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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.

Course description for study year 2022-2023. 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
Form of assessment Weight Duration Marks Aid
Written exam 1/1 4 Hours Letter grades Dictionary, Valid calculator,

Coursework requirements
Submitted essay, Class presentation of essay, Presence and active participation in other student presentations
One mid-term assignment has to be passed to qualify for the final exam. Evaluation of assignment (approved/not approved) based on
  • 1. Submitted essay
  • 2. Class presentation of essay (slidepack and performance)
  • 3. Presence and active participation in other student presentations
Course teacher(s)
Course coordinator: Lassi Mikael Ahlvik
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 take-home exam.
Overlapping courses
Course Reduction (SP)
Economics of Energy Markets (MØA285_1) 10
Open for
Energy, Environment and Society - masterstudium Master in Accounting and Auditing Business Administration - Master of Science Business Administration - Master of Science (5 years)
Course assessment
Students will have the opportunity to give feedback on the course first in an early dialogue, and then in a written course evaluation at the end of the course.
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