INSTRUCTOR:
OFFICE HOURS:
Rhonda L. Ross, M.S.ChE, J.D.
Adjunct Instructor rhondaross@wayne.edu
Steven Salley, D.Eng , Associate Professor
Faculty Contact
College of Engineering
5050 Anthony Wayne
Room 1111
Phone: 577-5216; e-mail:ssalley@eng.wayne.edu
By Arrangement
COURSE CONTENT:
This course explores the theoretical and empirical perspectives on individual and industrial demand for energy, energy supply, energy markets, and public policies affecting energy markets. It discusses aspects of coal, oil, natural gas, electricity, and nuclear power sectors and examines energy tax, price regulation, deregulation, energy efficiency and policies for controlling emissions.
LEARNING
OBJECTIVES:
EXPECTED LEARNING
OUTCOMES
This course will allow students to develop an understanding of many fields of economics that relate to energy including finance, game theory, basic microeconomics, and environmental economics. Particular attention will be paid to current day, realworld applications of economics in the energy world.
After completing this course, students will be able to:
Describe current energy market trends and relate current conditions to historical market performance;
Explain basic oil market and gas market dynamics, focusing on consumer and producer responses to prices;
Identify uncertain factors in long-term forecasts (especially as relate to project evaluation) and employ analytical tools to

AET 5620/EVE 5620
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METHODS OF
ASSESSING
OUTCOMES
PREREQUISITES:
STUDENT
RESPONSIBILITY: guide decision making under uncertainty;
Explain concepts fundamental to the economics of energy and natural resources;
Describe the cost-benefit approach to evaluation of public policy toward energy and natural resources;
Articulate the economic and natural resource issues that act as barriers to fully integrating alternate energy sources in the
U.S.
Discuss the use of cap-and-trade, pollution taxes, and other economic approaches to energy and environmental regulation.
Student performance will be assessed by review of homework assignments, overall class participation, projects and presentations, and quality of the mid-term exams.
Homework: There will be several homework assignments over the course of the semester.
Class participation: The primary focus of many class periods will be classroom discussion of the assigned materials facilitated by the instructor. Students are expected to contribute to discussions and other classroom activities.
Mid-term exams: There will be two mid-term exams during the semester.
Papers and Presentations: There will be several papers written and presented by students over the course of the semester. These are designed to engage the students in active learning and to provide them with opportunities to hone their written and verbal communication skills.
Senior or graduate standing in the science or engineering disciplines.
The student will be responsible for all lecture material, class participation, advanced reading assignments, homework assignments, project assignment, term exams, and any other tasks or assignments given by the instructor.
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HOMEWORK &
ASSIGNMENTS:
TEXTBOOK:
GRADING:
REFERENCES:
Students are responsible for attending class and for submitting all assignments, projects, tasks, and exams in a timely manner. No late submittals will be accepted without prior approval by the instructor. Please note that although the online system used by the University may accept submittal of a late assignment, project, task, or exam, that does not mean the instructor will accept or grade that submittal or count it towards the student’s final grade.
Students are responsible for contacting their classmates to find out what they missed if they were unable to attend a class.
Assigned at first weekly lecture; due at the beginning of the following week lecture. Late homework cannot be accepted and will not be checked. Outright copying of homework or any unethical conduct in completing and submitting your homework will be prosecuted according to the cheating policy of the College and the University.
Tom Tietenberg and Lynne Lewis, Environmental and Natural
Resource Economics, 8th ed., New York: Addison Wesley, 2009.
There will be a substantial amount of assigned reading materials based on the Web and through Wayne State’s online library resources.
Grades will be based on a combination of homework assignments, projects, and exams.
MID TERM EXAMS: There will be two mid-term exams.
They will be online and open-book, open note exams. They will consist of several short answer essay questions and will focus on your ability to analyze the material covered in class. Each exam will be worth 100 points. Make-up exams will be given only by prior arrangement and only for valid reasons. College policy states that anyone giving or receiving information during an exam will be given an immediate failing grade for the course.
HOMEWORK ASSIGNMENTS: There will be several homework assignments given out during the term. Most of these assignments will involve contributing to online discussions of specific issues or research topics covered in the course. The aggregate number of points available for homework will be 100
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EXTRA CREDIT:
DEFERRED GRADES:
WITHDRAWAL
POLICY: points.
PROJECTS & PRESENTATIONS: There will be 3 projects assigned during this course. Projects consist of both a short paper and classroom presentation. The short paper will generally consist of a memo to the instructor regarding the student’s findings, including answering any specific questions presented by the instructor. Presentations will generally require powerpoint or other visual aids. Grading rubrics for both the papers and the presentations will be available on blackboard.
Projects will be worth 100 points each for a total of 300 points.
CLASS PARTICIPATION: Attendance and participation in class is mandatory. Therefore, there are up to 50 points available for class participation. Unexcused absences may result in a deduction of points. Inform the instructor in advance, via email, of any absence.
Mid Term Exams (2) 200
Term Projects and Presentations (3) 300
Homework 100
Class Participation
TOTAL POINTS:
50
650
Graduate grades will be based on the following scale:
100 % - 90 %: A to A-
89 % - 80 %: B+ to B -
79% - 70 %: C+ to C
69 % - 0 %: F
No extra credit projects will be allowed.
Deferred grades are allowed only if (1) the student is not failing the course, and (2) the student can complete the required materials without retaking the course or requiring faculty supervision. The instructor is very unwilling to use this approach.
Students who withdraw from a course after the end of the 4th week of class will receive a grade of WP, WF, or WN. WP will be awarded if the student is passing the course (based on work
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DISABILITIES:
RELIGIOUS
OBSERVANCE POLICY: due to date) at the time the withdrawal is requested. WF will be awarded if the student is failing the course (based on work due to date) at the time the withdrawal is requested. WN will be awarded if no materials have been submitted, and so there is no basis for a grade. Students must submit their withdrawal request on-line through Pipeline. The faculty member must approve the withdrawal request before it becomes final, and students should continue to attend class until they receive notification via email that the withdrawal has been approved. Withdrawals can be requested at any point from the fifth week of class through the study day.
Students with a documented disability that require accommodations will need to register with Student Disability
Services (SDS) for coordination of your academic accommodations. The Student Disability Services (SDS) office is located at 1600 David Adamany Undergraduate Library in the
Student Academic Success Services department. SDS telephone number is 313-577-1851 or 313-577-3365 (TDD only). Once you have your accommodations in place, I will be glad to meet with you privately during discuss your special needs. Student
Disability Services’ mission is to assist the university in creating an accessible community where students with disabilities have an equal opportunity to fully participate in their educational experience at Wayne State University. Please be aware that a delay in getting SDS accommodation letters for the current semester may hinder the availability or facilitation of those accommodations in a timely manner. Therefore, it is in your best interest to get your accommodation letters as early in the semester as possible.
Because of the extraordinary variety of religious affiliations represented in the University student body and staff, the Wayne
State University calendar makes no provision for religious holidays. It is University policy, however, to respect the faith and religious obligations of the individual. Students who find that their classes or examinations involve conflicts with their religious observances are expected to notify their instructors well in advance so that alternative arrangements as suitable as possible may be worked out.
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ACADEMIC
INTEGRITY:
Plagiarism: Plagiarism is a particularly serious violation of academic integrity standards. Plagiarism includes copying material (any more than 5 consecutive words) from outside texts, websites, documents, papers, etc., or presenting outside information as if it were your own by not crediting authors through citations. It can be deliberate or unintended. If you're in doubt about the use of a source, cite it. Students caught plagiarizing information from other sources will receive a failing grade in the course. University policy states that students can be subject to multiple sanctions, from reprimand to expulsion as a consequence of academic dishonesty. To enforce this policy, all outside references must be properly cited in all assignments.
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TENTATIVE SCHEDULE (Additional details will be provided on Blackboard)
2
1
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Introduction to Energy
A.
What is Energy
B.
What role Does Energy Play in the U.S.
Economy?
C.
What Role Does Energy Play in the National
Security of the U.S.
D.
What is the U.S. Energy Policy?
E.
How Has the U.S. Energy Policy
Developed/Changed Over the Last 50 Years?
F. When in the last 50 years did “energy”, environmental protection, or “sustainable development” become newsworthy?
G. In lieu of federal energy policies, many states have been either developing their own policies, or suing the U.S. to develop various policies.
Student Research – Find Papers describing the role of energy in the National
Security of the U.S.
Student Research – Find Papers describing the U.S. Energy Policy
Introduction to Viewing Energy and Natural Resources as Economic Assets
A.
Valuing the Environment: Concepts
B.
Valuing the Environment: Methods
C.
The Concept of Global Commons
Tietenberg, Chapter 2
Tietenberg, Chapter 3
1.
Garrett Hardin, “ The Tragedy of the Commons ”, Science 13,
December 1968, Vol. 162, No. 3859 pp. 1243 - 1248. ( DOI:
10.1126/science.162.3859.1243)
(http://www.sciencemag.org/content/162/3859/1243.full)
Student Research – Identify how the U.S. Energy Policy has
Developed/Changed over the last 50 years
PROJECT #1:

Research the TIME magazine archive for articles related to energy, environmental protection, and sustainable development for the time frame assigned to you.

Draft a memo summarizing your findings

Include detailed list of articles found in your memo including links

Prepare presentation to class regarding your findings
WATCH:
NOVA: California’s Big Gamble ( http://video.pbs.org/video/1051958162/ )
What have other states done?
What is Massachusetts v. EPA ?

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4
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D.
Property Rights, Externalities, and
Environmental Problems
Introduction to Sustainability
A.
What is “Sustainability” or “Sustainable
Development”?
B.
Is there an Inherent Conflict between Capitalism and Sustainable Development?
C.
Dynamic Efficiency and Sustainable
Development
Tietenberg, Chapter 4
Tietenberg, Chapter 5
Energy Depletion: Socioeconomic and Environmental Stressors and the Potential for Conflict
A.
The Self-Extinction Premise
1.
The Roman Empire
2.
The Mayan Civilization
3.
Easter Island
Tietenberg, Chapter 1
B.
Energy Depletion and International Conflicts
1.
Blood for Oil?
2.
Is Gas the New Oil?
3.
What is China Doing in Africa?
4.
Who Owns the resources under the oceans and ice caps?
C.
The Allocation of Depletable and Renewable
Resources: An Overview
D.
The Role of Cartels
1.
OPEC
2.
A Gas OPEC?
Tietenberg, Chapter 7
“ A Gas OPEC” Don’t Worry, There Won’t Be an Effective Gas Cartel
The Economist, February 5, 2007.
( http://www.economist.com/node/8655645/print )
”,
E.
Peak Oil? Peak Oil
The Nation: Video Series on Peak Oil
( http://www.thenation.com/article/157434/peak-oil-and-changing-climate )

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6
7
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What is the Real Cost of Energy
A.
The External Costs of Pollution and Natural
Resource Depletion
1.
Economics of Pollution Control: An
Overview (Tietenberg, Chapter 15)
2.
Stationary Source Local Air Pollution
(Tietenberg, Chapter 16)
3.
Regional and Global Air Pollutants: Acid
Rain and Atmospheric Modification
(Tietenberg, Chapter 17)
4.
Water Pollution (Tietenberg, Chapter 19)
B.
Health and Welfare Costs
C.
Climate Change
1.
What is the cost to the U.S.?
2.
Developing Countries?
3.
Should the U.S. Be Responsible for China’s
GHG Emissions for Products Manufactured for the U.S.
Tietenberg, Chapter 15
Tietenberg, Chapter 16
Tietenberg, Chapter 17
Tietenberg, Chapter 19
Paul Krugman, “ Building a Green Economy
Magazine, April 7, 2010.
”, The New York Times
(http://www.nytimes.com/2010/04/11/magazine/11Economy-t.html)
The Impact of Transportation on energy, the Environment, and the Economy
A.
Mobile Source Air Pollution (Tietenberg, Tietenberg, Chapter 18
Chapter 18)
B.
CAFE Standards
C.
Urban Sprawl
D.
Los Angeles
Visions for the Future
Tietenberg, Chapter 8
Tietenberg, Chapter 23
A.
Energy: The Transition from Depletable to
Renewable Resources (Tietenberg, Chapter 8)
B.
The Quest for Sustainable Development
(Tietenberg, Chapter 23)