The Economics and Finance of Energy at NYU, Y45.2420

New York University
School of Continuing and Professional Studies
M.S. Program in Global Affairs
Energy Policy, Y45.2420
Summer 2010, Monday & Wednesday, 6:00-9:10pm
May 15, 2010

INSTRUCTOR: Chris Gadomski
http://www.smidirect.net/nyu
OFFICE HOURS: Wednesdays by appointment
OFFICE PHONE:914.993.9060
E-mail:gadomski@nyu.edu

Course Objective

Major drivers of energy policy are social goals, resource availability, pricing, security and climate change. Accordingly, in examing energy policy, we will explore these issues from a social, technological, economic, environmental and political perspective.

Our objective will not only be to understand the drivers that make this web of issues so complex, but to also understand how these issues evolve.

During the summer of 2010, we have the luxury of observing energy policy in the immediate wake of the American Power Act which was released by Senators Kerry and others just in the second week of May. It gives us direct insight into the issues surrounding the formation of US Energy Policy. From this starting point, we will examine the issue of energy policy as practised elsewhere around the globe. How are the issues being molded and manipulated? And why? A key objective of this course is differentiating the rhetoric from fact by understanding the data and the technologies that drive decision making.

As a result of climate change, energy policy has a much more global dimension. Although countries around the world are unique, the same economic, energy and environmental issues challenge them. An idealist would hope that the governments of the world’s nations would work in harmony to adopt the most effective energy policies that maximize the economic, environmental and social benefits for their citizens. A realist would suggest the global economic environment doesn’t work that way. What benefits one nation may harm another.

In neighboring France and Germany, for example, nuclear power plays and will play a very different role in the future. In many cases, the best policies or technologies may not yet be evident and/or require significant investment to realize. And, who should make these decisions? Is government qualified, or is the marketplace a better manager? Within a country, lobbyists may sway government to adopt policies that don’t maximize the benefit to the majority, but rather are self serving. Think corn ethanol. Tried and true policies of the past may no longer work as rising levels of CO2 in the atmosphere change the dynamics of energy production. Together we will lay down a solid foundation in energy issues and technologies so that you can better assess, and hopefully, guide energy policy.

I challenge you to set aside partisan views and to think critically about energy technologies, global economic competition, our global environment, and our social responsibility. Through this prism imagine what energy policies may best carry the US and other countries through the 21st century.

Course Structure

This is an applied course that will be taught as a seminar. We will learn about energy policy through extensive reading, lectures, case analysis and class discussion. Our starting point is a great reading list and clips from the daily newspapers that will form the foundation for our class discussions. We will complete our course with a semester-long individual project that will examine the energy policies of selected countries designed to simulate the real decision making issues you would face as experts formulating energy policy.

Required Reading

A book list has not been provided to the bookstore. Visit required reading for a direct link to Amazon.

• Robert Baer, Sleeping With The Devil, (New York: Crown Publishers, 2003)
• Paul Roberts, The End of OIl, (New York: First Mariner Books, 2004)
• Robert Bryce, Power Hungary, (New York: Public Affairs, 2010) ISBN 9781586487898

Choose One of the Following
• Sherry Boschert, Plug-in Hybrids, (New Society Publishers, 2006)
• Tom Zoellner, Uranium: War, Energy, and the Rock That Shaped the World, ISBN-13: 9780670020645
• Christopher Horner, Power Grab, (Washington, DC:Regnery Publishing, Inc., 2010) ISBN 9781596985995

Additional online Acts/articles/chapters supplementing the reading are:

• American Power Act
• Bloomberg New Energy Finance Summit 2010 Results Book
• Copenhagen Consensus Papers:

The Challenges
Global Warming Perspective Paper: Christopher Green
Global Warming Perspective Paper: Anil Markandya

• Investment: Risk, Return and the Role of Policy
• Energy Policy Recommendations, National Commission on Energy Policy, April 2007.
• Pollin, Robert Heidi Garrett-Peltier, James Heintz, and Helen Scharber with Kit Batten and Bracken Hendricks, “Green Recovery A Program to Create Good Jobs and Start Building a Low-Carbon Economy” September 2008.
• The United Nations Environment Programme, International Labor Organization, International Trade Union Confederation’s Green Jobs Initiative, “Green Jobs: Towards Sustainable Work in a Low-Carbon World.” (Read the executive summary and the conclusions)
• Grossman, Peter Z. (2008). “The History of U.S. Alternative Energy Development Programs: A Study of Government Failure,” Searle Center Conference September 2008 (Bad Public Goods). Northwestern University.
• The Wall Street Journal, or The Financial Times, or The New York Times, or any relevant articles published online. Bring articles to class for discussion.

Your Grade

• Class Attendance and Participation--33%
• Midterm Examination--33%
• Semester Paper/In-Class Presentation--33%

Class Attendance

I expect you to be prepared for every class by doing the assigned readings. I will open each class by asking you to summarize the topic of the day and to relate news stories you have clipped to present or past discussions. If you are not prepared, letting me know ahead of time will save us both some embarrassment. 33% of your grade will be from class participation and discussion….it is important that you read the material before class and voice your opinions in class. Missing class will adversely effect your grade. I will run this class as a seminar, and will routinely assign students as class leaders to direct the discussion.

Individual Semester Paper/In-Class Presentation

To start we will examine energy policy from our perspective residing in the largest metropolitan area in the United States. Our view will differ from views of residents in Florida, Texas or California, and much more so, from residents in other countries.

Please identify two countries that interest you (aside from those countries profiled in chapter four of Howard Geller’s Energy Revolution). Followign discussion with me, choose one, and prepare a detailed analysis of the energy challenges facing that country. Suggest energy policy initiatives you would recommend to improve the social, economic, environmental and political conditions in that country. Give thought to the global energy issues that not only abound today, but that will likely be more severe in ten to 15 years—how will the world look then--and try to assess how vulnerable your selected country will be to various social, technologica, economic, environmental and political disruptions.

Support your strategy with as much data as feasible regarding country specific data. Quantify the projected economic, environmental and social impact your recommended policy initiatives will produce. Prepare a 15-20 minute presentation for the class, a one-page executive summary to hand out to the class, and a ten page paper (plus exhibits) due on the second to last class. Presentations will be delivered during the last two classes of the semester.

In your written paper, pay particular attention not only to content, but also to presentation. Often times, great ideas poorly presented, fail to move forward.

Helpful Hints: The goals of this exercise is leveraging your expertise as an expert on the energy issues facing another country, and formulate effective policies that could improve the economic, environmental and social issues facing that nation. Use the cases in the Geller book as a starting point, they offer good examples of problem resolution through effective policy initiatives.

In choosing a country, give thought to your current career interest and how becoming an expert in one particular country can advance your career interest.

Getting it done

• Don’t be absent. Missing class will adversely affect your grade. Enough said. Please hand-in all written assignments in class and email me a copy.

• I have an affinity for numbers…and I expect you to develop the same in this class. If your paper is short on numbers…something is wrong. A strong grasp of, and comfort with, the numbers is crucial in this class and in your careers going forward.

• It is the express policy of the class that no late assignments will be accepted under any circumstances. I expect each student to bear individual responsibility for his or her work and to uphold the ideal of academic integrity.

• This is an applied course. Remember this in your writing assignments. I will ask for your opinions, make sure that you articulate them clearly when writing a paper for me. As future policy analysts, I want you to take positions and argue succinctly. If you have any questions about what I expect, please ask me to clarify before you submit anything to me.

Regarding academic integrity…make sure not to plagiarize anyone else’s work either intentionally or unintentionally. Plagiarism is defined as using someone else's words or ideas without proper attribution. The proliferation of Web pages and electronic publications makes it easy for plagiarism, accidental or otherwise, to occur. When in doubt, make sure to include a full citation either as a footnote or as a reference at the end of the paper.

For example, the above three sentences were excerpted from the course syllabus of Masaaki Kotabe, The Washburn Chair of International Business and Marketing, Temple University, International Marketing (MKT 514).

I look forward to a wonderful semester.

New York University School of Continuing and Professional Studies M.S. Program in Global Affairs Energy Policy, Y45.2420 Summer 2010, Monday & Wednesday, 6:00-9:10pm May 15, 2010

INSTRUCTOR: Chris Gadomski http://www.smidirect.net/nyu OFFICE HOURS: Wednesdays by appointment OFFICE PHONE:914.993.9060 E-mail:gadomski@nyu.edu