Postgraduate Course: Energy and Environmental Markets (CMSE11341)
||College||College of Arts, Humanities and Social Sciences
|Credit level (Normal year taken)||SCQF Level 11 (Postgraduate)
||Availability||Available to all students
|Summary||This course aims to provide students with the knowledge and understanding of how energy and environmental markets work. In the first semester, students are expected to have benefited from courses detailing how conventional financial markets work; this course will build on this understanding to present information on how the price formation process
evolves in modern environmental and energy markets. Students will be provided with an appreciation of the development of electricity markets in Europe; emphasis will be placed on
new EU policy initiatives influencing this process.
Aims, Nature, Context
The course will specially explore the functioning of the European electricity and gas markets along with the unique role of transmission system operators, when compared to other energy markets. The course will examine the major energy security challenges of the 21st century within global and European contexts. Students will consider in depth the implications of EU and OECD countries┐ energy policies and how these influence the infusion of renewables into the energy mix. The course will also consider contemporary evidence on liquidity and price discovery in named global and regional energy markets. The EU Emissions Trading Scheme will also be examined as a critical plank in the EU┐s energy and climate change policy. Students will benefit from lectures delivered by practitioners from the energy industry as well as faculty.
- The Development and Evolution of European Energy Markets
- Financial Analysis of Renewables in the Energy Market
- Perfect Competition and Energy/Commodity Markets
- Monopoly, Dominant Firm and OPEC
- The Price Formation Process in Energy Markets
- Energy Trading Instruments: Energy/Commodity Futures and Options Markets
- The Electricity Market in Europe: TSOs, OTC and Organised Exchanges
- Trading on Energy Exchanges: Price Discovery and Liquidity
- Profiling Energy Market Risk
- The EU Emissions trading Scheme
- Market microstructure properties of the EU Emissions trading Scheme
- Global carbon markets and other mechanisms for reducing emissions
- The Kyoto and Paris market mechanisms
Student Learning Experience
Formal teaching occurs in lectures, tutorials and seminars. Much of the learning will be the result of students┐ own reading and reflection, and preparation for lectures and coursework.
A high level of student participation is expected, through discussion in class and working in groups. Scholarly endeavour is fundamentally about building on the discoveries and insights of
others, and we hope that team co-operation will enrich all students. There will be time for questions and discussion in class at all times.
Entry Requirements (not applicable to Visiting Students)
||Other requirements|| For Business School PG students only, or by special permission of the School. Please contact the course secretary.
Information for Visiting Students
|Pre-requisites||Business School postgraduate students only.
|High Demand Course?
Course Delivery Information
|Academic year 2019/20, Available to all students (SV1)
|Learning and Teaching activities (Further Info)
Lecture Hours 20,
Seminar/Tutorial Hours 8,
Summative Assessment Hours 80,
Revision Session Hours 2,
Programme Level Learning and Teaching Hours 3,
Directed Learning and Independent Learning Hours
|Assessment (Further Info)
|Additional Information (Assessment)
||Essay (individual) 70% (assesses all learning outcomes)
Presentation (group) 30% (assesses all learning outcomes)
||Summative marks will be returned on a published timetable, which has been made clear to students at the start of the academic year.
Feedback will comprise written coursework assessment feedback and feedback during students' presentations.
|No Exam Information
On completion of this course, the student will be able to:
- Develop a critical understanding of the nature of modern energy and environmental markets and how prices are formed within them.
- Critically assess energy market policies and the factors contributing to their development, particularly the evolution of EU energy policy after the Lisbon treaty.
- Undertake a critical evaluation of the role of renewables in the EU energy mix and how EU climate action policies have influenced European/global energy mix.
- Develop a critical understanding of how environmental markets and policies influence energy commodity prices.
- Critically assess energy investment case studies.
|Dahl, C. A. (2004) International Energy Markets: Understanding Pricing, Policies and Profits. Oklahoma: Penwell|
Dorsman, A., Westerman, W., Karan, M. B. & Arslan, Í. (2011) Financial Aspects in Energy: A European Perspective. Berlin Heidelberg: Springer.
|Graduate Attributes and Skills
||- Engaging with new ideas and be able to detect false logic by leveraging available resources;
- Effectively managing time and workload demands within a dynamic and challenging work environment;
- Demonstration of advanced numeracy and quantitative skills;
- Competently communicating and exchanging ideas within different contexts and to audiences of varied compositions;
- Presentation of reasonable and data-supported arguments in writing as well as orally.
|Course organiser||Dr Luca Taschini
|Course secretary||Miss Yvonne Stewart
Tel: (0131 6)51 5333