This course introduces students to the Economics of Energy at the micro level. It is geared to providing the basic knowledge and introductory skills required as the foundation for research in the area of energy analysis and policy. It will cover themes such as:
The demand for and supply of renewable and non-renewable energy , i.e. fossil fuels (viz. crude oil, natural gas, coal ), electricity and renewables. In terms of supply, the course will cover the issues associated with the exploration, production, transportation, processing or refining and marketing of fossil fuels and production of renewable energy
Energy pricing and markets ,
Introduction to Energy and the Economics of the Environment
Purpose of the Course
It is designed to introduce students to basic energy issues, and to allow them to better understand the energy business and introduce students to the tools required for energy analysis and provide its microeconomic foundations
Name of instructor(s)- Michael John
Office address and phone Mobile 771-0904
E-mail address : Michael.firstname.lastname@example.org,
Office hours: To be advised
Communication policy – preferred method of contact - E-mail
Welcome to Energy Economics I. In this course we seek to provide you with the tools required for energy analysis at the micro level. We will cover a fair amount of material but be assured that the outcomes are rewarding. I expect that your views on energy issues will change as you come to a greater appreciation for the role of energy in our lives. Treat the course as a learning opportunity and do enjoy the experience.
In order to appreciate the issues involved in the economics of the Supply and Demand for energy, it is necessary to commence with an understanding of Energy Statistics. While there are some similarities with other economic statistics, there are significant differences and practices. With this foundation it is possible to address the issues associated with Energy Markets including those for renewable energy. Finally we will examine the economics of Energy’s impact on the environment and selected policy responses.
To provide students with the analytical tools to facilitate the overall understanding of the energy sector.
At the end of the course students should:
Have a greater awareness of the micro issues associated with energy
Appreciate the critical contribution of energy to our domestic economy
Appreciate the role of the energy industry in the global economy
Themes/Topic and Unit Objectives
Overview and Introduction to Energy Economics
Students should be able to :
Define Energy Economics
List factors accounting for the complexity of the energy sector
List the multi-dimensional interactions energy of the energy industry.
Bhattacharyya S.C.: Energy Economics Concepts, Issues, Markets and Governance, Springer-Verlag., 2011 Chapter 1
____________________ Energy Sector Management Issues: An Overview, International Journal of Energy Sector
Stevens P.J : An Introduction to Energy Economics in Stevens (ed) The Economics of Energy Vol. 1
Edward Elgar, Cheltenham also Journal of Energy Literature, Vol 6 (2) December 2
000 and Vol. 7(1) June 2001.
Unit 1 Introduction to Energy Demand Analysis
Theme - Energy Basics, Energy Statistics and Energy Balances
Students should be able to :
Classify the energy on the basis of sources
List the components of the energy supply chain
Outline the energy accounting framework
List components of a country’s Energy Account ,
Analyze energy balances
Compile simple energy balances
Use energy conversion factors,
Identify energy balance entries requiring special treatment or information
Bhattacharyya S.C: Energy Economics Concepts, Issues, Markets and Governance, Springer-Verlag, 2011
Karbuz, S Conversion Factors and Oil Statistics, Energy Policy; Jan 2004, Vol. 32 Issue 1, 41-45
IAEA (2005) Energy indicators for sustainable development, Austria (see http://www.iea.org/
textbase/nppdf/free/2005/Energy_Indicators_Web.pdf. Also see IAEA website) Chapter 3
IEA (1998) Biomass energy: data, analysis and trends, conference proceedings, International
Energy Agency, Paris, 23–24 March, 1998
IEA(2004) Energy Statistics Manual http://www.iea.org/stats/docs/statistics_manual.pdf Chapters1& 7
UN (1982) Concepts and methods in energy statistics, with special reference to energy accounts
and balances: a technical report, Series F No. 29, Department of International Economic and
Social Affairs, UN, New York (see http://unstats.un.org/unsd/publication/SeriesF/
SeriesF_29E.pdf) Chapters I-V.
UN (1987) Energy statistics: definitions, units of measure and conversion factors, Series F No. 44,
Department of International Economic and Social Affairs, UN, New York (see
Shahrin A and Naili A.M.A Introduction to Environmental Kuznets Curve http://economics.dstcentre.com/Introduction%20to%20Environmental%20Kuznets%20Curve%20By%20Azmi%20Shahrin.pdf
Tutorials Students will be expected to prepare and present tutorial questions as well as participate in tutorial discussion when colleagues are presenting.
Other Assignments- In addition, students will complete three assignments to be graded by the lecturer during the semester. The first -an Essay provides an opportunity to practice the analysis of industry issues. The second -a mid-term Examination designed to indicate the extent of mastery of the first half of the course. The final assignment – a problem sheet will provide practice in the simple quantitative issues covered during the semester. For Due Dates for assignments see the Class calendar below.
Assessment is designed to establish the student understanding of the material and the ability to critically examine energy matters and issues. Students will be assessed on the following basis:
Course Work 40%
Course Work Mid-Term Examination : 20 %
Course Work Essay Unit 3: 10% (5% essay, 5% essay presentation in tutorial)
Course Problem Sheet : 10 %
Final Examination: 60 %. This examination will be two hours long and consist of five essay questions of which students will be required to select three questions.
Students are encouraged to communicate with the lecturer and Teaching Assistant on challenges being experienced in the course as well as to provide feedback on how their experience can be improved and enhanced. In addition the lecturer will solicit feedback from the Teaching Assistant on student Tutorial performances. Structured Post lecture feedback by students will be encouraged.
Students will have three (3) contact hours for weekly.
Lectures will be delivered with the aid of power point presentations. Student participation will be encouraged and students are advised to read assigned material before the scheduled class, so that they can participate meaningfully in the class and tutorial discussion. Tutorial attendance is mandatory.
Faculty regulations allow for debarment from the Final Examination in the case of students who do not attend at least 75% of tutorial classes. The Course Lecturers and tutors will be monitoring and subsequently enforcing this regulation
Subes C. Bhattacharyya: Energy Economics Concepts, Issues, Markets and Governance, Springer-Verlag, 2011
James G. Speight : Handbook of Petroleum Analysis Wiley-Interscience, 2001
James G. Speight : Handbook of Petroleum Product Analysis Wiley-Interscience, 2002
Richard Seba : Economics of World Wide Petroleum Production
Trevor Boopsingh; Oil and Gas Development – A View from the South 1988
Robert Schmelzlee and Hussein K. Abdel – Petroleum Economics and Engineering ; An Introduction 1978
Handouts will be provided on the myeLearning site.
Students are reminded of the University’s Examination Regulations for First Degrees, Associate Degrees, Diplomas and Certificates including GPA Regulations:
19. Any candidate who has been absent from the University for a prolonged period during the teaching of a particular course for any reason other than illness or whose attendance at prescribed lectures, classes, practical classes, tutorials, or clinical instructions has been unsatisfactory or who has failed to submit essays or other exercises set by his/her teachers, may be debarred by the relevant Academic Board, on the recommendation of the relevant Faculty Board, from taking any University examinations. The procedures to be used shall be prescribed in Faculty Regulations.
[This regulation (19) will be enforced. Students failing to attend a minimum of 75% of the tutorial classes will be debarred from taking the final Examination. Consequently, students are strongly advised to promptly bring to the attention of their Tutors/Lecturer evidence of extenuating circumstances that prevent them from attending tutorial class/lectures. Evidence of such circumstances will not be accepted at the end of the semester when the list of students to be debarred in this course is published.]
97. (i) Cheating shall constitute a major offence under these regulations
(ii) Cheating is any attempt to benefit one’s self or another by deceit or fraud.
(iii) Plagiarism is a form of cheating.
(iv) Plagiarism is the unauthorized and/ or unacknowledged use of another person’s intellectual effort and creations howsoever recorded, including whether formally published or in manuscript or in typescript or other printed or electronically presented form and includes taking passages, ideas or structures from another work or author without proper and unequivocal attribution of such source(s), using the conventions for attributions or citing used in this University.
Grading policy The University Grading System will apply.
Course Activities Planned
Attendance at the Post National Budget Forum 2013 carded for September 12, 2013. Students are advised to check the Departmental Website (http://sta.uwi.edu/fss/economics/index.asp).
Attendance at the Conference on the Economy (COTE2013) on October 10 – 11, 2013 students must register for attendance with the Economics Student Union (ESU) or the Department of Economics.
Assignment/ Tutorial sheet
Sept 4 Week 1
Introduction to the Energy Economics, Overview, Understanding Energy Data- From Measurement to Energy Balances
Sept 11 Week 2
Energy Demand Analysis I –Approaches, Disaggregation, Forecasting,
Sheet 1 (Demand)Available
Sept 18 Week 3
Energy Demand Analysis II -Demand Management
Sept 25 Week 4
Economics of Energy Supply I- Energy Investment
Oct 2 Week 5
Economics of Energy Supply II - Non-renewable Resource Economics (The Supply of Fossil Fuels)
Sheet 2 Supply
Oct 9 Week 6
Economics of Energy Supply III Refining and Transportation
Oct 16 Week 7
Economics of Energy Supply IV Electricity, Renewable Energy
Oct 23 Week 8
Energy Markets I – Pricing and Taxation
Sheet 3 Markets
Oct 30 Week 9
Energy Markets II The International Oil Market and the Market for Coal
Nov 6 Week 10
Energy Markets III Natural Gas Markets- Features, Status, Transportation, Contracts, Pricing, LNG
Sheet 4 Environment
Nov 13 Week 11
Energy and the Environment I - Environmental Protection, Pollution- Stationary and Mobile Sources
Nov 20 Week 12
Energy and the Environment II -Climate Change Economics, Clean Development Mechanism. Carbon capture & Trading