Research here includes analytical studies of power markets at Norwegian, Nordic, European and global levels. Themes of interest are, i.a., the impact of taxes, subsidies, green certificates and market power. Work is also done on carbon capture and storage (CCS). Large-scale simulation models are important tools in this field of study.
Standard economic theory provides simple and clear advice of how cost efficiency may be attained in the presence of imperfect markets and externalities. However, industry interests, concerns for regional settlement, income distribution and public revenue aspects imply political conflicts. Contradictory interests and unclear policy effects weaken the instruments.
Multiple Instruments to Change Energy Behaviour: The Emperor’s New Clothes?
- Torstein Arne Bye
- Annegrete Bruvoll