| Learning objectives |
The energy sector is arguably the largest
industry in the world. At the same time, it is a major contributor
to environmental pollution, greenhouse gas emissions, and depletion
of natural resources, which closely links the energy sector to
climate change and threatens prosperity for future generations. The
climate crisis is one humanity’s major challenges to overcome in
this time and the decarbonisation of the energy sector is a crucial
element in mitigating climate change and a key item of the recently
signed European Green Deal.
The aim of this course is two-fold. First, to learn about the
explanatory capacity of theory and models of market regulation and
competition policy in the energy sector. Second, to apply economic
analysis to an increasingly sustainable and international energy
context to understand energy businesses’ challenges. Given the
demand for professionals specialised in economics and law in the
energy business, one of the key objectives of this module is to
provide the students training in economic aspects on which economic
regulation and competition policy for the energy sector are based.
The aim is to enable the students to:
- Understand the current and future trends for a sustainable
energy sector based on renewable energy sources
- Demonstrate a comprehensive knowledge of energy economics,
markets, and networks
- Present deep knowledge about energy businesses in the context
of climate change
- Describe the main assumptions of economic models of competition
and monopoly
- Explain the economic substance of specific concepts that are
applicable to regulation in energy economics
- Select, formulate, and discuss examples reflecting such
assignments faced by different participants in the energy
business
- Discuss current changes, ethical implications, and innovations
in the energy sector (Power-to-X, energy systems integration,
hydrogen economy, environmental justice)
|
| Course prerequisites |
| Mandatory prerequisites: Working knowledge of
microeconomics. Interest in the application of microeconomics to
energy economics, regulatory economics, and industrial
economics. |
| Examination |
|
Sustainability
and Business: Energy Markets, Competition, and
Regulation:
|
| Exam
ECTS |
7,5 |
| Examination form |
Written sit-in exam on CBS'
computers |
| Individual or group exam |
Individual exam |
| Assignment type |
Written assignment |
| Duration |
3 hours |
| Grading scale |
7-point grading scale |
| Examiner(s) |
One internal examiner |
| Exam period |
Winter |
| Aids |
Limited aids, see the list below:
The student is allowed to bring - An approved calculator. Only the models HP10bll+ or Texas BA ll
Plus are allowed (both models are non-programmable, financial
calculators).
The student will have access to - basic IT application package
|
| Make-up exam/re-exam |
Same examination form as the ordinary exam
If the number of registered candidates for the make-up
examination/re-take examination warrants that it may most
appropriately be held as an oral examination, the programme office
will inform the students that the make-up examination/re-take
examination will be held as an oral examination
instead.
|
|
| Course content, structure and pedagogical
approach |
|
Since the liberalisation of the energy sector (particularly
electricity), its constituent parts have received distinct
treatments, leading some segments to be opened to competition while
others have remained as regulated natural monopolies. This course
introduces students to analyse the different parts of the energy
sector from an economic perspective. In particular, it makes the
students familiar with the energy sector, relevant models, economic
characteristics of energy, and applications of economic analysis to
market competition and regulation of the energy markets.
The course combines theoretical approaches to markets,
competition, and regulation with the application to the energy
sector. The course develops along the following topics and
structure:
- Major energy sources and their markets: fossil fuels (oil, gas,
coal), nuclear, renewables; electricity, transport
- Microeconomics of energy use, energy demand, and energy
supply
- Economic analysis of domestic and international energy market
structures: competitive, monopoly, oligopoly, cartel
- Introduction to economic regulation: theory and principles
- Economic regulation of energy markets and utilities and
regulatory management
- Economics of investment in renewable energy sources
- Economics and political economy of climate change, national
policy and international cooperation
-
This module is endorsed by the Copenhagen School of Energy
Infrastructure (CSEI) at CBS and it is embedded in its overall
strategy of research and education. CSEI is directly supported by
the European Commission (DG Energy).
|
| Description of the teaching methods |
| There will be lectures where students are
expected to participate actively, study questions, case studies,
and supportive video material. |
| Feedback during the teaching period |
| Through oral discussions in class, cases and
quizzes |
| Student workload |
| Lectures |
38 hours |
| Preparation for lectures |
142 hours |
| Preparations for the exam |
25 hours |
| Exam |
3 hours |
|
| Expected literature |
|
Mulder, M. (2021). Regulation of Energy Markets (Vol.
80). Springer International Publishing.
Selected chapters from:
Bhattacharyya, S.C. (2019). Energy Economics: Concepts,
issues, markets and governance, 2nd ed.,
Springer.
Cretì, A., and Fontini, F. (2019). Economics of Electricity.
Markets, competition and rules. Cambridge University
Press.
Decker, C. (2014). Modern Economic Regulation.
Cambridge University Press.
|
|
|
Additional material
Collection of articles and policy
reports
|
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