Unit 9 - Focus on the Energy Market
Research the following energy sources. To get started, click the image to listen to a podcast or read an article discussing the energy source.
Electricity Generation in US by Energy Source, 2012
In 2012, about 68% of electricity generated in the United States was produced through the consumption of fossil fuels like coal and natural gases (US Energy Information Administration).
Read the article "How to Power the World without Fossil Fuels" from Scientific American.
Read the article "How to Power the World without Fossil Fuels" from Scientific American.
STOP!!! Return to the Unit 9 Homepage to learn more about externalities, social costs and benefits, and government regulation. When you feel as though you have a thorough understanding of the concepts, move on to the research and reflection questions below.
Research, Reflection, and Presentation
Research information about fossil fuels, wind energy, solar energy, and hydroelectric power. Then, respond to each of the following questions. Responses should be typed. Upload your answers to the class's google drive under the appropriate folder (Unit 9 >> Energy Questions), and be sure to share with me. If you hand draw your graphs, be sure to scan the images and input them into your document. Each group will be responsible for presenting what they've learned to the other groups. Your presentations can take any format. Be instructive, and be creative.
- Identify and discuss the private and social benefits of each type of energy source.
- Identify and discuss the private and social costs of each type of energy source.
- How viable is each energy source for meeting the market's current demand for energy? To what extent are these four energy sources substitute goods?
- Although there are benefits and costs to each type of energy, identify whether each energy source is generally thought to produce positive or negative externalities. Then, sketch a graph of the private markets for each of the four energy sources. Which types of energy are being over-produced and which are being under-produced?
- Research what government regulations exist to incentivize or disincentivize the use of each energy source. How effective have these regulations been to shift the market output closer the socially efficient level of output?
- Illustrate the effects of each government regulation within their respective markets. How should the regulation theoretically impact the price and production level of each energy source?
- Assuming that in the future these energy sources become true substitute goods, illustrate and explain the effect regulations in one market will have on the price and level of output in the other markets.
Government Regulations vs. Free Markets: Energy and Environmental Problems
The Moritz Federalist Society is proud to host Author Tim Carney as he debates Professor Peter Swire on the topic of "Are Government Regulations or Free Markets the Better Solution to America's Energy and Environmental Problems?" as part of the John Templeton Foundation's The Rule of Law and Wealth Creation Debate series. September 30, 2010.
Watch each section of the debate and respond to the corresponding prompts. Upload your responses to the class's google drive under the folder "Unit 9>>Energy>>Debate Reflection".
Watch each section of the debate and respond to the corresponding prompts. Upload your responses to the class's google drive under the folder "Unit 9>>Energy>>Debate Reflection".
Part 1:
Explain why some firms might lobby for government regulation despite the fact that it would increase their costs. Support your argument using economic models and what you learned about taxes from the Unit 9 Homepage. |
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Part 2:
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Part 3:
Explain... |
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Part 4:
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Part 5:
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