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Energy, Environmental, and Mineral Economics (ENNEC)

ENNEC 473 Risk Management in Energy Industries (3) Analysis of strategies for mitigating business risk from market, atmospheric, geophysical uncertainties including the use of energy/mineral commodity futures/options, weather derivatives, and insurance.

ENNEC 473 ENNEC 473 Risk Management in Energy Industries (3)

The course begins with an overview of markets and financial instruments designed to manage risks associated with climate, market, and geophysical events. We then examine the mechanics of trading energy commodities and the role of climate information in trading strategies. More exotic trading instruments, including options and swaps, are the subject of the next section. We then analyze the time series properties of energy prices, providing a basis for valuation of commodity derivatives. A discussion of the use and valuation of weather derivatives then follows. The course concludes with an analysis of climate insurance and natural hazard risk-management strategies.
General Education: None
Diversity: None
Bachelor of Arts: None
Effective: Fall 2004
Prerequisite: MSIS 200 orSTAT 200 orENNEC 472

Note : Class size, frequency of offering, and evaluation methods will vary by location and instructor. For these details check the specific course syllabus.