Andrew  Kleit

Andrew N. Kleit

Email: 
Phone: 
814-865-0711
Office Address: 
201 Hosler Building
Title(s): 
Professor of Energy and Environmental Economics;
Unit: 
John and Willie Leone Family Department of Energy and Mineral Engineering
File Curriculum Vitae (46.83 KB)
Expertise: 
  • Market Manipulation
  • Electricity Capacity Markets
  • Energy Land Law
  • Chinese Energy Investment Decisions
Education: 
  • Yale University, New Haven CT. Ph.D in Economics, 1987, M.Phil., 1987, M.A. 1983. Fields of Study: Industrial Organization and Public Finance. Dissertation: "The Economics of Automobile Fuel Economy Standards." Dissertation Chairman: Richard C. Levin.
  • Middlebury College, Middlebury VT. B.A. cum laude in Mathematics and Political Science, 1982. Mathematics thesis: "The Core of an N-Person Game."
Courses Taught: 
  • EBF 200: Introduction to Earth Science Economics
  • EBF 306W: Energy Land Law Contracts
  • EBF 473: Energy Financial Risk Management
  • EBF 497W: Energy Market Competition

About:

Andrew N. Kleit is Professor of Energy and Environmental Economics and MICASU Faculty Fellow.  He is also a visiting scholar at the China University of Geosciences, Beijing.  His current research interests are focused on the areas of competition in electricity and natural gas markets.  He is the author or editor of over 70 academic articles and seven books.  He has worked at several different regulatory agencies, including the President’s Council of Economic Advisors, the Federal Trade Commission, and the Federal Energy Regulatory Commission.

Research Projects: 
  • Modern Energy Market Competition (Emerald Press, November 2018).  As long as commodity and securities markets have been in operation, market manipulation has been a serious concern. Now that many electricity and natural gas markets have been opened to competition, manipulation threatens to destroy the value of these markets as well. Yet market manipulation itself remains ill-defined, with uncertain legal and economic principles operating on both sides of regulatory proceedings. This book explores this crucial gray area. It presents a coherent definition of market manipulation, and applies it a variety of legal context.  It examines two categories of manipulation cases.  In the first, the allegations fit the definition of manipulation, but the facts of the case are unclear.  In the second, the facts of the case are clear, but whether or not these events constitute manipulation is unclear.  The work casts a critical eye not only on the actions of energy companies but also the legal decisions of the Federal Energy Regulatory Commission.
  • Electricity Capacity Markets (with Todd Aagard) Billions of dollars are spent each year by electricity consumers on “capacity markets,” which have the stated purpose of protecting electricity reliability.  This will be the first book length work on this important area.  Issues to be explored include how these markets are structured, how decisions are made for these markets, and whether these markets truly reach their goal of enhancing reliability, or merely represent an opportunity for the transfer of funds.
  • The Economics of Natural Gas Refracturing (with Arash Dahi-Taleghani) .  Natural gas markets have been transformed by hydraulic fracturing.  Hydraulic fracturing, however, can leave up to 90 percent of the available gas in the ground.  To capture this remaining gas, firms have begun to refracture previously drilled unconventional wells.  In this research project Professor Taleghani and I plan to address questions concerning the optimal timing of refracturing, and how much gas can be recovered through refracturing.
Publications: 
  • Modern Energy Market Manipulation (Emerald Publishing, 2018).
  • “Deregulation and Firm Investment Incentives: Evidence from Nuclear Power Uprates," (with Lee and Tsai), Energy Journal. May 2017, 38:3 (2017) 113-39
  • “Why Invest in Wind Energy? Career Incentives and Chinese Renewable Energy Politics Energy Policy,” (with Xun Cao and Chuyu Liu), 99 Energy Policy (2016) 120-131.
  • "Contingent Efficiency in Natural Gas Leases," (with Dan Cahoy). Texas Journal of Oil, Gas, and Energy Law, 11 (2016) 89.
  • “The Impact of Black Box Warnings on the Prescribing on NSAIDS” (with W. David Bradford), Health Economics 24:7 (2015) 859-875.
  • “Valuing Electricity Transmission: The Case of Alberta” (with Doucet and Fikirdanis). 36 Energy Economics (2013) 396-404.
  • Electricity Restructuring:  The Texas Story, (coeditor with Lynne Kiesling), American Enterprise Institute Press (2009).
  • ”Commodity Exchanges and Antitrust (with James M. Falvey), 4:1 Berkeley Business Law Journal (Spring 2007) 123-176.
  • “Measuring Potential Efficiency Gains from Deregulation of Electricity Generation: A Bayesian Approach” (with M. Dek Terrell), Review of Economics and Statistics, 83:3 (August 2001) 523-530.
  • “Are Vertical Restraints Anti- or Pro-competitive?  Lessons from Interstate Circuit” (with David A. Butz),  Journal of Law and Economics  44:1 (April 2001) 131-160.