Energy Economics

Energy economics is the sub-field of economics that studies human utilisation of energy commodities and energy resources and the after effects of this utilisation. In simpler words, Energy economics studies energy resources and energy commodities.

Energy commodities like gasoline, diesel, natural gas, propane, coal, etc provide energy services for human use, in lighting, water heating, cooking, etc.

Energy resources like crude oil, natural gas, coal, biomass, hydro, uranium, wind, sunlight, geothermal deposits, etc are harvested to produce energy commodities.

Energy economics is the study of forces that make economic agents namely firms, individuals and governments to supply energy resources, to convert those resources into other useful energy forms, to transport them to the users, and to dispose of the residuals. It also studies roles of alternative market and regulatory policies and organisations on these activities and consequences on the environment.

Overall, the main aim and scope of Energy economics is to study the  factors that lead to economic efficiency by economically optimum provision and use of energy commodities and resources.