PA - C8 - ECO663 : The Economics of Energy and Sustainable Development


The Economics of Energy and Sustainable Development


Yannick Perez



There are four hours of lectures each week (including exercises)




This course provides the background to understand the role of energy in economic growth and the issues associated with a sustainable development. It will cover a variety of theoretical and empirical topics related to energy demand, energy supply, energy prices, environmental consequences of energy consumption and production. It will analyze the various public policies (international agreements, emission trading schemes, public subsidies, technical norms…) to promote the energy transition in view of a sustainable development. A reading list will be provided for each session and presentations of students are expected during the time devoted to the exercises.


Calendar for academic year 2018-2019




11/01 session 1

Energy and economic growth: the key issues for a sustainable development

18/01 session 2

Demand forecasting: theory and practice

25/01 Session 3

Regulation of the Energy industries

01/02 Session 4

Reform of the energy industries

08/02 Session 5

Natural Gas Price Regulation, Deregulation and Markets

15/02 Session 6

Electricity Price Regulation, Deregulation and Markets

22/02 Session 7

Economics of renewable energies

08/03 Session 8

EU policies toward Renewable Energy Sources

15/03 Session 9

Economics of new mobility solutions

22/03: Session 10

Evaluation with written exam


Grading and Evaluation of the students

The grading for the course will be as follows:



Class Participation


Oral presentation during exercises


Quiz which will take place on the last session





Selected references

Eid Cherrelle, Codani Paul, Perez Yannick, Reneses Javier, Hakvoort Rudi, 2016, Managing electric flexibility from Distributed Energy Resources: A review of incentives for market design, Renewable and Sustainable Energy Reviews, Volume 64, pp 237–247.

Glachant Jean-Michel, Khalfallah Haikel, Perez Yannick, Rious Vincent and Saguan Marcelo 2013, Implementing Incentive Regulation with Imperfect Regulators, Competition and Regulation of Network Industries, pp264-289.

Hoarau Quentin and Perez Yannick, 2018, Interactions Between Electric Mobility And Photovoltaic Generation: A Review, Renewable and Sustainable Energy Reviews 94 (2018) 510–522.

Jaffe A.B., Newell R.G., Stavins R.N. (2005) A tale of two market failures: technology and environmental policy, Ecological Economics 54, 164-174.

MacKay, David J.C., (2009) Sustainable Energy without the Hot Air, UIT Cambridge Ltd.

Nordhaus William D , and Paul A Samuelson, Economics, 19th edition, McGraw Hill, 2010.

Perez Yannick et Staropoli Carine, 2014, Quelle politique industrielle pour la transition énergétique ?, Revue d’Economie Industrielle, N° 148, pp 19-31 2014

Porter, M. E., & van der Linde, C. 1995. Toward a new conception of the environment competitiveness relationship. Journal of Economic Perspectives, 9(4): 97-118.

Rious Vincent, Perez Yannick and Jean-Michel Glachant 2011, Transmission Network Investment as an Anticipation Problem.  Revue of Network Economics, Vol.10 Iss.

Schmalensee, R. and Stavins, R. N. “The SO2 Allowance Trading System: The Ironic History of a Grand Policy Experiment”. Journal of Economic Perspectives: Vol. 27 No. 1 (Winter 2013)

Sinn, H.W. (2008). Public policies against global warming, International Tax and Public Finance, 15, 4, 360-394.

Stern N. (Ed.), The Stern review report: The economics of climate change, HM Treasury, London, 2006.

Weitzman, M.L. (1974): Prices versus quantities, Review of Economic Studies, 41, 477-491.

Format des notes

Numérique sur 20

Littérale/grade réduit

Pour les étudiants du diplôme Renewable Energy, Science and Technology

L'UE est acquise si note finale transposée >= C
  • Crédits ECTS acquis : 4 ECTS

Pour les étudiants du diplôme Energy Environment : Science Technology & Management

L'UE est acquise si note finale transposée >= C
  • Crédits ECTS acquis : 4 ECTS
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