This course is cross-listed with FT MBA


NOTE: This course has histrocially been offered in the EWMBA Program every other year. Place your bid for this course accordingly.

COURSE TITLE: Energy and Environmental Markets


INSTRUCTOR: Severin Borenstein


MEETING DAY(S)/TIME: Wednesdays, 6-9:30PM

PREREQUISITE(S): Microeconomics (EWMBA201A) or its equivalent.

CLASS FORMAT: Classes will be a mixture of lectures, case discussions, and group work on market analysis

REQUIRED READINGS: The course will use a packet of readings and case materials.

50% exams- in class quizzes and final exam
40% energy strategy games and writing assignments
10% class participation

NO ELECTRONICS POLICY: This course will follow the "no electronics" policy that is used in the MBA core. Use of laptop computers, cellphones, ipads, or other electronic devices during class will not be permitted. If you have a certified medical need to use a laptop in class, please come and talk to me about it.

In the past 40 years, some of the largest industries have transitioned from regulated to market-based paradigms. Managers in many transportation, information technology, and energy companies have had to devise strategies to cope with changes in economic and environmental regulations and the evolution of new markets and trading platforms. The energy industries feature a complex mix of regulation and market-driven incentives. Over the last two decades, energy markets that had previously been viewed as staid and conservative have been rocked by deregulation initiatives, the California electricity crises, the Enron scandal, volatile oil and natural gas prices, innovations in renewable energy and the challenge to reduce greenhouse gases.
Drawing on the tools of economics and finance, we study the business and public policy issues that these changes have raised in energy markets. Topics include  traditional and alternative models of utilities in electricity and natural gas markets;  the political economy of deregulation; climate change, environmental policy and markets for green energy; competitive and market power in energy markets; transportation and storage constraints in energy commodities; and the development of organized spot, futures, and derivative markets in energy,  We examine the impact of regulation in these industries, study firms' successful and unsuccessful competitive strategies, and explore the rationale for and effects of public policies in energy and environmental markets.

Severin Borenstein is the E.T. Grether Professor of Business Administration and Public Policy at the Haas School of Business and Co-Director of the Energy Institute at Haas. He received his A.B. from U.C. Berkeley and Ph.D. in Economics from M.I.T. His research focuses on business competition, strategy, and regulation. He has published extensively on airline competition, the oil and gasoline industries, and electricity markets. His current research projects include the economics of renewable energy, energy efficiency evaluation, cap and trade markets for GHG reductions, and the impacts of retail electricity pricing structures. Borenstein is also a research associate of the National Bureau of Economic Research in Cambridge, MA. He served on the Board of Governors of the California Power Exchange from 1997 to 2003. During 1999-2000, he served on the California Attorney General's Gasoline Price Task Force. In 2010-11, he served on the Department of Transportation's Future of Aviation Advisory Committee and on the Supply and Infrastructure taskforce of the Department of Energy's National Petroleum Council Study of the Future of Transportation Fuels.  He is currently a member of the Emissions Market Assessment Committee for California’s GHG cap and trade market.