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2021/2022  KAN-CCMVV2432U  Energy Economics, Markets, and Policy

English Title
Energy Economics, Markets, and Policy

Course information

Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 80
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Alexandra Lüth - Department of Economics (ECON)
  • Tooraj Jamasb - Department of Economics (ECON)
Main academic disciplines
  • Economics
Teaching methods
  • Face-to-face teaching
Last updated on 15-02-2021

Relevant links

Learning objectives
Energy sector is arguably the largest industry in the world and vital for economic growth and prosperity. At the same time, it is a major contributor to environmental pollution, greenhouse gas emissions, and depletion of natural resources. The path to decarbonisation of the economy to mitigate climate change passes through the transformation of this sector. This involves challenges and opportunities that call for interdisciplinary approaches and innovative commercial and policy solutions. The aim of this course is to apply economic analysis to an increasingly sustainable and international energy context. Given the demand for professionals specialised in economics in the energy business (consultants, practitioners, regulators, members of national and international competition authorities, etc.), one of the key objectives of this module is to provide the students training in economic aspects on which energy business, regulation, and policy are based. The aim is to enable the students to:
  • Demonstrate a comprehensive knowledge of energy economics, renewable resources, and energy markets
  • Understand the driving forces and the economic, regulatory, technological, environmental, social, and policy aspects of this dynamic and evolving sector
  • Understand the main assumptions of economic models of competition and monopoly
  • Select, formulate, and discuss cases and examples that reflect such challenges faced by different participants (regulators, practitioners, NGOs, etc.) in the energy business
  • Understand the current and future trends and challenges for a sustainable energy sector
Course prerequisites
Mandatory prerequisites: Knowledge of Microeconomics. Interest in Energy Economics and the application of economic principles. Interest in Regulatory and Industrial Economics.
Energy Economics, Markets, and Policy:
Exam ECTS 7,5
Examination form Written sit-in exam on CBS' computers
Individual or group exam Individual exam
Assignment type Written assignment
Duration 4 hours
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Winter
Aids Closed book: no aids
However, at all written sit-in exams the student has access to the basic IT application package (Microsoft Office (minus Excel), digital pen and paper, 7-zip file manager, Adobe Acrobat, Texlive, VLC player, Windows Media Player), and the student is allowed to bring simple writing and drawing utensils (non-digital). PLEASE NOTE: Students are not allowed to communicate with others during the exam.
Make-up exam/re-exam
Same examination form as the ordinary exam
If the number of registered candidates for the make-up examination/re-take examination warrants that it may most appropriately be held as an oral examination, the programme office will inform the students that the make-up examination/re-take examination will be held as an oral examination instead.
Course content, structure and pedagogical approach

Since the liberalisation of the energy sector (particularly electricity), its constituent parts have received distinct treatments, leading some segments to be opened to competition while others have remained as regulated natural monopolies. This course introduces students to analyse the different parts of the energy sector from an economic perspective. In particular, it makes the students familiar with the models, modelling techniques, results, and applications of economic analysis to market competition and regulation of the energy markets and to the economics of energy resources, demand, and supply.


The structure of the course is as follows:

  • Introduction to Microeconomics: demand, industrial organisation, vertical relations/B2B (retail / wholesale), market power, market failures, economies of scale, externalities, natural monopol
  • Major energy sources, their uses, markets, and value chains: fossil fuels (oil, gas, coal), nuclear, renewables; electricity, transport
  • Microeconomics of energy use, energy demand, and energy supply
  • Economic analysis of domestic and international energy market structures: competitive, monopoly, oligopoly, cartel; liberalisation of the energy sector
  • Energy efficiency and rebound effect
  • Economics of renewable energy sources, nonmarket valuation
  • Technology and innovation, support mechanisms
  • Economics and political economy of climate change, national policy, and international cooperation



This module is endorsed by the Copenhagen School of Energy Infrastructure (CSEI) at CBS and it is embedded in its overall strategy of research and education. CSEI is directly supported by the European Commission (DG Energy).

Description of the teaching methods
There will be lectures where students are expected to participate actively, and case-based seminars/lectures.
Feedback during the teaching period
Oral feedback will be continuously provided to the students through in-class examples, exercises, and case discussions. This feedback will be provided by the instructor in charge of the lecture. The students will be encouraged to attend the office hours should they need to receive additional oral feedback on in-class exercises or in preparation for the exam.
Student workload
Lectures 33 hours
Preparations for lectures 145 hours
Preparations for the exam 25 hours
Exam 3 hours
Expected literature


Expected literature

Selected Chapters from:

Bhattacharyya, S.C. (2019), Energy Economics: Concepts, issues, markets and governance, 2nd ed., Springer.


Kirschen D.S. and Strbac, G. (2018), Fundamentals of Power System Economics, 2nd ed., John Wiley & Sons, Ltd.


Mulder, M. (2021), Regulation of Energy Markets (Bd. 80). Springer International Publishing


Articles :

Ansari, D.; Holz, F.; al-Kuhlani, H. (2020), “Energy outlooks compared: Global and regional insights”, Economics of Energy & Environmental Policy, 9, 1.


Carson, R.T., Mitchell, R.C., Hanemann, M., Kopp, R.J., Presser, S. and Ruud, P.A. (2003), “Contingent valuation and lost passive use: Damages from the Exxon Valdez oil spill”, Environmental and Resource Economics, 25: 257-286.


Egging, R. and Holz, F. (2016), “Risks in Global Natural Gas Markets: Investment, Hedging and Trade”, Energy Policy, Vol. 94, pp. 468-479


Greening, L.A., Greene, D.L. and Difglio, C. (2000), “Energy efficiency and consumption – the rebound effect – A survey”, Energy Policy, 28(6-7), 389-401.


Jamasb, T. (2007). Technical change theory and learning curves: patterns of progress in electricity generation technologies. The Energy Journal, 28(3).


Kitzing, L., Mitchell, C. & Morthorst, P. E. (2012). Renewable energy policies in Europe: Converging or diverging? Energy Policy, 51, 192–201.


Newbery, D.M., Privatization, restructuring and regulation of network utilities (The Walras-Pareto Lectures, 1995), MIT Press, 2000.


Sorrell, S. and Dimitropoulos, J. (2008), “The rebound effect: Microeconomic definitions, limitations and extensions”, Ecological Economics, 65(3), 636-649.

Course material

Collection of articles and policy reports.


Last updated on 15-02-2021