This text has been translated from Norwegian with the assistance of GPT UiO.
– Which research project are you working on the most right now?
– Until recently, I have been working on understanding the role countries supplying natural gas in international markets may play in the green transition, in collaboration with B?rd Harstad.
– We base our research on a recent study from the United States that investigates how the large increase in shale gas production affected supply of electrity based on coal and renewables in the American market. This study finds that in the short term, gas replaces coal, thereby contributing to a reduction in global greenhouse gas emissions. However, in the long term, the abundance of gas likely slowed the transition, because lower electricity prices led to reduced investment in renewable energy.
– Our research demonstrates that this contradiction between short- and long-term effects of increased gas supply can create a dilemma for gas-supplying countries with climate concerns.
– We have identified what we've termed the "Gas Trap": To reduce greenhouse gas emissions, governments in the short term might increase gas exports to push coal out of the market, while claiming they will reduce gas production in the long term to promote investment in renewable energy. However, because they cannot commit to extracting less gas in the future, they will end up increasing their gas production instead. Investors understand this, and the result is reduced investments in renewable energy. In this way, the climate-motivated gas-producing country inadvertently contributes to increased global emissions.
– What do you want to find out?
– Initially, we were interested in examining the role natural gas might play in the green transition.
– Why is this important?
– There are many considerations that are important when a gas-exporting country, like Norway, decides on policy to regulate oil and gas extraction. Climate change is just one of these, but it is still important to understand what the global climate effects of Norwegian gas exports might look like. It's also crucial to be aware that if climate concerns become significant for Norwegian authorities in this area, it might be more effective to regulate exploration rather than export, which is one of our findings.
– Who do you collaborate with?
– On this project, I am collaborating with B?rd Harstad, who is a professor at Stanford University.
– What do you look for when choosing partners?
– Collaborating with other researchers has been essential for me. It has been important to choose co-authors that both enhance the research and contribute to my development as a researcher.
– What other research projects are you involved in?
– I am part of the Norwegian Centre for Tax Research (NFS), which is a research centre at the Department of economics. In affiliation with NFS, Karen Helene Ulltveit-Moe, Esther Ann B?ler, and I investigate how the oil price drop in 2014 influenced innovation in firms supplying inputs used in extraction of oil and gas. We find that companies experiencing reduced profitability after the oil shock have shifted their R&D efforts more towards renewable energy than other firms.
– What do you find most interesting about being a researcher?
– Being able to deeply immerse oneself in issues felt to be important for society is, of course, an enormous privilege!