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Quantitative Methods in Energy and Environmental Economics
Last Updated: 2026-02-05 15:55:24
Abstract
The course provides an introduction to numerical methods used to analyze problems in energy and environmental economics with a focus on climate policy. Emphasis will be put on partial and general equilibrium models describing the energy sector and its interaction with the rest of the economy.
Objective
The objectives of the course are twofold. First, the course is intended to provide an introduction to the economic assessment of energy and environmental policy. To this end, the course provides students with an overview of state-of-the-art tools to economic modeling. Second, the course is intended to familiarize master (and doctoral students) with the computer software necessary (the course uses GAMS) to implement these quantitative methods to initiate their own research in energy and environmental economics. Ancillary objectives of the course include an introduction to environmental implications of energy use and the role of economic analysis in designing policies that address issues of energy security, climate change, and related environmental externalities.
Content
The course introduces numerical methods to analyze problems in energy and environmental economics. The focus is on applied economic modeling based on partial and general economic equilibrium models. The course reinforces concepts, rationales, and instruments for policy intervention in energy markets, including an introduction to environmental implications of energy use and the role of economic analysis in designing policies to address environmental externalities. Students will develop expertise in working with data and in applying numerical economic models using the software GAMS (General Algebraic Modeling System). Emphasis will be put on the following economic models: formulation of economic equilibrium models using mixed complementarity problems, static and dynamic partial equilibrium models of energy supply and demand. The course aims at enabling students to apply economic modeling techniques to analyze issues of energy security, energy demand, energy markets, integrated economy-energy systems, the economic assessment of energy and climate policies, and the environmental implications of fossil-based energy use. Students gain hands-on knowledge of the application and limitations of these quantitative tools for applied economic analysis. To this end, the course familiarizes students with the steps and knowledge required to apply quantitative methods, covering topics related to software, data preparation, model specification based on economic theory, model calibration, and scenario assessments. To achieve the learning goals, the course combines input lectures—providing the basic knowledge about the relevant economic concepts, models, and numerical methods—with elements focused on the application of quantitative methods through a supervised group project. The aim of the group project is to obtain a deeper comprehension of the quantitative tools covered in the input lectures by applying them to a variety of different issues in energy and environmental economics.
Resources
Literature
Lecture notes, exercises and reference material will be made available to students during the semester.
General Information
- Language
- English
- Levels
- MSC
- Frequency
- Yearly recurring
Examination
- Type
- graded semester performance
Registration & Places
- Max Places
- 20
- Signup End
- 26.02.2021
Course Components
| Type | Title | Time & Place | Hours |
|---|---|---|---|
| lecture with exercise | Quantitative Methods in Energy and Environmental Economics |
|
4 h weekly |
Offered In
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Electives (These courses are particularly recommended, other ETH-courses from the field of Energy Science and Technology at large may be chosen in accordance with your tutor.)
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