The debate on electricity support must be broadened

Post-Mail Logo leadership On June 28, the Norwegian government said that electricity subsidies should be reduced. The debate was raised by the head of the Norwegian Water Resources and Energy Directorate Ketil Lund interview with Technology Weekly. Lund points out that high subsidies for electricity prices reduce the willingness of households to save electricity and invest in local energy production. This is unfortunate when the use of fossil energy is coming to an end. He is right.

The leaders and the subsequent debate revolved solely around the size of price subsidies within the current program and the possibility of directly supporting electricity conservation and energy production programs.

The latter is important, but the debate over electricity support is too one-dimensional. The authorities should look at better alternatives. Electricity support should be provided regardless of an individual’s consumption. This would both strengthen incentives to conserve electricity and provide more electricity to low-income groups.

We have reported this in articles such as online newspapers Energy and Climate April 2022. Professors Anders Schornhoft, Ola Kvaloi, Erlin Moxnes and Niels-Henrik von der Fehralso Green Partythere are similar advanced views.

Natural resources belong to everyone, not just those who use a lot of electricity. Profits should benefit everyone.

Diederik Lund

Professor Emeritus, Department of Economics, University of Oslo

Knut Einar Rosendahl

Professor at the Norwegian School of Economics, Norwegian University of Environment and Life Sciences