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This course introduces a variety of theoretical and empirical topics related to energy demand, energy supply, energy prices, environmental consequences of energy consumption and production, and various public policies affecting energy demand, supply, prices, and environmental effects. The aim is to convey an understanding of the breadth and functioning of energy markets, pricing and regulation, and their interactions, thus preparing students for further energy studies and potentially career opportunities as well.
Overview of Energy Supply and Demand. Fossil Fuel Markets. Externalities and Public Policy. Pollution. Climate Change. Energy Transportation and Storage. Electricity and Regulation. Deregulation and Competition. Financing Energy Development. Energy resources and economic rent. Allocation of resources over time and Financing Energy Development. Energy Futures. World Oil Markets and Energy Security. Natural Gas Price Regulation, Deregulation and Markets. Electricity. Risk Management, Futures Markets and Derivatives. Energy and Climate Change. Internalizing Environmental Externalities with a Focus on CO2 Emissions Cap and Trade Mechanisms.
Upon succesful completion of this course, a student will be able to
1. Describe current energy market trends and relate current conditions to historical market performance.
2. Explain basic electricity market, oil market and gas market dynamics, focusing on consumer and producer responses to prices.
3. Evaluate projects for an oil or gas resource.
4. Identify uncertain factors in long-term forecasts (especially as relate to project evaluation) and employ analytical tools to guide decision making under uncertainty.
5. Explain concepts fundamental to the economics of natural resources.
6. Identify economic concepts relevant to understanding peak oil, resource growth and exhaustion.
7. Communicate their knowledge and understanding to others verbally during class and in written assigned coursework.