Energy Market Design and Regulation

Energy is a critical input for any economy's stability and growth. Access to safe, reliable and affordable energy serves as a bedrock, on which the welfare of households, the competitiveness of firms and the resilience of public rest. This course explores fundamental economic and financial aspects related to energy supply and demand, while focusing on the ongoing energy transition. It discusses the roles of markets, regulation and deregulation in industries directly connected to energy, such as the electric power and transportation sectors. The course examines market design questions related to energy generation, transmission, distribution and emissions control. It investigates the economics of energy markets and individual behavior under alternative institutional regimes, focusing on how different policies or social norms affect economic performance under both static and dynamic conditions. It combines approaches of market design, behavioral economics, institutional economics, public choice, regulatory economics, industrial organization, experimental economics and applies them to the current energy-related questions. This course uses a combination of hands-on learning through classroom experiments, simulations and student-led discussions of readings. By building on this experience and gained knowledge, students develop projects to explore different public and private applications in markets for energy.