Introduction to Renewable Energy Economics

Energy is the engine of modern economies. Every good produced, every service delivered, and every moment of modern life is underpinned by energy use. Understanding how energy markets function is essential for making informed decisions about energy policy, investments, and the shift toward renewables. This chapter introduces the core principles of energy economics, including supply and demand, market structures, price formation, and elasticity—providing the analytical tools needed to assess renewable energy in economic terms.