Research field

Climate policy and economics

Research in this field includes studies of climate policy and alternative formulations of international treaties and national policies. Instruments studied include taxes on emissions, emissions trading schemes, green and white certificates, investments under the green development mechanism CDM, technology development incentives and strategies to increase the support to international climate treaties.


  • Alternatives to the Kyoto Protocol - The nature, design and feasibility of robust climate treaties

    In this project we study the design of future alternative climate agreements and analyze how they can be design to achieve broad participation and deep emissions cut.

  • Emission trading in Europe: The importance of allocation rules

    The objective of the project is to study emissions trading for CO2 emissions in Norway and the EU, with main focus on allocation of quotas.

  • Multiple instruments

    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.

  • SMART PATHS - Smart paths and costly detours towards a sustainable low-emission society

    Norway can choose different routes to the low-emission society. SMART PATHS aims to distinguish smart paths from costly detours. Smart climate strategies avoid lock-in in fossil fuel-dependent technologies and behaviour and are robust to changes in global surroundings. A smart climate strategy also includes careful surveillance. For that purpose, we will develop transformation indicators for monitoring and facilitating adjustments of the path to a low-emission society.