2018 MCM
Problem C: Energy Production
Background: Energy production and usage are a major portion of any economy. In the United
States, many aspects of energy policy are decentralized to the state level. Additionally, the
varying geographies and industries of different states affect energy usage and production. In
1970, 12 western states in the U.S. formed the Western Interstate Energy Compact (WIEC),
whose mission focused on fostering cooperation between these states for the development and
management of nuclear energy technologies. An interstate compact is a contractual arrangement
made between two or more states in which these states agree on a specific policy issue and either
adopt a set of standards or cooperate with one another on a particular regional or national matter.
Problem: Along the U.S. border with Mexico, there are four states – California (CA), Arizona
(AZ), New Mexico (NM), and Texas (TX) – that wish to form a realistic new energy compact
focused on increased usage of cleaner, renewable energy sources. Your team has been asked by
the four governors of these states to perform data analysis and modeling to inform their
development of a set of goals for their interstate energy compact.
The attached data file “ProblemCData.xlsx” provides in the first worksheet (“seseds”) 50 years
of data in 605 variables on each of these four states’ energy production and consumption, along
with some demographic and economic information. The 605 variable names used in this dataset
are defined in the second worksheet (“msncodes”).
Part I:
A. Using the data provided, create an energy profile for each of the four states.
B. Develop a model to characterize how the energy profile of each of the four states has evolved
from 1960 – 2009. Analyze and interpret the results of your model to address the four states’
usage of cleaner, renewable energy sources in a way that is easily understood by the governors
and helps them to understand the similarities and difference between the four states. Include in
your discussion possible influential factors of the similarities and differences (e.g. geography,
industry, population, and climate).
C. Determine which of the four states appeared to have the “best” profile for use of cleaner,
renewable energy in 2009. Explain your criteria and choice.
D. Based on the historical evolution of energy use in these states, and your understanding of the
differences between the state profiles you established, predict the energy profile of each state, as
you have defined it, for 2025 and 2050 in the absence of any policy changes by each governor’s
office.
