When every individual's effort imposes negative externalities, self-interested behavior leads to socially excessive effort. To curb these excesses when effort cannot be monitored, competing output-sharing partnerships can form. With the right-sized groups, aggregate effort falls to the socially...

Placing production units under common ownership is often suggested as a solution to the problem of externalities. This will not always be true when there are decreasing returns to scale. An atomistic industry could be more efficient than a monopoly in some instances. Even when the "optimal"...

Electricity markets have typically been regulated all over the world. In Europe, UK and Norway have begun to deregulate their electricity markets. Several more countries will probably join them in the near future, for example Finland, Sweden and Spain. The objectives are twofold: to increase...

The welfare effects of introducing taxes on emissions of carbon dioxide is analysed within an empirical general equilibrium model of the Norwegian economy. A CO2 tax regime where we aim at stabilising the CO2 emissions at the 1990 emission level in 2020 is compared to a reference scenario...

Norway has abundant gas resources in the North Sea. The Norwegian gas production accounts for 2 percent of the world production and 17 percent of the European gas production. Despite huge gas production and resources, gas is not used for electricity generation in Norway. Excess capacity, cheap...

In this paper, we describe the approach to, and experience of, the deregulation and liberalisation of the Norwegian electricity sector from 1991. The Norwegian electricity market was subsequently integrated with the Swedish, Finnish and Danish markets to become the Nordic electricity market: the...

The experience of liberalized electricity markets' ability to allocate scarce energy resources has been mixed. In this paper, we analyze how liberalized markets allocate power in the short and long run through the interaction between the spot and end-user markets. We show that totally inelastic...

Using a non cooperative climate policy game applied in the literature, we find that an agreement with international emissions trading leads to increased emissions and reduced efficiency.

We examine the largest cost component in offshore development projects, drilling rates, which have been high in recent years. To our knowledge, rig rates have not been analysed empirically before in the economic literature. Using econometric analysis, we examine the effects of gas and oil...

This paper examines the supply of U.S. LTO from both a theoretical and empirical point of view. The theory model combines endogenous rig activity and stylized reservoir pressure mechanics with the classic Hotelling model for exhaustible resource extraction. The empirical section presents a...