Researchers in Economics, coming from diverse backgrounds in micro economics, have decided to focus on energy and environmental economics, which means that they cooperate with engineers at the Future Energy group at our school EST. This research has hitherto been mostly theoretical, but now enters a more empirical direction. The purpose is to examine the relation between economic growth, energy use and the state of the environment. The group intends to put a particular emphasis on the role of technological change on both the energy effectiveness and the cleaning of production process. They also plan to examine some possible future scenarios for income, technological change, energy use and the state of the environment. Finally, the group expects to be able to recommend some policy measures in order to correct for possible market failures that may be connected to R&D, energy use and emissions.