Optimal rate of oil production and economic development: the case of Kuwait

Thesis/Dissertation · Sun Jan 01 04:00:00 EST 1984

OSTI ID:6390119

Al-Ebraheem, Y H

This dissertation utilizes the optimal control technique to establish a national economic planning model through which Kuwait's oil extraction policy is determined with relation to the structure of its economy as well as the welfare of the nation. This has been advanced through two steps: 1) by building a macroeconomic model, which is used as a constraint on the planning model, to describe the economic structure of Kuwaiti economy; and 2) by constructing a welfare objective function to measure the preference of the policy makers along the planning period. A dynamic programming method is applied to solve for the optimal levels of the target and policy variables. The optimal levels of oil production that would finance the optimal levels of the policy variables are determined, using a basic government expenditure-revenue inequality. To determine these levels of oil revenue and, hence, these levels of oil production, different oil price scenarios are applied. This study obtains a satisfactory result and concludes that the optimal control technique is a feasible tool to be used for economic planning for the Kuwaiti economy.

• OSTI ID: 6390119
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
294002 -- Energy Planning & Policy-- Petroleum
ASIA
ECONOMETRICS
ECONOMIC DEVELOPMENT
ECONOMICS
ENERGY MODELS
ENERGY SOURCE DEVELOPMENT
ENERGY SOURCES
FOSSIL FUELS
FUELS
KUWAIT
MIDDLE EAST
OPTIMIZATION
PETROLEUM
PLANNING