Economics of Regulation and Low Carbon Technologies module (CP51047)

This module explores the economics of regulation, i.e. tariff setting, in regulated industries such as the gas and electricity industries. It also covers the economics of low carbon technologies such as renewable energy, e.g. wind and solar, electric vehicles, and hydrogen. 

Topics covered in this module include:

• Rationale for Economic Regulation
• Rate-of-Return Regulation
• Incentive Regulation
• Auctions and Electricity Market Reform
• Economics of Renewable Energy (wind and solar)
• Economics of Electric Vehicles
• Economics of Hydrogen

What you will learn

In this module, you will:

• study the theories of natural monopoly and externality that underpin the economics of regulation and low carbon technologies
• critically evaluate the theories and methods of economic regulation in network and regulated industries, e.g. transmission and distribution network, pipelines, electricity tariff
• analyse the economics and policies relating to low carbon technologies in the context of energy transition

By the end of this module, you will be able to:

• discuss theories of natural monopoly and economic regulation
• discuss methods and issues of economic regulation and pathways of reforming in developed and developing countries
• discuss policies supporting renewable energy and low carbon technologies
• discuss interplay between economics, policy, and technologies of low carbon transition
• understand and interpret financial data relevant to regulated industries
• perform the economic analysis of tariff setting for regulated industries
• analyse the economics of renewable energy projects for business and government decision making

Assignments / assessment

• coursework (40%)
  • mock public hearing
    • in Lecture 5
  • group presentations
    • in Lectures 6 through 9
  • quiz
    • after Lecture 9
• final exam (60%)

Teaching methods / timetable

This is a nine-week module with 20 credits and 200 hours of work expected.

• in-person lectures
  • weekly on Tuesdays 14:00-17:00
  • lectures will be recorded and available online
• essential reading and preparation for classes
  • 56 hours of effort is expected
• preparation of coursework and for final exam
  • 120 hours of effort is expected