SDG Detail

ENERGY 721 : Energy Resources

Postgraduate course

Project description

Economic Theory This section of the course aims to provide participants with an understanding of the basic economic models applied to the development, use and management of energy resources. Naturally, with energy resources vested/owned by government (i.e. the Crown) the application of economics to energy policy is particularly relevant. Economics of Climate Change The economics of climate change part of the course starts off with an introduction to the science and predicted temperature changes under different scenarios. After discussing the scale of the problem and the response, the course analyses integrated assessment models; different critiques of these models are discussed before considering different policy responses to move the world towards a low carbon growth path to limit temperature increases over the next century. Electricity Markets In this section of the course we will present models for an energy market with focus on electricity as a commodity. Energy commodities such as electricity have particular requirements, such as not being storable and having to flow over a network. We will discuss marginal pricing, its long term effects in terms on investment and whether or not electricity markets have delivered their intent thus far. Sustainable Energy Systems In this we highlight the interconnections that exist in energy systems and discuss the challenges and opportunities in adopting sustainable policies worldwide. Markets for Fossil Fuels Having studied the basics of energy & resource economics and (climate change) externalities, this section focuses on 3 examples of energy markets: coal, oil & gas. These 3 �dirty old fossils� still make up the mainstay of our energy supply and � despite gradual change � will most likely do so for decades to come. The lectures will describe how physical resource, geopolitical, technical and institutional characteristics influence the functioning of each type of market (oil, coal, gas) and how technology development can change these markets, although generally quite slowly.

Year 2022

Location New Zealand

Organization University of Auckland

Project aims

Project outcome

By the end of this course, students will be able to: Analyse and apply game theoretic models of firms competing in markets (Capability 2 and 3) Understand and critically evaluate climate change models (Capability 1, 2, 3 and 6) Understand and explain the wholesale electricity market pricing (Capability 1, 2, 3 and 4) Explain and critically evaluate oil and gas policies (Capability 1, 2, 4 and 6) Understand and apply NPV analysis around investments and the impact of government policy (Capability 1, 2 and 4) Understand and apply screening curve methodology to find the right plant mix in electricity systems (Capability 1, 2 and 3) Use supply and demand curves to understand market outcomes (Capability 1, 2 and 3) Understand and critically evaluate the connections within energy systems. (Capability 1, 2, 4, 5 and 6)