Last modified: 11 Aug 2025 09:46
This course introduces key techniques from economics and finance to allowing understanding of the basics of business decision making within the energy industries and the economic implications of key energy policies. We consider basic financial concepts such as: present value, the opportunity cost of capital and their role in business decision making in energy industries. We also consider key economic elements of markets and how the economic environment structures the way in which businesses make decisions and energy market outcomes.
| Study Type | Postgraduate | Level | 5 |
|---|---|---|---|
| Term | First Term | Credit Points | 15 credits (7.5 ECTS credits) |
| Campus | Aberdeen | Sustained Study | No |
| Co-ordinators |
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Introduction to energy markets
Oil: History of the world oil market, Natural resource depletion, Hubert Curve and Peak Oil. OPEC. Electricity: Industry Structure, Ownership, Regulation and Reform in the UK.
Understanding Markets Introduction to the Economics of Consumer and Producer Behaviour Oil Supply and Demand Curves Price Determination: Recent oil market behaviour.
Wholesale Electricity Markets: Peaking Load Prices and Market Efficiency. “Missing Money” Problem. Understanding UK Electricity Market Reform.
Investment Appraisal Techniques and Project Evaluation. The Economics of Renewable Energy Projects: Project Economics in Petroleum Economics and the role of the Government :
Energy and the Environment: Market Failure and Global warming.
Information on contact teaching time is available from the course guide.
| Assessment Type | Summative | Weighting | 25 | |
|---|---|---|---|---|
| Assessment Weeks | Feedback Weeks | |||
| Feedback |
Students have 24-hour window to start the test. However, once started students have to finish it within 1 hour. |
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| Knowledge Level | Thinking Skill | Outcome |
|---|---|---|
| Conceptual | Apply | Demonstrate knowledge and understanding of basic financial concepts such as Present Value, the opportunity cost of capital, and their role in economic decision-making. |
| Conceptual | Understand | Understand key economic elements of energy markets and how the economic environment structures the way in which businesses make decisions. |
| Conceptual | Understand | Understand how economic models attempt to capture key features of reality in energy markets. |
| Conceptual | Understand | Understand the construction and analysis of an economic model, in particular how the model solutions may depend on assumptions. |
| Procedural | Evaluate | Critically evaluate government/regulatory interventions in energy markets, using economic and finance tools. |
| Assessment Type | Summative | Weighting | 75 | |
|---|---|---|---|---|
| Assessment Weeks | Feedback Weeks | |||
| Feedback |
Word Count: 2500 |
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| Knowledge Level | Thinking Skill | Outcome |
|---|---|---|
| Conceptual | Understand | Understand how economic models attempt to capture key features of reality in energy markets. |
| Conceptual | Understand | Understand key economic elements of energy markets and how the economic environment structures the way in which businesses make decisions. |
| Procedural | Evaluate | Critically evaluate government/regulatory interventions in energy markets, using economic and finance tools. |
There are no assessments for this course.
| Assessment Type | Summative | Weighting | 100 | |
|---|---|---|---|---|
| Assessment Weeks | Feedback Weeks | |||
| Feedback |
Word Count: 3000 |
Word Count | 3000 | |
| Knowledge Level | Thinking Skill | Outcome |
|---|---|---|
|
|
||
| Knowledge Level | Thinking Skill | Outcome |
|---|---|---|
| Conceptual | Understand | Understand key economic elements of energy markets and how the economic environment structures the way in which businesses make decisions. |
| Conceptual | Understand | Understand how economic models attempt to capture key features of reality in energy markets. |
| Conceptual | Understand | Understand the construction and analysis of an economic model, in particular how the model solutions may depend on assumptions. |
| Conceptual | Apply | Demonstrate knowledge and understanding of basic financial concepts such as Present Value, the opportunity cost of capital, and their role in economic decision-making. |
| Procedural | Evaluate | Critically evaluate government/regulatory interventions in energy markets, using economic and finance tools. |
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