“WILL” - Governing EU-Norwegian willingness to extract, combust and consume less carbon

A main strategy in Norwegian climate policy is embracing and encouraging the climate and energy policy initiatives of the EU by coordinating Norwegian policies with the EU. The purpose of this project is to explore and identify how to best mind the ambitions for coordinated policies in the EU and Norway, in terms of maximising the overall effectiveness of their combined initiatives. A key challenge for unilateral policy in a global market place is carbon leakage and competitiveness concerns. To reduce such concerns, we focus on how the EU and- Norway should target policies towards different points of the fossil fuel and emissions supply chain, from the point of extraction, to the point of combustion, and finally consumption. We will use both theoretical and detailed numerical models to analyse the different approaches to carbon pricing targets, and measure their efficiency in terms of global emission effects and economic welfare.