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?