POWER SYSTEMS ECONOMICS IN THEORY/-IES AND IN REAL LIFE
Dr. Jean-Pierre Hansen
No enrollment limit, no advance sign up
Participants welcome at individual sessions (series)
Prereq: Introductory economics helpful. Interest in electricity.
The translation between economic theories and real-world practice is not always straightforward in the energy industry. This lecture series will explore how a few select economic theories can (or cannot) be applied to real-world situations. Jean-Pierre Hansen (full speaker bio below) will draw examples from his long career in both industry and academia to help students navigate the sometimes confusing and counterintuitive world of energy economics. This lecture series is designed to complement other energy economics classes at MIT.
A background in introductory economic theory will be helpful for students but is not required. (Each lecture will start with a review of the basics.)
Speaker Bio: Jean-Pierre Hansen managed Electrabel, one of the leading European electricity companies, for 20 years. He has also been Chairman to a number of energy companies that operate at an international level (30 countries). He is currently a Member of the Executive Committee of GDF SUEZ, the world’s second-largest gas and electricity Group. He is a Professor of Economics at the Catholic University of Leuven and the Ecole Polytechnique (Paris). Jean-Pierre holds a degree in Economics and graduate degrees in Electrical Engineering.
Co-sponsored by Electricity Student Research Group.
Web: http://esrg.mit.edu/events/iap-2011/
Contact: Tim Heidel, E19-439A, (617) 715-4551, heidel@mit.edu
Sponsor: Energy Club
Did you say “Market”?… (How) Does it (really) work for electricity
Dr. Jean-Pierre Hansen
The move to a market system is not all that simple! Amongst other things, if we wish to replace a regulated electricity system with an electricity market system, we must consider the three elements that determine an exchange, i.e. a market: the product, the time and the place. How does it work for electricity, given the so-called forgotten hypotheses of microeconomics…?
Co-sponsored by Electricity Student Research Group.
Mon Jan 24, 02:30-04:00pm, E52-175
Ricardo’s nuclear power plants: why should a manager know the Theory of Rent?
Dr. Jean-Pierre Hansen
The general theory of rents explains several major problems in electricity economics. For instance, differential rents (or infra-marginal rents), which manifest in the operation of optimal generating facilities, are often called windfall profits. However, it is shown that such rents are necessary in order to (re)build optimal generating facilities and therefore cannot be taxed. The issue of “Missing Money.”
Co-sponsored by Electricity Student Research Group.
Tue Jan 25, 02:30-04:00pm, E52-175
Market Power: how can it be measured – proved?
Dr. Jean-Pierre Hansen
95% of economic and legal literature regarding the reform of the electricity sector concerns “Market Power”. This is both surprising and logical all at once: its definition, its calculation and its analysis foil all of the traditional indicators: Lerner, HHI, and “Pivotals”. So? How can the CEO of a company define his policy?
Co-sponsored by Electricity Student Research Group.
Wed Jan 26, 02:30-04:00pm, E52-175
From C. Adams to Averch-Johnson… and many others: the myth of perfect regulation.
Dr. Jean-Pierre Hansen
Origins, theories, paradoxes and practices of regulation: the true story and “everything you have ever wanted to know about regulation, but never dared to ask”.
Co-sponsored by Electricity Student Research Group.
Thu Jan 27, 02:30-04:00pm, E52-175
Latest update: 14-Jan-2011
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