ESAME ENERGY 2024 SOLUTION

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ENERGY ECONOMICS EXAM JUNE 2024 - SOLUTION Correct Answer: E. The ETS requires that firms assess the amount of CO2 emissions produced. Carbon accounting can serve this goal. Correct Answer: A. The monopolist operates at a profit maximizing p, any change in price will lead, by definition, to a lower profit. If the price increases by 10% the quantity will drop significantly. Correct Answer: D. The MACSE is the new initiative for fostering the growth of electricity storage capacity in Italy. Time-shifting products grant holders of equivalent contracts the control over a virtual storage system, enabling them to accumulate a share of energy for subsequent reintroduction into the grid. Storage systems participate in the open market through arbitrage activities. Correct Answer: D. This option is false Correct Answer: A. The primary goal of regulation is to ensure that the natural monopoly remains in the market (break-even constraint) and offers goods at the most possible efficient price (welfare maximization). Correct Answer: C. The increase in the share of renewable will likely lead to an increase in volumes traded on intraday markets. Having variable and less predictable generation patterns compared to conventional energy sources, renewables lead to a higher need for real-time adjustments in supply and demand. Correct Answer: C. The TSO is a counterpart in the balancing market. Correct Answer: D. In a cartel, members agree to set production quotas for each country, with the goal of creating a shortage in the overall supply of oil in the market. This action increases the global price of oil, allowing cartel members to get larger profits. QUESTION 9. Correct Answer: B. The game does not have a dominant strategy (hence, it is not a prisoner dilemma). If one player invest to…