Basic concepts of accounting are presented for use in internal decision-making and external financial reporting. Topics include transaction analysis, accrual accounting and its application to manufacturing operations, timing of revenue, expense recognition, long-term assets, and depreciation. Emphasis is placed on financial markets and determination of prices and yields of financial instruments.

Focuses on the primary tasks of the corporate treasurer, showing students how to use ratio analysis to assess corporate performance and project financial statements and cash needs for both projects and whole companies. Devotes substantial time to the question of how much debt is optimal in a firm's capital structure. Next introduces discounted cash flow and shows how to estimate a weighted average cost of capital to use as a discount rate appropriate to a particular company or project. By the end of the course, students have all the tools necessary to value a company by projecting its free cash flow and discounting it at an appropriate rate.

Professor David Nissen

This is the required introductory core IEMP course. In national and international energy systems, each fuel or other form of energy goes through a chain of physical transformations that change the character or location of the energy, starting with discovery and production of the resource (oil, gas, coal, nuclear, renewables) and ending with energy consumption in an end-user service (space conditioning, process heat, motor drive, etc.) These transformations are effected by facilities for discovery, production, transportation, conversion (refining, electricity generation, etc.), distribution, and end-user conversion. Associated with this “physical chain” of transformations and facilities services is a parallel “transaction” chain composed of business enterprises, markets for commercial exchange and a legal and regulatory governance infrastructure. These transactional structures support the capital formation, management and exchange activities in forms dictated by the technological, economic, transactional, and societal characteristics of the physical energy chains. The goal of this course is to understand the co-evolution of the physical and transactional chains—the markets and business—in international and domestic energy systems. The course surveys the technology, market structure and design, and policy issues for petroleum, natural gas, electricity, energy demand, and environmental concerns.

Professor David Nissen

This is the required core quantitative course for the IEMP concentration. The course consists of weekly lectures and spreadsheet exercises. Topics covered include energy accounting, demand modeling, oil market cartel, linear programming models of transportation markets and electricity dispatch, electricity market congestion pricing and hedging, corporate finance for project evaluation including evaluating tied financing, resource taxation, and introduction to decision trees and real options. (For second year students, International Energy Systems and Business Structures (U6060) and Corporate Finance (U6301) are prerequisites.)

One workshop is required.

1. Professor Ellen Morris

In 2007, the client for this workshop was the UN Development Program. The workshop assessed the impacts of UNDP energy programs in selected countries. This workshop is likely to be repeated in 2008.

2. Professors David Nissen and Reider Brekke (Potent and Partners, Manager of Capital Services)

In 2007, the client was a major publicly listed shipping company. The project was to evaluate markets and supplies and develop a business plan for a new seaborne natural gas transportation technology.

3. Professor Stephen Hammer

In 2007, the client for this workshop was the Economic Development Corporation of the City of New York. The workshop developed a recommendation for a renewable energy program. The 2008 workshop will likely explore city involvement in carbon markets.

Professor Steven Hammer

Urban energy systems present a unique mix of challenges in technology, market structure, and governance. In developed economies, competitive markets, new distributed technologies and load management issues all change the economic terms of adoption. In developing economies, urbanization expands slums with inadequate infrastructure, property and governance systems, and bad or non-existent enduse energy markets. Possibilities and policies are reviewed and evaluated.

Professors Adam Shrier and Antoine Halff

This course will introduce students to the way that national political, economic and security interests influence foreign policy, and the role that energy plays in this calculus. We will look at the major geopolitical issues of the day through the lens of policymakers. We will look at the role that energy policy plays in overall foreign policy as it affects international trade and investment, national security, counter terrorism, the political stability of friends and allies, transnational threats to the environment and health, and a nation’s position towards democracy, human rights and economic development.

Professor Roy Nersesian

Provides hands-on experience in development and interpretation of quantitative models for energy project evaluation and policy assessment. The student develops and interprets: (1) project cash flow models and (2) market models. Models are used for consistent assessment.

Professor Neil Quartaro

This course covers the history of marine transportation from a legal and public policy perspective, at both an international and a domestic level, and focuses on the major strategic public policy issues currently facing the various stakeholders in the sector. The course objective is to identify these stakeholders, analyze the public policy issues that impact them, and study the public policy responses to the stakeholders' demands.

Professors David Walker and Klaus Lackner

This course, which focuses on alternative energy sources and how they fit into the world energy market, is an essential part of the energy policy concentration. An emphasis is placed on economic considerations, energy availability, and the environmental consequences of adopting each particular technology. The course also examines each the alternative fuels most likely to propel our cars and electricity generation plants in the future.

Professor Shirley Neff

Provides a survey and analysis of energy-related public issues and policies, including access and taxation for natural resources; security and reliability; diversity of fuels and technologies; energy conservation and technology; environmental regulation at the local (air and water quality) and global (climate) levels, market restructuring, and the interaction of energy infrastructure and economic development. The origin of each policy issue in “market failure” is examined and consequences of policy alternatives are evaluated.

Professor Irene King

Provides an overview of evolving physical and paper markets for crude oil and petroleum products, natural gas, and electricity. The first half of the course treats the components of physical markets for petroleum, including the role of energy majors, crude oil markets, shipping, refining and marketing, and supply coverage management. The second half of the course treats paper trading: introduction to futures markets for oil, natural gas and electricity, market structure and regulation, the use of forward and futures markets to manage project and commodity risk. (International Energy Systems and Business Structures (U6060) and Economics of Energy (U6065) are prerequisites.)

Professor AJ Goulding

Provides a detailed understanding of the fundamentals of electricity dispatch and market design issues for electric energy, capacity and reliability. Policy issues in standard market design are explored. Issues associated with market access for demand response and distributed generation are explored. Electricity markets in developed and developing countries are examined and evaluated.

Professor David Nissen

Provides an introduction to the processes and issues involved in developing new energy projects outside North America, in both energy producing and consuming countries, and in both advanced and developing economies. Examines the role of stakeholders, including the host government; project developers; engineering, procurement and construction contractors; lenders (public and private); local partners; energy suppliers; and buyers. Provides an integrative analysis of country and business risk, and of techniques used to mitigate or manage those risks by the project developer.

Professor Roy Nersesian

This course provides an introduction to tanker transportation of crude oil and petroleum and liner service shipping of finished goods. It covers the history of energy and energy transportation, rate setting mechanisms in a free market economy and under the conference system, the forecasting process in bulk and liner service trades, international governmental policies on oil pollution and regulation of ship operation in bulk and liner service trades, chartering and commercial issues, ship finance and economics, various means of quality assurance in ship operation, and safety and environmental issues.

Professors Klaus Lackner and Chris Gazze

This seminar course examines the prospects for nuclear energy as a source of safe, secure and environmentally sustainable energy, both in the U.S. and internationally. In particular, it will analyze the four key issues that limit the expansion of nuclear energy: cost, safety, proliferation concerns, and long-term disposal of radioactive wastes. Through readings, research, and class discussions, it will engage students to critically evaluate arguments both for and against nuclear power. The course will build basic literacy in nuclear technology and is open to students with technical, policy or economic backgrounds.