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Exploring Possible Futures

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Introduction on modeling

Why do we need economic models?

Why do we need economic models?

Reflection: What about you?

Reflection: What about you?

What are economic models?

What are economic models?

What do scientists think about economic modelling?

What do scientists think about economic modelling?

Reflection: Making economic models useful

Reflection: Making economic models useful

Modelling structure and how this course works

Modelling structure and how this course works

Models used in energy and environmental economics

Models used in energy and environmental economics

Assess your knowledge

Assess your knowledge

Model fundamentals: supply and demand

Model fundamentals: supply and demand

Exercise: Ensure a balance in your first model

Exercise: Ensure a balance in your first model

Which supply did you choose?

Which supply did you choose?

Your first model: the mathematics

Your first model: the mathematics

Exercise: Ensure cost optimal supply

Exercise: Ensure cost optimal supply

Wrap up: models are helpful if you know how to use them

Wrap up: models are helpful if you know how to use them

System perspective

Systems and markets

Systems and markets

Reflect: What is the price tag?

Reflect: What is the price tag?

Optimization models

Optimization models

Exercise: Ensure emission targets

Exercise: Ensure emission targets

Reflection: The costs of emissions

Reflection: The costs of emissions

Social costs and welfare

Social costs and welfare

Exercise: Find the allocative optimum in your first market model

Exercise: Find the allocative optimum in your first market model

Reflection: What is the correct price for carbon?

Reflection: What is the correct price for carbon?

Your market model: the mathematics

Your market model: the mathematics

Assess your knowledge

Assess your knowledge

External vs. internal

External vs. internal

Wrap up: who do we steer?

Wrap up: who do we steer?

Firm perspective

From system to firms

From system to firms

Building blocks: firm behaviour

Building blocks: firm behaviour

How to use and distinguish building blocks? I

How to use and distinguish building blocks? I

Building blocks: additional observations

Building blocks: additional observations

Reflection: How to use and distinguish building blocks? II

Reflection: How to use and distinguish building blocks? II

How to complete a model

How to complete a model

Exercise: Steering firms via prices

Exercise: Steering firms via prices

Reflection: Price in, choice out

Reflection: Price in, choice out

The firm model: the mathematics

The firm model: the mathematics

Assess your knowledge

Assess your knowledge

From optimization to equilibria

From optimization to equilibria

Equilibrium models

Equilibrium models

Exercise: Price-quantity relations to liberate demand

Exercise: Price-quantity relations to liberate demand

Reflection: Feedback from policy to consumer demand

Reflection: Feedback from policy to consumer demand

Price-quantity relations: the mathematics

Price-quantity relations: the mathematics

Wrap up: firms vs. markets

Wrap up: firms vs. markets

Second-best worlds

Which model type to choose

Which model type to choose

Two sides of the same coin

Two sides of the same coin

Perfect competition as example

Perfect competition as example

Assess your knowledge

Assess your knowledge

From perfect to imperfect

From perfect to imperfect

First-best or second-best: coping with realities

First-best or second-best: coping with realities

Exercise: Steering firms – what a difference a monopoly makes

Exercise: Steering firms – what a difference a monopoly makes

Reflection: Same prices different outcome

Reflection: Same prices different outcome

Monopoly model: the mathematics I

Monopoly model: the mathematics I

Monopoly model: the mathematics II

Monopoly model: the mathematics II

From one to many

From one to many

Exercise: Steering firms – from one to many

Exercise: Steering firms – from one to many

Reflection: Compare the results – same policy, different outcome?

Reflection: Compare the results – same policy, different outcome?

Oligopoly model: the mathematics

Oligopoly model: the mathematics

Wrap up: perfect to imperfect

Wrap up: perfect to imperfect

Putting the pieces together to look into the future

Putting the pieces together

Putting the pieces together

Let the computer do the work I: optimizations

Let the computer do the work I: optimizations

Let the computer do the work II: equilibriums

Let the computer do the work II: equilibriums

Getting ready for the future

Getting ready for the future

Exercise: Exploring possible futures

Exercise: Exploring possible futures

Reflection: How does your future look?

Reflection: How does your future look?

Last essential steps

Last essential steps

From story to paper

From story to paper

Assess your knowledge

Assess your knowledge

Thanks and goodbye

Thanks and goodbye

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Exploring Possible Futures
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INTRODUCTION ON MODELING

1.8

Assess your knowledge

Select if the following statements are either true or false.

Models used in energy and environmental economics
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Model fundamentals: supply and demand
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