Department of Economics,

Faculty of Social Sciences,

Banaras Hindu University, Varanasi

Draft Syllabus of Masters in Energy Economics (MEE) for Approval

Will be in force from Session 2017-18
Background to the Course:
This course owes its Origin to the BRICS-NU programme to which Banaras Hindu
University is an International Partner. Of few selected Core Areas of Research and Higher
Study Energy is an important part and Energy Economics is one among the cores. Its our
proud privilege that the Hon’ble Vice Chancellor, Prof. G.C.Tripathy happens to be the
Leader of this Core Area and Group. On the initiation of the Hon’ble Vice Chancellor and the
guidance of the Dean of Faculty of Social Sciences Prof.Manjeet Kumar Chaturvedi,
Department of Economics decided to launch this course, Master in Energy Economics.
Course preamble:
Efficiency and sustainability of energy system are pre-requisites for Sustainable
Development and the challenges to achieve this lie at the interface of technology innovation
and human behavior. This course is tailored for the student desiring an understanding of the
relationship between the energy sector and the wider economy. It covers additional topics in
related and associated fields of Management, Commerce, Engineering, Mining and Natural
Resources with emphasis on tracing the national and Global impacts and implications of
energy sector decisions. This course provides an overview of the economic, technological,
and political forces that shape the global energy industry, the methods governments use to
regulate the industry, and the business models that emerge.
The course aims at broadening the vision of students while making any energy related
decision as a technology developer, energy manager, entrepreneur, policy maker, researcher
in future or simply for personal energy use in day to day activities.
Topics to be covered include, resource based energy activities, depletion policy and
environmental issues, pricing security and sustainability.
The course begins by framing the industry in its microeconomic context and uses that
framework to explore the role of technology and innovation, global markets and geopolitics,
and the regulation of externalities including climate change. The readings and coursework
will use specific examples from the power, renewables, oil & gas, and environmental sectors
from the both developing and developed countries and other select geographies to illustrate
these forces in context. Students can tailor their final policy memo towards their topics of
interest.
Objectives
The aim of the of the Masters in Energy Economics programme is to prepare the students for
managerial , advisory and academic position in the energy sector. The programme aims to
provide an intellectually challenging academic programme which will strengthen the ability
of students to analyse, synthesise and evaluate key theoretical concepts and practical
applications in energy with emphasis on the economic dimensions of the subject. Since the
world’s long term economic development depends on the existence of efficient, innovative
and creative energy industries individuals who possesses sound knowledge on various aspects
like economic, commercial, technical, management and environmental aspects will be of high
demand and cater to the need of both at national and international level.
Student learning outcomes:
At the end of the course, the student will have a better understanding of the functioning of
international energy markets, developed tools and techniques to learn more and analyze even
beyond the course. The students will:
To master theoretical models relating to energy markets, energy regulation and policy,
environmental issues, risk management, energy and the economy, energy sustainability
be able to work out quantitative examples and use computer applications and skill to increase
intuitive understanding of theoretical models
To understand the economic principles developed in the models
To understand how models can be used for forecasting, policy analysis and project
evaluation
To have an understanding of terminology along with key drivers and interactions in
energy markets
To be able to acquire and use information in major international energy data bases
To be familiar with important institutions, technologies, concepts, and public policy
issues
To think critically and recognize energy myths and misconceptions.
The Class Room and Methods of Teaching
This is a lecture and discussion based course. The chief mode of teaching is interactive
interface between the teacher and the taught. Student participation is encouraged and
expected. Students will be provided with reading materials and references and are encouraged
to read assigned material before the scheduled class, so that they can participate meaningfully
in the class room discussion. From time to time additional readings will be added to the
course as may be deemed to be relevant and necessary. Apart from regular class room
teaching seminar discussions, workshops, invited talks, guest lectures and video shows. All
modules will be delivered in the Department of Economics, Faculty of Social Sciences, on
the campus of the Banaras Hindu University in face-to-face mode. Self-study makes up a
considerable proportion of the student's learning experience. Formal and informal group work
occurs in some modules. There will be industry- academia interaction with the successful
actors. The students are required to complete successfully one internship between 2nd and 3rd
Semester and a project work during 3rd and 4th Semester. The internship will be evaluated and
credit will be awarded by the host institute.
Eligibility:Graduates with minimum 50% of marks from BA(Economics), BA (Hons)
Economics, B.Com, B.Tech and MBA are eligible for admission in to this course. However,
since the course is mathematics oriented and use higher mathematics candidates desirous of
admission in to it are required to have Mathematics as a subject at Senior Secondary School.
Admission: Admission to the course is through the ALL INDIA ADMISSION ENTRANCE
TEST (PET) conducted by the Banaras Hindu University. After qualifying the entrance test
students are required to face the counseling by the University and the admission is based
strictly on merit basis.
The Course Fee: This is a self finance course and students are required to pay a fee of
Rs.30,000/- per semester and a total of Rs.1,20,000/- for the full term four semester course. A
part from other regular fees also payble.
Course Structure:
All papers covered under the course are Core courses of 4 credits each and dissertation is 4
credits. The internship is assigned with 4 credits. So total credit score is 84 credit.
Sl.No Course No Course Title Course No Course Title
SEMESTER I SEMESTER II
1 MEE-101 Microeconomics MEE -201 Macroeconomics
2 MEE -102 Energy Economics MEE -202 Basic and Applied Econometrics
3 MEE -103 Environmental Economics MEE -203 Advanced Resource Economics
4 MEE -104 Mathematical Economics MEE -204 Investment and Portfolio Management
5 MEE -105 Applied Statistics MEE-205 Advanced Mining and Evaluation
SEMESTER III SEMESTER IV
6 MEE-301 Operations Research MEE -401 Economic Evaluation
and Project Management
7 MEE-302 Research Methods for MEE-402 Management of Technology for
Energy Analysis Energy
8 MEE-303 International Trade in MEE -403 International Business Strategy
Energy resources and Energy Sector
9 MEE -304 Energy ,Economy and MEE -404 Energy, Climate Change and
Society Global Politics
10 MEE-305 Accounting and Finance MEE -405 Field Work based Dissertation

System of Examination and Evaluation

Students will be assessed on the following basis:
Course Work: 30%: (Mid semester examination / field work 20%; Presentation 10%)
Final Examination: 70 %
Dissertation: 100 marks.

SEMESTER WISE DETAILED CURRICULUM

SEMESTER I:
MEE-101 Microeconomics
Unit I : Basic Economic Problems
Central Economic Problems; Problem of Allocation of Resources; Resource Scarcity and
Substitutability; Problem of Economic Efficiency; Problem of the Extent of Utilization of
Resources.
Unit II : Basic Economic Concepts
Concepts in Model Building: Variables ⎯ Dependent and Independent Variables,
Endogenous and Exogenous Variables, Stock and Flow Variables, Functional Relationships
and Parameters, Identities and Equations,Building a Micro-Static Model; Process of Building
and Testing an Economic Model; Distinction and Integration between Micro and Macro
Economics; Time Lags; Economic Models; Employing Data for Empirical Estimation;
Statistical Testing.
Unit III: Demand and Demand Forecasting
Demand ⎯ Meaning, Conditions, Function, Shift Factors in Demand; Demand for Energy as
a Derived Demand; Demand Forecast ⎯ Features, Objectives, Importance; Criteria for a
good Forecasting Method; Steps in Demand Forecasting; Methods of Demand Forecast;
Demand Forecasting of an Energy Product; Network Externality in Demand.
Unit IV: Market and Market Structures
Classification ⎯ Perfect and Imperfect Competition; Factors determining the Nature of
Competition; Barriers to Entry; Types of Barriers.
Pricing Strategies
Price Leadership ⎯ Types, Features, Merits and Problems; Price Policy ⎯ Objectives,
Merits, Problems and Importance; Factors affecting Pricing Policy; Methods/Strategies and
Kinds of Pricing; Guidelines for Price Determination; Principles of Price Policy; Price and
Allocation Controls.
Unit V: Cost Analysis
Cost Concepts used in Decision Making Process; Short-Run Cost Functions ⎯ Average
Fixed Costs, Average Variable Costs, Relationship between Average Product and
Marginal Product, and Average Variable Cost and Marginal Cost; Long-Run Cost
Functions ⎯ Economies and Diseconomies of Scale, Economies of Scope; Application of
Cost Analysis ⎯ Breakeven Output Level, Factors Influencing Break- Even
Point⎯Changes in Price, Fixed Cost and Variable Cost Per Unit, Profit Contribution
Analysis, Operating Leverage, Limitations and Significance of Break- Even Analysis.

MEE -102 Energy Economics
Unit I: Introduction to Energy Economics
Define Energy Economics; Energy Resources and Energy Commodities; Properties of Energy
Resources and Energy Commodities; Law of Thermodynamics; Energy Conversion
Processes; Energy Conservation and Energy Efficiency.
Unit II: Energy Crisis
Understanding the Energy Crisis⎯ Past to Present; The International Energy Crisis of the
1970s⎯Causes, Effects and Solutions to the Global Energy Crisis; Energy Crisis and
Solution in India.
Unit III: Economics of Energy Supply
Classify energy on the basis of sources ⎯ renewable or non-renewable; worldwide energy
supply ⎯ by country; sources of energy supply ⎯Fossil fuels (coal, oil, natural gas),
Renewable energy (Hydro, Marine, wind, solar, Geothermal, bio), Nuclear power; Trend and
patterns of energy production; Social, Economic and Environmental Effects of Energy
Production; Life Cycle of Energy Sources.
Unit IV: Energy Demand Analysis
Demand for Energy as a Derived Demand; Demand Substitution among Energy
Commodities; The Increasing Global Demand For Energy⎯ Causes and Impact of increase
in Demand for Energy; World Energy Consumption ⎯ Economic Growth and World Energy
Consumption by Source; Energy Consumption by End-use Sector (Buildings Sector,
Industrial Sector, Transportation Sector),Global Variations in Energy Use; Energy Use,
Social Problem and Energy Conservation;
Unit V: Trends in Energy Conservation
Trend and Patterns of Energy Consumption; Empirical Estimation of Economic Growth and
Energy Consumption; Empirical Demand Projection for Energy Sources ⎯ Regression
Technique.
Economic Pricing of Energy Sources
Production Cost versus Return of Investment; Empirical Determination of Breakeven
(economic) Price ⎯ Determination of Optimum Level of Output and attainment of
Equilibrium Level of Price of Energy Sources.
MEE -103 Environmental Economics
Objectives: This paper would enable the students to know about the theories of welfare
economics, environment and economy. Issues relating to environmental problems, policies
and protection and pollution control also find a special place in the syllabus.
Unit-I: Economy and Environment
Environment-economy relationship-Laws of Thermodynamics and Material Balance Model,
Environmental Kuznets Curve (EKC): Concepts and Genesis. Explanations of inverted-U
shaped EKC-empirical evidence- N-shaped EKC.
Unit II: Environmental Pollution as Economic Problem
Environmental Pollution as a Negative Externality (Pigou), the issue of Property Rights
(Coase), Optimal Pollution
Unit III: Pollution Control: Command and Control and Alternative Market Based
Instruments
Command and Control measures; Pigouvian taxes and subsides, marketable pollution permits
and mixed instruments (the charges and fees), Tradable pollution permits and international
carbon tax, Coase’s bargaining solution and collective action; Hybrid Instruments- two-part
tariff, double dividend hypothesis, illicit dumping.
Unit IV: Environmental Valuation
Basic issues of environmental valuation, Revealed Preference Approach- household
production function, travel cost, Hedonic price; Stated Preference Approach-contingent
valuation method.
Unit V: Sustainable Development and Environmental Accounting
Concept of sustainable development-sustainable development rules and indicators-measures
of sustainable development, Sustainable accounting-economics of green accounting and
sustainable resource management, Green Economy
References
Books
Pearce,D.W. and Turner,R.K. (1991) : Economics of Natural Resources and the Environment,
Hemel Hempstead, Harvester-Wheatsheaf.
Baumol, W.J. and Oates W.E.(1988) : Theory of Environmental Policy, 2nd Edition,
Cambridge University Press.
Bhattacharyya, R.N. (2001) : Environmental Economics : Indian Perspective, Oxford
University Press.
Hanley,N., Shrogen J.F. and White B. (1997) : Environmental Economics in Theory and
Practice,Macmillan.
Perman R., Ma Y., McGilvary, J and Common, M (1999) : Natural Resources and
EnvironmentalEconomics, 2nd Edition , Prentice Hall.
Freeman III,A.M.(1999) : The Measurement of Environmental and Resource Values : Theory
and Methods, Resources for the Future, Washington D.C.
Kolstad, C.D. (2000): Environmental Economics, Oxford University Press.
Bromley, D.W. (1995): Handbook of Environmental Economics, Blackwell.
Articles
Dinda, S.(2004) : “Environmental Kuznets Curve Hypothesis- A Survey”, Ecological
Economics,49 :431-455.
Munasinghe, M. (1999) : “Is Environmental Degradation an Inevitable Consequence of
Economic Growth: Tunneling through the EKC”, Ecological Economics,29 :89-109.
Harrison,D. and D.L. Rubinfeld (1978) : “Hedonic Housing Price and the Demand for Clean
Air”, Journal of Environmental Economics and Management,5: 81-102.
Banerjee, S. (2001): “Economic Valuation of Environmental Benefits/Costs” in
Bhattacharyya R.N. (ed) “Environmental Economics : Indian Perspective” ,Oxford
University Press.
Chopra, K.(2004) : “The Valuation of Biodiversity :the Case of Keoladeo National Park” in
Kadekodi, G.(ed) “Environmental Economics in Practice: Case Studies from India”, Oxford
University Press.
Markandya,A. and Murty, M.N.(2001) ; ‘Measuring Non-user Benefit from Cleaning
Ganges” in Markandya,A. and Murty, M.N “Cleaning up the Ganges :A Cost-Benefit
Analysis of the Ganga Action Plan,” Oxford University Press.
Sanyal, K. (2001) : “International Trade and the Environment” in Bhattacharyya R.N. (ed)
“Environmental Economics : Indian Perspective” ,Oxford University Press.
Chakraborti, P. (2001): “Global Environmental Issues and Initiatives” in Bhattacharyya R.N.
(ed) “Environmental Economics: Indian Perspective”, Oxford University Press.
Chichilinski, G. (1994): “North-South Trade and Global Environment”, American Economic
Review, 84(4):857-875.
MEE -104 Mathematical Economics
Unit I: Unconstrained optimization: one and more than one independent variable case, point
of inflexion, concave and convex functions. Solution with help of simple, partial and total
differential approach. Applications of unconstrained optimization in consumer’s/producer’s
behavior and in various forms of market.

Unit II: constrained optimization: optimization and its solution with help of Lagrange
multiplier (first order condition) and Bordered Hessian (second order condition) techniques.
Application of constrained optimization in consumer’s/producer’s behaviour.

Unit III Input-output analysis: the economic problem, assumptions. National income
accounting matrix. Construction of input output table. Leontief’s input output models:
Assumptions, Leontief’s open model, Leontief’s closed model, Leontief’s dynamic model.
The Hawkin-Simon feasibility conditions.
Unit IV: Game theory: Game theory and economics, Features of competitive games. Some
useful terminology. Solution for game theory. Rule (I)-pure strategy, Rule (II)-reduction in
strategies by dominance property, Rule (III)-mixed strategy, Nash equilibrium.

Unit V: Differential equations: first order linear differential equations- homogeneous and non
homogeneous cases and its solution. Application of first order differential equations in
growth models and in the market. Introduction to optimal control theory.

Selected References:
1. Baldani, Bradfield & Tuvner (2007), An introduction to mathematical economics.
Canada: Cenegage Learning.
2. Edward T. Dowling (1980), Introduction to mathematical economics. New Delhi:
Tata McGraw Hill.
3. Alpha C. Chiang (1984), Fundamental methods of mathematical economics. New
Delhi: McGraw Hill, International Book Company.
4. Yamane, Taro (1968), mathematics for economists: an elementary survey. New Delhi:
Prentice Hall.
5. Allen, R.G.D. (1959), Mathematical Economics. St. Martin’s press.
6. Intriligator, M.D. (1970), Mathematical optimization and economic theory. Prentice
Hall.
7. Takayama, A. (1974), Mathematical Economics. The Dryden Press.
8. Henderson, J.M. & Quandt, R.F. (1980), Microeconomic Theory: A Mathematical
approach. McGraw Hill.
9. Allen, R.G.D. (1986), Mathematical analysis for economists. New Delhi: Macmillan.
MEE -105 Applied Statistics
Unit I: An overview of statistics, Data description: scales of measurement, how to describe
data graphically for categorical data (pie chart, bar chart) and graphs for quantitative
variables (histogram, stem-and-leaf plot and time plot), how to describe data by summary
statistics: measures of central tendency and variability
Unit 1I: Correlation and Regression Analysis
Meaning and types of Correlation, Simple Correlation Analysis; Pearson’s Product Moment
Method & Spearman’s Rank Correlation Coefficient , Partial and Multiple Correlation
Analysis, Properties of Correlation Coefficient, Regression Analysis: Meaning , basic
concepts of Regression, Concept of Least Squares Method and examples, Properties of
Regression Coefficients /lines, Standard Error of Estimate,
Unit III: Random variables: Functions of random variables and their distributions,
Sampling Distributions of Sample mean and variance, Planning of Sample Surveys - Methods
of data collection, problem of sampling frame, choice of sampling design, pilot survey,
processing of survey data, Non-sampling errors - Sources and treatment of non-sampling
errors. Non –sampling bias and variance.
Unit IV: Probability
Meaning of probability and types of events, Laws of probability-Addition, Multiplication,
Baye’s Theorem and Expected Value Theorem. - Applications.
Unit V: Theory of Generalization and Hypothesis Testing
Concept of an Estimator and its Sampling Distribution, Properties of good Estimator,
Concepts of Hypothesis, Formulation of Statistical Hypothesis –Null and Alternative
Hypothesis , Types of errors: Type I and II Errors, Hypothesis Testing based on t , Z ,F, Chi-
Square , Statistical test, critical region, test functions, randomized and non–randomized tests.

SEMESTER II
MEE -201 Macroeconomic Analysis & Policy
Unit I: National income accounting and National Income Identities, Measurement of
National Income and Growth Rates in India, Circular Flow of Income in a two, three and four
sector economy.
Unit II: Determination of Income, Output & Employment- Classical Approach
(Introductory), Keynesian Approach and Introduction to Post-Keynesian debate (New
Classical Vrs. New Keynesian), Analysis of fiscal and monetary policies in the closed and
open economy IS-LM models, including the Mundell-Fleming model
Unit III: Consumption Function- Absolute Income Hypothesis and preview of post-
Keynesian theories, Investment Function-MEC & MEI- Multiplier & Accelerator
(Introduction & Application)
Unit IV: Supply of Money –The H-Theory and R.B.I. Classification, Understanding the
components of supply of money in India and their significance for business and economy,
 Methods followed by the RBI to regulate Supply of Money. Demand for Money-Concept &
Determinants (theoretical as well as applied perspective), Estimating Demand for Money in
India
Unit V: Macroeconomic Problem- Inflation & Unemployment- Phillips Curve, Theoretical
Model of Inflation in India, Economic Fluctuations- Nature and Characteristics of Trade
Cycle, Causes of occurrence of trade cycle from demand side (theoretical interpretation has to
be given) and supply side (In context of Real Business Cycle Theory), Recent Crises in the
world
Readings
▪ Blanchard, O. (2007): Macroeconomics, New Delhi, Pearson Education.
▪ Abel, A.S. and B.S. Bernanke (2005): Macroeconomics, New Delhi, Pearson Education.
▪ De Souza, E. (2008): Macroeconomics, New Delhi, Pearson Education
▪ Dornbusch. R., S. Fischer and R.Start, (2004): Macroeconomics, New Delhi, Tata Mc Grow
Hill.
▪ H.Yane (1997): A Macroeconomics Reader, New York, Routledge. World Bank (2007):
World development
MEE :202 Basic and Applied Econometrics for Energy Resources
Unit I: Methodology of Econometric Research: Model specification, Estimation of model,
Evaluation of parameter estimates, Forecasting power of model, Desirable proportion of an
econometric model.
Unit II: Linear Regression Model (OLS): Simple linear regression model, assumption of
linear stochastic regression model, least square criterion and normal equation, regression
without intercept, estimation of elasticities from estimated regression, goodness of fit and R2,
functional forms.
Unit iii: Evaluation of Regression Model: Regression diagnostic I – multicollinearity,
Regression diagnostic II – heteroscedasticity, Regression diagnostic III –autocorrelation.
Unit IV: Time Series Econometrics: Stochastic process, Unit root stochastic process, TS &
DS stochastic process, Integrated stochastic process, Spurious regression, Test of stationarity:
Graphical analysis, The unit root test – DF & AFD. Forecasting – Box – Jenkins (BJ)
Methodology.
Unit V: Panel Data Econometrics: Evolution and Significance of Panel Data, Issue of
unobserved variable, Heterogeneity and Selectivity Bias, Feasibility of Panel Formation,
Variation in slope and intercept coefficients, Fixed effect (FE) and Random Effect (RE):
panel unit roots.
MEE -203 :Natural Resource Economics
Unit I: Introduction to Resource Economics: Meaning and importance of natural resource
economics, classification of natural resource, Taxonomy of Natural Resources, Mc Kelvy’s
Resource Diagram, Resource Curse Hypothesis. Dimensions of Resource Scarcity, Physical
and Economic Measures
Unit II: Capital Theoretic Approach to Economics of Natural Resources, Dynamic resource
allocation problem, Maximum Principle, Discounting
Unit III: Economics of Exhaustible Resources:
Basic concepts – Hotelling rule, The concept of backstop, A simple model of optimal
depletion, Optimal extraction of an exhaustible resource, Dynamic framework with optimal
control-competitive and monopolistic models, Towards a backstop-exploration and technical
progress, environmental cost and resource extraction
Unit IV: Economics of Inexhaustible Resources
Resource Economic Models in Fishery and Forestry
Unit V: Basics of Mineral and Energy Resources
Competitive extraction, Monopoly extraction, Socially optimal extraction, Extraction with
capacity constraint, Extraction with exploration, Extraction with taxes

Reading List:
Conrad, J.M. and C.W. Clark. 1987. Natural Resource Economics: Notes and Problems.
Cambridge University Press, Cambridge.
Conrad,J. M : Resource Economics, Cambridge Univ. Press
Dasgupta, P.S. and G.M. Heal. 1979. Economic Theory and Exhaustible Resources.
Cambridge University Press, Cambridge.
Hartwick, J.M. and N.D. Olewiler. 1998. The Economics of Natural Resource Use (2nd
Edition). Addison Wesley, Reading, MA.
Macmillan.
N. Hanley, J. Shogren and B. White : Environmental Economics in Theory and Practice,
Pearce, D and RK Turner: Economic of Natural Resources and the Environmen, Prentice.
R.N. Bhattacharyya (Ed.) : Environmental Economics, OUP
MEE : 204 Investment and Portfolio Management
Unit I: Investment-A Conceptual Framework; Investment attributes; Investment process;
Investment Avenues; Investment Vs Speculation; Investment decision approaches; Financial
Markets; Portfolio Management Process; Common mistakes in Investment management.
Unit II: Investment Environment & Securities Market: Market Participants; Features and
Composition of Money market, Capital market and Debt market; Risk and Return;
Measurement of Risk & Return.
Unit III: Valuation of Bonds & Preference Shares; Valuation of Equity Shares; Fundamental
Analysis: Economy Analysis, Industry Analysis and Company Analysis; Technical
Analysis: Tools of Technical Analysis.
Unit IV: Modern Portfolio Theory: Markowitz Model; Capital Asset Pricing Model; Sharpe
Single Index Model; Arbitrage Pricing Theory; Efficient Market Hypothesis; Behavioral
Finance and its implications in Investment decisions.
Unit V: Portfolio Selection; Formulation of Portfolio Strategy; Optimal Portfolio; Portfolio
Revision- Strategies & Constraints; Portfolio Evaluation-Treynor measure, Sharpe measure
and Jensen Measure.
Suggested Readings:
Barua, S.K., Raghunathan, V. and Varma, J.R., Portfolio Management, Tata McGraw-Hill.
Bodie, et. al, Investments, Irwin McGraw-Hill.
Chandra, P., Investment Analysis and Portfolio Management, Tata McGraw-Hill.
Damodaran, A., Investment Valuation, John Wiley and Sons.
Elton, Edwin J. and Gruber, M.J., Modern Portfolio Theory and Investment Analysis, John
Wiley and Sons.
Fischer, D.E. and Jordan, R.J., Security Analysis and Portfolio Management, Pearson India.
ECM-205 : Advanced Mining and Evaluation
Unit I: Mineral formation: Geological time scale, Formation of deposits (Igneous,
sedimentary and metamorphous deposits), Identification of minerals
Unit II: Mineral Resources for Energy: Fossil fuels, classification of fossil energy
resources: Coal, Petroleum (properties & grading), Non-fossil energy resources: Uranium,
Geographical location: World scenario and Indian scenario & Statistics of important mineral
resources (coal, petroleum, uranium)
Unit III: Mineral Economics: Special features of mineral and mining industry,
Conservation of minerals, National mineral policy.
Unit IV: Estimation of Mineral Reserves: Methods of sampling during exploration and
mining, Concepts of Cut-off grade, and stripping ratio, Classification of resources: Estimation
of reserves, Introduction to geostatistical ore reserve estimation.
Unit V: Economic Evaluation: Break-even analysis, Economic appraisal of capital
investments by NPV and IRR methods, Comparison of investment alternatives, Feasibility
studies, Critical variables, price forecasting and sensitivity analysis, Global mineral
marketing
SEMESTER III
MEE-301 Operations Research
Operations Research
Operational defines of PERT/CPM Technique, Phases of OR, Models of Modelling in OR,
OR techniques, Uses and limitations of OR.
Linear Programming: Problem formulation, Graphical Solution, Simple Method, Duality
Concept
Project Management- Comparison of PERT/CPM, Assumptions of PERT/CPM, Algorithm,
Network Analysis, Fundamentals of Network model, Three estimate approach of PERT,
Resource Leveling and Time cost Trade-off Analysis.
Inventory Control Model: Deterministic Inventory Control Model
Simulation Techniques: Operational Definitions, The nature of simulation: Systems, Models
and Simulation, Motivation, Limitation and Pitfalls: Monte Carlo Simulation Technique.
Decision Theory: Basic Structure and Components of Decision, Decision Criteria, Decision
Tree.
Game Theory: Theory of two person, Zero sum game, Mixed strategies, Theory of Two
person, non-zero sum game, Solution method of game
Queuing Theory: Basic Charectristics, Queuing models:M/M/1 system, M/M/C system,
M/Ek/1 System
Sequencing Models: Classification, Assumptions, Sequencing Problem, n jobs through two
machines 7 three machines
Replacement, Maintenance and Reliability Problems: Failure rates, Reliability function,
Hazard Rate, MTBF
Information Theory –Entropy- A measure of uncertainty
Readings:
Vohra, N.D.; Quantitative Techniques in Management; Tata McGraw Hill Publishing
Company Ltd., New Delhi.
Wanger, H.M., Principles of Operation Research with Applications to Managerial Decision,
Prentice Hall of India, New Delhi.
Levin, R. I. and Kirkpatrick, C.A., Quantitative Approaches to Management, McGraw-Hill.
Hardy, A. Taha, Operations Research – An Introduction, Macmillan Publishing Co., New
York.
Harper, W.M., Operations Research, ELBS, London.
Hilier, F.S. & Lieberman, G.J., Introduction to Operations Research, Holden Day Inc. San
Francisco.
Hartley, R.V., Operation Research: A Managerial Emphasis, Good Year Publishing
Company, California.
MEE-302 Research Methods for Energy Analysis
Section-I Research Methodology :
Research- Meaning & Types (Descriptive, Analytical etc.), Introduction to Philosophy of
Research- The Research Onion,
Formulation of a Research Problem & Writing of a Research Synopsis: Research Design-
Quantitative, Qualitative & Mixed and their various kinds, Hypothesis – Formulation
(including Sources) & Types of hypothesis, Value neutrality of hypothesis,
Data Collection and Sampling - Types of sampling, determination of the size of sample,
Sampling Procedure, Choice of Sampling Technique. Tools of Primary data collection-
Questionnaire & Interview and their data entry and interpretation,
Hypothesis Testing- Type I & Type II Errors, concept of Confidence, Limits and critical
region, Test of significance for large and small samples –tests for mean and difference
between means, F tests. test of significance including Z, chi-square, t and F tests, analysis of
variance – one and two way classifications analysis & discussion. Use of Statistical tools and
their limitations, Explanation of Result
Section-II Research Methodology in Energy Economics :
Important national and international data bases for energy related studies, Methodology for
estimating and forecasting energy demand-simple and sophisticated approaches (End use
method, Input-Output Approach, etc.), Methodology for computing energy efficiency,
Computers and its Application: SPSS and Packages
Reading List-
• Kothari R.C. Research Methodology ,Methods and Techniques,New Age International
Publishers,IInd revised edition ,reprint 2008.
• Cooper D.and Schindler P. Business Research Methods ,Tata McGraw Hill.
• Don E. Ehridge Research Methodology in Applied Economics: Organizing ,Planning and
Conducting Economics Research ,John Wiley and sons, April 2004
• John W. Best and James V. Kahn, Research in Education.
• Goode and Heart, Research Method
• Jerry W. Willis, Foundations of Qualitative research: Interpretative and Critical Approaches.
Sage.
• R. Bogdan and S. Biklon; Qualitative Research for Education: An Introduction to Theory
and Methods, Allyn and Becon
• A. Chalmers; What is this thing Called Science: an Assessment of the Nature and Status of
Science and its Method, Hackett.
• J. Creswell; Qualitative Inquiry and research Design: Choosing among Five Traditions, Sage.
• Flick Uwe; An Introduction to Qualitative Research, Sage.
• Anselm Strauss and Juliet Corbin; Basics of Qualitative Research: Grounded Theory-
Procedures and techniques, Sage.
• Charles Teddlie and Abbas Tashakkori; Foundation of Mixed Methods Research, Integrating
Quantitative and Qualitative Approaches in Social and Behavioural Sciences, Sage.
MEE-303 International Trade in Energy resources
International Trade in Energy
Energy commodities are extensively traded between countries and the opportunity to buy or
sell energy commodities using foreign markets has a profound effect on domestic energy
markets. This course explores the concept of comparative advantage, including a discussion
of the welfare effects of international trade and the determinants of the amount of trade
between countries. It will also discuss the many ways that governments can alter international
trade through various policy mechanisms. The course will end with a discussion of the very
important role of international capital flows in financing energy projects, determinants of
those flows and how they are affected by government policies.
Unit: I
Global Scenario of Energy: Energy consumption in various sectors and its changing patterns.
The future energy security and market behavior, Global demand and supply outlook, Energy
needs and demand of developing countries.
Unit: II
Models of the Oil Market: Competitive Models: Property Rights Model (Nationalization),
Supply Shocks Model, Target Revenue Model.
Non-Competitive Models: OPEC Cartel, Oligopoly Model.
Unit: III
Challenges for International Trade in Energy: Unequal distribution of energy resources,
Issues related to restrictive practices of energy exporting countries; Energy dual pricing
policies, Period of high oil prices, 1973-85, Increasing Global Competition, Import
Dependence.
Unit: IV
Trade in oil, gas and electricity; Challenges in Trade in oil, gas and electricity: Infrastructure
and construction of transportation pipe lines, Transmission grid.
Unit: V
Energy Charter Treaty (ECT): International Energy Agency; Role of international capital
flows in financing energy projects.
Reading List:
Andre Mornier, “Setting the Rules of Energy Trade” In Fundamentals of the Global Oil and
Gas Industry. London: Petroleum Economists (2008)
Yulia Selivanova, “ The WTO and Energy. WTO Rules and Agreements of Relevance to the
Energy Sector, Trade and Sustainable Energy Series, ICTSD Programme on Trade and
Environment, International Centre for Trade and Sustainable Development (August, 2007)
Yulia Selivanova, “ World Trade Organization Rules and Energy Pricing: Russia’s Case, 38
Journal of World Trade 4 (2004)
Yulia Selivanova, “Energy Dual Pricing in WTO Law, Analysis and Prospects in the Context
of Russia’s Accession to the WTO.” Cameron May(2008),
Statement of the Energy Charter Secretariat at the Council for Trade in Services, WTO, 11,
February, 2010.
The Energy and Resources Institute (TERI) Energy Data Year Books
International Energy Agency, World Energy Outlook, Executive Summary.
Adelman, M. A. (1982) “OPEC as a Cartel.” in J. M. Griffin and D.J. Teece, OPEC Behavior
and World Oil Prices, London: George Allen & Unwin
Adelman, M. A. (1986) “Scarcity and World Oil Prices.” Review of Economics and
Statistics.
Alhajji, A. and Huettner, D. (2000b) “OPEC and World Crude Oil Markets From 1973 to
1994: Cartel, Oligopoly, or Competitive?” Energy Journal, 21(3).
Alhajji, A. and Huettner, D. (2000c) “The Target Revenue Model and the International Oil
Market: Empirical Evidence from 1971 to 1994.” Energy Journal, 21(2):
Alsmiller R. G. and Horwedel J. E. (1985) “A Model of the World Oil Market with an OPEC
Cartel.” Energy, 10 (10):
Baldwin N. and Prosser R. (1988) “World Oil Market Simulation.” in Sterner T.,
International Energy Economics. Chapman & Hall.
Michael Kennedy, “An Economic Model of the World Oil Market The Bell Journal of
Economics and Management Science, Vol. 5, No. 2 (Autumn, 1974), Published by: RAND
Corporation,
MEE -304 Energy, Economy and Society
Unit I: Energy and Economy
Definition, meaning and forms of energy; understanding energy-economy linkages
Unit II:Political Economy and Public Policy Issues
Geo-political issues concerning energy supply; energy security; energy efficiency and energy
conservation; demand-side management; urban transportation policies
Unit III:Energy Policy & Planning : Energy (and power) policies in the country, tariffs and
subsidies, energy utility interface, private sector participation in power generation, energy
and development , National energy plan , role of modelling in energy policy analysis, energy
investment planning and Energy pricing.
Unit IV: Energy Audit: Energy Audit Concepts, Elements, measurements , mass and energy
balances, evaluation of energy conserving opportunities. Presentation of reports, case studies,
discounted cash flow, present value concept, annual investments and rate of return.
Unit V: Energy and Energy Management in the context of Environment : Fossil fuels
and combustion, combustion calculation, emissions to air, energy accounting, pollution
accounting, energy uses and options for improvement.
References :
1. Paul W. O’Callaghan, Integrated Environmental Management Hand Book, John Wiley &
Sons, Chichester, 1996.
2. Paul W. O’Callaghan, Energy Management : A comprehensive guide to reducing costs by
efficient energy use, McGraw Hill Book Company, London, 1993.
 3. Harol W. Henry, Fredric W. Symonds etc., Energy Management : Theory and practice,
Marcel
Dekker, Inc., New York, 1980.
4. Hiren Sarkar and Gopal K. Kadekodi, Energy pricing in India : perspectives, issues and
options, 1988.
MEE-305 Financial Accounting and Business Finance
Unit I: Introduction, Basic principles of Accounting, Journal Ledger, bank Reconciliation
Statement, Trial Balance, Final Account Of proprietary.
Unit II: Company Accounts I: Accounting for issue of shares, forfeiture of shares, Issue and
redemption of Debentures,
Unit III: Company Accounts II Special features of Company’s Financial Statement,
preparation of Financial Statements of Companies as per the Provisions of Companies Act.
Unit IV : Business Finance : Meaning and scope of Business Finance, Functions of
Business Finance, Objectives of Financial Management- Profit Maximisation Vs Wealth
Maximisation, Time Value of Money. Financial Terminology.
Unit IV Financial Planning :Concept of Financial Planning, objectives, importance and
limitations of Financial Plan, Short term, Medium term Long term Planning, Sources of Short
term Medium term and Long term finance, Levarages.
Reading
▪ Shim.J & J.Giegel, (2004): Financial management, Schaum outline Series, India, Tata
McGraw Hill Co.
▪ Brealey, R and S.C. Luyers, (2000): Principles of Corporate Finance; New York McGraw
Hill.
▪ Grimblatt, M and S. Tionan, (2002): Financial Markets and Corporate Strategy), New Delhi,
McGraw Hill.
▪ Rustagi.R.P, (2006): Financial management , theory concepts and applications, India,
Galgotia Publishing Company
▪ Khan, M.Y, (Latest ed): Financial Management ,New Delhi, Tata McGraw Hill
▪ Horne Van, (Latest ed): Financial management and policy, India, Prentice Hall
▪ Gupta, R.L. and Gupta.(Latest Edition)- V.K Principal and Practice of Accountancy
SEMESTER IV
MEE -401 Economic Evaluations and Project Management
 COURSE OBJECTIVE: The course covers key components of project management
including project integration, project scope management, project time and cost management.
Arrow Diagramming and Network Analysis. Crashing of a Project.
COURSE DESCRIPTION: In this course, important aspects of energy project management
will be taught through the theory, methods and quantitative tools used to effectively plan,
organize and control energy projects.
To achieve this, we will use a basic project management framework in which the project life-
cycle is broken into organizing, planning, monitoring, controlling and learning from old and
current energy projects.
Within the framework, the students will learn the methodologies and tools necessary for each
aspect of the process as well as the theories upon which these are built.
Management of the project will be divided into five sections:
Unit I: Project Organization
Project organization involves selecting an appropriate project organization-structure and
establishing the Organizational Breakdown Structure (OBS) for the project. Through an
analysis of the project information-transfer needs (i.e., who needs information from whom),
project teams and a reporting structure may be determined. Specifically, several product
development processes and the Design Structure Matrix are studied.
Unit II: Project Planning
Project planning involves establishing the Work Breakdown Structure and mapping this
structure to the established OBS. Furthermore, a project budget and Cost Breakdown
Structure are developed and mapped to the OBS and WBS. The planning phase also includes
establishing an appropriate timeline for the project in the context of resource constraints.
Finally, the project manager must acknowledge that very few (if any) of the estimates and
predictions at hand will prove to be accurate in the future; she needs to account for risk
factors and their possible consequences on the schedule, budget, quality and environment
while planning a project.
Specific methodologies for planning include:
1. The Critical Path Method (CPM)
2. The Precedence Diagramming Method (PDM)
3. The program Evaluation and Review Technique (PERT)
Unit: III Project Monitoring
Project Monitoring refers to the configuration and metrics used to monitor the progress of a
project throughout its life. Particular questions of interest to the project manager are:
1. Is the project progressing according to the schedule?
2. Will the project be completed within the allocated budget?
3. Will the product perform as expected?
4. If there are any deviations in schedule, budget or quality, how efficiently and how fast are
they captured, reported and acted upon?
Unit IV: Project Control
Based on the information gathered through the Project Monitoring system, corrective action
may be required to keep a project on track. The Project Control section of the course
describes techniques to help realign projects that have gone awry. Corrective action may be
needed in many areas such as project scope, product performance, project schedule, and
project budget. Project Control also requires a clear trace as to when and how changes are
made to baselines as well as a clear understanding and documentation of project
configurations.
Unit V: Project Learning
Project Learning is recognized by organizations as one of the most important factors for
success in current and future projects. Through life-cycle and post-mortem analysis, the
project manager may identify areas to be emphasized or more closely manages in future
projects. Such areas are:
1. Resource allocation.
2. Risk and uncertainty.
3. Budget constraints.
4. Project feasibility, and
5. Project time and cost management.
6. Crashing of a project.
MEE 402 Management of Technology for Energy
Unit I: Technology Choice: Linkage; National Technology Policies; Technology,
Competition and Industrial Structure; formulating the technology strategy,
Unit II: Technology Development and Acquisition process; Managing Technologies,
Unit III: Technology in Indian Industries, Strategic R&D management and Technological
Consortia; Licensing and joint Ventures,
Unit IV: Managing Technology Spillovers; Justification of new technology; management
accounting and technology; Integration of New with Old technology, Assimilation of
Technology;
 Unit V: Intellectual Property Rights and their Implications for Industry Policy and
Technology Management.
MEE -403 International Business Strategy and Energy Sector
Unit I International Business Environment- Global Trade; Foreign Direct Investment;
National and Regional Competitiveness; Regional Economic Integration; Global Growth
generators (Emerging economies) ; Implications of Economic Inequality; Differences in
National Political Economies.
Unit II Environmental Analysis-Understanding Environmental analysis & its components;
Organizational appraisal; Industry analysis; Competitors Analysis; SWOT Analysis; Ethics in
International Business; Intellectual property rights.
Unit III Strategy and Structure of International Business-Understanding Global strategy;
Global Value creation; Turnaround; Divestment & Liquidation strategies; Growth Strategies-
Merger; Take-over & Joint strategies; Integration & Diversifications.
Unit IV Functional Strategies- Designing global products & services; Global marketing;
Global R7D; Global Human Resource Management; Financial plans & Policies; Accounting
in International Business.
Unit V Strategy Implementation and Evaluation- Strategic implementation- Relationship
between strategic Formulation and Implementation; Strategic Implementation; Strategic
Evaluation & Control- Types of Strategic Control; techniques of Strategic Evaluation;
Operational Control.
Suggested Readings:
➢ Michael E. Porter; Competitive Strategy: Techniques for Analyzing Industries &
Competitors.
➢ Carl Nelson; Import/Export: How to Take Your Business across Borders.
➢ Tarun Khanna & Krishna G. Palepu; Winning in Emerging Markets: Road Map for Strategy
and Execution.
➢ Pankaj Ghemawat; Redefining Global Strategy: Crossing Borders in a World where
Differences Still Matter.
➢ Bob De Wit & Ron Meyer; Strategy: An International Perspective.
➢ Cavusgil; International Business.
➢ Alain Verbeke; International Business Strategy.
➢ S Raghunath & Elizabeth L. Ross; International Business Strategy: Perspectives on
Implementation in Emerging markets.
MEE -404 Energy, Climate Change and Global Politics
Unit I : Introduction: the energy-carbon-climate problem, Climate change science: early
discoveries, energy balance model, Science of Energy and Climate change, the global energy
infrastructure and GHG emissions
Unit II: Energy Use, Climate Change: Sources and Uses of energy emissions and climate
change
Unit III: Politics and Economics of International Energy, Climate change politics:
International Agreements: the United Nations Framework Convention on Climate Change
and Kyoto Protocol, Policy Mechanisms to address climate change Beyond Kyoto, COP 21
and aftermath
Unit IV: Energy and Climate change from national perspectives
Unit V: Impact of a Changed Energy Future, Climate and Energy Planning
MEE -405 Field Work based Dissertation