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2023/2024  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 cand.merc. and GMA (CM)
Course coordinator
  • Manuel Llorca - Department of Economics (ECON)
Main academic disciplines
  • Economics
Teaching methods
  • Face-to-face teaching
Last updated on 15-02-2023

Relevant links

Learning objectives
The energy sector is one of the largest industries 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 dynamic, sustainable, and international energy context. The pursuing of this goal is aligned with students’ development of skills and capability described in the Nordic Nine values and particularly with the production of prosperity and protecting the prosperity of next generations. 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
The number of registered candidates for the make-up examination/re-take examination may warrant that it most appropriately be held as an oral examination. The programme office will inform the students if the make-up examination/re-take examination instead is held as an oral examination including a second examiner or external examiner.
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 the students to analyse the different segments of the sector from an economic perspective. The aim is to make the students familiar with the relevant concepts, models, results and policies, and, in particular, with the application of economic principles to competition and regulation, and the analysis of energy demand and supply, along with the environmental and social issues derived.


The topics covered during the course are the following:


  • Introduction to energy economics: demand, supply, and markets
  • Energy sector economic and policy reforms: liberalisation and energy policy issues
  • Energy networks and regulation of natural monopolies
  • Economics of renewable energy: electricity production and integration of renewable energy sources
  • Consumer behaviour and society: energy demand management and behaviour, energy efficiency and rebound effects, energy poverty and public acceptance.
  • Technology and innovation: Innovation, R&D, learning, digitalisation, and energy security
  • Energy and environment: Climate change, carbon pricing, European Green Deal and the Green Transition
  • Energy and development: Sustainable development goals, energy access and transition to low-carbon energy systems in the global south
  • Topics in energy economics and policy: sector coupling / energy systems integration and future energy policy challenges


This module is endorsed by the Copenhagen School of Energy Infrastructure (CSEI), based at the Department of Economics of CBS, and is embedded in its overall strategy of research and education. CSEI has been supported and has close collaboration with 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 144 hours
Preparations for the exam 25 hours
Exam 4 hours
Expected literature


Expected literature

Main Literature – Selected Chapters from


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


Creti, A. and Fontini, F. (2019), Economics of electricity: Markets, competition and rules, 1st  ed., Cambridge University Press: London.


Additional References


Cambini, C., Congiu, R., Jamasb, T., Llorca, M. and Soroush, G. (2020), “Energy systems integration: Implications for public policy”, Energy Policy, 143, 111609.


Delivering the European Green Deal (website).



European Parliament (2021), Briefing, Connecting Europe Facility 2021 – 2027. Financing key EU infrastructure Networks. EU Legislation in Progress 2021 – 2027 MFF.



Gutierrez Energy Management Institute in collaboration with UH Energy (2020), Digitization of the Energy Industry, UH Energy White Paper Series: No. 01.2020.


Harris, C. (2006), Electricity markets: Pricing, structures and economics, 1st ed., Wiley Finance (chapter 10.1).


International Energy Agency (2017), Digitalization and Energy.



IRENA (2018), Innovation priorities to transform the energy system, International Renewable Energy Agency, Abu Dhabi.



Jamasb, T. and Llorca, M. (2019), “Energy systems integration: Economics of a new paradigm”, Economics of Energy & Environmental Policy, 8(2), 7-28.


Jamasb, T., Nepal, R. and Timilsina, G.R. (2015), A quarter century effort yet to come of age: A survey of power sector reform in developing countries, Policy Research Working paper 7330, June, Development Research Group, The World Bank Group, Washington, DC.


Lantz, E. (2015), Social acceptance of wind: A brief overview, AWEA State Wind Energy Forum, 20 January 2015, Lansing, Michigan (US).



Li, S., Zhu, X., Ma, Y., Zhang, F. and Zhou, H. (2020), The role of government in the market for electric vehicles: Evidence from China, Policy Research Working Paper; No. 9359. World Bank, Washington, DC.


Llorca, M. and Jamasb, T. (2017), “Energy efficiency and rebound effect in European road freight transport”, Transportation Research Part A: Policy and Practice, 101, 98-110.


Llorca, M., Rodriguez-Alvarez, A. and Jamasb, T. (2020), “Objective vs. subjective fuel poverty and self-assessed health”, Energy Economics, 87, 104736.


Orea, L., Llorca, M. and Filippini, M. (2015), “A new approach to measuring the rebound effect associated to energy efficiency improvements: An application to the US residential energy demand”, Energy Economics, 49, 599-609.


Powering cities in the global south: How energy access for all benefits the economy and the environment by Michael I. Westphal, Sarah Martin and David Satterthwaite (2017).



Rodriguez-Alvarez, A., Llorca, M. and Jamasb, T. (2021), “Alleviating energy poverty in Europe: Front-runners and laggards”, Energy Economics, 103, 105575.


Sanin, M.E., Trillas, F., Mejdalani, A., Lopez-Soto, D. and Hallack, M. (2019), Using Behavioral Economics in the design of energy policies, Inter-American Development Bank, Technical Note Nº 1840.


The White House (2021), Fact sheet: The American jobs plan, 31 March 2021, Statements and releases. WH.GOV.



Tobiasson, W. and Jamasb, T. (2016), “The solution that might have been: Resolving social conflict in deliberations about future electricity grid development”, Energy Research and Social Science, 17, 94-101.


Top technologies transforming energy in 2021 by Felicia Jackson (2021).



What you need to know about the European Green Deal - and what comes next (website).



Wüstenhagen, R., Wolsink, M. and Bürer, M.J. (2007), “Social acceptance of renewable energy innovation: An introduction to the concept”, Energy Policy, 35(5), 2683-2691.

Course material

Collection of articles and policy reports.

Last updated on 15-02-2023