Dr Stephen Jarvis

This course is available on the MPhil/PhD in Economic Geography, MPhil/PhD in Environmental Economics, MSc in Environment and Development, MSc in Environmental Economics and Climate Change, MSc in Environmental Policy and Regulation, MSc in Environmental Policy, Technology and Health (Environment and Development) (LSE and Peking University), MSc in Environmental Policy, Technology and Health (Environmental Economics and Climate Change) (LSE and Peking University), MSc in Environmental Policy, Technology and Health (Environmental Policy and Regulation) (LSE and Peking University) and MSc in Geographic Data Science. This course is available with permission as an outside option to students on other programmes where regulations permit.

The number of students that can be accommodated is limited. If the course is over-subscribed, places will be allocated at the Department’s discretion and a waiting list may be created. For further details, please contact your relevant Programme Coordinator.

Some knowledge of economics at an undergraduate level (or equivalent) is strongly recommended for this course.

Energy is a key input to virtually all forms of economic activity in the modern world. The energy sector is also undergoing a profound transformation as countries around the world transition away from fossil fuels toward cleaner, greener sources. Understanding the markets, regulations and policies that shape the energy sector and the clean energy transition is the aim of this course. The course begins with the core economics of supply and demand, and the role that competition and market power plays in determining energy prices. We also examine the technical and economic factors that determine the extraction, transportation and storage of different energy sources. Environmental externalities from carbon emissions and air pollution are a key focus, and we examine the way policies such as carbon prices and pollution standards affect the energy sector. In the latter part of the course we will examine natural monopoly regulation of utilities and consumers’ participation in retail energy markets. We will also cover a range of contemporary policy debates, including issues such as energy poverty, energy access in low-income countries, and the integration of renewable energy. In addition to engaging in active discussions during the lectures, the course will give students the chance to participate in an interactive electricity market game over the course of the term.

27 hours of lectures in the AT.

In the Department of Geography and Environment, teaching will be delivered through a combination of classes/seminars, pre-recorded lectures, live online lectures and other supplementary interactive live activities. Students will also participate in a group-based strategy game where they work in teams to operate a set of power plants that bid into a simulated electricity market.

This course is delivered through interactive lectures across the Autumn Term.

This course includes a reading week in Week 6 of Autumn Term.

Students will be expected to produce 1 quiz and 1 other piece of coursework in the AT.

There will be an opportunity to get feedback on one or more of the coursework assignments submitted during the term.

There is no specific textbook for this course. Detailed reading lists will be provided to support each course component, but the following texts may be useful:

• Energy Primer: A Handbook of Energy Market Basics, Federal Energy Regulatory Commission, (2024).
• Handbook on Electricity Markets, edited by Jean-Michel Glachant, et al., Edward Elgar Publishing Limited (2021).
• Kolstad, C., Environmental Economics, Oxford: Oxford University Press, (2000).
• Jeffrey R. Church and Roger Ware. Industrial Organization: A Strategic Approach. (2000).

Written analysis (60%) and quiz (40%) in the AT.

The course will be assessed through coursework that is a combination of quizzes and written assignments.