Natural Resource Management: The Norwegian Model (not offered)

ENE433 Natural Resource Management: The Norwegian Model (not offered)

Spring 2024

  • Topics

    The course gives an overview of analytical, empirical and institutional issues in modern economic natural resource management and policy, and the tools, experience and insights that economists and decision-makers have gained from the management of nature, broadly defined. The terms of reference of the course will, in particular, be an economic analysis and evaluation of the resource management and policy regimes developed by a natural resource-rich country like Norway.

    The course will cover important aspects of the natural resource management and policy regimes through the resource value chain from exploration, production, transportation, etc. to end-use and the economic "value chain" from macroeconomic aspects, via sectors and markets, to aspects at the micro level (firms and consumers). Typically the course will concentrate on sectors where Norway has comparative advantages such as the fisheries sector, fish farming and aquaculture, hydropower production and the petroleum sector.

    Norway is abundantly endowed with natural resources and the utilization of its resource base has strongly influenced the industrial structure, foreign trade, economic development and welfare of the country. Norway is particularly rich in energy resources (oil, natural gas and water for hydro power production), fish, including fish farming, and some minerals, including thorium as a potential resource base for new technologies of nuclear power generation. The small size of the country (population 5 million), its geographic location on the outskirts of Europe, its political system and the generally high regard among its people for preserving the natural environment, have generated some special approaches to, and institutional arrangements for, the Norwegian natural resource and environmental management regime.

  • Learning outcome


    The student will gain insight in:

    • Management of natural resources in a historical perspective, international relationships, policy and trade.
    • Basic concepts in environmental and resource economics and management.
    • Main principles for optimal management of renewable and non-renewable natural resources.
    • Overview over tools and objectives in environmental and resource policy such as taxes and tradeable quotas.
    • Managing fish farming and the aquaculture sector.
    • Creating and managing national wealth funds from non-renewable resources such as petroleum.
    • How electricity markets function and are regulated, and insight in financial derivatives and instruments.


    The student will be able to:

    • Design and construct basic models for determining optimal policy measures in management of renewable resources
    • Evaluate present policies and practices and compare them with the ideal optimal policies.
    • Determine how to transform natural non-renewable resources into financial assets by building up a national wealth fund.

  • Teaching

    Intensive lectures

    In addition: excursions, social activities, discussion groups, preparing for the writing of term-papers or other student assignments, invitation of guest lecturers from energy companies etc., either at NHH or locally in connection with company visits, etc.

  • Required prerequisites

    • Applicants should have completed an undergraduate degree within economics and business administration
    • Excellent command of the English language

    Ideally, students registering for the course should have had an introductory course in natural and environmental economics. Students who do not have such background, are recommended to read the relevant chapters of the reference book for the course; Grafton et al; see below, in advance. A brief introduction to the economics of natural resource and environmental management will also be given at the beginning of the course.

  • Compulsory Activity

    Evaluation of the presentation of group projects on the last Friday (approved/not approved).

    Mandatory course attendance and class participation.

  • Assessment

    Group term paper. Deadline 2 July 2018.

    Individual term paper. Deadline 1 August 2018.

  • Grading Scale


  • Literature

    Background reading; reference book: R.Q. Grafton et al: The economics of the environment and natural resources, Blackwell, 2004. The following chapters are recommended: 1-4, 7, 8, and 14.

    A reading list of recommended articles for each of the topics in the course will be provided.


ECTS Credits
Teaching language

Summer. Not offered 2019.

Course responsible

Professor Stein Ivar Steinshamn, Department of Business and Management Science