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1. Reforming Iran’s Energy Policy: Strategies for Sustainability, Subsidies, and Global Integration

Author:
Behdad Gilzad Kohan and Hamid Dahouei
Publication Date:
04-2025
Content Type:
Journal Article
Journal:
Journal of Public and International Affairs (JPIA)
Institution:
School of Public and International Affairs (SPIA), Princeton University
Abstract:
Iran’s energy sector, rich in natural gifts and brimming with potential, struggles to realize its promise due to systemic inefficiencies, heavy dependence on fossil fuels, outdated infrastructure, and the weight of international sanctions. These challenges plague Iran with recurring energy crises, including seasonal energy shortages, environmental degradation, and socio-economic discontent. This article investigates the root causes of Iran’s energy challenges and offers a comprehensive analysis of the critical deficiencies of Iranian energy policies. Based on these insights, the article proposes a strategic roadmap with immediate, medium-term, and long-term policy recommendations to stabilize the sector, most critical of which include subsidy reforms, ambitious renewable energy integration, and energy efficiency improvements. The proposed reforms emphasize the importance of transparent governance, targeted investments, and stakeholder engagement to achieve meaningful change. By aligning its energy policies with global sustainability trends and addressing domestic inefficiencies, Iran can transform its energy sector into a model of innovation and equity.
Topic:
Sanctions, Reform, Fossil Fuels, Sustainability, Subsidies, and Energy Sector
Political Geography:
Iran and Middle East

2. Public Perceptions on Energy Subsidy in the MENA

Author:
Munsu Kang
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
In the Middle East and North Africa (hereafter MENA) region, fossil fuel subsidies have been utilized as a social protection mechanism, serving as a tool under the social contract. Previous studies have primarily focused on the social welfare implications of abolishing fossil fuel subsidies. In this study, we aim to answer the question of whether the public in the MENA region prefers social protection services as an alternative to fossil fuel subsidies using online survey results in four countries including Egypt, Jordan, Saudi Arabia, and Tunisia. The survey results reveal that respondents in the MENA countries prefer energy price reduction (or stabilization) policies over pro-poor cash transfer programs. However, respondents answer that they prefer support for vulnerable groups above government-led energy price reduction policies when there are energy price shocks. Why do people agree to reduce subsidies? Some of the concerns regarding the energy subsidy is that subsidy policies are more pro-rich in nature and benefits are unequally distributed. However, respondents who answered they prefer to maintain or increase fossil fuel subsidies mention that the subsidy policy could benefit all. Based on the results, two key policy implications emerge. First, social protection programs must be carefully designed as an alternative to energy subsidy reform. The second key policy implication is the importance of effective public campaigning and awareness-raising around the need for energy subsidy reform.
Topic:
Reform, Fossil Fuels, Subsidies, Energy, and Social Protection
Political Geography:
Middle East and North Africa

3. Misperceptions of OPEC Capability and Behavior: Unmasking OPEC Theater

Author:
David Kemp and Peter Van Doren
Publication Date:
11-2023
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
In the view of the American public, media, and politicians, the Organization of Petroleum Exporting Countries (OPEC) sets oil prices by adjusting the amount of crude oil its members produce. However, the geological and engineering realities of oil extraction, the inconclusive academic evidence on the relationship between OPEC production and oil prices, and the cheating on oil production quotas by OPEC members and lack of enforcement all indicate that OPEC is more a political club than an effective oil cartel. In fact, three key members—Saudi Arabia, Kuwait, and the United Arab Emirates (UAE)—have oil production volatility similar to the United States over the past three decades. This implies that these three important and politically stable OPEC nations do not possess, or do not utilize, a unique short-term capability to alter their oil production to regulate oil prices. Altogether, the evidence suggests that the attention paid to OPEC is mostly about political benefits to both OPEC members and Western leaders, not an actual ability to control the oil market. The OPEC members use their oil production as an international bargaining chip and the perception of influence over the West to gain domestic legitimacy. Western leaders are happy to reciprocate by using OPEC as a scapegoat for unpleasant oil supply or demand shocks. Based on this picture of OPEC, U.S. concerns about OPEC behavior are unfounded and legislative proposals to punish OPEC are misguided.
Topic:
Economics, Oil, OPEC, and Fossil Fuels
Political Geography:
Middle East, Kuwait, Saudi Arabia, United Arab Emirates, and Gulf Nations

4. MENA and the Global Energy Conundrum

Author:
Rabah Arezki and Adnan Mazarei
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
The Middle East and North Africa region (MENA) is addicted to fossil fuels, but so too is the rest of the world economy. Solutions to the energy transition have thus to be found in a coordinated global shift in both the supply and demand for fossil fuels and clean(er) energy, where multilateral institutions can play an important role. These institutions could help bolster international technology transfers to MENA, as well as scale up investment and trade in clean energy to facilitate the global energy transition. Given the potential in MENA for solar power, the region could remain a global hub, this time for clean energy.
Topic:
Climate Finance, Economy, Fossil Fuels, Energy, and Green Transition
Political Geography:
Middle East and North Africa

5. Taiz Siege Continues as Talks Face Roadblocks – The Yemen Review, June 2022

Author:
Sana'a Center for Strategic Studies
Publication Date:
07-2022
Content Type:
Commentary and Analysis
Institution:
Sana'a Center For Strategic Studies
Abstract:
A truce between the internationally recognized Yemeni government and the armed Houthi movement was extended on June 2 and has largely held, despite intermittent violence and unresolved issues from the original agreement. While the truce has succeeded in limiting violence and facilitated the reopening of Sana’a airport, negotiations over the besieged city of Taiz have devolved into recriminations, fueling concerns that the armed Houthi movement will renege on its commitment to reopen access to the city. UN-facilitated negotiations on lifting the blockade of major roads into the city continued into July. Yemen’s economic performance over the month of June was characterized by familiar patterns of fuel shortages and renewed depreciation of the rial in government-held territory. The slide was halted by news of a further US$400 million in pledged Saudi financial support, announced as Presidential Leadership Council head Rashad al-Alami visited Riyadh. Saudi Arabia and the UAE have announced billions of dollars in economic support since the PLC took over executive responsibilities in early April, though it is unclear how much has been delivered as Riyadh and Abu Dhabi are demanding institutional and governance reforms before allowing the Yemeni government to access most of these funds. Renewed fuel shortages in the south precipitated familiar scenes of long lines at petrol stations. Anger over price hikes and power outages during the height of summer, combined with a perceived failure of the government to implement timely economic reforms, sparked demonstrations in Aden and other areas of southern Yemen. The demonstrations overshadowed Al-Alami’s otherwise fruitful tour of regional capitals, where he secured promises of various forms of support from Egypt, Bahrain, Kuwait and Qatar.
Topic:
Economy, Fossil Fuels, Houthis, and Armed Conflict
Political Geography:
Middle East, Yemen, and Gulf Nations

6. Government Instability Overshadows Truce – The Yemen Review, July 2022

Author:
Sana'a Center for Strategic Studies
Publication Date:
08-2022
Content Type:
Commentary and Analysis
Institution:
Sana'a Center For Strategic Studies
Abstract:
Long-running tensions between the Islamist Islah party and the Southern Transitional Council boiled over in Shabwa in July, as political disputes over security posts devolved into clashes between their affiliated forces. Government efforts to assuage the parties were unsuccessful, setting the stage for a battle over the capital, Ataq city, in early August. The Shabwa tensions overshadowed agreement on a two-month extension of the UN-brokered truce between the government and the armed Houthi movement, though sporadic violations continued. A proposed six-month extension fell apart over disagreements on road reopenings, air travel and payment of public sector salaries. The Presidential Leadership Council announced a cabinet reshuffle at the end of the month, replacing the heads of four ministries. The new appointees were all southerners, approved by the STC, in a nod to the substantial power wielded by the movement. The government also appointed new governors of Hadramawt and Socotra; the latter is the STC’s top man on the island. Meanwhile, Houthi authorities continued to profit handsomely from the exorbitant cost of fuel in areas they control while also attempting to convince consumers that the Saudi-led coalition is to blame for sky-high prices at the pump.
Topic:
Leadership, Fossil Fuels, Houthis, Armed Conflict, and Instability
Political Geography:
Middle East, Yemen, and Gulf Nations

7. Oil and Gas in Lebanon: Time to Rethink Expectations

Author:
Aaron Sayne and Laury Haytayan
Publication Date:
11-2021
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Lebanon’s hopes of “entering the club of oil producers” have not materialized. After almost a decade of high expectations, the country still has no proven reserves of oil or natural gas. Instead, the one well drilled so far, by partners Eni, Total and Novatek, revealed only trace amounts of gas. Now the government has extended the companies’ deadline to explore until August 2022 and has postponed a second oil and gas licensing round. Lebanon needs a new, more realistic vision of what oil and gas can do for it. For years, politicians in Beirut have told the public that exporting fossil fuels would transform the country’s failing economy, and that generating electricity from gas would turn around its mismanaged power sector. In this briefing we do not try to predict the future—especially considering how fast conditions on the ground are changing. Instead, we offer an evidence-based warning about the wisdom of Lebanon staking its economic or energy future on oil and gas. The conclusions and observations are based on analysis of the current situation and on the experiences of fossil-fuel dependent countries and other prospective new producers. The current moment, though very painful, offers the country a chance to build a new energy strategy that it can start to implement when its economic and political fortunes improve. This strategy should realistically and sustainably meet people’s needs, rather than make them worse.
Topic:
Oil, Natural Resources, Gas, Economy, and Fossil Fuels
Political Geography:
Middle East and Lebanon

8. Energy sector diversification: Meeting demographic challenges in the MENA region

Author:
Bina Hussein
Publication Date:
01-2020
Content Type:
Special Report
Institution:
Atlantic Council
Abstract:
Countries in the Middle East and North Africa (MENA) region are expected to witness a substantial growth in population over the next three decades. Many of the hydrocarbon-rich nations in this region will need to meet a commensurate increase in job demand. This report focuses on four nations that are predominantly reliant on the oil and gas sector: Saudi Arabia, the United Arab Emirates (UAE), Kuwait, and Algeria. In all four nations, the majority of the local population is employed in the public sector, which, in the long term, will become economically unsustainable. In order to meet the growing job demand, these nations must both diversify their economies beyond the energy sector and expand their energy sectors beyond hydrocarbons. Doing so will create important employment opportunities in new industries. Saudi Arabia, the UAE, and Kuwait all have strategies in place that, if followed, could pave the way towards a diversified knowledge-based economy. Algeria, on the other hand, is at a crossroads. Even as it is undergoing a political transition, the transition can create opportunities for the new government to change the country’s course and push economic reforms that are not only aimed at lowering the current unemployment rate but also at making the private sector more enticing. Additionally, all four nations will need to take steps to increase female participation in the workforce by easing current restrictions and making labor laws more favorable towards women. The energy sector plays a large role in the economies of all four nations. This sector has a critical role to play in efforts to diversify the economy and teach skills that will be beneficial in the future or can be applied in other sectors as well. Moreover, all four nations also have sovereign wealth funds that either play, or can play, a key role in diversifying the economy, strengthening existing industries, and helping to create new industries altogether. This report offers the following recommendations on how these four nations can work towards meeting demographic challenges in relation to the economy, specifically the role of the energy sector: Governments can strengthen the private sector through increased foreign investment and by incentivizing entrepreneurship through reforms that open up the economy and make it more lucrative for investors. Governments can create laws and support structures that encourage women to work and increase female participation in the workforce. Opportunities should be provided to teach skills and impart knowledge relevant to the job market that will also be relevant in the future. Lessons should be learned from the experience of the energy sector and leveraged to achieve successes in other areas. For example, the state-owned oil and gas companies have successfully set up a structure that allows them to not only invest in their employees but also take care of the community by offering health care services, education, and more.
Topic:
Demographics, Energy Policy, Markets, Oil, Governance, Geopolitics, Gas, Renewable Energy, Fossil Fuels, and Transition
Political Geography:
Middle East, North Africa, and Gulf Nations

9. Overcoming Taiwan’s Energy Trilemma

Author:
Evan A. Feigenbaum and Jen-Yi Hou
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Taiwan needs to look not just to the energy it needs right now but also to the energy it will need ten to twenty years from now if it is to power its future. This paper focuses on two elements of the paradigmatic transformation that are especially relevant to Taiwan’s future: (1) the rise of new energy and storage technologies, and (2) the dynamics of liquefied natural gas pricing. In particular, it looks at several ways in which new investment partnerships between Taiwan and U.S. players could bolster Taiwan’s ambitious effort to build out renewable energy as a source of industrial and residential power.
Topic:
Energy Policy, Markets, Science and Technology, Investment, and Fossil Fuels
Political Geography:
Middle East, Taiwan, and United States of America