LEARNING OUTCOMES
The objective is to develop understanding of the basic problems in environmental, resource and energy economics. Tools developed for analyzing market failures and instruments for solving them. Familiarize the student with the main challenges in the energy sector, including those related to the environment.
Credits: 6
Schedule: 22.04.2024 - 06.06.2024
Teacher in charge (valid for whole curriculum period):
Teacher in charge (applies in this implementation): Iivo Vehviläinen
Contact information for the course (applies in this implementation):
Teacher in charge: iivo.vehvilainen@aalto.fi
For practical questions: Consult course policies in MyCourses first.
CEFR level (valid for whole curriculum period):
Language of instruction and studies (applies in this implementation):
Teaching language: English. Languages of study attainment: English
CONTENT, ASSESSMENT AND WORKLOAD
Content
valid for whole curriculum period:
Common pool resource use in theory and practice; description and analysis of resource and energy commodity markets; pollution control in theory and practice, with particular emphasis on climate change, energy and environmental policy. Main empirical cases include: investments in nuclear power; emissions trading; pricing and investments in the electricity sector.
Assessment Methods and Criteria
valid for whole curriculum period:
Exercises, group work, case study, exam
applies in this implementation
A part of the course is graded on the basis of your work in a small team, 1-3 persons.
- Team formed and case study topic selected, mandatory.
- 5 returned (and passed) Reading assignments mandatory. Passing an assignment requires having at least half of the answers correct.
- 5 returned (and passed) Electricity market games mandatory. Passing a round requires having at least half of the answers correct.
- Case study returned, 40 % of the grade
Workload
valid for whole curriculum period:
The course has 4 learning elements: lectures, exercises, reading assignments, and case study.
Lectures (24 h)
Conceptual background
Main empirical casesReading assignments (30 h)
Readings and own source search
3-5 questions to be analyzed
Presenting and debating the outcome in the classProblem sets (24 h)
Learning methods for analysis
Introduced and discussed in groups during the class
3 x 1 compulsory home exercises, returned next weekCase study (66 h)
Analyze a case in the energy and environment field
Write a 5-10-page report
DETAILS
Study Material
valid for whole curriculum period:
Lecture notes.
Other readings assigned during the course.
applies in this implementation
There is no text book. Reading materials are assigned during the course.
Lecture slides as well as lecture notes on selected topics are provided.
Substitutes for Courses
valid for whole curriculum period:
Prerequisites
valid for whole curriculum period:
SDG: Sustainable Development Goals
8 Decent Work and Economic Growth
FURTHER INFORMATION
Further Information
valid for whole curriculum period:
Teaching Language : English
Teaching Period : 2022-2023 Spring V
2023-2024 Spring Vapplies in this implementation
The course is lectured in classroom only, there is no online option.
Participation to the lectures is not mandatory. It is possible to do all assignments online.
Exam is traditional and will require physical attendance. Retake exam will be held in the Autumn 2024.
Details on the schedule
applies in this implementation
––– Week 1 ––––––––––––––––––––
Lecture 1 PERFECT COMPETITION
Perfect market benchmark
Lecture 2 ELECTRICITY MARKETS
Market institutions
How does the available generation shape the supply curve
––– Week 2 ––––––––––––––––––––
Lecture 3 EXTERNALITIES
Pigou and Coase, strategic behavior
Lecture 4 COSTS VS. BENEFITS
Measuring externalities, cost-benefit analysis
––– Week 3 ––––––––––––––––––––
Lecture 5 POLICY PRINCIPLES
Policy menu
Best choices: Prices vs. Quantities
Lecture 6 POLLUTION TRADING
Example: EU Emission Trading Scheme
––– Week 4 ––––––––––––––––––––
Lecture 7 RENEWABLE ENERGY SUBSIDIES
Renewable energy subsidies
Lecture 8 INVESTMENTS
Basics of investment analysis
––– Week 5 ––––––––––––––––––––
Lecture 9 STORAGE AND EXHAUSTIBLE RESOURCES
Storage and time dynamics
Exhaustible resource theory, Hotelling rule
Lecture 10 CLIMATE CHANGE ECONOMICS
Social cost of carbon
Integrated assessment models
––– Week 6 ––––––––––––––––––––
Lecture 11 CONSUMER BEHAVIOR
Policy impacts on consumer choice
Lecture 12 NEW TECHNOLOGIES
Innovations