Doha, Qatar: A pioneering study has shed light on the impact of subsidies, climate, and technology on electricity consumption in Qatar, offering evidence-based insights for policymakers seeking to balance affordability and sustainability.
The research, ‘Effect of Subsidies, Climate, and Technology on Residential Electricity Consumption in Qatar,’ examined how government subsidies, temperature fluctuations, and technological changes influence household electricity use. Using stochastic frontier analysis, the study measured energy efficiency and identified factors contributing to inefficiencies.
It also offers key insights into how policy reforms could help Qatar meet its sustainability goals under Qatar National Vision 2030.
One of its most striking findings is that subsidies play a significant role in driving consumption. The study’s authors shared insights about their work with The Peninsula.
“We found that if subsidies go up by just 1%, electricity use increases by about 1.01%,” said a scientist at the Qatar Environment and Energy Research Institute (QEERI), of Hamad Bin Khalifa University (HBKU, Dr. Sa’d Abdel-Halim Shannak.
“That may sound small, but in a country with high per-capita energy use, it can be significant. It means subsidies can unintentionally encourage waste.”
The study also found that Qatar’s climate has a strong influence on electricity demand. “Temperature plays a huge role. As temperature increases, more electricity is needed, particularly for cooling purposes,” Dr. Shannak added. “This tells us that Qatar’s energy system is highly vulnerable to climate change. As temperatures climb in the future, electricity demand will spike unless we invest in better building insulation, more efficient cooling systems, and renewable energy.” Explaining the motivation behind the work, Associate Professor and Associate Dean for Academic Affairs at the College of Public Policy at HBKU, Dr. Esmat Zaidan said the research was rooted in a pressing policy question.
“We wanted to answer a very Qatar-specific policy question: in a hydrocarbon-rich country that seeks to ensure that energy is affordable while also making progress toward sustainability goals, which factors influence household electricity consumption the most?” she said.
Dr. Zaidan highlighted that the study fills a key gap in the literature. “Most studies look at one driver at a time. What’s been largely missing for Qatar is a single empirical model that jointly teases apart the effects of subsidies, climate, and technology using household-level evidence. Our study fills that gap.” On the role of technology, the findings suggest that improvements have so far had a minimal impact on demand.
“Surprisingly, technology hasn’t significantly reduced electricity demand in Qatar,” said Dr. Shannak. “This isn’t because the technology doesn’t work, but often because it’s either not widely adopted or it’s offset by growing demand. The real game-changer could be pairing technology with public awareness and incentives so people actually use them to save power.” Policy implications were a central theme of the study; and Acting Dean of the College of Public Policy at HBKU Dr. Logan Cochrane highlighted the need for a balanced approach.
“This study shows that a holistic approach to energy is required. More efficient technology needs to be paired with awareness and behaviour change. For subsidies, on-going monitoring is required to assess if and when inefficiencies exist. In the case of inefficiencies, reform might take the shape of targeting subsidies to ensure that the objectives of affordable energy are retained,” he said.
Beyond subsidies, Dr. Cochrane pointed to improvements in the built environment as critical. “More efficient energy use might come from changes to building codes and retrofitting existing structures to reduce cooling demand,” he added.
Dr. Cochrane also stressed that the study aligns with Qatar’s long-term sustainability goals.
“QNV 2030 promotes values-based sustainable development. Wisely using our resources and transitioning for a more sustainable future reflect these values and objectives. This study provides insight into how changes to energy use can contribute to these aspirations.” Looking ahead, the researchers plan to expand their analysis beyond households.
“There is a concrete extension on our roadmap,” Dr. Zaidan said. “We plan to replicate the household model for offices, malls, hospitality, and selected trade-exposed industries. This will help policymakers manage peaks without harming competitiveness,” she said.
