ECC2460 Energy markets and policy

This is a unit on how energy and associated environmental markets work (e.g. carbon markets), and the regulatory mechanisms that have been used or are available to achieve desired policy goals. Energy market policy often attempts to simultaneously achieve environmental, reliability and affordability goals – goals that usually work against each other. Analysts need to understand key economic and technological concepts to contribute to energy and environmental related policy debates. Students will apply their understanding of these concepts to analyse Australian policy issues.

The unit uses an electricity market game as a primary teaching tool. In the game, students play the role of electricity generators and retailers in order to gain an understanding of how market rules (including carbon emission regulations and renewable energy mandates) affect the business strategy of market participants; and in turn economic and environmental outcomes. This hands-on participation will provide students with the opportunity to understand the economic incentives faced by energy market participants and the challenges faced by regulators.