pledged to phase out fossil fuel subsidies, significant barriers to a full retraction remain. This paper examines the political and social rationale behind fossil fuel subsidies, the factors that make them so difficult to retract, and offers policy recommendations aimed at easing the path to subsidy refo...
Research
Full-text available
This was a brief insight piece written for/by KAPSARC when the fuel use data was just released for Saudi Arabia for the entirety of 2019. It talks about implicit energy subsidies in Saudi Arabia.
Article
Energy economists are interested in how changes in electricity prices prompt a response in end-user electricity demand. If historical prices are low or seldom change, it becomes difficult to estimate price elasticities statistically , especially in the short-run. Thus, a framework that merges the physical equations that govern how electricity is co...
Presentation
Full-text available
Paper describing the merger of physical and economic principles to assess electricity price response in the long-run.
Article
Full-text available
The purpose of this study is to assess the policy-relevant effects of incorporating a more proper representation of electricity transmission in multi-sector national policy models. This goal is achieved by employing the KAPSARC Energy Model (KEM), which is the first publicly available large-scale energy policy model for Saudi Arabia. Past studies u...
Article
This paper presents a computational take on households’ response to price changes. Many studies use assumptions (i.e., price elasticities) that were estimated using historical information; however, if a price change has not been experienced in the past, the response may not be statistically predicted. While other papers have explored price response...
Chapter
This chapter assesses the economics of installing solar energy at both residential and utility scales in the countries of the Gulf Cooperation Council (GCC). When examining residential installations, the analysis focuses on the homeowner’s finances; for utility scale deployment, investment needed for new generation and to ensure system reliability...
Article
Full-text available
Empirical estimates of fuel demand changes to price variation are based on historical consumption and prices, and can be applied as a single point estimate to a wide range of price movements. However, if fuel prices are set outside the boundaries of historical changes, policymakers may be concerned as to the validity of the empirically assessed pri...
Article
Full-text available
Cement manufacturing is a major industry in Saudi Arabia. As a highly polluting sector, it may be part of CO2 abatement policy for the country. This paper presents a multi-criteria analysis to examine how two competing objectives affect the performance of the cement industry in Saudi Arabia. Namely, these criteria are profit and CO2 emissions. We e...
Article
Full-text available
Households in Saudi Arabia account for about half of domestic electricity demand. This high level of consumption is partly due to historically low prices. These prices have also been flat throughout the day. Policymakers are exploring different pricing policies to help reduce this share. Time-of-use (TOU) pricing is one such option. This paper asse...
Article
Full-text available
In Saudi Arabia, industrial fuel prices are administered below international prices and firms make decisions based on low energy prices, increasing domestic energy demand. This analysis explores alternative policies designed to induce a transition to a more efficient energy system by immediately deregulating industrial fuel prices, gradually deregu...
Article
Full-text available
With 2015 as a reference year, we quantify the costs of solar photovoltaics (PV) intermittency and integration to power utilities in Saudi Arabia. We define intermittency costs as the costs of ramping and maintaining spinning reserves, while integration costs are defined as the costs of intermittency plus the costs of grid upgrades if they were nee...
Data
The model and data used for the paper entitled, "Striking a balance between profit and carbon dioxide emissions in the Saudi cement industry".
Article
Almost all of Saudi Arabia's electric power generation is fueled by oil and gas. Plans for future capacity envisage nuclear and renewables supplementing this mix and thereby freeing up oil for other revenue-generating opportunities. Coal-fired generation has been promoted in some Gulf Cooperation Council (GCC) countries but not, so far, in the King...
Article
Full-text available
Many countries have promoted energy efficiency and conservation in the residential sector due to its significant contribution to total demand. This paper discusses some of the wider implications of more efficient households on the overall energy system. Various efficiency options, such as thermal insulation or weather stripping, have unique effects...
Article
Using a multi-sector equilibrium model of the Saudi energy system that handles administered prices in a mixed-complementarity formulation, we present results from a set of policy scenarios where end consumer prices are not altered. Some of these scenarios are the solutions to Mathematical Programs subject to Equilibrium Constraints (MPEC’s) that ma...
Article
Saudi Arabia aims to reduce the growth of its energy demand. This paper shows how to substantially reduce the current fuel consumption and economic inefficiencies in the Saudi energy system, without altering consumer prices. We use the newly-developed KAPSARC Energy Model, a multi-sector equilibrium model of the Saudi energy economy that handles ad...
Article
Full-text available
Modelling and forecasting crude oil price volatility is crucial in many financial and investment applications. The main purpose of this paper is to review and assess the current state of oil market volatility knowledge. It highlights the properties and characteristics of the oil price volatility that models seek to capture, and discuss the differen...
Article
Full-text available
This paper describes the KAPSARC energy model, which we developed to take an integrated view of the energy issues faced by Saudi Arabia. These issues result from growing internal energy demand that is cutting into the country’s ability to export oil, constrained supplies of natural gas that affect the ability of the country to use gas as an economi...
Article
Since real oil price is positively correlated with real consumption and domestic income in Saudi Arabia, a risk premium should be considered when assessing the net present value of oil-related public investment projects. For projects generating additional oil exports, this risk premium quantifies the cost of increased dependence on oil revenues. Fo...
Article
Full-text available
Modeling and forecasting crude oil price volatility is crucial in many financial and investment applications. The main purpose of this paper is to review and assess the current state of oil market volatility knowledge. It highlights the properties and characteristics of the oil price volatility that models seek to capture, and discuss the different...

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Projects

Projects (2)
Project
Assess the effects of potential energy policies on the greater Saudi energy system.