This is a 6 ECTS course designed to provide students with an introduction to the principles of energy economics and related policy applications. Energy is the lifeblood of industrial economies, and also a key factor in environmental and national security problems. Because of the extensive externalities associated with energy use, and the uneven distribution of energy resources around the globe, balancing the benefits and costs of energy use is one of the major challenges facing humanity.

This balancing act involves blending markets and public policy in such a way as to align the
incentives of businesses and individuals with the greater good of people and the planet. In several
jurisdictions, the marketplace plays the predominant role in determining what energy sources are used, and how. But government policy – at the local, national, regional, and international levels – plays an extremely important role in molding aspects of energy policy.

This course covers the economic tools for analyzing institutions and driving forces of energy markets, including coal, crude oil, gasoline/diesel, natural gas, and electricity with a focus on understanding supply and demand changes as well as the motives and consequences of policy or regulatory interventions.

Students will be introduced to the environmental implications of energy use and the role of economic analysis in designing policies that address issues of pollution and climate change,
and the distributive consequences of energy and climate policies. Throughout the course, theoretical
discussions will be complemented with empirical evidence and research that explores different aspects of the energy markets to help students better understand the respective energy markets.

Ancillary objectives of the course include supporting students in developing research topics and introducing them to academic writing. To this end, students will develop some expertise in working
with real-world energy data and policies and writing a research paper.

Learning Outcome: Upon completion of this course, it is expected that students are able to:
1. Analyze the fundamentals of energy markets, including demand and supply, market structure, and pricing mechanisms
2. Understand the rationales and instruments for policy intervention in energy markets and be able to critically evaluate current energy policies based on sound economic principles
3. Evaluate the role of government policies in shaping energy markets, including regulatory approaches, taxes, and subsidies for renewable energy
4. Understand the environmental, economic, and geopolitical implications of energy production and consumption

The course starts with a series of lectures on selected topics. The lecture sessions aim to facilitate the development of students’ understanding of the economic theory related to the various energy markets. Students will also be guided to develop their research projects during the first half of the semester.

At the start of the second part of the course, students will present their tentative research projects
and receive input from instructors. They will then use the remaining period to work on their research
projects with the support of instructors. Students will present their work in a scientific conference
format towards the end of the semester and submit the final term paper afterward.