Analyse the microeconomic foundations of energy markets, including supply, demand, pricing, and elasticities for different energy carriers. Evaluate the economics of non-renewable resource extraction using the Hotelling framework and related models of exhaustible resources. Assess the structure and regulation of electricity markets, including network externalities, market power, and liberalisation. Apply environmental and welfare economics concepts to energy-related externalities, carbon pricing, and emissions trading schemes. Understand the economics of renewable energy technologies, investment under uncertainty, and the role of subsidies and support schemes. Examine energy security, geopolitical dimensions of global energy trade, and the macroeconomic effects of energy price shocks. Conduct quantitative analysis of energy data using regression and simulation techniques, and critically evaluate empirical energy studies.

Energy Economics examines the economic principles governing the production, distribution, pricing, and consumption of energy resources — including fossil fuels, electricity, and renewable energy. The course integrates microeconomic theory, market analysis, and policy evaluation to address contemporary issues such as energy security, the transition to low-carbon systems, environmental externalities, and the regulation of energy markets. Students will develop both analytical and empirical skills to evaluate energy markets, model demand and supply dynamics, and assess the distributional and macroeconomic impacts of energy policy.

Lecture-based teaching

Bhattacharyya, S. C. (2019). Energy Economics: Concepts, Issues, Markets and Governance (2nd ed.). Springer. Tietenberg, T. & Lewis, L. (2018). Environmental and Natural Resource Economics (11th ed.). Routledge.