Lecture

Energy Allocation Mechanisms: Challenges and Solutions

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In course

ENG-410: Energy supply, economics and transition

This course examines energy systems from various angles: available resources, how they can be combined or substituted, their private and social costs, whether they can meet the energy demand, and how the transition to a renewable energy system can be foste ...

Description

This lecture discusses the limitations of using markets as energy allocation mechanisms, focusing on challenges such as decarbonization, investor return, and universal access. It explores the inefficiencies of market economies and the need for strong interventions like high CO2 taxes. The lecture also delves into the characteristics of markets, market failures, and the difficulty of limiting free markets. It emphasizes the importance of identifying and addressing the top challenges in managing energy to ensure a sustainable and efficient energy system.

Instructors (4)

Philippe Thalmann

Philippe Thalmann was born in Lausanne in 1963. He graduated in Economics from the University of Lausanne in 1984, where he earned a postgraduate diploma in Economics in 1986. Mr. Thalmann entered the doctoral program in Economics of Harvard University (Cambridge, U.S.A.) in 1986, which he completed with a Ph.D. in 1990. His dissertation is entitled: "Essays in the Economics of Government Revenues and Spending". Returning to Switzerland, he was hired as an assistant professor first at the University of Geneva (teachings in Public Economics), then at the University of Lausanne (teachings in Econometrics and Introductory Economics). Since 1994, Mr. Thalmann is associate professor of Economics as the Swiss Federal Institute of Technology at Lausanne.

Claudia Rebeca Binder Signer

Claudia R. Binder, a Swiss, Canadian and Colombian citizen, was born in Montreal and spent most of her childhood in Switzerland and Colombia. She studied at ETH Zurich from 1985 to 1996, earning a degree in biochemistry and then a PhD in environmental sciences. After conducting her post-doctoral research at the University of Maryland in the US from 1996 to 1998, she returned to Switzerland and took a position as a senior research scientist at ETH Zurich, studying the interaction between human and environmental systems at the Institute for Natural and Social Science Interface. In 2006, Binder joined the University of Zurich as an assistant professor in the Department of Geography, and in 2009 moved to the University of Graz in Austria where she served as a full professor of systems science. In 2011, she took a position at the University of Munich’s Department of Geography as a full professor of human-environment relations. Binder joined EPFL in March 2016 and set up the Laboratory for Human-Environment Relations in Urban Systems (HERUS) at ENAC; she also holds the La Mobilière Chair on Urban Ecology and Sustainable Living. Her research involves analyzing, modelling and assessing the transition of urban systems towards sustainability. She looks in particular at how we can better understand the dynamics of urban metabolism, what characterizes a sustainable city, and what drives and hinders transformation processes. She does so by combining knowledge from social, natural and data science. Her research focuses on food, energy, and sustainable living and transport in urban systems. In Switzerland, Binder was appointed to the Research Council, Programs Division of the Swiss National Science Foundation (SNSF) in 2016 and serves on the Steering Committee of the SNSF’s National Research Program 71, “Managing Energy Consumption” and the Swiss Competence Centers for Energy Research (SCCER). She is also a member of the Steering Board on Sustainability Research for the Swiss Academies of Arts and Sciences. In 2019, she was elected as a member of the University Council of the University of Munich (LMU). At EPFL, Binder is the academic director of Design Together, a cross-disciplinary teaching initiative. She was appointed to the management team of the Energy Center in 2018 and as head of the working group on EPFL’s energy and sustainability strategy in 2019.

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Related concepts (31)

Market economy

A market economy is an economic system in which the decisions regarding investment, production and distribution to the consumers are guided by the price signals created by the forces of supply and demand. The major characteristic of a market economy is the existence of factor markets that play a dominant role in the allocation of capital and the factors of production.

Market socialism

Market socialism is a type of economic system involving social ownership of the means of production within the framework of a market economy. Various models for such a system exist, usually involving some mix of public, cooperative, and privately owned enterprises. The central idea is that, as in capitalism, businesses compete for profits, however they will be "owned, or at least governed," by those who work in them. Market socialism differs from non-market socialism in that the market mechanism is utilized for the allocation of capital goods and the means of production.

Free market

In economics, a free market is an economic system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of government or any other external authority. Proponents of the free market as a normative ideal contrast it with a regulated market, in which a government intervenes in supply and demand by means of various methods such as taxes or regulations.

Social market economy

The social market economy (SOME; soziale Marktwirtschaft), also called Rhine capitalism, Rhine-Alpine capitalism, the Rhenish model, and social capitalism, is a socioeconomic model combining a free-market capitalist economic system alongside social policies and enough regulation to establish both fair competition within the market and generally a welfare state. It is sometimes classified as a regulated market economy.

Mixed economy

A mixed economy is variously defined as an economic system blending elements of a market economy with elements of a planned economy, markets with state interventionism, or private enterprise with public enterprise. Common to all mixed economies is a combination of free-market principles and principles of socialism. While there is no single definition of a mixed economy, one definition is about a mixture of markets with state interventionism, referring specifically to a capitalist market economy with strong regulatory oversight and extensive interventions into markets.

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Christophe Ballif

Christophe Ballif is director of the Phototovoltaics and Thin Film Electronics Laboratoryb) (PV-Lab at the institute of microengineering (IMT) in Neuchâtel (part of the EPFL since 2009). The lab focus is on the science and technology of high efficiency heterojunction crystalline cells,so-called passivating contacts for solar cells, multi-junction solar cells include novel generation Perovskite on innovative optical high speed detector and on various macroelectronics application. It also deals with energy management with a focus on integration of solar electricity into the energy system. The PV-Lab has strongly contributed to technology transfer and industrialization of novel devices and full technology with numerous companies. Christophe Ballif graduated as a physicist from the EPFL in 1994, where he also obtained in 1998 his Phd degree working on novel PV materials. He accomplished his postdoctoral research at NREL (Golden, US) on compound semiconductor solar cells (CIGS and CdTe). He worked then at the Fraunhofer ISE (Ge) on crystalline silicon photovoltaics (monocrystalline and multi-crystalline) until 2003 and then at the EMPA in Thun (CH) before becoming full professor at the University of Neuchâtel IMT in 2004, taking over the chair of Prof. A. Shah. Since 2013, C.Ballif is also the director of the new CSEM PV-Center, also located in Neuchâtel. The CSEM PV-Center is focussing more on industrialisation and technology transfer in the field of solar energy, including solar electricity management and storage. At the core of the CSEM PV-center activities lies several "pilot lines" for various kinds of solar cells manufacturing, with a focus coating technologies, wet chemistry processes for crystalline silicon, metalisation techniques for solar cells, and a platform for developing "ideal packaging solutions and polymers" for PV modules. In addition, joined facitilites between CSEM and EPFL of over 800 m2 are available for modules manufacturing, measuring and accelerated aging. CSEM PV-center has also full team dedicated to storage and energy systems and operates a joined center with BFH in Biel for research on electrochemical storage. He (co-) authored over 500 journal and technical papers, as well as several patents. He is an elected member of the SATW, member of the scientific council of the Swiss AEE, and member of the board of the EPFL Energy center. In 2016, he recieved the Becquerel prize for his contributions to the field of high efficiency photovoltaics.

Related concepts (31)

Market economy

Market socialism

Free market

Social market economy

Mixed economy