Energy Economics

With renewed concerns of rising energy prices over the last decade, the potential effect of fossil fuel use on climate change, and calls to increase energy independence, interest in Energy Economics is once again at an all time high. The aims of this book are twofold: first, there are no easy answers to our energy issues, so that we must consider costs and benefits when evaluating all energy alternatives; and second, we must get the prices right, where those prices need to reflect the full social costs to society of a given source of energy. Throughout the text, there is a focus on societal objectives, primarily efficiency and maximum social welfare, but also consideration of sustainability. The result is a comprehensive view of energy market successes and failures, and a realistic understanding of the government#xE2;#xAC;"s role where the market outcome conflicts with society#xE2;#xAC;"s goals. The text takes a fully international view of the topic and covers traditional and future energy sources.