Environmental Economics (Policy)

Mid-term Assignment
Structure of Paper
Student Name: Manuscript without name will not be graded
Student ID:
E-Mail:
Tittle: Førdefjord case Study
1. Introduction
2. Main text including sub-sections
3. Conclusion
4. Reference if any

Deadline for Submission: November 14, 2023 or earlier. Late

submission will NOT be accepted or graded
Mode of Submission: Students are required to submit their

completed assignments personally in class

Instructions:
◆ Length of assignment: 1,500 ～2,000 words including references. Answer
scripts more than 2,000 words are also acceptable (but not more than
5,000 words)
◆ Please type-written your answers
◆ Font size: 10.5 or 11 (Time New Roman or Aerial), single space
◆ If you have any questions concerning the assignment, contact the
instructor at [email protected] OR ask the instructor in class

★★★Student who failed to submit the assignment will receive zero (0)
score for their mid-term
★★★Final grade is based on the aggregate of the mid-term scores and
final-term (Harvard Business School Case Method Program) scores. Please
note as regular class attendance is a student obligation, it is expected to
have an impact on your ultimate grade. However, students with prior
approval for leaves of absence are exempted.

1
 Førdefjord Case Study

1. Introduction
Norway, a predominantly oil-based economy, is a Nordic country in Northern Europe.
It shares the Scandinavian Peninsula with Sweden and Finland (Figure
1). Norway's coastline is famous for its fjords. Fjords are long, deep, narrow valley with
steep walls of rock on either side created by glaciers long time ago. They are covered
with seawater that reaches far inland. Fjords serve as important transition areas between
the land and sea, and provide valuable habitat for a variety of wildlife.

Figure 1: Geographical location of Norway

2
 The Norwegian fjords are internationally well-known for their incredible natural beauty
and attractive travel destinations. More importantly, the fjords constitute a critically
important spawning site for cod and other valuable fish stocks including the threatened
Atlantic salmon. Often described as a “nature's own work of art”, the Norwegians align
the fjords with their cultural identity and economy. The fjord in Førde (Førdefjord) as
discussed below, is a case in point (Figure 2). Førde is located in southwestern Norway-
-- one of the smallest towns in the country. It has a population of around 10,000 people
and job opportunities here are few. Fishing and sea food production is an important
industry in Førde.

Figure 2: Geographical location of Førde and Førdefjord

2. Førdefjord in perspective
Førdefjord is a world’s renowned natural intact landscape and biologically rich habitat
(Figure 2). It is in a short distance away from a dream world of fjords, mountains, glaciers,
forests and waterfalls. Førdefjord is home to various endangered IUCN red listed species
such as the cod, Atlantic salmon, sea eagles, porpoise and orcas, making it an important
global tourist attraction (Figure 3). In view of this, Førdefjord is designated as a National
Salmon Fjord to signify its biological and economic importance.
To the local people, Førdefjord is an ecological treasure full of life and cultural value.
However, because of its morphology, pollutants and heavy metals arising from the
development of heavy or mining industry can be trapped easily within the fjord at great

3
depth for decades. In view of its great cultural and biological value and economic
importance, the local people feel environmentally obligated and ethically inclined to
protect the ecological integrity of the Førdefjord ecosystem, and to keep it pollution and
waste-free for the benefit of present and future generations.

Figure 3: Critically important biological species in Førdefjord

3. Mining industry in Førdefjord

However, in 2015, a mining company, Nordic Mining, was given approval by the
Norwegian government (Ministry of Climate and Environment) to exploit mineral rutile
from the top of Engebø Mountain (Figure 4 and 5). Rutile is a mineral primarily composed
of titanium dioxide (TiO2). It is used to manufacture pure titan dioxide. In 2022, the
government approved the final discharge permit for Nordic Mining, allowing the company
to dispose 170-250 million tonnes of toxic waste including heavy metals, directly into the
designated National Wild Salmon Fjord and ocean over the anticipated 50-year life of
the mine.

4
Figure 5: Mine exploration on top of Engebø Mountain.

Figure 6: Mine exploration on top of Engebø Mountain

Nonetheless, the local people, marine researchers and environmentalists including the
Friends of the Earth joined forces to oppose to the environmentally harmful mining
project. They contended that the toxic marine mine waste dumping will not only threaten
the biodiversity of the fjords, but also the existing fishing, seafood and tourism industries.
This is detrimental to the cultural, and seriocomic wellbeing of the local people. The
Norwegian Institute of Marine Research has also advised against dumping mining waste

5
in Førdefjord. Some of the environmental activists claimed that the mining project is a
crime against the Norwegian natural environment.
In the face of widespread public discontentment and resistance, the government argued
that ““If Norway wants future workplaces and welfare, we must be competitive…The
minerals industry can be a motor for business and jobs in rural areas.” The government
further claimed that the mine project could generate up to 500 jobs amidst Norway’s
slowing economy and rising unemployment.

Question: In light of the above controversies, suppose you were

the chief adviser to the top policy maker who has the exclusive
right confers by the Constitution to revoke the project as it may
deem fit, what do you advise him? What is the rationale behind
your advice?

Please apply some of the environmental concepts you have learned from class
lectures or readings where relevant, to articulate your case. Please feel free to
introduce novel ideas of your own.