Market economics


The market economics research projects were presented as a group in one single session. You can download a PDF of the combined presentations.


The Role of Securitisation in Green Infrastructure Investment

Student: Edmond Daramy-Williams
Supervisor(s): Dr Mark Workman (Energy Research Partnership), Ben Caldecott (University of Oxford)
Poster: #12 Download PDF

There exists a significant gap in green infrastructure investment that must be filled to avoid warming over 2 degrees. Securitisation, which consists in packaging many small cash-flow generating assets into large bonds, could help fill this gap by making green infrastructure assets suitable investments for large institutional investors. The project will examine the advantages of green securitisation over other channels of investment, barriers to a market developing, and policy options to expand the market.

Evaluating the Economic Viability of Australian LNG Projects

Student: Lawrence Pang
Supervisor(s): Dr Adam Hawkes (Sustainable Gas Institute), Dr Sara Giarola (Sustainable Gas Institute)
Poster: #13 Download PDF

With an increasing emphasis on climate change, natural gas, being a much cleaner fossil fuel, is poised to play a larger role in the energy mix. This ascendance would be facilitated by the current boom in liquefied natural gas (LNG) infrastructure; by 2025, the liquefaction supply is projected to double. However a majority of these liquefaction plants were built based upon projected oil-linked LNG prices. The continued slump in oil prices currently could force LNG plants to operate far below their breakeven prices. This project analyses the factors influencing investment costs for entire LNG value chains and further utilises stochastic methods to evaluate the financial viability of Australian LNG projects in particular.

Game theory modelling of conditions for effective stewardship of companies subject to carbon risk

Student: Lucas Kruitwagen
Supervisor(s): Dr Kaveh Madani (Centre for Environmental Policy), Dr Mark Workman (Energy Research Partnership), Ben Caldecott (University of Oxford)
Poster: #14 Download PDF

Investors are increasingly concerned with the risk their assets face in low-carbon futures. Debate is ongoing as to whether divestment or active ownership strategies are more appropriate to deliver long-term value and environmental sustainability. Engagement between shareholders and corporate boards has been suggested as a pathway to mitigate stranded asset risks. This project tests the effectiveness of owner engagement strategies by constructing a game theory model of the cooperation between shareholders and their companies. This project concludes with potential mechanisms to align diverse shareholder and company interests in the creation of long-term, sustainable value.

Is There Evidence for a Green Paradox in the Economic Interaction Between Renewable Energy and OPEC?

Student: Maria Yasmin Rabiah
Supervisor(s): Dr Jamie Speirs (Centre for Environmental Policy)
#15 Download PDF

The deceleration of the global warming effect is one of the world's most complex dilemmas. With greenhouse gases having atmospheric lifetimes of over ten years, the effects of global warming will present high physical and financial losses in the coming generations, if not addressed effectively enough. The theory of the Green Paradox is one of the essential theories that challenges the systems currently in place that help tackle this greenhouse effect. With the shale gas industry in the U.S. sending oil prices plummeting by 50% in the past year, will similar penetrating technologies nullify our efforts in tackling global energy emissions?

Unique Dynamics Influencing Smart Energy Startup Emergence in London

Student: Nicholas Grapsas
Supervisor(s): Dr Matthew Hannon (Centre for Environmental Policy), Dr Max Nathan (London School of Economics)
Poster: #16 Download PDF

Innovation in energy services is expected to play a critical role in the pending energy transition. Startups, commonly considered “engines” of innovation, will be key. A new category of startup, the "smart" energy startup, has recently emerged. Smart energy startups harness new forms of data (e.g. from smart meters or other smart systems) and business models to deliver innovative energy services. These startups exist at the intersection of two distinct industries, ICT and energy, and may thus be subject to unique internal and external dynamics that frustrate and facilitate their success. This project aims to explore whether this is indeed the case and, if so, to identify what these enabling and inhibiting factors may be.

Electricity Market Design for Reducing Costs of Integrating Variable Renewable Energy in the British Electricity System

Student: Nicholas Steckler
Supervisor(s): Dr Robert Gross (Centre for Environmental Policy), Phil Heptonstall (Centre for Environmental Policy), Simon Mueller (International Energy Agency)
Poster: #17 Download PDF

Variable renewable energy (VRE), consisting mostly of wind and solar power, makes up an increasing share of electricity generation in Great Britain. This research explores the system-related impacts of VRE as well as methods for ameliorating the associated costs. Various approaches are proposed in the literature for reducing these costs. This research focuses on methods for incentivising flexibility in the residual capacity of the British power system, with scope limited to viable changes in electricity market structure and operation.

Streamlining the Power Grid with Big Data Analytics

Student: Pol van der Pluijm
Supervisor(s):  Professor David J. Fisk (Department of Civil and Environmental Engineering), Professor Jim Skea (Centre for Environmental Policy)
Poster: #18 Download PDF

Over time, the legacy of privatisation, liberalisation and restructuring of the electricity system have made its operations increasingly complex. Advancing technologies such as smart metering and big data analytics are expected to play a game-changing role in the power industry. Based on supply chain analysis and an assessment of progressive data analytics, the role of both the electricity retailer and non-physical traders can likely be largely reduced. Effects and implications are compared and contrasted against the EU’s status quo: the European Target Model for Electricity. Initially a traditional system is analysed to later investigate the dynamics of renewable and demand responding systems.