Resource and Energy Economics

Learning Outcomes

Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

• Apply fundamental concepts such as market failure, environmental externality, and transaction costs to problems in energy, resource and environmental economics.

Transferable and Generic Skills

Having successfully completed this module you will be able to:

• Develop strong abilities to communicate knowledge and understanding to others, verbally and in writing.

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

• Acquire a deep understanding of the key issues relating to the use of natural resources in economic activities and the implications of environmental constraints for economic growth.

This course addresses the main economic problems arising in the management and allocation of natural resources, with a particular focus on energy and the constraints that the natural environment represents for economic growth. It combines economic theory, including a presentation of the most recent advancements in the field, a critical analysis of the existing empirical evidence, and a study of the effects of different policy interventions. The course covers a set of topics related to: natural resource production (e.g. optimal resource extraction, the role of technology and market structure); energy markets (e.g. pricing mechanisms, elasticities, and expectations); energy efficiency measurement; climate change mitigation policies (e.g. carbon price, environmental standards); and the sustainability of economic growth. An indicative list of the topics covered in the lectures is the following.

• Introduction to the economics of exhaustible resources, scarcity, and rent
• Natural resource curse, green paradox, and property rights
• Energy supply: market structure and pricing
• Energy demand: price and income elasticities
• Oil and gas markets
• Energy and climate change
• Carbon pricing

Teaching and learning methods

The module will be delivered through a set of lectures and connected seminars. In the seminars students will be asked to answer a problem set and discuss its solution in class, or prepare a presentation on a paper pre-assigned by the lecturer followed by a class discussion.

Summative

This is how we’ll formally assess what you have learned in this module.