Energy Economics (MEM)
Course introduction
This course equips students with an understanding of how useful economics is for energy professionals. The Micro part of the course covers market design and the interpretation of price information, and relates this to the challenges posed by disruptive technologies. The Macro part looks at the changing nature of the energy industry, including new technologies, sustainability objectives, and geopolitical implications. The course presents this material in an integrated way and challenges students to become effective problem solvers in both individual and team based settings.
Course assessment
- 40% group project (instructions here)
- 60% final exam (online but invigilated)
Course schedule
Last year 15 hours of this module was delivered online. I have made a modified version of that course available as an optional extra, aimed at students who have not studied economics before. You will need to create a (free) wordpress account to access it, but you can find it here: https://lms.anthonyjevans.com/courses/energy-economics/.
I have also provided links to relecent chapters of the course textbook, ‘Economics: A Complete Guide for Business“
Session 1: Introduction to the Energy Industry
- Lecture handouts [to come]
Session 2: Macro Risk and Geopolitics
- Lecture handouts [to come]
- Carlsson-Szlezak, P., and Swartz, P., “How to assess true macroeconomic risk” Harvard Business Review, July-August 2024
Session 3: Current Macroeconomic Trends
- “Five macro themes that will shape the world in 2026” by Neil Shearling, Capital Economics, December 1st 2025
- See Macro Trends
Session 4: Macro Seminar: Monetary and Fiscal Policy Today
- See Macro Seminar
- Textbook: Chapter 8 and Chapter 9
Session 5: International Economics
- Josko Joras (A), December 2012
- Textbook: Chapter 10
Session 6: How Markets Function
- See Market Applications
- Textbook: Chapter 4
Session 7: Markets and AI – responses to energy shocks
- “On the Origin of Money” (Carl Menger, 1892, Economic Journal, (2):239-55)
- “The Use of Knowledge in Society” (Friedrich Hayek, 1945, American Economic Review, 35(4):519- 530)
- “I, Pencil” (Leonard Read, 1958, Foundation for Economic Education)
- “What is Seen and What is Not Seen” (Frederic Bastiat, 1850, Paris: Guillaumin. This version taken from The Bastiat Collection, 2nd Ed., Mises Institute, 2007, pp. 1-11 only)
- To make things easier, I have republished the four readings in a single PDF file: Download the reading pack here.
- See Markets: Beyond AI
Session 8: Economics of Nuclear Power
- Lecture handouts [to come]
Session 9: Economics of Sustainability
- Lecture handouts [to come]
- See Sustainability
Session 10: Group Presentations and Recap
Recommended podcasts
- “Daniel Yergin – Oil Explains the Entire 20th Century”, Dwarkesh podcast, September 18th 2024
- “Standard Oil Part 2“, Acquired, October 18th 2021
- “Standard Oil Part 1“, Acquired, September 22nd 2021
Recommended videos
Richard Feynman explains how “fire is stored sunshine” (and therefore most energy is solar)
Here is the 2025 AXA Future risks report: