Supply-Side Climate Policy in Norway
Nordic Economic Policy Review, December 2019
To reach the Paris Agreement target – keeping global warming well below two degrees Celsius – there is a need for emission reductions on top of those already pledged. Norway has an ambitious climate policy targeting demand, while on the supply side exports of oil and gas contribute significantly to global emissions. This paper reviews the literature to assess whether a reduction in Norwegian oil extraction constitutes a cost-efficient policy to reduce global emissions. Key factors are the costs of reducing domestic supply and demand, the effect of domestic reductions on global emissions and the effect on the technological development.