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Energy

Through its collaborations with multiple renowned knowledge and expertise centers around the world, KFAS has supported various policy research project on energy. Topics include energy production, consumption, markets, policy, regulation and the energy transition.

Understanding the Changing Water-Energy-Food Nexus in Kuwait and the Gulf Region

Principal Investigators: Dr Christian Siderius from the LSE Grantham Research Institute and Dr Mohamad Yassine from the Gulf University for Science and Technology.

The project investigates existing approaches to model the water-energy-food (WEF) nexus, develop a novel mechanistic quantitative model and apply this to Kuwait’s WEF nexus in conjunction with that of each of the GCC states, map­ping the interactions, trade-off, and co-benefits between Kuwait and other GCC states across the Arabian Peninsula, and – to a more limited extent – the rest of the world. The project considers future scenarios of different policy options related to the impact of oil prices and climate change on the security of the nexus.

Publication

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Diversification in Gulf hydrocarbon economies and interactions with energy subsidy reform: lessons from Kuwait

Principal Investigator: Dr. Manal Shehabi from the Oxford Institute for Energy Studies

After the recent oil price declines in mid-2014, Middle East and North Africa (MENA) oil exporters including Kuwait reduced energy subsidies and passed economic diversification-enhancing policies in an attempt to improve fiscal balance and economic sustainability. This paper argues that these economies already have a diversified base but this base has not contributed to export or fiscal diversification due to structural constraints and economic distortions.  Using illustrations from Kuwait, this argument is tested with simulations using an economy-wide general equilibrium model that embodies key features of the Kuwaiti economy—including subsidies, sovereign wealth funds, industrial oligopolistic structure with collusive pricing, and a labour market that depends heavily on a segregated expatriate labour force.

Publication