Recent Modelling Approaches in Applied Energy Economics

construction. Naturally, we are open to suggestions from all readers of, and contributors to, the series regarding its approach and content. Finally, I would like to thank all those who have helped the launch of this series. The encouraging response recei

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INTERNATIONAL STUDIES IN ECONOMIC MODELLING

Series Editor

Homa Motamen-Scobi Executive Director Canadian Imperial Bank of Commerce Securities Europe Ltd London

Modelling in the OECD Countries H. Motamen Modelling the Labour Market M. Beenstock Input-Output Analysis M. Ciaschini Modelling of Disequilibrium and Shortage in Centrally Planned Economies C. Davis and W. Charemza

Recent Modelling Approaches in Applied Energy Economics Edited by

Olav Bjerkholt 0ystein Olsen and

Jon Vislie

S

SPRINGER-SCIENCE+BUSINESS MEDIA, B.V

First edition 1990

© 1990 Springer Science+Business Media Dordrecht Originally published by Chapman and Hall Ltd in 1990 Softcover reprint ofthe hardcover 1st edition 1990 Typeset in 10/12 Sabon by KEYTEC, Bridport, Dorset

ISBN 978-94-010-5368-6 All rights reserved. No part of this publication may be reproduced or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in any retrieval system of any nature, without the written permission of the copyright holder and the publisher, application for which shall be made to the publisher. British Library Cataloguing in Pub li ca ti on Data Recent modelling approaches in applied energy economics.(International studies in economic modelling) 1. Energy approaches. Models I. Bjerkholt, Olav. 11. ülsen, 0ystein. III. Vislie, ]on. 333. 79011 ISBN 978-94-010-5368-6 ISBN 978-94-011-3088-2 (eBook) DOI 10.1007/978-94-011-3088-2 Library of Congress Cataloging-in-Publication Data available

Contents

Contributors Acknowledgements Introduction to the series Preface

VII IX Xl Xlll

PART ONE The European Gas Market

1

2

The Western European gas market: deregulation and supply competition Olav Bjerkholt, Eystein Gjelsvik and 0ystein Olsen

3

Residential energy demand - the evolution and future potential of natural gas in Western Europe Sarita Bartlett, Steinar Stmm and 0ystein Olsen

29

3

The European gas market as a bargaining game Michael Hoel, Bjart Holtsmark and Jon Vislie

49

4

Bargaining, vertical control, and (de)regulation in the European gas market Jon Vislie

67

Environmental effects of a transition from oil and coal to natural gas in Europe Knut H. Alfsen, Lorents Lorentsen and Karine Nyborg

87

5

PART TWO Management of National Petroleum Resources

6

Petroleum resources and the management of national wealth Iulie Aslaksen, Kjell Arne Brekke, Tor Arnt Johnsen and Asbj0rn Aaheim

103

Contents

VI

7 Oil and gas revenues and the Norwegian economy in retrospect: alternative macroeconomic policies Adne Cappelen and Eystein Gjelsvik

125

8

The resource rent for Norwegian natural gas Rolf Golombek and Michael Hoel

153

9

Social discount rates for Norwegian oil projects under uncertainty 171 Diderik Lund

10

11

The choice between hydro and thermal power generation under uncertainty T. 0. Kobila The management of jointly produced exhaustible resources Jon Vislie

187 207

PART THREE The World Oil Market and Macroeconomic Performance

12 The options for independent oil-exporting