Readings in Public Policy; Energy Economics
This course applies the concepts and tools from microeconomics and statistical analysis to energy policy issues. Covered topics include: 1) application of industrial organization to energy economics: oligopoly and oil industry (e.g. oil countries in middle east), natural monopoly and utilities, implications for social welfare and regulations; 2) application of welfare economics to energy economics: tragedy of the commons and extraction of non-renewable energy resources, externalities and Pigouvian tax; 3) behavioral economics and energy consumption: consumer utility maximization problem, risk profile, choice of energy technologies, choice of pricing, inertia, inattention, hyperbolic discounting, loss aversion, and role of policies in influencing behaviors such as information provision and nudges; 4) comparing different policy instruments in terms of cost-effectiveness and welfare impact: such as technology standards, tax, command and control, subsidies, cap and trade. and nudging; 5) empirical analysis applying econometrics and statistical analysis: impact of policies on utility company performance; impact of policies on energy consumption; impact of technology on energy performance using Pecan street and CSI solar data; technology decision analysis using CBECS and RECS data. Permission required.
Schedule of Classes