This course provides students with deep understanding of quantitative risk management techniques used in the energy sector. Some of the topics to be covered include inter alia, real options, value at risk and use of derivatives for trading and hedging. At the end of this module, students would be expected to know how to measure and manage risk-adjusted returns of asset portfolios.

The extent to which an investor can derive benefits from investments in the energy sector depends on the quality of managing the risks inherent in business transactions in the sector.

This module attempts to achieve a comprehensive coverage of econometrics and its applications, with particular emphasis on policy analysis. The module will allow students to build clear understanding econometrics models based on cross-sectional data. The module will allow students to be able to derive more complicated and more realistic applied models. Issues related to econometric estimates (including endogeneity) will be deeply discussed. By the end of the Econometrics I module, student will be able to:

a)      Understand applied techniques relevant to Cross-section datasets.

b)     Design, implement, and critically evaluate empirical research.

c)      Handle standard menu-driven econometric software, and high-level programming language developed for basic and advanced econometric studies (STATA will be used through).

The aim of this module is to provide the student with the theory and techniques of industrial microeconomics for application in the energy sector. The module also aims at familiarizing students with conceptual and appropriate mathematical tools in microeconomic theory.The module covers basic microeconomic concepts and applies them to practical issues in the energy sector. Topics covered include demand and supply analysis, market equilibrium and different market structures, international trade, investment and capacity expansion, risk and investment finance, and economic analysis of energy policy including environmental policy. Some additional topics to be covered will include the basis of supply and demand analysis, market equilibrium and public policy analysis.