COURSE NUMBER: MBA212.1

 

This course is cross-listed with the Evening and Weekend MBA Program

 

COURSE TITLE: Business Strategies for Energy and the Environment

 

UNITS OF CREDIT: 3 Units

 

INSTRUCTOR: James Bushnell and Catherine Wolfram

 

E-MAIL ADDRESS: bushnell@haas.berkeley.edu and wolfram@haas.berkeley.edu

 

CLASS WEB PAGE LOCATION (HTTP URL): http://faculty.haas.berkeley.edu/wolfram/212/index.html

 

MEETING DAY(S)/TIME: Thursdays, 6:00 p.m. to 9:30 p.m.

 

PREREQUISITE(S): Microeconomics (MBA201A or its equivalent).  The course will also build on the finance core course (MBA203 or its equivalent).

 

CLASS FORMAT: Classes will be a mixture of lectures and case discussions.

 

REQUIRED READINGS: The course will use the textbook "Economics of Regulation and Antitrust" by Viscusi, Vernon and Harrington and a packet of readings and case materials.

 

BASIS FOR FINAL GRADE: Grades will be based on a midterm, a final and participation in two in-class market simulations.

 

ABSTRACT OF COURSE'S CONTENT AND OBJECTIVES:

 

Over the past 30 years, 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 decade, industries that had previously been viewed as staid and conservative have been rocked by deregulation initiatives, the California electricity crises, the Enron scandal, rising commodity prices, and a growing focus on climate change.

 

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 the development and effect of organized spot, futures, and derivative markets in energy; the political economy of deregulation; climate change, environmental impacts and policies related to energy production and use; privatization of publicly owned energy assets; market power and antitrust; and the transportation and storage of energy commodities. We examine the economic determinants of industry structure and evolution of competition among firms in these industries; investigate successful and unsuccessful strategies for entering new markets and competing in existing markets; and analyze the rationale for and effects of public policies in energy markets.

 

BIOGRAPHICAL SKETCHES:

 

Catherine Wolfram:

 

Catherine Wolfram is an associate professor of business administration at the Haas School of Business at UC Berkeley. She has taught core microeconomics to daytime and evening students and won the teaching award from the evening students in 2006. Her research focuses on how market and regulatory environments affect firms’ strategies, and she has focused on the energy industries. For example, she has studied electricity industry privatization and restructuring around the world and, in recent work, she is evaluating the effects of policies designed to address climate change on the stock of electric generating plants. She received a PhD in economics from MIT. Before joining the faculty at UC Berkeley, she was an assistant professor of economics at Harvard University.

 

James Bushnell:

 

James Bushnell is Research Director of the University of California Energy Institute and a lecturer at the Haas School of Business at UC Berkeley where he has taught a course on energy markets since 1999. He has written extensively on the regulation, organization, and competitiveness of energy markets. His research on energy markets has been cited in many publications including the Wall Street Journal and the New York Times. Dr. Bushnell has served as a member of the Market Monitoring Committee of the California Power Exchange and is currently a member of the Market Surveillance Committee of the California Independent System Operator (CAISO). He has also testified on regulatory and competition policy issues before numerous state and Federal regulatory and legislative institutions and consulted on energy issues throughout the U.S. and internationally.