Energy Economics(ECON 305)

This course is the study of economic relationships in energy production, consumption, demand and supply, pricing and conservation, energy policy, and the development of new and renewable energy sources. This course aims to provide students with the opportunity to study and develop a broader understanding of the economics of energy. There is mounting evidence that the current global energy system has been growing far beyond what is globally sustainable and already poses a serious, and potentially irreversible, threat to global environmental quality and stability in future decades.

Intended Learning Outcomes:

 Diagnose reasons underlying problems in Pakistan’s energy sector using the lens of micro and development economics

 Application of international best practices for addressing challenges in Pakistan’s energy sector

Design policy interventions suited to implementation context                                                                                                                     

 Ability to synthesize and articulate complex ideas in simple economic terms

Course Contents

 

1.  Overview and Fundamental Concepts:

  1. Energy in the Economy; Global Energy Problems and Issues
  2. Fundamental Concepts: Energy, Power; Measuring energy: units and conversion factors,
  3. Laws of Thermodynamics, 1st Law and Entropy law, Input and output energy, energy efficiency, Energy conversions (technologies)
  4. Energy markets and energy prices; competitive market valuation and social valuation,

2. Oil Resources and Economic Issues:

  1. Discounted cash flow analysis, Reserve and resources, resource substation
  2. Forecasting prices and speculation, Natural resource (oil) demand and supply, OPEC

3. Overview of Energy Economics and Global Energy Sustainability:

  1. Primary energy supply, secondary energy and energy end use demand/consumption,
  2. Economic activity, and growth: energy intensity, global energy use forecasts
  3. Energy conversion, energy transportation and/or transmission, and clean energy use,
  4. Conditions for a sustainable global energy system, climate change and clean energy

4. Clean Energy Supply from Non-Conventional, Alternative and Renewable sources:

  1. Climate change and primary and secondary energy use
  2. Energy Conservation policies, Demand side management
  3. Non-conventional and renewable alternative energy: Solar, Biomass, Wind, Geothermal, Tidal & other, Hydrogen energy, fuel cells

5. Energy Supply from Non-Renewable Fossil Fuel Resources:

  1. Fossil fuel resources and reserves model, Cartel models of global energy markets
  2. Overview of Oil, Natural gas, and Coal industries, Backstop technologies and Non-renewable resource Pricing (Hotelling model),Clean fossil fuel use; carbon sequestration

6. Energy Conversion and Supply by Electric Utility Industries:

  1. Electric Power demand and load duration vs. Electric energy consumption
  2. Electricity production technologies and electricity production cost trade-offs, Thermal, hydro, nuclear and renewable production and transmission of electricity
  3. Electricity pricing issues, regulation and deregulation issues
  4. Nuclear energy issues and prospects

7. Sustainable Energy Policy:

  1. Jaccard’s Sustainable Energy System in 2100, Energy Policy of Pakistan
  2. Sustainable energy options and criteria for comparison, Sustainable Energy Policy Alternatives and Climate Change, International Policy Initiatives.

Readings

Recommended Books

1. Mark Jaccard, Sustainable Fossil Fuels: The Unusual Suspects in the Quest for Clean and Enduring Energy, Cambridge University Press (2005)

2. Subhes C. Bhattacharyya Energy Economics Concepts, Issues, Markets and Governance Springer-Verlag London Limited (2011)

Suggested Books

1. J. M. Griffin, and H. B. Steele (1985): Energy Economics and Policy, Academic Press

2. Tom Tietenberg and Lynne Lewis Environmental &Natural Resource Economics Pearson Education, Inc., 9th Edition 2012

3- Peter Zweifel, Aaron Praktiknjo, Georg Erdmann, Energy Economics, Theory and applications Springer International Publishing AG 2017.

4- Michael G. Webb & Martin J. Ricketts, The Economics of Energy, British Library Cataloguing in Publication Data (1980)

Course Schedule

Weeks

Topics and Readings

Books and relevant material

1

Introduction to Energy Economics, Energy in the Economy, Fundamental Concepts: Energy, Power; Measuring energy: units and conversion factors

Energy Economics by Bhattacharyya

 

2

Global Energy Problems and Issues

1-Global Energy Challenge

HTTPS://BLOGS.WORLDBANK.ORG/DEVELOPMENTTALK/THE-GLOBAL-ENERGY-CHALLENGE

2-current challenges in energy by Cayetano López

3-World energy outlook 2020

4- The World’s Energy Problem and what we can do about it

American Academy of Arts and Sciences Berkeley November, 2007

3

Laws of Thermodynamics, 1st Law and Entropy law, Input and output energy, energy efficiency, Energy conversions (technologies)

1- Fundamentals of Thermodynamics by Claus Borgnakke and Richard E Sonntag

 

 

 

4

Energy markets and energy prices; competitive market valuation

1-Energy Economics by Bhattacharyya

2-Energy Economics by Peter Zweifel

5

social valuation, Discounted cash flow analysis

1-Externalities by  Stefanie Stantcheva, Fall 2017

2- Energy Economics by Bhattacharyya

 

6

Oil Reserve and resources OPEC

1-Energy Economics by Bhattacharyya

2-OPEC

https://en.wikipedia.org/wiki/OPEC

7

1-Forecasting Oil prices and speculation, Oil demand and supply

2-Primary energy supply, secondary energy and energy end use demand/consumption,

 

1-How Do Companies Forecast Oil Prices? https://www.investopedia.com/articles/investing/101215/how-do-companies-forecast-oil-prices.asp

2- Subhes C. Bhattacharyya Energy Economics                              End use Energy https://energyeducation.ca/encyclopedia/End_use_energy

8

Economic activity, and growth: energy intensity, global energy use forecasts, Energy conversion, energy transportation and/or transmission, and clean energy use, Conditions for a sustainable global energy system, climate change and clean energy

1-Energy Economics by Bhattacharyya

 

9

Mid term

 

10

Climate change and primary and secondary energy use

Energy Conservation, policies, Demand side management

Non-conventional and renewable alternative energy: Solar, Biomass, Wind, Geothermal, Tidal & other, Hydrogen energy, fuel cells

1-Energy Economics by Bhattacharyya

2-Energy Economics by Peter Zweifel

3-Energy Economics and Financial Markets by

André Dorsman,   John L. Simpson & Wim Westerman

 

11

Fossil fuel resources and reserves model, Cartel models of global energy markets, Overview of Oil, Natural gas, and Coal industries

1-Energy Economics by Bhattacharyya

2-Energy Economics by Peter Zweifel

 

12

Backstop technologies and Non-renewable resource Pricing (Hotelling model),Clean fossil fuel use; carbon sequestration, Electric Power demand and load duration vs. Electric energy consumption,

Electricity production technologies and electricity production cost trade-offs

1-Energy Economics by Bhattacharyya

2-Energy Economics by Peter Zweifel

 

13

Thermal, hydro, nuclear and renewable production and transmission of electricity,

Electricity pricing issues, regulation and deregulation issues, Nuclear energy issues and prospects

1-Energy Economics by Bhattacharyya

2-Energy Economics by Peter Zweifel

 

14

Jaccard’s Sustainable Energy System in 2100, Energy Policy of Pakistan

1- Sustainable Fossil Fuels by Jaccard

2-Energy Economics by Bhattacharyya

 

15

Sustainable energy options and criteria for comparison, Sustainable Energy Policy Alternatives and Climate Change, International Policy Initiatives.

1-Energy Economics by Bhattacharyya

3- Energy Economics and Policy by J. M. Griffin, and H. B. Steele

 

16

Final term

 

Research Project/Practical/Labs/Assignments

Assignment#01 Explain in detail the energy related issues, problems and challenges in Pakistan

Assignment #02 Explain in detail the energy policies in Pakistan

Assessment  Criteria

Assessment Mode

Marks / Points

Assignments and Presentations

10

Attendance

5

Class Participation/Behavior

5

Mid Term(paper)

30

Final term(paper)

50

Total

100
       

 

 

Course Material

Other Courses by Ms. Sabeen Saif