Numbering Code	G-GAIS00 84029 LE24 G-GAIS00 84029 LE43 G-GAIS00 84029 LE44	Year/Term	2022 ・ First semester
Number of Credits	2	Course Type	Lecture
Target Year	From 1st to 3rd year students	Target Student
Language	English	Day/Period	Thu.2
Instructor name	KANAMURA TAKASHI (Graduate School of Advanced Integrated Studies in Human Survivability Associate Professor)
Outline and Purpose of the Course	The course aims to provide theoretical and practical concepts of energy finance (EF), which is an interdisciplinary topic, and discusses the application of EF to businesses. After shedding lights on cutting edge issues in EF, the course is enhanced to Ph.D research level. Modules 1&2 handle existing issues in EF using existing knowledge which are musts for leading practitioners while they do not include anything new in the sense of academia. Module 3 introduces researches in EF which include something new in an academic sense. Module 3 is also conducted using participants' discussions. Module 1 explains basic ideas in EF (supply-demand, volatility) by comparing with conventional finance and by employing quantitative methods after it overviews energy and carbon markets including crude oil/natural gas and EU-ETS/Kyoto, resp. Based on Module 1, Module 2 discusses the application of EF to businesses including investment strategies of power plants using a real option approach, risk hedging strategies of power generation facilities using weather derivatives, and trading strategies of hedge funds focusing on arbitrage opportunities in energy markets. Module 3 introduces recent research developments in EF. Handling a lot of data in energy and carbon markets, participants conduct practices to find implications of the data. The course finally tries to obtain something new in an academic sense by identifying and solving any new problem through the practices.
Course Goals	Participants obtain new viewpoints on their own researches by learning the basics and applications of energy finance.
Schedule and Contents	Module 1 【Class 1】 Overviews of energy finance and objective of the course 【Class 2】 Energy markets 【Class 3】 Carbon and environmental markets 【Class 4】 Asset pricing theory 【Class 5】 Quantitative methods for energy finance 【Class 6】 Role of financial markets in energy and carbon markets Module 2 【Class 7】 Investment strategies in energy and green projects (Real option approach) 【Class 8】 Risk management in energy and carbon markets 【Class 9】 Trading strategies of hedge funds in energy markets Module 3 【Class 10】 Cutting edge in energy finance 1: a topic of ``A Supply and Demand Based Volatility Model for Energy Prices'' 【Class 11】 Cutting edge in energy finance 2: a topic of ``Financial Turmoil in Carbon Markets'' 【Class 12】 Cutting edge in energy finance 3: a topic of ``Market Risk, Credit Risk, and Futures Trading in Commodity Markets'' 【Class 13】 Presentation of data analyses of energy markets 【Class 14】 Presentation of data analyses of carbon and environmental markets 【Class 15】 Summary of the course and future directions of energy finance
Evaluation Methods and Policy	Comprehensive evaluation based on quizzes, a term paper and class participants
Course Requirements	None
Study outside of Class (preparation and review)	Separately instructed
References, etc.	Commodities and Commodity Derivatives: Modeling and Pricing for Agriculturals, Metals and Energy, H. Geman, (Wiley)