Energy Economics - 4EUS3EE3

Goal(s)

This Course Unit covers the theory and some empirical aspects of the energy economy.
It deals with questions concerning the thinking and economic decision in the field of energy.

This Course Unit aims then to enable students of the SEM Department :

• Understand the importance of economic thinking in the decision-making of major energy projects
• To be able to use economic concepts in a particular global issue
• Acquire some economic modeling methods for a given problem
• Develop a common language and an aptitude for multidisciplinary
• Develop critical thinking in relation to the literature

Content(s)

Fundamentals of energy economics (O. Ionescu)
This class aims to enable students to understand the importance of economic thinking in energy field. More particularly, the student will be able to:
• use economic concepts in a particular global issue related to energy field (opportunity cost, marginal cost, levelized cost of electricity, load curve etc)
•analyze economic principles and evolutions using energy supply and demand curves
•use mathematical concepts to maximize revenue function or minimize cost functions
•develop a common language and an aptitude for multidisciplinary between energy and economics
•characterize externalities related to different market activities and the impact on the economy

Energy mix and energy balance sheet (O. Ionescu/H. Khalfallah)
Learning outcomes:
Structure a reflection on a question of energy saving
Know how to read and interpret an energy balance

Basics of energy investments (O. Ionescu/H. Khalfallah)
Make an economic calculation of investment choices
Organization of energy markets and networks (O. Ionescu)
The course focuses on the regulation of network industries with a particular focus on the electricity markets. More particularly, it addresses the pricing issues and the economic mechanisms mobilized for the activation of electricity demand and their efficiency in terms of consumption.
Economics of climate change (O. Ionescu/O. Blanchard)
Learning outcomes:
identify and master the theoretical concepts and fundamental principles of environmental economics
identify, evaluate and propose policy alternatives to climate change
identify the actors, the institutions and the stakes of the international negotiations on climate changebetter understand the positions, interests and relationships of a range of actors in the context of the Paris Agreement

Basis of economy