AEM 3115 - Evaluation of Green Energy Strategies and Markets

(CU-SBY)

Fall. 3 credits. Letter grades only (no audit).

Prerequisite: ECON 1110.

H. de Gorter.

After an overview of the trends in renewable energy and the multitude of public policies and private initiatives, a conceptual framework to analyze the social costs and benefits will be developed and each policy compared in terms of achieving social goals. The perverse effects of combining policies like subsidies and mandates at both the state and federal levels will be emphasized, along with the interaction of renewable policies with regional cap and trade regimes, and regulations like fuel economy standards and EPA environmental regulations. The specific economic and technology issues facing renewable electricity versus biofuel markets will be addressed, providing students a detailed understanding of each market and the effects of public policies. The effects of biofuel policies on food commodity prices will be emphasized.

Outcome 1: Analyze how the renewable energy industry got started, the technological and economic challenges it faces and the consequences of government policies.

Outcome 2: Assess how well the broad spectrum of policies achieve GHGE reductions.

Outcome 3: Identify the many perverse and contradictory effects of such policies as mandates, subsidies, import barriers, sustainability standards and indirect land use measures.

Outcome 4: Explain how to revise current policies and recommend alternatives to best achieve a carbon neutral economy using renewable energy.

Outcome 5: Detail how biofuel policies were the major driver of the tripling of grains/oilseed prices in 2008 and 2011 and to high food commodity prices to this day.