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The electric power market has been deregulated since 1991 and electricity wholesale prices are market based. 8 The Nordic market is tied to the rest of Europe and is thus increasingly affected by price signals for Europe. 2. 4. 9 Mtoe a) Excludes international marine and aviation bunkers. b) Total primary energy supply. c) GDP at 2005 prices and purchasing power parities. d) Breakdown excludes electricity trade. Source: OECD-IEA (2010), Energy Balances of OECD Countries; OECD (2010), OECD Economic Outlook No.

Technology spillover, market power in relevant markets, information barriers). Moreover, the additional instruments should be applied only if the benefits of doing so exceed the costs (without any benefits regarding CO 2 emission reductions being assumed). Furthermore, any subsidies given should be well targeted to the relevant market failure and time bound. In a sustainable development context, it should be kept in mind that any cost-ineffective instrument use would entail a loss of welfare for someone in society.

47 2010 rates in equiv. 2. 5. 886 Gas For heating Natural gas LPG For other purposes Natural gas LPG NOK/m3 NOK/kg .. 05 – NOK/m3 NOK/kg .. 00 2 310d 3 185 3 245 2 310d 2 740 2 790 Exemptions Applies to households and commercial activities. Industry, mining and district heating pay a reduced rate set at the EU minimum level (2003/96/ EC) – they were exempt in 1994-2004. Power-intensive industries (metal, cement, chemicals) are exempt. In the north of Norway, business activities pay a reduced rate and households are exempt.

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