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Household expenditure is the second prominent component of GDP for Kuwait, consisting of 43% GDP, and it has been moderately growing for the past decade. It is essential to understand the nature of household expenditure, a fundamental macroeconomic driver with immense significance for policymaking. This paper utilises the latest Kuwait Household Expenditure Survey data to study household expenditure patterns in Kuwait. It examines and compares the variation of household expenditure patterns for nationals (Kuwaitis) and expatriate households over nine different major commodity groups. The paper investigates the patterns of household expenditure and the response of their characteristics on the level of expenditure by employing Heckman two-step estimation method. The results suggest that different factors affect the probability of consuming a commodity and the level of expenditure between the two household groups. Kuwaiti’s expenditure is more responsive to food, housing, communication and recreation commodities and less responsive to clothing, health, transportation and restaurants than expatriates. In general, there is a significant variation of expenditure patterns across all commodities between the two household groups.

The rapid growth and urbanization rate, coupled with hot climate and scarce rainfall, makes it essential for a country like Kuwait to have several power and desalination plants with high-generating capacity. These plants are entirely reliant on burning fossil fuels as a source of thermal energy. These plants are also universally accepted to be the largest CO2 emitters; hence, they present a potential for carbon capture and storage (CCS). Having established the suitability of the existing conditions for post-combustion CCS, a techno-economic-based feasibility study, which took into consideration local power generation technologies and economic conditions, was performed. Relying on fifteen case study models and utilizing the concept of levelized cost of electricity (LCOE), the statistical average method (SAM) was used to assess CCS based on realistic and reliable economic indicators. Zour power station, offering the highest potential CO2 stream, was selected as a good candidate for the analysis at hand. Heavy fuel oil (HFO) was assumed to be the only fuel type used at this station with affixed price of USD 20/barrel. The analysis shows that the internal rate of return (IRR) was about 7%, which could be attributed to fuel prices in Kuwait and governmental support, i.e., waived construction tax and subsidized workforce salaries. Furthermore, the net present value (NPV) was also estimated as USD 47,928 million with a 13-year payback period (PBP). Moreover, 1–3% reductions in the annual operational cost were reflected in increasing the IRR and the NPV to 9–11% and USD 104,085–193,945 million, respectively, and decreasing the PBP to 12–11 years. On the contrary, increasing the annual operational cost by 1% made the project economically unfeasible, while an increase of 3% resulted in negative IRR (−1%), NVP (−USD 185,458 million) and increased PBP to 30 years. Similarly, increasing the HFO barrel price by USD 5 resulted in negative IRR (−10%) and NVP (−USD 590,409); hence, a CCS project was deemed economically unfeasible. While the study considered the conditions in Kuwait, it is expected that similar results could be obtained for other countries with an oil-driven economy. Considering that around 62% of the fossil fuel blend in Kuwait is consumed by electricity and water generation, it is inevitable to consider the possibility and practicality of having a carbon network with neighboring countries where other oil-driven economies, such as Kingdom of Saudi Arabia and Iraq, can utilize a CCS-based mega infrastructure in Kuwait. The choice of Kuwait is also logical due to being a mid-point between both countries and can initiate a trading scheme in oil derivatives with both countries.