Iceland's Energy Policy: Finding the Right Path Forward

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  • Product Description

    Abstract:
    Iceland has two unique features. First it has one of the most unique landscapes in the world. A country twice the size of Switzerland, it has only 300,000 inhabitants and thus most of its regions are sparsely inhabited. Second, it also has access to significant amounts of "green energy" in the form of geothermal and hydroelectric power and in the future, possibly wind. Further in Iceland green energy is comparatively inexpensive. These two attributes have set in motion a major debate - should Iceland accelerate the development of its green energy resources by attracting more power intensive industries to locate in the country and perhaps export some of its power to Europe or should it slow the rate of power development and focus on preserving its unique natural resources and build up its tourism industry? This case addresses these two alternatives. It is built around two specific decisions – whether the government should build the generating facilities that would provide the electricity for a fourth aluminum smelter and whether to accept a new plan written by the national electric company to aggressively embrace additional development of its energy resources.

    Learning Objective:
    This case explores a debate in Iceland: should Iceland accelerate the development of its green energy resources by attracting more power intensive industries to locate in the country and perhaps export some of its power to Europe or should it slow the rate of power development and focus on preserving its unique natural resources and build up its tourism industry?

  • Other Details

    Publication Date: October 31, 2012
    Teaching Plan: Available with Educator Access
    HKS Case Number: 1968.0
    Case Author: Halla Hrund Logadóttir
    Faculty Lead: Henry Lee
    Pages (incl. exhibits): 28
    Setting: Europe
    Language: English
    _year: 2010-2015
    _pages: 25+
    _geography: Europe
  • Warranty Information

    /review/1968.0.EducatorCopy.pdf, /teachingplan/1968_2.pdf

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