Chartered Energy Economist®(Ch.E® – Energy)
Specialist Designation in Energy Economics [Course Outline]
Energy Industry Overview
The Energy sector plays a major role in today’s world economy
For over 50 years now, the global primary energy demand structure has been based on fossil fuels for more than 80%. In 25 years, the global energy needs will have gone up by more than 40% and will still be covered by an energy mix based on fossil energy for more than 70%. Over this period of time, the economics of energy are likely to change radically.
The geological constraints on the extraction of hydrocarbons will grow as the conventional resource base gets depleted and more unconventional sources of energy have to be developed. At the same time, the global park of electricity generation plants will undergo a dramatic change as new capacities will have to be created to meet the emerging powers insatiable energy demand whilst a vast number of ageing power facilities will have to be retired and replaced in the old OECD world.
The cumulative needs for new energy supply infrastructure is mind-blowing and represents an investment of up to US$ 38 trillion over the next 25 years which will be required to ensure a secure, more efficient, and hopefully greener, energy supply to the world. The financing of this global investment will be an unprecedented challenge for producers, consumers, banks, governments, regulators and capital markets.
This huge expenditure will take place in a context of record uncertainty: energy markets have been fully deregulated in the mature economies; the implementation of climate change response policies and the emerging of a carbon price in a growing number of large countries are adding a new layer of volatility into already volatile energy prices; and geopolitical tensions are exacerbated as the whole world moves West to East.
Our energy future is staring us all in the face: the environment will be filthy, energy will be costly and geopolitical tensions between producers and consumers will be strong. In the face of these developments, corporations will have to review their strategy and business models going forward, individuals will have to change their behavior, and governments to adopt visionary policies.
The Chartered Energy Economist certificate of AAFM is a formidable opportunity for participants to confront the above issues, and acquire the knowledge and analytical skills that will help them make informed decisions as important contributors to the current industrial revolution.
Program Objectives
Today’s energy landscape is evolving fast. New technical possibilities are meeting changing customer demand. The economics of fossil, fissile and renewable energy complement and compete with each other, changing investment calculations, and adding new layers of complexity to the market. Both national and international regulations are profoundly changing the way energy businesses operate, the threats they face, and the opportunities that are opening up.
Chartered Energy Economist certification program aims at providing candidate whose main interest is in international relations a background on energy resources, technology and economic realities to allow them to correctly interpret the political impact of current developments.
It also aims at providing candidates, who already have a technical background in energy science or engineering, with the broad global view of energy issues that will allow them to better understand the social, economic and political impact of their technical knowledge.
Energy professionals need a real understanding of this correlated, interconnected and evolving market if their innovative new solutions are to have a real impact. By understanding the deep transformations taking place in the energy sector, the roots of this change, and the challenges it produces you gain a new insight into your own projects– and greatly enhance your chances of success.
With this certification candidates are prepared for careers in areas such as energy policy and firm management; energy marketing; energy consulting; renewable energy management and many more. More generally, candidate learns from the Certificate Program to work in groups and develop an appreciation for collaboration in academic and real-world settings.
Role of a Energy Economist
What do Energy Economists do?
An energy economist conducts research into topics related to the supply and use of energy worldwide. This is a highly interdisciplinary field that includes not just the economics of global supplies, but also issues like climate change, indigenous rights, politics, and sustainability. National governments make use of such economists to help them make policy and work with allies.
An energy economist may focus on traditional sources of energy like coal and petroleum products, while others study alternative supplies like wind and solar energy. They can look at the movement of energy within a nation as well as internationally and also study demand.
An energy economist conduct analysis of sustainability and efficiency initiatives aimed at reducing the draw on the world’s energy supply.
Energy economist is concerned with environmental topics. They look not just at energy, but how the production, transport, and use of energy impact the environment. This can vary from studies on pollution caused by coal-fired power plants to the analysis of what happens to watersheds and fishers when hydroelectric dams are put in place.
From an economic perspective, it can be important for an energy economist to calculate the cost of environmental impacts to determine if production is financially sustainable, or needs to be adjusted to limit environmental costs.
Energy Economists should:
Energy Economist analyzes the data and identifies the underlying principles, facts, and reasons. The energy economist is also responsible for undertaking other job duties as follows:
- Receiving information from all the relevant sources and observing them
- Compiling and analyzing the data to explain the economic phenomena and calculating the market trends for applying statistical and mathematical techniques
- Undertaking researches on economic issues and circulating the findings through technical reports
- Consulting and assisting companies, organizations, and individuals on economic relationships
- Providing litigation support by documenting expert testimony or testifying as an expert witness
- Developing the economic guidelines and standards and suggesting points of view for formulating economic policy
- Studying economic and statistical data in the area of specialization such as finance, agriculture and/ or labor
- Contribute to strategic discussions/market access planning processes to enhance the effectiveness of implementation of corporate strategies
Benefits of Program
The aim of the programme is to provide a comprehensive study of energy economics analyzing issues such as, energy demand and supply, the Hoteling model, oil price behaviour, the role of OPEC and the issues of global warming and renewables. Candidates will develop their knowledge of the key micro and macroeconomic modeling techniques, as well as gain an in-depth understanding of financial analysis and its application in the energy sector.
AAFM’s Chartered Energy Economist certification program will help our candidate to:
- Understand and analyses the key drivers of energy demand and supply
- How the energy sector makes investment decisions
- How governments design and implement their energy and environmental policies
- The different types of fiscal policy on the exploration of non-renewable resources
- How to use and analyses energy data
Key Benefits of the Program
The course will give you better insight into the working of the energy sector of the country.
- Understanding of current economic issues and economic principles and methods, including real-world applications and elements of microeconomics and macroeconomics
- Knowledge of economic perspective on the nature, scale, and organization of businesses and the role of information and transaction costs in internal and external markets
- Deepened knowledge in focused topic areas, such as labor economics, economics of financial markets, economic strategy and competitiveness, and economics of emerging markets.
- Apply utility theory to describe and analyze investment decisions under risk aversion.
- Describe, apply and criticize single and multiple factor models of risk and return.
- It also helps in understanding the allocation of the various resources of the organization at different times and at different places to know how the allocation of the resources helped in improving the financial health of the organization.
- The program allows you to attain Super Specialist Status in “Energy Economics” with both the knowledge and skill to perform your duties as an “Energy Economist”.
- The key benefit for certification holders is obviously the ability to add a professional designation and post nominal to your list of resume qualifications and it can also be display on your business card, letter head, email signature etc.
- It provides access to one of the top economic and financial professional networks around the globe providing the opportunity to network with charters and members throughout the world.
- The certificate of the Chartered Energy Economist® is awarded by the Most Prestigious American Academy of Finance Management (AAFM) and as such, it’s fully recognized in the USA, more than 170 Countries and hundreds of Institutions worldwide.
Why you should attend the program
Having this certification program, a candidate will be able to:
- Benchmark energy use in buildings, including private residences, industrial, commercial, and municipal facilities;
- Design options for meeting energy needs through increased reliance on efficiency, conservation, and sustainable energy production;
- Analyze investments in energy conservation, energy efficiency and sustainable energy production;
- Evaluate the economic and environmental consequences of policy options for managing energy at the local, regional, national, and global levels;
- Develop effective written and oral communication skills so recipient can effect change by becoming an active participant in the public debate regarding solutions to energy challenges; and
- Design more effective energy policies
- Collaborate with interdisciplinary teams to develop and conduct analyses that support sustainable environmental protection and management
- Assist in the planning of efficiency programs through cost-effectiveness analyses, analysis of energy efficiency program costs and results
- Participate in teams or serve as a team leader to analyze the functioning of the electricity grid, and make recommendations on regulations.
- Provide step-by-step guidance, and advise businesses and homeowners making decisions on solar and energy efficiency upgrades.
- Contribute to leadership in the global transition to a clean energy economy through high-impact research
- Support energy-related decisions to balance economic development, energy independence, and environmental protection.
- Collect energy data, perform statistical studies, and carry out research for government agencies and private companies
Program Ideal For:
This program is designed for professionals who work in the energy industry, especially those with a background in energy, petroleum and economics.
The programme is designed for a wide range of professional skill sets, including:
- Economic Research
- Investors and Management Consultants
- Macroeconomic Policy Analysis
- Policy Makers
- Product Research and Development
- Professionals in Consultancy and Engineering
- Professionals in Energy Technology
- Professionals in Real Estate, City Development Agencies and Municipalities
- Professionals in Renewable Energy
- Professionals in Utility or Automotive Companies
- Researchers & Academics
Educational Requirements
Educational Requirements
Minimum Qualification required to pursue the program:- For Graduates (Any Stream): Pass Level 1 – Chartered Economist Exam.
- For Post Graduates and above in Economics: Directly pursue the “Chartered Energy Economist” Designation.
Career Opportunities
- Analyst for the Department of Energy
- Policy and Evaluation Analyst for National Energy Grid
- Energy Industry Analyst for the Energy Regulatory Commission
- Energy Advisor for Non-governmental Organization
- Energy Specialist for the Department of Renewable Energy
- Program Support Specialist for Bureau of Energy Management
- Residential Energy Specialist for Community Associations
Important skills required for Managerial Economist
Key Skills and Proficiencies of a Managerial Economist
- Analytical Skills: Economists must be able to review data in detail, observe patterns, perform advanced calculations, and draw logical conclusions.
- Critical-thinking Skills: Economists must be able to use logic and reasoning to solve complex problems. For instance, they might identify how economic trends may affect an organization.
- Speaking Skills: Economists must be able to explain their work to others and they often give presentations and explain reports to clients who may not have a background in economics.
- Writing Skills: Economists must be able to present their findings clearly. Many economists prepare reports for colleagues or clients; others write for publication in journals or for news media.
- Expert in mathematical knowledge of algebra, geometry, statistics, calculus, and their applications
- Ability to undertake researches and effectively identifying the problems
- Experienced in managing and organizing the overall energy industry
- Prepare and maintain all the reports, documents, and statistics
- Knowledge about using various computer applications required for maintaining the financial records
- Knowledge about laws, government regulations, executive orders, and court procedures
Salary Prospect of Financial Economist
Economists earned a median annual salary of $101,050 in 2016, according to the U.S. Bureau of Labor Statistics. On the low end, economists earned a 25th percentile salary of $73,890, meaning 75 percent earned more than this amount. The 75th percentile salary is $138,120, meaning 25 percent earn more. In 2016, 21,300 people were employed in the U.S. as economists. The median annual wages for economists in the top industries in which they work are as follows:| Sector | Salary |
|---|---|
| Energy Auditor | $234,000 |
| Technical Consultants | $242,596 |
| Pricing Analyst | $266,990 |
| Energy Manager | $621,000 |
| Senior Process Engineer | $1,147,826 |
| Energy Management Specialist | $1,700,000 |
Curriculum of Chartered Energy Economist
Energy Economics and Energy Balance
For a professional like a Chartered Energy Economist; an understanding of concepts of energy economics is of prime importance. This part of course content would enable the Chartered Energy Economist to get a basic understanding of the concepts of the energy economics and multi-dimensions of energy interactions. This part of course would also cover the energy basics and energy system. This part of course would enable the Economics professionals in acquainting with the energy information and energy accounting framework. The objective of this part is to enable a Chartered Energy Economist to understand the accounting of traditional energies; special treatment for the energy balance; analysis of energy balance information and presentation of energy accounting information.Energy Demand and Forecasting and Management
For a professional like a Chartered Energy Economist; an understanding of the energy demand analysis and energy demand decisions is the crucial aspect of the study. This part of course content would enable the Chartered Energy Economist to get a better understanding about the economic foundation of energy demand and alternative approach for energy demand analysis. This part of course would also cover the energy demand analysis using the econometric approach. The part of course would enable the Economics professionals in acquainting with disaggregation of demand & sectoral energy accounting and analysis at the sectoral level. The objective of this part is to enable a Chartered Energy Economist to understand the energy demand forecasting. This part of course would focus on the energy demand management and energy load management and energy efficiency improvements and energy conservation.Energy Supply and Non-renewable Resource Supply
For a Chartered Energy Economist; know-how of the energy supply is the crucial aspect of the study. This part of course would enable the Chartered Energy Economist to get a better understanding about the fossil fuel supply; field development; oil production; economics of fossil fuel production and resource rent. This part of course would also cover the supply forecasting. The part of course would enable the Economics professionals in foundation of non-renewable resource supply. The objective of this part is to enable a Chartered Energy Economist to understand the depletion dimension. It also enables Economist to assess the simple model of extraction of exhaustible resources.Economics of Electric Supply
For a Chartered Energy Economist; know-how of the electric supply is the crucial aspect of the study. This part of course would enable the Chartered Energy Economist to get a better understanding about the basic concepts of electric systems and alternative options to electricity generation. This part of course would also cover the economic dispatch and unit commitment. The part of course would enable the Economics professionals in investment decisions in the power sector and electricity resource planning. The objective of this part is to enable a Chartered Energy Economist to understand the importance of alternative and renewable energy for electricity generation. It also enables Economist to understand the drivers of renewable energy and the economics of renewable energy supply and the economics of bio-fuels.Energy Market and Energy Pricing & Taxation
For a Chartered Energy Economist; understanding of the energy market; energy pricing and energy taxation is the crucial aspect of the study. This part of course would enable the Chartered Energy Economist to get a better understanding about the basic competitive energy market and extension of the basic model. This part of course would also cover the government intervention and the role of government in the energy sector. The part of course would enable the Economics professionals to understand the basic energy pricing model and tradability of energy products and opportunity cost. The objective of this part is to enable a Chartered Energy Economist to understand the peak & off-peak pricing; energy taxes and subsidies; implications of traditional energies and informal sector in developing economics for energy pricing.International Oil Market
For a Chartered Energy Economist it is crucial to understand the basics of international oil market. This part of course would enable to get a better understanding about the developments in the oil industry. This part of course would also cover the analysis of changes in the oil market.Market for Natural Gas and Coal
For a Chartered Energy Economist it is crucial to understand the natural gas market and the features of natural gas. This part of course would enable to get a better understanding about the status of the natural gas market and economics of gas transportation. This part of course would also cover the gas pricing and market of natural gas market of developing countries. This part of course focuses of the coal market and changes & technological advances and the future of coal.Analysis of Energy Systems and Global Energy Challenges
For a Chartered Energy Economist it is important to know about the evolution of energy systems and alternative modeling approaches of energy economy interactions. This part of course would enable Energy Economist to get a better understanding about the global energy challenges and grand energy transitions. This part of course would also cover the issues facing resources in rich and poor countries.
Apart from the above mentioned course content, AAFM suggest candidate/students to go beyond the course and study the following topics for better understandings of the certification course. These topics are:
- Micro-economics
- Macro-economics
- Industrial Economics
- Econometrics
Fee for Chartered Energy Economist
| Head | Resident Student | Overseas Student |
|---|---|---|
| Registration Fees$ | Rs.29,000 + GST | USD1000 |
| Registration Renewal | Rs.10,000 + GST | USD100 |
| Examination Fee–Chartered Economist®% | Rs.3,000 + GST | USD100 |
| Examination Fee–Chartered Health Economist® | Rs.10,000 + GST | USD100 |
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