Economic Theory Commons^™

Black Gold In A Changing World: An Examination Of Saudi Arabia’S Dependence On Oil And The Possibility Of A Solar Energy Transition, Sofia Mouritsen

Independent Study Project (ISP) Collection

This paper examines Saudi Arabia’s dependence on oil, considering the profound effects that the resource has on the domestic, socioeconomic, and international affairs of the Kingdom. It is determined, after examining the economic and environmental factors that make it necessary, that Saudi Arabia must reduce its dependence on oil and diversify its economy, ideally by pursing solar energy. This conclusion is reached by considering Saudi Arabia’s domestic challenges, which include unemployment and rising domestic energy demand, as well as factors such as the price volatility of oil and changing global energy trends. A Saudi transition to solar power is determined …