Economics of Energy Markets (MSB285)

This course builds an understanding of the global energy situation, energy and climate policies, and the market outlook for various energy carriers. Coverage includes conventional power generation, wind power, solar energy, oil and natural gas. Drivers of demand, supply and price formation will be explored, including their relationship to resource scarcity, technology and innovation, economic factors, and policy variables. Finally, the course explores the macroeconomics of energy market developments for importers and exporters of energy resources.

NB! This is an elective course and may be cancelled if fewer than 10 students are enrolled by January 6th for the spring semester.

Course description for study year 2024-2025. Please note that changes may occur.


Course code




Credits (ECTS)


Semester tution start


Number of semesters


Exam semester


Language of instruction



  1. Economics of energy

    • Global energy (drivers of energy demand, supply, energy and climate policies)
    • Economics of climate change (causes and consequences of climate policies, efficiency issues, impact on energy markets)
  2. Economics of energy markets

    • Renewable energy sources (electricity investment and production, conventional power generation, economics of wind power and solar energy)
    • Non-renewable energy sources (oil and natural gas, investment and production, geography and technology, market structure, price formation, applied market analysis)
  3. Energy and the economy

    • Macroeconomics of energy (energy-importers and energy-exporters)
    • Energy resource management (the Dutch Disease, the Resource curse, topics in resource revenue management, policy formation and sovereign wealth fund design)

Learning outcome


Having completed this course, students should be able to:

  • Understand the connections and dilemmas of the nexus between economic growth, energy and climate policies, and energy demand
  • Demonstrate awareness of the variation between energy technologies and energy carriers, as well as economic behaviour and price formation in each market segment
  • Reflect critically on the impact of shocks on demand, supply, prices and policies for the energy situation for energy-importing countries and for energy-exporting countries


Having completed this course, students should be able to:

  • Master analytical tools and methods to address questions relating to demand, supply, price formation and policy concerns for key energy carriers
  • Demonstrate advanced understanding of the impact of energy market developments for industry trends and business cycles in countries that are rich in energy resources.
  • Read and comprehend works at the academic frontier of this field of economics, and apply the findings and results to their own analytical work

Required prerequisite knowledge



Presentations and written exam

Form of assessment Weight Duration Marks Aid
Presentations 1/5 Letter grades
Written exam 4/5 Letter grades

Course teacher(s)

Course coordinator:

Gerhard Töws

Study Program Director:

Yuko Onozaka

Method of work

40 hours of online lectures, 12 hours of seminar activity (presentation of assignments), 190-240 hours of self-study and 4 hours written shcool exam.

Overlapping courses

Course Reduction (SP)
Economics of Energy Markets (MØA285_1) 10

Open for

Energy, Environment and Society - Master's Degree Programme Industrial Economics - Master of Science Degree Programme Master of Science in Accounting and Auditing Business Administration - Master of Science
Exchange programmes at UIS Business School

Course assessment

There must be an early dialogue between the course supervisor, the student union representative and the students. The purpose is feedback from the students for changes and adjustments in the course for the current semester.In addition, a digital subject evaluation must be carried out at least every three years. Its purpose is to gather the students experiences with the course.


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