wcm210 - Resource and Energy Economics

None

• Understanding the (normative) problems of resource use
• Rationales and instruments for policy intervention into (energy) markets
• Command of analytical methods (incl. role of analytical and numerical models in policy analysis)
• Ability to judge energy policy issues based on sound economic analysis (theory)
• Ability to quantify the relevance of arguments (empirics).

The course deals with the following subjects:

Resource economics
• Economics of sustainable resource use, methods of resource economics, non-renewable resources, renewable resources

Energy economics
• Markets and regulation: competitive markets as efficiency benchmark; market failures as a rationale for regulation
• Fundamentals of energy system/market analysis: definitions and concepts; energy statistics and balances; elasticities and incidence of policy interference
• Market imperfections and regulatory design: environmental externalities, imperfect competition
• Electricity markets: supply, demand, market interactions, market failures and regulatory responses

Methods of teaching: The course is designed as a lecture that teaches the relevant methods, concepts and models and illustrates them with reference to practical examples.

Roger Perman et al.: Resource and Environmental Economics, 4th edition, Pearson 2011.
John Hartwick, Nancy Olewiler: The Economics of Natural Resource Use, 2nd edition, Addison Wesley 1997;
Carol Dahl: International Energy Markets, PennWell 2004;
Steven Stoft, Power System Economics : Designing Markets for Electricity, New York 2002;
IEA: World energy outlook, annual.
Knut Sydsaeter, Peter Hammond: Essential Mathematics for Economic Analysis, Pearson.