Entering a dynamic industry

Environmental concerns and the projected dwindling supply of oil have turned interest in energy production toward electricity. Cutting-edge innovations in wind and solar power, and the recent deregulation of power companies make today’s electrical market as dynamic a place as the energy it's designed to create.

Fifth year economics PhD students Huan Zhao and Abhishek Somani are finding ways to bring better organization to electrical power markets. They use computational economics --- an interdisciplinary study that brings together computer science, economics, and finance --- to study the market’s complexities.

The problems they study are large and require the use of math and computers. “These are problems that are impossible to solve with just a paper and pen,” says Abhishek.

What are their opportunities?

Huan and Abhishek not only share an office in the Department of Economics at Heady Hall, but they've also collaborated on recent research. Currently, they’re trying to determine ways that power companies can earn a profit and simultaneously provide affordable energy for the consumer.

Abhishek says he was drawn to the work because of his interest in renewable energy and climate change. With so many new technologies entering the market, both agree it’s an up-and-coming area to work in.

“It's a new market that keeps evolving. With more investors in alternative energy there are lots of opportunities in this field,” says Huan.

Post-graduate opportunities include potential consulting work for government agencies, or electrical power companies looking for better ways to predict changes in the dynamic market. There are further opportunities for university-based research, or even a role buying and trading electrical commodities.

Why the Department of Economics at ISU?

Huan completed his undergraduate work in mechanical engineering in his native China. He applied for and was accepted to a number of economics programs for his graduate study, but felt that the Department of Economics at ISU had the most to offer.

“I feel the faculty are very good with empirical study and what happens in the real world," he says. "I like things to be very grounded in reality."

Abhishek came to ISU as an undergrad from India. His interest in climate change and the environment was a good match for the sort of work produced throughout various departments at the university.

"This is interdisciplinary work," he says. "It helps to be in a school with other good departments that are all working on issues of the environment. These are hot topics at this time."