Based on micro economic theory this lecture provides an overview of key features and particularities of energy markets, including their environmental impact. These features and particularities include the infrastructure character of the energy industry, the importance of externalities, a substantial extent of public ownership, and the dependence on exhaustible resource. Successful completion of this class allows students a realistic assessment of topical developments in the context of the energy transition.

Lecture. Set of slides and additional material will be provided on moodle. 

Basics of energy economicsGlobal energy demand and supplyInstances of market failure in energy marketsRegulation of grid-based fuelsEnergy and sustainabilityEnergy-related indicatorsEnergy and environmental policy related instrumentsEconomics of renewable energyExhaustible resourcesAlternatives (backstops)Supply securityEnergy and developmentTopical energy policy issues

Good understanding of micro economics.

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Peter Zweifel, Aaron Praktiknjo, Georg Erdmann, Energy Economics, Theory and Applications. Springer, 2017. Subhes C. Bhattacharyya, Energy Economics, Concepts, Issues, Markets and Governance. Springer, 2019. Machiel Mulder, Regulation of Energy Markets. Economic Mechanisms and Policy Evaluation. Springer, 2021. 

Written exam. Open questions, closed book.  

Topics dealt with in lecture, and additional material.

For successfully completing class, at least 50% of the maximum score is required.