Energy Markets and Principles of Energy Pricing

  • Subhes C. Bhattacharyya


This chapter introduces the economic concepts related to pricing of energy in different market conditions. The chapter starts with the basic competitive market model and discusses the extensions required to analyse specific features (such as indivisibility of capital, specificity of assets, capital intensiveness, etc.) of the energy sector. The chapter also covers the issue of market failure and presents the commonly used market interventions in such situations. The concept of cost-benefit analysis is used as the framework for most of the analysis.


Marginal Cost Energy Sector Average Cost Supply Curve Marginal Revenue 
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  6. Robinson C (2004) Markets, imperfections and the dangers of over-regulating energy markets. Econ Aff June:52–55Google Scholar

Copyright information

© Springer-Verlag London Limited 2011

Authors and Affiliations

  1. 1.Centre for Energy, Petroleum and Mineral Law and Policy, University of DundeeDundeeUK

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