- UCAS course code
- LV25
- UCAS institution code
- M20
Course unit details:
Energy Economics and Policy
Unit code | ECON20612 |
---|---|
Credit rating | 20 |
Unit level | Level 2 |
Teaching period(s) | Semester 2 |
Available as a free choice unit? | Yes |
Overview
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.
Pre/co-requisites
Unit title | Unit code | Requirement type | Description |
---|---|---|---|
Introductory Statistics for Economists | SOST10062 | Pre-Requisite | Compulsory |
Advanced Statistics | ECON10072A | Pre-Requisite | Compulsory |
Principles of Microeconomic Theory 1: Consumers, Welfare, Production and Costs | ECON10171 | Pre-Requisite | Compulsory |
Microeconomics 1 | ECON10221 | Pre-Requisite | Compulsory |
Microeconomics 1 | ECON10331 | Pre-Requisite | Compulsory |
Advanced Statistics | ECON10072B | Pre-Requisite | Compulsory |
Pre-requisites: (ECON10171 or ECON10221 or ECON10331) and (SOST10062 or ECON10072)
Aims
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.
Learning outcomes
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
Syllabus
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
Teaching and learning methods
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.
Knowledge and understanding
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
Intellectual skills
Critically evaluate the impact of energy and carbon policies on electricity prices and consumer welfare to comment on the effectiveness of policies
Practical skills
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
Transferable skills and personal qualities
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
Assessment methods
Research paper: 50%
Essay: 50%
Recommended reading
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.
Teaching staff
Staff member | Role |
---|---|
Hei Sing Chan | Unit coordinator |