Energy & Environmental Economics

Catalog description

In this course, students apply analytical skills to solving problems in energy markets and environmental issues. Students will address business and public policy issues involved in the oil, natural gas, and electric industries including renewable and demand-side resources. Students will analyze capital intensive investment decisions in an era of uncertainty using the At Risk modeling tool. This allows analysts to compute the probability of success of a large investment decision and to identify the key sources of risks that need to be mitigated. Students will study how negative externalities in energy industries are mitigated through regulations. Positive externalities are also studied from the network effects which are the basis of many platform companies. This course is designed to apply micro- and macro-economic principles used in the Chartered Financial Analyst (CFA) Level 1 exam.