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Empirical Analysis of Energy Markets

ENE428 Empirical Analysis of Energy Markets

  • Topics

    Topics

    • The functioning of fossil fuel energy markets
    • Wholesale, retail and transportation markets
    • Energy policies and regulation of energy markets
    • Empirical analysis of markets for fossil fuels and renewable energies

  • Learning outcome

    Learning outcome

    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

  • Teaching

    Teaching

    Lectures, home assignments, computer, and class discussions

  • Recommended prerequisites

    Recommended prerequisites

    Basic skills in microeconomics and in statistical interference

  • Required prerequisites

    Required prerequisites

    Basic skills in microeconomics and in statistical interference (recommended)

  • Requirements for course approval

    Requirements for course approval

    Participants shall work with compulsory assignments during the course. These include theory as well as data analyses and are graded with approved/not approved. The assignments have to be written in English. Course approval (the right to attend the final exam) is given on the basis of these assignments.

  • Assessment

    Assessment

    The final exam is a term paper, where either individuals or teams of no more than two students should write up and submit a research paper. The handling time between topic assignment to submission is 20 working days. The paper has a maximum of 4.000 words (excluding tables, figures and references) and has be written in English.

  • Grading Scale

    Grading Scale

    A - F

  • Computer tools

    Computer tools

    The course contains use of the statistical package STATA.

  • Semester

    Semester

    Autumn

  • Literature

    Literature

    For the econometric analysis I suggest: Wooldridge, Jeffrey M. (2009): Introductory Econometrics. A Modern Approach. 4th edition, South-Western, CENGAGE Learning.

    For the other topics there is no single textbook to recommend. I will provide and announce relevant papers or book chapters in class.

Overview

ECTS Credits
7.5
Teaching language
English.
Semester
Autumn

Course responsible

Anne Neumann, Department of Business and Management Science