This course explores the theoretical functioning of primary energy markets and provides an empirical perspective on international markets. The objective of this course is twofold. Students will first learn how (fossil fuel) energy markets work along the value added chain and which different types of markets exist (wholesale, retail, transport). The lecture will also discuss resource availability and resource extraction in a carbon constrained world. In addition, we will address the process of decarbonizing future energy systems in Europe. Hence, instruments and incentives for including energy generated from renewable sources into the current system will be presented.
In parallel, students will learn how to apply the principal components of empirical (time series) analysis to international markets for energy. The methods used in the course allow evaluating the effectiveness of energy policies.
Upon successful completion of the course the student
Knowledge
- understands the fundamental functioning of energy markets
- has learned to link economic theoretical knowledge to energy sector specific issues
- understands energy policies, their instruments and overall aims in different countries
Skills
- is able to analyze energy market related data using the software STATA
- can apply empirical methods to problems in energy trading, price formation, and evaluation of energy policies
General Competence
- can identify a timely research question, place it in the existing literature and conduct a solid basic econometric analysis
- has the knowledge to carry out independent research