Ing Ind - Inf (Mag.)(ord. 270) - BV (477) ENERGY ENGINEERING - INGEGNERIA ENERGETICA
095914 - ENERGY ECONOMICS
Over the last two decades, an increasing number of countries around the world has replaced vertical integration with markets as the main methods of organizing the electricity and natural gas industries. This course discusses the way in which these markets have put economic principles into practice and provides insights on the topics that are currently on the frontier of the research and policy agenda.
In particular, the course will provide the frameworks, models and tools to understand the functioning of the energy markets (electricity and natural gas). The instructors will provide theoretical model and empirical evidence to guide the students in the process of understanding the context, and the motivations behind public intervention in energy market as of well as the functioning of competitive wholesale markets. An important part of the course will be devoted to describe how environmental externalities influence public intervention in the energy market. During class activates students will be asked to apply the theoretical models to real cases and formulate autonomous judgement about the choices made by the players in the energy market. The course will involve guest speakers, who will share their practical experience with the class, and will include teamwork actives designed to involve students actively in the learning process.
Risultati di apprendimento attesi
At the end of the course, the students will be able to:
describe the context, and the motivations behind public intervention in energy market;
describe the functioning of competitive wholesale markets (electricity and natural gas)
describe how the environmental externalities influence the energy markets
describe the specific challenges for the players in the energy sectors
apply theories of energy economics to real-world situations
The course includes:
Lecture sessions: they aim at illustrating, sharing and discussing models, conceptual frameworks, tools and empirical evidence
In-class case study discussions: they aim at making students apply the insights from theory and empirics to real world situations. Students have to read case study materials in advance of the class sections
Testimonials: guest speakers invited to share their practical experience with the class
1. Introduction to the course
Definitions. Supply chains. Liberalization of European energy markets.
2. Basic microeconomics and industrial organization
Production cost and demand. Efficiency. Perfect competition and monopoly. Natural monopoly. Contestable markets. Sunk costs.
3. Regulation of natural monopolies
Price regulation with perfect information. Price regulation with asymmetric information. Regulation in practice.
4. Competitive energy markets
Wholesale electricity market. Power exchanges. Wholesale natural gas market. Gas hubs.
5. Environmental economics
Welfare economics and the environment. Economic instruments applied to environmental policy.
Modalità di valutazione
The final evaluation is based on a written final exam.
The final exam aims at testing student's
Level of understanding of the theories and empirics presented in class
Ability to apply the theories and empirics presented in class to real cases
Ability to interpret correctly the regulatory intervention as well as the choices of the players in the energy markets in light of the theory and empirics presented in class
Ability to calculate a market equilibrium
The course includes the possibility to engage in a teamwork assignment which will result in a bonus grade (+0/3 points). Students willing to engage in the workgroup activity will be asked to prepare a 5-pages document by the end of the course. The document will report the analysis of scientific articles on a specific theme defined with the instructors.
Hal R. Varian, Intermediate microeconomics. A modern approach, Editore: W. W. Norton & Company, Anno edizione: 2010
Paul L. Joskow, Regulation of natural monopolies, Anno edizione: 2007 Note:
In A. M. Polinsky and S. Shavell (eds), Handbook of Law and Economics.
I. J. Pérez-Arriaga, Regulation of the power sector, Editore: Springer, Anno edizione: 2013
R. Perman, Y. Ma, J. McGilvray, M. S. Common, D. Maddison, Natural Resource and Environmental Economics, Editore: Pearson, Anno edizione: 2011
Tipo Forma Didattica
Ore di attività svolte in aula
Ore di studio autonome
Laboratorio Di Progetto
Informazioni in lingua inglese a supporto dell'internazionalizzazione
Insegnamento erogato in lingua
Disponibilità di materiale didattico/slides in lingua inglese
Disponibilità di libri di testo/bibliografia in lingua inglese
Possibilità di sostenere l'esame in lingua inglese
Disponibilità di supporto didattico in lingua inglese