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 15 students are enrolled by January 6th for the spring semester.

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)

Knowledge

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

Skills

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