The New Palgrave Dictionary of Economics Online

Energy economics studies energy resources and energy commodities. It includes forces motivating firms and consumers to supply, convert, transport, use energy resource; market and regulatory structures; distributional and environmental consequences; economically efficient use. The fact that energy use is dominantly depletable resources, particularly fossil fuels, makes this study unique. The energy industry has moved into the 21st century with promises of both profits and a short-term future. With added pressure from government, cleaner fuels are being introduced on a continual basis. Additionally, the expanding energy demand from developing countries is changing the energy market.