A Principal-Agent Approach for the Effective Design of a Renewable Energy Incentive for a Heavily Subsidized Residential Sector: The Case of Qatar

<p dir="ltr">Qatar’s per capita electricity consumption is one of the highest in the world, mainly due to the availability of heavily subsidized electricity. The residential sector alone accounts for 60% of produced electricity. The effectiveness of imposing regulatory measures that...

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محفوظ في:
التفاصيل البيبلوغرافية
المؤلف الرئيسي: Sikandar Abdul Qadir (17947799) (author)
مؤلفون آخرون: Hessah Al-Motairi (17281242) (author), Furkan Ahmad (709809) (author), Luluwah Al-Fagih (10063137) (author)
منشور في: 2023
الموضوعات:
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author Sikandar Abdul Qadir (17947799)
author2 Hessah Al-Motairi (17281242)
Furkan Ahmad (709809)
Luluwah Al-Fagih (10063137)
author2_role author
author
author
author_facet Sikandar Abdul Qadir (17947799)
Hessah Al-Motairi (17281242)
Furkan Ahmad (709809)
Luluwah Al-Fagih (10063137)
author_role author
dc.creator.none.fl_str_mv Sikandar Abdul Qadir (17947799)
Hessah Al-Motairi (17281242)
Furkan Ahmad (709809)
Luluwah Al-Fagih (10063137)
dc.date.none.fl_str_mv 2023-03-09T03:00:00Z
dc.identifier.none.fl_str_mv 10.1109/access.2023.3255105
dc.relation.none.fl_str_mv https://figshare.com/articles/journal_contribution/A_Principal-Agent_Approach_for_the_Effective_Design_of_a_Renewable_Energy_Incentive_for_a_Heavily_Subsidized_Residential_Sector_The_Case_of_Qatar/25204202
dc.rights.none.fl_str_mv CC BY 4.0
info:eu-repo/semantics/openAccess
dc.subject.none.fl_str_mv Engineering
Electrical engineering
Electronics, sensors and digital hardware
Materials engineering
Carbon dioxide
Carbon tax
Pricing
Government
Renewable energy sources
Economics
Production
carbon price
carbon rebate
principal-agent problem
renewable energy incentives
solar PV
residential PV adoption
dc.title.none.fl_str_mv A Principal-Agent Approach for the Effective Design of a Renewable Energy Incentive for a Heavily Subsidized Residential Sector: The Case of Qatar
dc.type.none.fl_str_mv Text
Journal contribution
info:eu-repo/semantics/publishedVersion
text
contribution to journal
description <p dir="ltr">Qatar’s per capita electricity consumption is one of the highest in the world, mainly due to the availability of heavily subsidized electricity. The residential sector alone accounts for 60% of produced electricity. The effectiveness of imposing regulatory measures that aim to reduce consumption, such as carbon pricing and rebates, depends on the design of the introduced policy, region dynamics, and population characteristics. Using principal-agent theory, this study addresses the agency problem between the government and households by proposing a policy that aims to incentivize households to shift towards renewable energy sources and reduce their overall energy demand. The study quantifies the potential impact of the policy over a period of five years and estimates that 495 GWh of electricity could be saved, resulting in a significant reduction of 203,710 Tons of CO2e emissions. The cost of implementing the policy is estimated to be 0.838 billion Qatari riyals. The effect of varying model parameters on incentive design is investigated, and a detailed financial analysis is conducted based on the redirection of saved energy resources from domestic consumption to international exports of gas and electricity.</p><h2>Other Information</h2><p dir="ltr">Published in: IEEE Access<br>License: <a href="http://creativecommons.org/licenses/by/4.0" target="_blank">http://creativecommons.org/licenses/by/4.0</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1109/access.2023.3255105" target="_blank">https://dx.doi.org/10.1109/access.2023.3255105</a></p>
eu_rights_str_mv openAccess
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identifier_str_mv 10.1109/access.2023.3255105
network_acronym_str Manara2
network_name_str Manara2
oai_identifier_str oai:figshare.com:article/25204202
publishDate 2023
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rights_invalid_str_mv CC BY 4.0
spelling A Principal-Agent Approach for the Effective Design of a Renewable Energy Incentive for a Heavily Subsidized Residential Sector: The Case of QatarSikandar Abdul Qadir (17947799)Hessah Al-Motairi (17281242)Furkan Ahmad (709809)Luluwah Al-Fagih (10063137)EngineeringElectrical engineeringElectronics, sensors and digital hardwareMaterials engineeringCarbon dioxideCarbon taxPricingGovernmentRenewable energy sourcesEconomicsProductioncarbon pricecarbon rebateprincipal-agent problemrenewable energy incentivessolar PVresidential PV adoption<p dir="ltr">Qatar’s per capita electricity consumption is one of the highest in the world, mainly due to the availability of heavily subsidized electricity. The residential sector alone accounts for 60% of produced electricity. The effectiveness of imposing regulatory measures that aim to reduce consumption, such as carbon pricing and rebates, depends on the design of the introduced policy, region dynamics, and population characteristics. Using principal-agent theory, this study addresses the agency problem between the government and households by proposing a policy that aims to incentivize households to shift towards renewable energy sources and reduce their overall energy demand. The study quantifies the potential impact of the policy over a period of five years and estimates that 495 GWh of electricity could be saved, resulting in a significant reduction of 203,710 Tons of CO2e emissions. The cost of implementing the policy is estimated to be 0.838 billion Qatari riyals. The effect of varying model parameters on incentive design is investigated, and a detailed financial analysis is conducted based on the redirection of saved energy resources from domestic consumption to international exports of gas and electricity.</p><h2>Other Information</h2><p dir="ltr">Published in: IEEE Access<br>License: <a href="http://creativecommons.org/licenses/by/4.0" target="_blank">http://creativecommons.org/licenses/by/4.0</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1109/access.2023.3255105" target="_blank">https://dx.doi.org/10.1109/access.2023.3255105</a></p>2023-03-09T03:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1109/access.2023.3255105https://figshare.com/articles/journal_contribution/A_Principal-Agent_Approach_for_the_Effective_Design_of_a_Renewable_Energy_Incentive_for_a_Heavily_Subsidized_Residential_Sector_The_Case_of_Qatar/25204202CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/252042022023-03-09T03:00:00Z
spellingShingle A Principal-Agent Approach for the Effective Design of a Renewable Energy Incentive for a Heavily Subsidized Residential Sector: The Case of Qatar
Sikandar Abdul Qadir (17947799)
Engineering
Electrical engineering
Electronics, sensors and digital hardware
Materials engineering
Carbon dioxide
Carbon tax
Pricing
Government
Renewable energy sources
Economics
Production
carbon price
carbon rebate
principal-agent problem
renewable energy incentives
solar PV
residential PV adoption
status_str publishedVersion
title A Principal-Agent Approach for the Effective Design of a Renewable Energy Incentive for a Heavily Subsidized Residential Sector: The Case of Qatar
title_full A Principal-Agent Approach for the Effective Design of a Renewable Energy Incentive for a Heavily Subsidized Residential Sector: The Case of Qatar
title_fullStr A Principal-Agent Approach for the Effective Design of a Renewable Energy Incentive for a Heavily Subsidized Residential Sector: The Case of Qatar
title_full_unstemmed A Principal-Agent Approach for the Effective Design of a Renewable Energy Incentive for a Heavily Subsidized Residential Sector: The Case of Qatar
title_short A Principal-Agent Approach for the Effective Design of a Renewable Energy Incentive for a Heavily Subsidized Residential Sector: The Case of Qatar
title_sort A Principal-Agent Approach for the Effective Design of a Renewable Energy Incentive for a Heavily Subsidized Residential Sector: The Case of Qatar
topic Engineering
Electrical engineering
Electronics, sensors and digital hardware
Materials engineering
Carbon dioxide
Carbon tax
Pricing
Government
Renewable energy sources
Economics
Production
carbon price
carbon rebate
principal-agent problem
renewable energy incentives
solar PV
residential PV adoption