Student Name: Student ID Number: Section:

1. Faisal Alhajri 201600304 101

2. Mohammad Alabdulqader 201701835 101

3. Qasem k alzaid 201501158 102

4. Bandar Alotaibi 201700686 101

Course code and GEEN 3211: Engineering Economy

title:

Project Name World Energy Issue

Semester Fall-2020

Section 101

Course Professor Dr Yousef Al-Shammari

Submission date 20 / 11 / 2020

 Macroeconomic Risks and Vulnerabilities
Economists generally agree that economic development and growth are influenced by four factors:
human resources, physical capital, natural resources and technology. Highly developed countries
have governments that focus on these areas. Less-developed countries, even those with high
amounts of natural resources, will lag behind when they fail to promote research in technology
and improve the skills and education of their workers. Macroeconomic risk derives from the
behavior of industries and governments and the relationships between them rather than from
individual companies. It concerns fiscal and monetary policies, trade and investment flows and
political developments on a national and international scale, and the effects of these factors on
financial portfolios and company valuations. Intermediate variables of particular importance to
macroeconomic risk include equities and commodities markets, business cycles, unemployment,
inflation, interest rates, prices, and exports/imports. Below is a list of Macroeconomic risk and
vulnerabilities that effect economic growth of country.
➢ Macroeconomic Risks & Vulnerabilities
Below are some aspects which our survey shows that these effects most:
• Global climate framework agreement
• Large-scale accidents
• Economic growth
• Capital market access
• Energy & commodity prices
• Electricity prices
• Exchange rates
• Energy-water-food nexus
• Land availability
• Talent
• Energy access
• Energy affordability – households
• Extreme weather risks
• Cyber threats
• Corruption
• Terrorism
 Macroecomomic Risk
3.5

2.5

1.5

0.5

0
0 0.5 1 1.5 2 2.5 3 3.5

From above graph data shows that Economic growth, Talent, Exchanges rates, Energy water
food have greatest impact on global economy. Other factors also have participation but little
as compare to these factors. So, Macroeconomics issues in country arise due to economic
growth, less resources, also due to less educated workforce. So, in order to have more strong
economy country have to work on this major impact factors.
➢ Energy Geopolitics & Regional Issues
• China growth and policy
• India growth
• Russian foreign policy
• EU cohesion
• Middle East and Gulf States fragility
• US trade & policy

Energy Geopolitics & Regional Issues

9
8
7
6
5
4
3
2
1
0
-1 0 1 2 3 4 5 6 7

China growth and policy Russian foreign policy Middle East and Gulf States fragility
For economy of country energy geopolitics and regional issues different factors are listed but from
our data calculation it is found that three factors affect graph most which are china growth and
policy, Russian foreign policy, Middle east and gulf states fragility are major contributors for
developing country.
➢ Energy Policies & Business Environment
• Trade barriers
• Regional integration
• Market design and system integration
• Energy subsidies

Energy Policies & Business Environment

7

0
0 1 2 3 4 5 6

Regional integration Energy subsidies

Trade barriers Market design and system integration

3rd factor for affecting country economy is energy policies and business environment in this we
are given with different factors but Regional integration and energy subsidies participate most for
economy.
➢ Energy Vision & Technology
• Sustainable cities and urban design
• Energy efficiency
• Carbon capture and storage (CCS)
• Digitalization
• Innovative transportation
• Electricity storage innovation
• Nuclear
• Large scale hydropower
• Unconventional fossil fuels
Energy and technology also participate for economic strength different factors listed above are
considered for this section that they play role in economy of country. Below graph shows large
scale hydropower, Digitalization, Nuclear, Energy efficiency have major contribution for country
economy according to survey.

10

0
0 1 2 3 4 5 6 7

Sustainable cities and urban design Energy efficiency

Carbon capture and storage (CCS) Digitalization
Innovative transportation Electricity storage innovation
Nuclear Large scale hydropower
Unconventional fossil fuels

➢ Digitalization
• Mobile Internet and cloud technology
• Processing power, big data, machine
learning and artificial intelligence (AI)
• Internet of Things (IOT), smart grids and blockchains
• Sharing and leasing economy
The skills, education and training of the labor force have a direct effect on the growth of an
economy. A skilled, well-trained workforce is more productive and will produce a high-quality
output that adds efficiency to an economy. Improvements and increased investment in physical
capital – such as roadways, machinery and factories – will reduce the cost and increase the
efficiency of economic output. Factories and equipment that are modern and well-maintained
are more productive than physical labor. Higher productivity leads to increased output
 Digitalization
6

0
0 1 2 3 4 5 6

Mobile Internet Processing power

Internet of Things (IOT) Sharing and leasing economy

OUTCOMES:

• Development of new technology, e.g. steam power and telegrams helped productivity in the
nineteenth century. Internet, AI and computers are helping to increase productivity in the twenty-
first century.
• Introduction of new management techniques, e.g. Better industrial relations helps workers
become more productive.
• Improved skills and qualification.
• More flexible working practices – working from home, self-employment.
• Increased net migration – especially encouraging workers with the skills that are in short supply
(e.g. builders, fruit pickers)
• Raise retirement age and therefore increasing the supply of labor.
• Public sector investment – e.g. improved infrastructure, increased spending on education