Economics of energy, big ideas for the non-economist

The interdisciplinary nature of energy issues calls for a 'big ideas' approach to both energy teaching and research. To devise a suitable framework, it is necessary to develop simple narratives for relevant disciplines based on big ideas found therein, and to link them to other disciplines. This paper focuses on energy markets, their successes and failures, and outlines basic remedies for the latter. It suggests that the tension between market forces and market failures is not only a focal point of today's most pressing energy issues, but that it also provides a central geopolitical narrative of the 20th century. The importance of understanding energy policy logic within a broader political context, both domestic and global, is also emphasized. Finally, the paper illustrates, through examples, that the search for interconnections between energy economics and ideas in the sciences, humanities and other social sciences can only deepen our understanding. Crown Copyright (C) 2014 Published by Elsevier Ltd. All rights reserved.