Energy economics studies energy resources and energy commodities, and includes: forces motivating firms and consumers to supply, convert, transport, use energy resources, and to dispose of residuals; market structures and regulatory structures; distributional and environmental consequences; economically efficient use. It recognizes: (a) energy is neither created nor destroyed but can be converted among forms; (b) energy comes from the physical environment and ultimately returns there. Humans harness energy conversion processes to provide energy services. Energy demand is derived from preferences for energy services and depends on properties of conversion technologies and costs. Energy commodities are economic substitutes. 

Energy Economics is the field that studies human utilization of energy resources and energy commodities and the consequences of that utilization.

Energy economics studies forces that lead economic agents – firms, individuals, governments – to supply energy resources, to convert those resources into other useful energy forms, to transport them to the users, to use them and to dispose off the residuals. Its studies roles of alternate market and regulatory structures on these activities, economic distributional impacts, and environmental consequences. It studies economically efficient provision and use of energy commodities and resources and factors that lead away from economic efficiency.


Top Career Paths: Energy Economics 

Job description for Energy Economist is to conduct economic analysis related to protection and use of the natural environment such as water, air, land and renewable energy resources. Evaluate and quantify benefits, costs, incentives and impacts of alternative options using economic principles and statistical techniques. 

Develop economic models, forecasts, or scenarios to predict future economic and environmental outcomes. Develop systems for collecting, analyzing and interpreting environmental and economic data. Examine the exhaustibility of natural resources or the long-term costs of environmental rehabilitation. 

The role of the Energy Economist will be to provide deep sectoral expertise for the analysis of power markets and identify opportunities for bank support.

Coordinate/support the delivery of flagships as relevant to ensure delivery of the New Deal on Energy objectives;

Support the rolling out of transparent Independent Power Producers procurement scheme and the mobilization of the private sector in generation;

Compile energy market data, analyses market trends, including demand, supply and price projections, and undertakes market intelligence in support of financing decisions

Monitor and analyze evolution of energy policies in Regional Member Countries and Regional Economic Communities;

Assess the institutional and regulatory environment of the energy sector and identify opportunities for Bank support;

Carry out studies related to the medium- to long-term impacts of major energy projects, programs and policy developments in Regional Member Countries, Power Pools and Regional Economic Communities;

Prepare medium-to- long term energy sector outlook reports on in Regional Member Countries/Regional Economic Communities;

Advise on the preparation of energy sector master plans for member countries;

Coordinate energy initiatives and programs with regional bodies such as the African Union, Development Financial Institutions and bi-lateral partners;

Carry out economic and stakeholder evaluation of energy projects funded by the Bank where relevant;

Climate and Energy Economist 

US Legislative Branch – Washington DC 

Preference will be given to candidates with experience modelling energy markets or systems. 

Salary range: $130,000 - $160,000 a year 

Energy Economist 

Congressional Budget Office – Washington, DC 

Preference for candidates with experience modelling energy markets or systems. The Energy, Environment and Infrastructure unit conduct research 

Salary range: $70,000 - $91,000 a year 

There is more than meets the eye when it comes to being an energy economist. For example, did you know that they make an average of $47.34 an hour? That’s $98,460 a year! 

Between 2018 and 2028, the career is expected to grow 8% and produce 1700 job opportunities across the U.S 

Energy Economist: Salary 

Energy Economist Employer: Wood Mackenzie 

Location: London or Edinburgh 

Salary: £40,000 - £50,000 

Energy Economist (Commodity Market Analyst) 

Recruiter: Bruce Hunt Associate Ltd 

Salary: £25,000 to £32,000 per year (+bonus + benefits)