English   Danish

2022/2023  BA-BHAAV6040U  Sustainability and Business: Energy Markets, Competition, and Regulation

English Title
Sustainability and Business: Energy Markets, Competition, and Regulation

Course information

Language English
Course ECTS 7.5 ECTS
Type Elective
Level Bachelor
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 60
Study board
Study Board for BSc 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
  • Blended learning
Last updated on 11-02-2022

Relevant links

Learning objectives
The energy sector is arguably the largest industry in the world. At the same time, it is a major contributor to environmental pollution, greenhouse gas emissions, and depletion of natural resources, which closely links the energy sector to climate change and threatens prosperity for future generations. The climate crisis is one humanity’s major challenges to overcome in this time and the decarbonisation of the energy sector is a crucial element in mitigating climate change and a key item of the recently signed European Green Deal.

The aim of this course is two-fold. First, to learn about the explanatory capacity of theory and models of market regulation and competition policy in the energy sector. Second, to apply economic analysis to an increasingly sustainable and international energy context to understand energy businesses’ challenges. Given the demand for professionals specialised in economics and law in the energy business, one of the key objectives of this module is to provide the students training in economic aspects on which economic regulation and competition policy for the energy sector are based. The aim is to enable the students to:
  • Understand the current and future trends for a sustainable energy sector based on renewable energy sources
  • Demonstrate a comprehensive knowledge of energy economics, markets, and networks
  • Present deep knowledge about energy businesses in the context of climate change
  • Describe the main assumptions of economic models of competition and monopoly
  • Explain the economic substance of specific concepts that are applicable to regulation in energy economics
  • Select, formulate, and discuss examples reflecting such assignments faced by different participants in the energy business
  • Discuss current changes, ethical implications, and innovations in the energy sector (Power-to-X, energy systems integration, hydrogen economy, environmental justice)
Course prerequisites
Mandatory prerequisites: Working knowledge of microeconomics. Interest in the application of microeconomics to energy economics, regulatory economics, and industrial economics.
Sustainability and Business: Energy Markets, Competition, and Regulation:
Exam ECTS 7,5
Examination form Written sit-in exam on CBS' computers
Individual or group exam Individual exam
Assignment type Written assignment
Duration 3 hours
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Winter
Aids Limited aids, see the list below:
The student is allowed to bring
  • An approved calculator. Only the models HP10bll+ or Texas BA ll Plus are allowed (both models are non-programmable, financial calculators).
The student will have access to
  • basic IT application package
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 energy sector, relevant models, economic characteristics of energy, and applications of economic analysis to market competition and regulation of the energy markets.

The course combines theoretical approaches to markets, competition, and regulation with the application to the energy sector. The course develops along the following topics and structure:


  • Major energy sources and their markets: 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
  • Introduction to economic regulation: theory and principles
  • Economic regulation of energy markets and utilities and regulatory management
  • Economics of investment in renewable energy sources
  • 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, study questions, case studies, and supportive video material.
Feedback during the teaching period
Through oral discussions in class, cases and quizzes
Student workload
Lectures 38 hours
Preparation for lectures 142 hours
Preparations for the exam 25 hours
Exam 3 hours
Expected literature


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


Selected chapters from:


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


Cretì, A., and Fontini, F. (2019). Economics of Electricity. Markets, competition and rules. Cambridge University Press.


Decker, C. (2014). Modern Economic Regulation. Cambridge University Press.


Additional material

Collection of articles and policy reports 

Last updated on 11-02-2022