ENERGY ECONOMICS
Instructional goals
provide historical and analytical foundations for understanding the most
important phenomena of the international and Italian energy system and a global
overview of the main policy strategies for the energy transition
Intended learning outcomes
The student - acquiring the correct tools and method - will be able to
interpret, apply and present the reference interpretative models, but also
develop practical projects on the energy system in a systematic way,
solving business problems of: demand, supply, costs, organization of
markets, institutional interventions and regulation, in the context of the
international markets and the energy and environmental policies. The
student, through the use of the methodologies acquired during the
course, will have acquired problem analysis skills and the ability to
identify the information necessary for their solution. At the end of the
course the student will be able to use the business and technical
vocabulary of energy and environmental economics, gaining advanced
rhetorical skills necessary for his/her professional career in the energy
business. The student will develop a solid knowledge of the fundamental
aspects of the subject that will allow him to continue to deepen the topics
addressed independently and to undertake the various post-graduate
professional training courses, such as Master of Science and MBA.
Course Contents
The program is divided into four parts.
The first part focuses upon a deepening of the general economic theory needed to understand the
operation of the energy system.
The second part shows the theoretical models applied to the energy system.
The third part deals with the general analysis of the energy system in a systematic way: demand,
supply, costs, organization of markets, institutional interventions and regulation.
In the fourth part there is a deeper analysis of special topics related to international markets and the energy and
environmental policies, the current debate on energy transition and some view on geopolitical implications of the energy markets.
Class discussion is aimed at enlightening some ideas of the current literature for further reading.
Reference Books
Zweifel Erdmann Praktiknjo, Energy Economics, Springer Verlag Editor, 2017
Bhattacharyya, Subhes C., Energy Economics, Concepts, Issues, Markets and Governance, Springer Verlag Editor, 2011, XXVI, 721p
Bigerna S. Bollino C. A. Micheli S, The Sustainability of Renewable Energy in Europe, Springer, Verlag Editor, 2015, VIII, 137p.
M. Filippini, S. Srinivasan, Introduction to Energy Economics and Policy, Cambridge University, 2025 Press
Teaching Methods
Traditional lecture - team works - business games
Assessment Method
Two intermediate written tests 25%, 25%, One final exam 50%.
Additional Bonus: Group paper writing on a topic discussed in class
Thesis assignment criteria
Specific interest and preliminary discussion with the student
Week 1
Introduction to energy markets
Week 2
Theory I: monopoly, monopolistic discrimination, oligopoly, market failures
Week 3
Theory I: asymmetric information, externalities, surplus, welfare analysis
Week 4
Theory II: LCOE, Hotelling price, target revenue, backstop technology
Week 5
Energy System: energy and energy sources
Week 6
Energy system: energy production
Week 7
Energy system:
optimal generation capacity choice
Week 8
Energy system: energy markets liberalization
Week 9
Oil markets
Week 10
Gas markets
Week 11
Electricity in liberalized energy markets
Week 12
Energy and environmental policy. Renewable energy sources subsidies.
Regulation and market mechanisms