BA Politics, Philosophy and Economics / Course details

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.

 

(ECON10171 or ECON10221 or ECON10331) and (SOST10062 or ECON10072)

Pre-requisites: (ECON10171 or ECON10221 or ECON10331) and (SOST10062 or ECON10072) 

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 implications

By the end of the unit, students are expected gain and reinforce the following employability skills: 

Critical Thinking

Research Skills

Data Handling Skills

Written Communication Skills

Group Work Skills 

Energy supply: coal and oil markets  

Energy supply: natural gas markets

Energy supply: electricity markets

Energy supply: renewable energy  

Energy demand: household and industrial energy efficiency

Energy demand: clean transportation

Energy 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. 

Understand the workings of various energy and electricity markets around the world

Apply microeconomics foundations to the energy market to explain different stylised facts

Understand 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 paper

Use 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 game

Share constructive feedback on other students’ strategies

Present facts and arguments in written form in order to communicate ideas

 

Research paper: 50%

Essay: 50%

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.