The Political Economy of Energy
From Concept to Realization
ECO 328
Fall 2014.
MW 12:45-2:00 , Room 111 FCB
Instructor: Dr. Dean Smith
Office: 304 FCB, 523-7396
Office Hours: MWF 8-9 and by appointment.
Three (3) Credit hours.
Thought to start the semester:
Climate change is difficult for people to evaluate dispassionately because it entails deep political and industrial implications, and because it arises from the core processes of our civilization’s success. This means that, as we seek to address this problem, winners and losers will be created. The stakes are high, and this has led to a proliferation of misleading stories as special interest groups argue their case. (Flannery, 2005, page 4.)
Course website:
http://franke.nau.edu/about-the-fcb/faculty/dean_smith
Go to: http://www.franke.nau.edu/ select Faculty links, on the right side select the Faculty link. Scroll down to my picture for the link and then ECO 328 energy
It is suggested that you print off the presentations AS HANDOUTS before the appropriate class period so you have them available for notes
Course Description:
The issues, theory and public policy of energy economics; the cultural, social and ethical issues of energy economics; history of various forms of human energy conversion and the potential future forms of energy conversion.
Energy is closely linked to economic prosperity, quality of living, air and environmental quality, human health, and water consumption especially in the arid regions. Because of this deep and intertwined relationship between energy, humans, and the environment, emphasis will focus on prospects for a sustainable energy future in both in urban areas and emerging societies, including indigenous communities.
Course Objectives:
1. Explain the energy issues resulting from human energy conversion. (Global, sustainability and diversity)
2. Explain issues influencing the human experience and to appreciate the normative aspects of the issues relating to energy conversion.
3. Explain a cognizance of the costs and benefits of various types of energy conversion. (Global, sustainability and diversity)
4. Demonstrate an understanding of the economic and social consequences stemming from climate change. (Global, sustainability and diversity)
5. Demonstrate an understanding of the alternative futures of energy markets and policies. (Global, sustainability and diversity)
Students expecting definitive solutions to the various energy challenges facing the US and global economies will be sadly disappointed: these solutions are moving targets and require economically creative participants in markets and policy. This course is designed to introduce the students to ways of knowing, doing and organizing aimed at solving these complex social and economic challenges.
This course is focused on the economics and policy of energy conversion. This is not a course focused on the chemistry, biology, ecology or any other investigation of topics such as climate change or pollution; rather, the main question concerns the costs and benefits of various forms of energy conversion. Of course, all good economists must be fluent in a reading and understanding of these other disciplines of study.
Course Structure:
The successful student is expected to gain a working knowledge of the vocabulary, issues and analytical tools necessary to discuss the impact of economic activity, energy outcomes and influences, and public policy. An understanding of these mechanics is essential to an understanding of the various aspects of energy conversion. The successful student must also show an understanding of the rationales, consequences and points of disagreement over the various policy measures studied.
The lecture periods will be used to develop, analyze and openly discuss the theories and policies presented in the assigned readings. The class discussion will clarify and extend the material presented in the readings; as such preparation and attendance are essential. Given the normative nature of the material, it is expected that lively class discussions will take place.
Textbooks and Required Materials:
Energy Reading packet
Available in FCB Support Services room 229
Access to the internet is required.
ECO 328 Website
Course Content:
1. Social Decisions: Dogs and Thinking Energetically as primary Text
a. The basic physics and economics of energy conversion
2. Energy Use and the Consequences Poop as primary text
a. The basic chemistry, physics and biology of energy conversion:
3. Energy Systems and Social Evolution Sieferle as primary text
4. The Basic Economics of Energy
a. Externalities
b. Coase and what he really wrote
5. Renewable Energy, Allen, Atwater and Smith
6. Discovering Life Alternatives: Heroin Anyone?
7. Food and energy: Omnivore’s Dilemma, Arizona Food and Energy Project
a. Food and energy presentations
8. Cap and Trade Economics
9. The History of Energy: Europe’s Special Course, World Energy Outlook as primary texts
a. Europe as a case study from uncontrolled solar to controlled solar to fossil fuels
b. How did we get into this mess: the big OOPS?
c. What is the future of fossil fuels?
d. Team I
10. The Global Social Costs of Energy: IPCC, Stern,
a. Adaptation
b. Team II
11. A New Energy Regime: IPCC, Stern,
a. Mitigation
b. Team III
12. Village Based Production: Energize Baby
a. Reinventing the system
13. If Not Now, When?
a. Class discussion
14. If Not Us, Who?
a. Class discussion
Examinations:
There will be one take-home mid-term exam and a take-home final exam. Each exam will be in written format. The questions will include analytical models and policy analysis.
The Energy/Water Nexus
There is a huge connection between our use of water resources and our use of energy resources. We simultaneously use water to produce electricity, natural gas and oil, and use a huge amount of electricity - much produced using natural gas and water - to move water. Of course, this brings up the idea of Zeno's Paradox: we use energy to move water to produce energy to move the water to produce energy to move the water...
Each student will write a short paper concerning explaining the nexus between energy and water. The paper will focus on the nexus in the US.
· How are water resources used to produce "useful" energy resources?
· How are energy resources used to produce "useful" water resources?
· What amount or percentage of each is used for the other?
· Are there alternative strategies to improve the efficiency of resource use?
If any of the above bullets are not included in the paper, the grade will be reduced. All necessary statistics and other references must be documented. A portion of the grade is determined by organization and presentation (grammar and spelling). Any graphs can be hand-drawn.
See the Sandia Labs website: http://www.sandia.gov/energy-water/
( Stolen from Jim Loy's Zeno's Paradox page: Little-known story: Achilles didn't win the above race. So, he challenged the tortoise to a pole vault competition, double or nothing. The tortoise's pole bent impressively, before it catapulted him out of Greece, never to be seen again. I made that one up.)
Cap and Trade
Each student will write a technical paper concerning the possible implementation of a “Cap and Trade” program regarding CO2 or any other effluent due the use of energy. (See the existing SO2 markets.) This paper will include a description of :
a. The basic economics of a C&T program. Distinguish between the arguments of a cap and trading the cap
b. The possible methods of allocating the cap
c. The implications of these various allocation methods in terms of revenues and wealth (for whom)
d. The possible uses of the revenues from a C&T program regarding the economic efficiency of the process
e. A conclusion regarding a C&T program
If any of the above topics are not included in the paper, the grade will be reduced. A portion of the grade is determined by organization and presentation (grammar and spelling). The necessary graphs can be hand-drawn.
Term Paper
Each student will write a 6-10 page report detailing a specific aspect the possible futures as related to energy. The class will self-select into three "teams."
Team 1: Europe’s Special Course: How did we get into this mess?
Professor Sieferle and his colleagues have completed some extremely interesting work discussing human’s evolution of energy conversion. This series of studies created the basis for the “Everyone Poops” discussion presented in the second week of the course. Students working on this team will investigate the processes by which the global economy has ventured into a transitory economy based on fossil fuel-based energy conversion. This team will evaluate and analyze the existing and projections for markets and policies.
Team 2: Adaptation: What to do since climate change is happening.
“Changing existing policies and practices and adopting new policies and practices in the face of climate change and its associated impacts.” (UNDP unpublished, 2006).
Adaptation will be necessary to address impacts resulting from the warming which is already unavoidable due to past emissions. This will require the development of new markets and products in addition to policy changes.
Team 3: Mitigation: What to do to stop it
“The ultimate objective of the Convention is the stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. Accordingly, under Article 4.1(b) of the Convention, all Parties are required to undertake efforts to mitigate climate change.”
Mitigation will be necessary to reduce the amount of green house gases being added to the cumulative total. This will require the development of new markets and products in addition to policy changes.
Grading System:
Exam 1 20%
Nexus 20%
Cap and Trade 20%
Term paper 20%
Final Exam 20%
Mechanisms for Feedback:
The professor provides written comments and evaluations on all assignments for this course. Students also have the opportunity to interact with the professor during office hours and through the campus e-mail system.
Re-tests and Makeup Policy:
N/A: take home exams
Expected Schedule of Events
The Excel spreadsheet indicates the discussion days for each of the readings.
Attendance:
You are expected to attend all classes. You are responsible for all material presented in the classroom and assigned readings. You are also responsible for all schedule changes and other announcements made in class: if an exam date is changed, and you miss the exam, then you cannot use the excuse that the original date was changed!
Due to the technical nature of this course, it is highly unlikely that infrequent attendance will result in a passing grade.
This is a junior level course and you are expected to treat it as such with a level of academic maturity. It is expected that you will have read the assigned material prior to class. The student is fully responsible for all the material discussed in class and the assigned reading. For each unexcused absence, a reduction in the semester grade will be made equivalent to 5% (half a letter grade) of the overall available grade. You MUST inform me of your expected absence BEFORE you miss a class.
Only official university approved absences must allow you to miss an exam. Note: simply visiting the health center is not an excuse. You MUST inform me of your expected absence BEFORE you miss an exam. Make up exams may be given after consultation between the student and the instructor.
In this class, and every other class, you should expect to spend a minimum of 2 hours outside of class for every class hour. In our case, this means 3 hours of study for every class period. You should visit the LAC if you are having trouble keeping up. The LAC offers a variety of programs on study skills. Feel free to stop by my office at any time if you need help or guidance.
Statement on Cheating:
Any student caught cheating on an exam or plagiarizing on an assigned paper will receive a grade of F for the course and will be reported to the appropriate University officials.
References
All papers will include a properly formatted bibliography. Any use of specifically quoted data or specifically quoted language must be cited within the text with parenthetical references such as (Smith, 2010, page 34). In addition to the required readings, you should be using additional materials dependent on your specific topic.
Cline Library has numerous useful websites posted on their Citation & Style Guides page.
HYPERLINK "http://library.nau.edu/cf/info/refresources.cfm?subject=Citation%20&%20Style%20Guides" http://library.nau.edu/cf/info/refresources.cfm?subject=Citation%20%26%20Style%20Guides
Cline Library has numerous useful websites posted on their Writing Resources page.
HYPERLINK "http://library.nau.edu/cf/info/refresources.cfm?subject=Writing%20Resources%20" http://library.nau.edu/cf/info/refresources.cfm?subject=Writing%20Resources
Wikipedia is considered a very bad source for material.
Plagiarism: as quoted from University of British Columbia, (2011) "APA Citation Style", HYPERLINK "http://web.ubc.ca/okanagan/library/citations/apa.html" http://web.ubc.ca/okanagan/library/citations/apa.html, accessed January, 11,2011.
"What kinds of sources do I document?
· direct quotations from a book, article, film, letter, email, lecture, etc.
· single words, short phrases, sentences and longer passages quoted from books, articles etc.
· ideas you draw from a source but present entirely in your own words
· paraphrases and summaries of books, journal articles, pamphlets
· single words, short phrases, sentences and longer passages quoted from books or articles used
· statistics"
FCB Business Communication Center
At all stages of the project, and for the 3 required Executive Summaries, you are encouraged to utilize the resources of the BCC. The website is listed below.
HYPERLINK "http://www.franke.nau.edu/StudentResources/commcenter/%20" http://www.franke.nau.edu/StudentResources/commcenter/
Code of Professionalism: The educational experience at the Franke College of Business is designed to prepare you to become community leaders and to start your professional career. There is no better place to begin this process than in your preparation for and behavior in class. All students will sign a Code of Conduct Agreement. FCB Business students are offered the opportunity to participate in the FCB Professionalism Recognition Program
Get ready to learn some neat stuff.
All students must sign a Code of Conduct agreement
NAU W.A. Franke College of Business
Code of Conduct