This course provides students with an overview of the fundamental concepts of economic issues and theories related to energy and climate change. The objective is to familiarize students with the main challenges in the energy sector, including those related to climate change. This economics course examines energy issues that pertain to the environment.
More precisely, this course examines the economics of markets for various energy sources, and their interactions with each other and with the rest of the economy. It will cover a variety of theoretical and empirical topics related to energy demand, supply, costs, prices, and consequences of energy activities. It examines the economics of resource use with a particular emphasis on world oil and gas markets and issues surrounding energy security. Energy markets are analyzed with an emphasis on the electricity market. Issues surrounding energy economics and climate change, energy efficiency and policy measures to promote renewable energy sources are discussed.
Climate change issues have received increasing attention over the past years, with a large impact on the energy systems. Climate change regulation economic tools will be discussed during this course, and how energy and environmental policies can address the challenge of carbon emissions.
Documents will be available during the semester:
• Detailed syllabus
• Slides
• Economic concepts presentation
• Optional Readings
• Short videos,
• Self-tests
• …
Some pre-requisites in mathematics (calculus, derivatives), basic economic concepts (profit, revenue, price and costs) macro-economics (GDP, exchange rates, taxes,…) and micro-economics (supply and demand under perfect competition, monopoly).
Self-assessment and pre-requisites will be available on Moodle.
Spring 2021-2022
50% final exam
50% individual synthesis
Students are divided into two groups and will be taught by the two lecturers.
Energy economics
Session 1: Nature of the good energy
Session 2: Energy rents: oil and gas economics
Session 3: Energy taxation: gasoline, electric tariffs…
Session 4: Opening to competition
Session 5: Renewable energies policies
Session 6: Case study : energy debates
Climate change and energy
Session 1: Climate change: physical aspects and emissions pathways
Session 2: Pricing carbon: economic principles and policy applications
Session 3: Pricing carbon in practice: the EU Emission Trading Scheme
Session 4: Renewable energies: technology and cost overview
Session 5: Case-study: solar photovoltaic project cost evaluation
Session 6: Renewable electricity outlook: grid parity, storage and smart-grids
- BHATTACHARYYA, SUBHES C.(2011), Energy Economics: Concepts, Issues, Markets and Governance, 1st Edition., 2011, XXVI, 721 p. 267 illus., 83 in color.