Energy sector development and carbon abatement challenges in Saudi Arabia, the United Arab Emirates, and Qatar

Dargin, J

Thesis

Energy sector development and carbon abatement challenges in Saudi Arabia, the United Arab Emirates, and Qatar

Abstract:: The issue of climate change is high on the global agenda, and the hydrocarbon-rich countries of the Gulf region are no exception. While the Gulf countries initially resisted the drafting of an international climate agreement for many years, they have now finally realized that decarbonization is not only necessary for their continued existence due to the threat of climate change, but that it would assist in reducing their hydrocarbon demand and meeting their economic diversification goals.

This research focuses on how Saudi Arabia, the United Arab Emirates, and Qatar could achieve the decarbonization goals of their Paris Agreement (COP 21) pledges by analyzing the potential impact that various carbon reduction frameworks, such as carbon trading, carbon taxation, and command and control regulations, would have on their economic development. The key questions posed in this paper are whether carbon reduction mechanisms could be a viable way to reduce domestic hydrocarbon demand, and if so, which carbon reduction model would be preferable, and how it should be optimally designed to meet the Paris Agreement commitments?

These questions are answered by examining the contours of the energy sectors of the three selected countries, the evolution of their negotiating positions during the various international climate negotiations, and an analysis of the various carbon reduction frameworks and how they might best be designed to optimally decarbonize their macroeconomies.

My principal findings are that Saudi Arabia and the UAE would be best placed to implement national carbon markets in their respective jurisdictions, due to their large industrial bases and downstream sectors, as well as their relatively mature economies and growing populations. In Qatar’s case, my research discovered that a command-and-control carbon reduction framework would work optimally because Qatar’s small size, both in population and industrial base, would more efficiently allow direct regulation.

This research is an important contribution because as it showed that the Gulf countries may have taken a circuitous route to recognize the importance of combatting climate change, but now they are investing billions of dollars in alternative (nuclear+renewable) projects, implementing robust energy efficiency codes, and announcing, in the case of the UAE and Saudi Arabia, ambitious net-zero goals. As a result, understanding how they may arrive at their Paris Agreement pledges is critical for understanding the potential evolution of the region’s development and the contours of the future global energy market.

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APA Style

Dargin, J. (2022). Energy sector development and carbon abatement challenges in Saudi Arabia, the United Arab Emirates, and Qatar [PhD thesis]. University of Oxford.

MLA Style

Dargin, J. Energy Sector Development and Carbon Abatement Challenges in Saudi Arabia, the United Arab Emirates, and Qatar. 2022. University of Oxford, PhD thesis.

Chicago Style

Dargin, J. 2022. “Energy Sector Development and Carbon Abatement Challenges in Saudi Arabia, the United Arab Emirates, and Qatar.” PhD thesis, University of Oxford.
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