1)Producing sufficient energy to meet expected world demand represents a significant challenge for the next generation. Find estimates of world energy demand for the next twenty to thirty years. You have been asked by the IEA to prepare a memorandum that discusses the challenges associated with meeting this demand. In particular focus on the regulatory and legal environment that facilitates or hinder energy investment. Is it reasonable to expect an entirely free market (make sure to define this concept) to result in the provision of sufficient energy infrastructure. If not, describe what government or social interventions are necessary to provide sufficient investment.
2)For much of the past century important aspects of the energy sector have been subject to stringent economic and environmental regulation. This regulatory posture stands in sharp contrast to much of the rest of the US economy (e.g. automobile production or microchip production). Briefly trace the history of these regulations. Discuss the theoretical justification and the cost of these regulations. Finally, discuss what insights current policy makers should draw from this history in choosing policies to balance competing interests.
3)The shale gas boom represents one of the most important events in the history of energy economics. Outline the technological, regulatory and economic factors that have facilitated this transition. In addition, increasing consumption of natural gas has important environmental implications (both positive and negative). Discuss these implications and address reasons why an unregulated market will (or will not) generate an environmentally optimal outcome.