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2024/2025  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 150
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 05-02-2024

Relevant links

Learning objectives
The energy sector is one of the largest industries in the world and vital for economic development and societal welfare. At the same time, the sector is a major contributor to environmental pollution, greenhouse gas emissions, and depletion of natural resources. The path to sustainability and decarbonisation of the economy and our societies to mitigate climate change and depletion of resources passes through the transformation of the energy sector. This involves socioeconomic 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 developing the students’ skills and capabilities, as described in the CBS’ Nordic Nine values, and the production and protection of the prosperity of the society for current and future generations. Given the demand for skilled professionals specialised in economics in the energy business (e.g., practitioners, decision-makers, regulators, entrepreneurs, and consultants), the objective of this course is to provide the students with 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, and non-renewable energy sources, and energy markets
  • Understand the driving forces and the economic, regulatory, technological, environmental, social, and policy aspects of this dynamic and evolving sector
  • Select, formulate, and discuss cases and examples that reflect the challenges faced by different stakeholders (regulators, practitioners or NGOs, among others) in the energy sector
  • Understand the current and future trends and challenges for a sustainable transition of the energy sector
Course prerequisites
Basic knowledge of Microeconomics; Interest in Energy Economics and sustainability, and 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.
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 (generation and retailing), while the others (transmission and distribution networks) have remained as regulated monopolies. This course introduces the students to analyse the interrelationships and the challenges that all the segments of this sector face from an economic perspective. The aim is to make the students familiar with the relevant concepts, models, 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, 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 and guest lectures provided by experts and practitioners from the energy industry where students are expected to participate actively. Prior to some sessions, study questions and case-based exercises will be shared with the students for discussion at the 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 material or in preparation for the exam.
Student workload
Lectures 30 hours
Preparations for lectures 147 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.



Carlaw, K. and Lipsey, R.G. (2021), The Funding of Important Emerging and Evolving Technologies by the Public and Private Sectors. Available at SSRN: http:/​/​dx.doi.org/​10.2139/​ssrn.3874209.


Foster, V. and Rana, A. (2020), Rethinking Power Sector Reform in the Developing World, Sustainable Infrastructure Series, Washington, DC: World Bank. http:/​/​hdl.handle.net/​10986/​32335.


Gasparella, A., Koolen, D. and Zucker, A. (2023), The Merit Order and Price-Setting Dynamics in European Electricity Markets, European Commission, Petten, JRC134300, https:/​/​publications.jrc.ec.europa.eu/​repository/​handle/​JRC134300.


Grubb et al. (2021), “Induced innovation in energy technologies and systems: A review of evidence and potential implications for CO2 mitigation”, Environmental Research Letters, 16 043007, https:/​/​iopscience.iop.org/​article/​10.1088/​1748-9326/​abde07/​meta.


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


Jamasb, T. (2007), “Technical Change Theory and Learning Curves: Patterns of Progress in Electricity Generation Technologies”, The Energy Journal, 28(3), 51-71, http:/​/​www.jstor.org/​stable/​41323109.


Jamasb, T. and Llorca, M. (2019), “Energy systems integration: Economics of a new paradigm”, Economics of Energy & Environmental Policy, 8(2), 7-28. https:/​/​www.jstor.org/​stable/​resrep30411.


Jamasb, T. and Sen, A. (2022), The New Energy State: A Review of Offshore Governance Regimes for Renewables as Natural Resources, Copenhagen Business School, CSEI Working Paper No. 2022-02Working Paper / Department of Economics, Copenhagen Business School No. 2022-05.



Jamasb, T., Nepal, R. and Davi-Arderius, D. (2023). Electricity Markets in Transition and Crisis: Balancing Efficiency, Equity, and Security, Department of Economics, Copenhagen Business School, Working Paper / Department of Economics, Copenhagen Business School No. 04-2023CSEI Working Paper No. 2023-04



Lantz, E. (2015), Social acceptance of wind: A brief overview, AWEA State Wind Energy Forum, 20 January 2015, Lansing, Michigan (US). https:/​/​www.nrel.gov/​docs/​fy15osti/​63590.pdf.


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. https:/​/​doi.org/​10.1016/​j.eneco.2015.03.016.


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.



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. https:/​/​doi.org/​10.1016/​j.erss.2016.04.018.


Tobiasson, W., Beestermöller, C. and Jamasb, T. (2016), “Public engagement in electricity network development: The case of the Beauly–Denny project in Scotland”, Economia e Politica Industriale, 43, 105-126. https:/​/​doi.org/​10.1007/​s40812-016-0030-0.


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, news, and reports.

Last updated on 05-02-2024