New renewable energy developments and the climate change issue: a case study of Norwegian politics

It is widely agreed that the search for cleaner energy technologies is central to any long-term response to the threat of global climate change. Many countries are thus promoting the adoption of new renewable energy (NRE) sources and technologies within the context of energy and climate change policies. The scope of this paper is to unfold linkages between public policies and NRE developments using Norway as a case in point. The aims are firstly to assess the impacts of policy design and public priorities in terms of technology and industrial development dynamics, and secondly to discuss the role attributed to the climate change issue. The primary conclusion is that in spite of long-lasting public efforts, NRE sources represent only a pitiable fraction of the energy produced, delivered, and consumed in Norway, and only modest industrial development dynamics have taken place. Among the most important reasons for this poor outcome are (i) weak demand-side policies, (ii) fluctuating patterns in public priorities, and (iii) low electricity prices. The Norwegian experience substantiates claims that effective public strategies should be firmly based upon long-term commitments, employ a combination of policies and measures conducive to technical change and innovation, and be capable of guarding against path dependence.