Economics of Energy (371-0-20)
Instructors
Mar Reguant Rido
Meeting Info
Frances Searle Building 2407: Tues, Thurs 2:00PM - 3:20PM
Overview of class
The goal of this course is to understand the functioning and regulation of energy markets. The energy sector is a vital input to the economy. It is often highly concentrated, generating concerns about competition, and a big emitter of greenhouse gases and other pollutants, generating concerns about the environment. As a consequence, the energy sector is subject to substantial economic and environmental regulation. We will use economic theory and empirical evidence to analyze the real-world operation of electricity, oil, and natural gas markets. These tools will allow us to critically understand how these markets are regulated. We will examine policies in a range of current topics. For example: Why has the performance of electricity markets been debated? Who pays the bill of carbon regulation? What are the pros and cons of renewable energy policies? What are the prospects for energy efficiency improvements? The course will draw upon material taught in Economics 310-1, 310-2, and 281, with the tools from Econ 310-1 and 281 being absolutely essential.
Registration Requirements
ECON 281, ECON 310-1, ECON 310-2
Teaching Method
The class will meet twice a week for 80 minute lectures, and there is an optional review session on Fridays.
Evaluation Method
There will be two in-class exams, which will count for 70% of the grade. The remainder will be problem sets and a simulation game (the Electricity Strategy Game). Some of the grading might be adapted to better fit the online teaching, including in-class quizzes and other online activities.
Class Materials (Required)
"There is not an assigned textbook although extracts from "Economics of Regulation and Antitrust" by Viscusi, Harrington, and Sappington will be used (available online through NU Library, EBOOK ISBN
9780262285582). There will instead be assigned readings that will come from other sources, such as articles, books, and complementary notes. (Sample): - Yergin, Daniel, The Quest: Energy, Security, and the Remaking of the Modern World, 2011. We will be reading several chapters as introduction to the topics covered. - Borenstein, S. and Bushnell, J. (2013), "The U.S. Electricity Industry after 20 Years of Restructuring" - Joskow, P. (2013), "Natural Gas: From Shortages to Abundance in the United States""
Class Attributes
SDG Responsible Consumption
Enrollment Requirements
Enrollment Requirements: Pre-requisite: Students must have taken ECON 310-1 or MMSS 211-1 and ECON 281 or ECON 381-1 or MATH 386-1 or IEMS 304 or STAT 350 to successfully enroll in this course.
Associated Classes
DIS - Tech Institute Lecture Room 4: Fri 3:00PM - 3:50PM