An energy economist studies issues concerning the supply and use of energy around the world. This is a highly interdisciplinary field that encompasses issues such as climate change, indigenous rights, politics, and sustainability, in addition to the economics of global supplies. Such economists are employed national governments to assist them in making policy and collaborating with allies. These economists also work for private businesses, research institutions, and academic institutions that are interested in energy and economics.
The scope of research in this field is quite broad. Traditional energy sources such as coal and petroleum products are studied some energy economists, while alternative energy sources such as wind and solar energy are studied others. They can study demand as well as the movement of energy within a country and internationally. This could include an examination of sustainability and efficiency initiatives aimed at reducing the world’s energy demand.
Environmental issues pique the interest of some. They examine not only energy, but also how energy production, transportation, and use affect the environment. This can range from research into coal-fired power plant pollution to an examination of what happens to watersheds and fishers when hydroelectric dams are built. From an economic standpoint, an energy economist may need to calculate the cost of environmental impacts in order to determine whether production is financially viable or whether it needs to be adjusted to reduce environmental costs.
Certain types of policy decisions require the input of an energy economist from government agencies. These consultants can offer energy and environmental policy advice and recommendations with an eye toward long-term economic stability and environmental sustainability. They can also perform a cost-benefit analysis of various policy proposals and actions that a government could take to address energy needs. To provide a complete picture of a government’s options, this can include discussions of the social and environmental impacts of energy generation and use.
For their activities, utilities, environmental organizations, and other entities may require the services of an energy economist. An economist can assist a company in determining which energy investments to pursue and with what zeal. Economists can also assist organizations with environmental concerns examining the economic costs and presenting arguments for and against various types of energy development and use. This type of analysis can help with everything from organizing a protest against a proposed development to guiding a company through changes to its energy policy in order to be more environmentally conscious.