Political Economy of Energy
The course aims to provide the basic concepts for understanding the economic implications of energy choices, the reasons for energy policies and the tools to implement them.
Expected learning outcomes:
Knowledge and understanding: The student will have to prove to be familiar with the basic concepts of the discipline and to be able to use the main tools in order to understand the solution of microeconomic problems and interpret empirical evidence. Mastery of the mathematical and statistical tools available in the textbook is of the essence
Applying knowledge and understanding: The student must demonstrate that she has understood the interdependence between the energy system and the economic system, integrating the economic aspects with the technical and institutional ones.
Making judgments: The student must demonstrate that she has developed a critical ability to assess the economic implications of energy sustainability policies.
Communication: the student should be able to answer the questions of both the written examination and the possible oral examination in a clear, convincing and thorough way. The student will learn how to convey results with the help of reports and synthetic graphs.
Lifelong learning skills: the student should be able to show a good learning ability, managing to widen, her knowledge with the use of relevant bibliographic references. The student will have the opportunity to apply the knowledge gained in previous courses integrating it with the additional professional skills that characterize the course.
Knowledge of basic concepts of microeconomics, macroeconomics, and statistics.
Part I (16 HOURS):
Introductory concepts. Energy transitions. The energy system. Final Energy Demand Analysis. The cost of energy supply. International energy markets.
Part II (16 HOURS):
Non-renewable exhaustible resources in the thinking of classical and marginalist economists. The Hotelling model. Determining optimal depletion of non-renewable resources with optimal control theory. Electricity and gas regulation.
Part III (16 HOURS):
Liberalization and Competitiveness. Efficiency and Cost Responsibility. Liberalized market. Renewable sources in the liberalized market. Energy system and economic system.
The course includes frontal lessons during which the themes of the program are discussed.
G. Pireddu. Economia dell’energia. I fondamenti. CLU Editore, u.e.
Further references will be provided at the beginning of the course.
The assessment is based on a written examination composed by thematic questions aimed at evaluating the actual achievement of the objectives by the students. In order to evaluate the depth in understanding the general theoretical knowledge, the written exam includes open questions on the coursetopics. In their answers the students should be able to show and illustrate the fundamental concepts acquired during their studies. An oral examination can also be held, in case the lecturer deems it useful to better ascertain the student’s knowledge. The grade of the oral examination is expressed on a scale from 0 to 30, and it is averaged with the grade of written examination (equal weighting) in order to determine the final vote.