“Modeling Strategic Behavior in Global Energy Markets- the Role of OPEC and the Impact of US Climate Policy” seminar @ 402 Ames Hall
Nov 5 @ 12:00 pm – 1:00 pm
"Modeling Strategic Behavior in Global Energy Markets- the Role of OPEC and the Impact of US Climate Policy" seminar @ 402 Ames Hall | Baltimore | Maryland | United States

Dr. Daniel Huppmann studied Mathematics at the Vienna University of Technology, where he earned an MSc degree in 2010. He joined the German Institute for Economic Research (DIW Berlin) as a student research assistant in 2008, started in DIW’s graduate (PhD) program in October 2011 and successfully defended his dissertation at the TU Berlin in June 2014. He is currently a Research Associate in the department Energy-Transportation-Environment at DIW Berlin. In his research, Daniel works at the intersection of Operations Research, game theory, and energy economics, with a focus on multi-stage games in the global crude oil and natural gas markets, and strategic investment in electricity networks.


Modeling Strategic Behavior in Global Energy Markets- the Role of OPEC and the Impact of US Climate Policy (abstract)

The first part of the talk focuses on the global crude oil market, in particular the role of OPEC, and the difficulty of properly capturing strategic behavior in real-world applications using equilibrium modeling. This article proposes a two-stage oligopoly model: in a game of several Stackelberg leaders, market power increases endogenously as the spare capacity of the competitive fringe goes down. This effect is due to the specific cost function characteristics of extractive industries. The model captures the increase of OPEC market power before the financial crisis and its drastic reduction in the subsequent turmoil at the onset of the global recession.The two-stage model better replicates the price path over the years 2003-2011 compared to a standard simultaneous-move, one-stage Nash-Cournot model with a fringe. This article also discusses how most large-scale numerical equilibrium models, widely applied in the energy sector, over-simplify and potentially misinterpret market power exertion.

The second part of the talk presents a large-scale global dynamic energy system and resource market equilibrium model (“MultiMod”). It combines endogenous fuel substitution within demand sectors and in power generation, detailed infrastructure capacity constraints and investment, as well as strategic behavior and market power aspects by suppliers in a unified framework. This model is the first-of-its-kind in which market power is exerted across several fuels. It bridges the divide between energy system models, focusing on fuel substitution and technology options, and sector specific models that have a detailed representation of infrastructure constraints and are able to capture strategic behavior. The model allows assessing and quantifying the impact of national or global climate policy and emission reduction targets on the global energy mix over the next decades. In the talk, Daniel will present current results from the Energy Modeling Forum, Round 31 (“North American Natural Gas and Energy Markets in Transition”), focusing on the impact of US shale gas scenarios and domestic energy policy (such as Technology Portfolio Standards) on global energy consumption patterns and the resulting import dependency and trade flows.

“Hospital Decision-Making During Extreme Weather Events” Seminar @ Gilman Hall 132
Oct 15 @ 3:00 pm – 4:00 pm

Extreme weather events, such as hurricanes, can disrupt how healthcare services are delivered by damaging the infrastructure they depend on. Natural disasters can force hospitals to evacuate. However, evacuation is not without risk. At this seminar, E²SHI Fellow Meghan McGinty will discuss how decisions to either evacuate hospitals or shelter-in-place (continue serving patients on site) were made during Hurricane Sandy in 2012 – and what we can learn from this experience to better prepare for future extreme weather events.

Event Flier


Presenter: Meghan McGinty is a PhD candidate in the Department of Health Policy and Management at the Johns Hopkins Bloomberg School of Public Health. Her research focuses on public health emergency preparedness and response, disaster resilience, and climate change. She is a 2013-14 E2SHI Fellowship recipient. Learn more about Meghan’s research

Seminar: Labor Cost Accounting for Small Differences in Operating Room Time @ Hackerman Hall B-17
Feb 4 @ 12:00 pm – 1:00 pm

Labor Cost Accounting for Small Differences in Operating Room Time Such as From Lean Methods

Over 25 years, Prof. Dexter & colleagues have studied the health system of anesthesia and
surgical delivery, from the lowest level of using sensor information for making changes
minute to minute through the upper level of health policy. Join his talk to learn
how there can be accurate cost prediction for the impact of structural and operating
room architectural changes that result in small changes in operating room times.
Speaker: Franklin Dexter, MD, PhD
Director, Division of Management Consulting,
Professor, Department of Anesthesia, University of Iowa
Seminar flyer here.

Center for Systems Science and Engineering