The volume, written by Professor Massimo Filippini and Dr Suchita Srinivasan , is an introductory text on energy economics and energy policy. The book presents economic frameworks useful for understanding "the major energy and climate challenges faced by industrialised and developing countries, and the energy and climate policy approaches that can be adopted to address these challenges". The book provides a new perspective, complementing classical approaches with insights from behavioural economics.
The first part of the volume analyses the main problems with energy systems and discusses the role that market failures play in contributing to these problems. The volume then analyses energy demand and highlights how to use tools from investment analysis to make economic decisions in the energy sector. The second part of the text discusses the use of some energy and climate policy instruments to address the issues presented above. In conclusion, the criteria for policy choice are then explained, analysing the various types of economic models in the energy sector and developing common models for policy evaluation. Both traditional market-based and non-market-based instruments are discussed.
The book adds value by discussing "both the traditional market failures and behavioural anomalies in the context of energy and climate policy". A detailed discussion and evaluation of energy and climate policy measures is also offered. Finally, much emphasis is placed on understanding the nature of the problems in developing countries, which are most likely to bear the brunt of global warming and climate change.
Several online exercises are provided for each chapter, allowing students to apply and test their knowledge on each topic covered.
