Climate Change Policies in Norway and the Netherlands: Different Instruments, Similar Outcome?

This paper examines the extent to which climate change policies and instruments in Norway and the Netherlands have provided continuous incentives for the development, adoption and diffusion of new abatement technologies. More specifically, the paper examines whether differences between the types of instruments adopted (Dutch voluntary agreements and the Norwegian CO2 tax), problem type and domestic political context have affected technological change in the two countries' petroleum sectors. In brief, empirical evidence suggests that the two cases display quite similar outcomes in terms of technological change. That said, there are also important differences, pertaining most notably to the development and adoption of radical innovations in the Norwegian petroleum sector. The differences are in turn attributed to the interplay between the respective policy instruments adopted and the political contexts in which they are applied. These findings are important not only for policymakers involved in the selection of effective instruments in climate change policy, but also for the development of theories and analytical frameworks to examine and assess dynamic efficiency. [ABSTRACT FROM AUTHOR]