1 Electricity Markets:
a Describe the economic rationale for the deregulation of electricity generation
b Describe some features of electricity that make it susceptible to market power
c Describe some reasons why electricity prices (wholesale) skyrocketed in 2000?
2 CA Water and Public Enterprise:
a How do the incentives under public enterprise differ from those under private ownership of a natural monopoly?
b Please provide an example aside from CA water of public enterprise?
c Does the current system of water supply in CA achieve allocative efficiency? Why or why not?
3 Climate Change and Market Based Approaches:
a Please describe some of the critical features of the Paris Climate Agreement
b Please describe why economists would advocate for a carbon tax over a renewable portfolio standard to address greenhouse gas emissions?