Economics of Energy & Transport Systems

This subject addresses two key components of the clean energy transition: energy systems and transportation systems. It provides a comprehensive understanding of both types of networks and associated markets, with a focus on understanding government regulation designed to promote efficient investment in and operation and use of energy and transport services, as well as policies designed to mitigate the impact of the production and consumption of these services on the environment. Topics include market power and regulation, energy transportation and storage, cost-reflective pricing, renewable energy subsidies, crude oil prices and cartels, economic valuation of travel time and reliability, road congestion, tolls and fuel taxes, energy and fuel efficiency standards, competition among different transportation modes, and the economic implications of emerging technologies such as smart metres, household-level solar and batteries, and electric and autonomous vehicles.

• 1Explain the economic fundamentals shaping energy and transportation industries and policies;
• 2Analyse the pricing strategies in energy and transportation markets and their impact on consumers, businesses, and the economy;
• 3Critically evaluate the pricing of externalities;
• 4Describe the role of government intervention, subsidies, and regulatory frameworks in shaping energy and transportation markets;
• 5Evaluate the economic implications of emerging technologies, such as smart meters, electric and autonomous vehicles, on energy and transportation systems and sustainability; and
• 6Apply economic concepts to real-world energy and transportation issues.