Energy is a key input for a well-functioning economy and is essential for maintaining our modern way of life. Energy influences many dimensions of our economic and social lives. Ensuring future responsible (sustainable) and equitable access to affordable energy is a significant challenge. Economics plays an important role in the functioning of the energy sector, as well as in the development and application of energy policies and regulations, designed to meet the challenge of sustainability. The purpose of this subject is to develop the economic theory necessary to critically evaluate energy policy and related environmental policy.
The subject has been structured into 3 sections. The first section will provide an overview of energy markets. Topics include sources of energy and energy use. We will examine the economics of energy production and investment. We will also examine energy market regulation.
We study power systems in section two. We look at the economics of electricity generation and distribution and the design of power markets. We investigate the issues involved with integrating renewable energy sources in power system.
Section three considers the environmental implications of energy. The focus is on energy related externalities and the policies proposed to correct these externalities.
The subject fits into the University's major research themes: Environment, Resources & Sustainability; and, Data, Knowledge and Decisions.