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OAEN 2610 - ENERGY ECONOMICS

Type d'enseignement : Seminar

Semester : Autumn 2018-2019

Number of hours : 24

Language of tuition : English

Voir les plans de cours et bibliographies

Pre-requisite

aucun

Course Description

This course aims to provide a theoretical knowledge base in economics and apply it to analyze past and current developments in the energy sector. Changes in supply and demand or monopoly power are power tools to understand the evolution of oil price or electricity prices. Elasticities, economies of scale or surplus analyses provide insights into firm behaviors and the impact of public policy. This course will explore such tools and concepts, combining economic theory with case studies through simple exercises.

Teachers

PERRIER, Quentin (Chercheur CNRS)

Pedagogical format

This course will be based on lecture with slides. Very simple (and unrated) optional exercises will be offered between each course, as well as optional readings.

Course validation

10% assignment (solution presented in Excel);
20% oral presentation (Pecha Kucha form);
25% common mid-term exam (written exercises and open questions)
​45% common final exam (written exercises and open questions).

Required reading

  • Bhattacharyya, Subhes C.(2011), “Energy Economics: Concepts, Issues, Markets and Governance”, 1st Edition., 2011, XXVI, 721 p. 267 illus., 83 in color
  • Varian H., (2010), Intermediate Microeconomics: A Modern Approach, 8th Edition.

Plans de cours et bibliographies

Session 1: Introduction of the seminar

  • Presentation of the seminar, review on math and economics, introduction on energy economics)

Session 2: Nature of the "good energy" (energy data, energy balance, energy intensity, units, generation, capacity, etc.)

Session 3: Demand (elasticity, substitutability, efficiency, externalities, etc.)

Session 4: Supply (costs, surplus, economies of scale, externalities, merit order, etc.)

Session 5: Energy market structures and prices/ quantities consequences (monopoly, oligopoly, cartel, etc.)

  • Midterm exam

Session 6: Exhaustible and non-exhaustible resources (hoteling rent, energy investments, etc.)

Session 7: Economics of fossil fuel markets (oil and gas characteristics, resource curse, project finance, etc.) + Oral presentations

Session 8: Economics of electricity markets (1) (units, demand, supply, merit order, etc.) + Oral presentations

Session 9: Economics of electricity markets (2) + Regulation (1) + Oral presentations

Session 10: Regulation (2) + Oral presentations

  • Assignment

Session 11: Policy for renewable energy (feed in tariffs, taxes, incentives, subsidies, etc.) + Oral presentations

Session 12: Oral presentations + Conclusion + Final review

  • Final exam

Biographical Information

Quentin Perrier is currently a researcher at CIRED, in Paris. His current work focus on the transformation of the energy system in link with the Paris Agreement objectives. He also works with the French climate negotiators in order to prepare the next COP.
Quentin Perrier holds a degree in engineering and a diploma from PSIA. He then completed a PhD in economics on the employment impacts of the energy transition and the consideration of uncertainty in energy planning.