Energy poverty, defined as a lack of access to reliable electricity and reliance on traditional biomass resources for cooking, affects over a billion people daily. The World Health Organization estimates that household air pollution from inefficient stoves causes more premature deaths than malaria, tuberculosis, and HIV/AIDS. Increasing demand for energy has led to dramatic increases in emissions. The need for reliable electricity and limiting emissions drives research on Resilient Hybrid Energy Systems (RHESs), which provide cleaner energy through combining wind, solar, and biomass energy with traditional fossil energy, increasing production efficiency and reliability and reducing generating costs and emissions. Microgrids have been shown as an efficient means of implementing RHESs, with some focused mainly on reducing the environmental impact of electric power generation. The technical challenges of designing, implementing, and applying microgrids involve conducting a cradle-to-grave Life Cycle Analysis (LCA) to evaluate these systems’ environmental and economic performance under diverse operating conditions to evaluate resiliency. A sample RHES was developed and used to demonstrate the implementation in rural applications, where the system can provide reliable electricity for heating, cooling, lighting, and pumping clean water. The model and findings can be utilized by other regions around the globe facing similar challenges.

Despite advances in small-scale hybrid renewable energy technologies, there are limited economic frameworks that model the different decisions made by a residential hybrid system owner. We present a comprehensive review of studies that examine the techno-economic feasibility of small-scale hybrid energy systems, and we find that the most common approach is to compare the annualized life-time costs to the expected energy output and choose the system with the lowest cost per output. While practical, this type of benefit–cost analysis misses out on other production and consumption decisions that are simultaneously made when adopting a hybrid energy system. In this paper, we propose a broader and more robust theoretical framework—based on production and utility theory—to illustrate how the production of renewable energy from multiple sources affects energy efficiency, energy services, and energy consumption choices in the residential sector. Finally, we discuss how the model can be applied to guide a hybrid-prosumer’s decision-making in the US residential sector. Examining hybrid renewable energy systems within a solid economic framework makes the study of hybrid energy more accessible to economists, facilitating interdisciplinary collaborations.

Issues related to safe and abundant energy production have been prominent in recent years. This is particularly true when society considers how to increase the quality of life by providing low-cost energy to citizens. A significant concern of the Gulf Cooperation Council (GCC) relates to the environmental effects of energy production and energy use associated with climate change. Efforts to reduce fossil fuel use and increase the use of renewable energy, together with the price volatility of fossil fuels, have seriously impacted the economics of many oil-producing countries, particularly the Gulf States, which has led to efforts to make their economies more diverse and less dependent on oil production. In this article, we introduce a multidisciplinary energy economics course developed at the Missouri University of Science and Technology that can be easily adopted by GCC universities to enhance future generations’ understanding of energy challenges.