There are many connections between energy systems and economic systems. The development of new, cost-efficient technology is thus of great importance for economic development.
Historically, there has been a relation between the introduction of new energy technology and industrial production. Many industrial sectors are extremely dependent on cheap energy, which has been available during the past century thanks to hydroelectric power and fossil fuels, for example.
In order for a new energy technology to be successful on the market, it must not only work, but it must be able to compete economically with existing techniques. Demands on profitability vary, and introduction onto the market and the spread of new technology can be made more difficult by the requirements of large-volume production to achieve scale effects and learning effects, etc.
An efficient energy market is often regarded as an important factor in economic development. The past 10 years have seen a surge of energy market reforms, which have led to improved energy efficiency and the introduction of renewable energy sources. The need for effective control instruments to achieve environmental and energy policy goals is becoming greater.
Technical-economical analyses of various energy systems, as well as studies on innovation systems, energy markets and the requirements for various actors to invest in energy efficiency and renewable technology, are being carried out at LTH. Economic-historical research is also being performed at Lund University to study the relation between long-term economic development and energy use, energy supply and environmental effects.