Drawing on the tools of economics and finance, we study the business and public policy issues that these changes have raised in energy markets. Topics include the effects of competition, scarcity and seller market power on energy prices; the regulation and deregulation of energy markets; environmental impacts and policies related to energy production and use; the economics of alternative energy sources; the development and effect of organized spot, futures, and derivative markets in energy; antitrust and competition policy; and the transportation and storage of energy commodities. We examine the economic determinants of industry structure and evolution of competition among firms in these industries; investigate successful and unsuccessful strategies for entering new markets and competing in existing markets; and analyze the rationale for and effects of public policies in energy markets.
• To introduce students to energy markets by examining the underlying economic principles.
• To demonstrate how antitrust and competition policy affects the functioning of energy markets.
• To introduce basic concepts in energy finance as related to the functioning of energy markets.
• To examine environmental impacts and economics of energy production and use.
• To understand how economics of alternative energy sources work differently from conventional ones.