Welcome to Skatteforsk and CENCE’s seminar with Katinka Holtsmark!
Holtsmark is assistant professor at the University of Oslo and will present her paper titled “The Gas Trap: Outcompeting Coal vs. Renewables” which is joint work with Bård Harstad.The seminar is open to everyone, and we invite all of you to join us on the 8th of May in room T330 in Tårnbygningen. If you are unable to be there in person you can watch through the teams-link below. We hope to see you there!
Title: The Gas Trap: Outcompeting Coal vs. Renewables
Authors: Katinka Holtsmark and Bård Harstad
Abstract: We analyze a fundamental dilemma and time-inconsistency problem facing a climate coalition producing natural gas. In the short term, it is tempting to export more to outcompete coal. When this policy is anticipated, however, investments in renewables fall and emissions ultimately increase. When the coalition cannot pre-commit, its policies will be counterproductive. We discuss the robustness of this result and possible solutions. If the coalition can invest directly in renewables, for instance, the incentive to maintain a high price on exports can mitigate the temptation to reduce the price to outcompete coal. Under certain conditions, the commitment outcome can be implemented.
Meeting ID: 369 477 698 820 7
Passcode: ms2EV9yJ