This short paper borrows from my forthcoming energy economics textbook (2011), and consists of a part of the lecture that I once desperately wanted to present at either the Stockholm School of Economics, or at the research organization called Centre for Business and Policy Studies (SNS), which is also located in the Swedish capital. The reason is that several years ago (together with the brilliant Norwegian economist Eirik Amundsen), the president of the Stockholm School,

Read more...