Energy Economics and Policy

ECON20612 Energy Economics and Policy 20 Semester 2 Undergraduate Level 2 Hei Sing Chan Unit coordinator 1 FHEQ level (Framework for Higher Education Qualifications) ' Middle part of Bachelors ' European Credit Transfer & Accumulation System Rating : 10.0 The course unit aims to give an overview to students on the interlink between energy market and policies. We begin by covering various supply sides of the energy market, including fossil fuel, renewable, and the wholesale electricity markets. In each of the lectures, students would study how market structure, infrastructure and regulation play a role in setting a price in these markets. We will then spend a few lectures covering the energy demand side, including adoption of energy efficient appliances, electric vehicles, charging facilities, while discussing their behavioural underpinning. Last but not least, we will turn our focus to how energy and environmental policies affect the energy market and consumer welfare, as well as discuss the challenges in promoting a clean equitable energy transition.  The course unit aims to give an overview to students on the interlink between energy market and policies. We begin by covering various supply sides of the energy market, including fossil fuel, renewable, and the wholesale electricity markets. In each of the lectures, students would study how market structure, infrastructure and regulation play a role in setting a price in these markets. We will then spend a few lectures covering the energy demand side, including adoption of energy efficient appliances, electric vehicles, charging facilities, while discussing their behavioural underpinning. Last but not least, we will turn our focus to how energy and environmental policies affect the energy market and consumer welfare, as well as discuss the challenges in promoting a clean equitable energy transition. By the end of the unit, students are expected to:To have gained deep insights into the working of energy markets such as to facilitate further studies or work in this area of specialisation.To have experienced the entire cycle of a research project in the area of energy markets, including literature research, data collection and analysis, the formulation of the main arguments and results and the evaluation of potential policy implicationsBy the end of the unit, students are expected gain and reinforce the following employability skills:  Critical ThinkingResearch SkillsData Handling SkillsWritten Communication SkillsGroup Work Skills  Understand the workings of various energy and electricity markets around the worldApply microeconomics foundations to the energy market to explain different stylised factsUnderstand different consumer behaviours on energy demand and clean investment to facilitate the evaluation of energy policies  Critically evaluate the impact of energy and carbon policies on electricity prices and consumer welfare to comment on the effectiveness of policies  Conduct independent research on energy markets to form the inform the writing of a term paperUse analytical and statistical tools and internet data sources to provide supportive empirical evidence    Engage with the electricity strategy game during tutorials to gain more understanding on how the electricity market works.Work with other students in the group to discuss the optimal strategy for the electricity strategy gameShare constructive feedback on other students’ strategiesPresent facts and arguments in written form in order to communicate ideas  Energy supply: coal and oil markets  Energy supply: natural gas marketsEnergy supply: electricity marketsEnergy supply: renewable energy  Energy demand: household and industrial energy efficiencyEnergy demand: clean transportationEnergy transition and decarbonization Lectures: in the weekly lectures, content will be presented to students. This content serves as the starting point for further enquiry through independent study.   Tutorials: in tutorials, students will be split in groups. Problems (electricity strategy game) will be addressed through group work and discussions guided by the tutors. This is important to strengthen students’ ability to verbally present arguments.   Independent Study: Students are expected to engage with the reading and other material made available asynchronously such as readings or data sources.  0 Other 100% Research paper: 50%Essay: 50% SOST10062 Introductory Statistics for Economists Pre-Requisite Compulsory ECON10072A Advanced Statistics Pre-Requisite Compulsory ECON10171 Principles of Microeconomic Theory 1: Consumers, Welfare, Production and Costs Pre-Requisite Compulsory ECON10221 Microeconomics 1 Pre-Requisite Compulsory ECON10331 Microeconomics 1 Pre-Requisite Compulsory ECON10072B Advanced Statistics Pre-Requisite Compulsory (ECON10171 or ECON10221 or ECON10331) and (SOST10062 or ECON10072)Pre-requisites: (ECON10171 or ECON10221 or ECON10331) and (SOST10062 or ECON10072)  Y There is no required textbook. Readings will be drawn from chapters in the following books as well as policy papers, journal articles, and other online resources. Bhattacharyya, Subhes C. (2011) Energy Economics: Concepts, Issues, Markets and Governance, Springer. Keohane, Nathaniel O. and Sheila M. Olmstead. (2016) Markets and the Environment (Second Edition), Island Press. Viscusi, W. Kip, Joseph E. Harrington Jr, and David E.M. Sappington. (2018) Economics of Regulation and Antitrust (5th Edition), MIT Press.  0 0 0