Learning Outcomes:

On successful completion of the course, the students shall be able to:

• Understand basic economic principles and tools necessary to analyse issues and in the energy sector.

• Identify market failures and their impact on individuals and society, using basic economic principles and tools.

• Apply economic principles and tools to justify measures that might be required to address market failures in the energy sector.

Contents:

• Introduction to problems and challenges of energy system and role of the state; 
• Demand and supply curves for energy;
• Demand elasticity; 
• Energy generation cost; merit order; 
• Market clearing; 
• Market failures; positive and negative externalities; 
• Monopolies and oligopolies; regulation of energy industries; 
• General, market-oriented and non-market-oriented policy instruments; 
• Information failures, energy efficiency, demand-side management and rebound effect.

Target Audience:

Working professionals and graduate students with technical background who would like to understand the economics of energy.