Energy Economics - 4EUS3EE3

Goal(s)

This course unit explores both theoretical and empirical aspects of the energy economy. It addresses key questions related to economic reasoning and decision-making in the field of energy.The course aims to equip students in the SEM program with the ability to:
- Understand the role and importance of economic analysis in decision-making for major energy projects
- Apply core economic concepts to global energy challenges
_ Acquire basic methods of economic modeling relevant to energy issues
- Develop a shared vocabulary and the capacity for multidisciplinary collaboration
- Strengthen critical thinking skills through engagement with academic literature

Content(s)

Fundamentals of Energy Economics (O. Ionescu)
This class aims to help students understand the importance of economic thinking in the energy sector. By the end of the course, students will be able to:
- Apply core economic concepts to global energy issues (e.g., opportunity cost, marginal cost, levelized cost of electricity, load curve)
- Analyze energy supply and demand using economic principles and graphical models
- Use mathematical tools to maximize revenue functions or minimize cost functions
- Develop a shared vocabulary and a multidisciplinary approach connecting energy and economics
- Identify and assess externalities associated with various market activities and their impact on the broader economy

Energy Mix and Energy Balance Sheet (O. Ionescu / H. Khalfallah)
Learning outcomes:
- Structure a coherent analysis around energy-saving issues
- Understand, read, and interpret an energy balance sheet

Basics of Energy Investments (O. Ionescu / H. Khalfallah)
Learning outcome:
- Perform economic calculations to assess and compare investment choices in the energy sector

Organization of Energy Markets and Networks (O. Ionescu)
This course focuses on the regulation of network industries, with a special emphasis on electricity markets. It covers:
- Key pricing issues in regulated energy sectors
- Economic mechanisms used to activate electricity demand
- Evaluation of the efficiency of these mechanisms from a consumption and welfare perspective

Economics of Climate Change (O. Ionescu / Jean-Philippe Nicolai)
Learning outcomes:
-Understand and apply the theoretical concepts and key principles of environmental economics
-Identify, evaluate, and propose policy instruments to address climate change
-Recognize the key actors, institutions, and challenges involved in international climate negotiations
- Analyze the interests, positions, and relationships of stakeholders within the framework of the Paris Agreement

Basic Economic Concepts