OECD Environment Working Papers
This series is designed to make available to a wider readership selected studies on environmental issues prepared for use within the OECD. Authorship is usually collective, but principal authors are named. The papers are generally available only in their original language English or French with a summary in the other if available.
- ISSN: 19970900 (online)
- https://doi.org/10.1787/19970900
The Norwegian CO2-differentiated motor vehicle registration tax
An extended Cost-Benefit Analysis
In addition to a longstanding CO2 component in fuel taxes, Norway has used two main policy instruments to decarbonise its car fleet. A CO2-differentiated registration tax gives strong and continuous incentives to buy cars with lower registered CO2 intensity (or higher fuel efficiency). Moreover, generous tax incentives, including registration tax and VAT exemptions, are applied to zero-emission cars, and have given Norway the highest electric vehicle sales in the world. This paper analyses effects of the two instruments (the vehicle registration tax and tax exemption) using an excellent and detailed data set.
Keywords: vehicule registration tax, low-emission vehicles, Cost-benefit analysis, Distributional effects, environmental externality, co-benefits, Greenhouse gas emission reduction, policy instruments
JEL:
Q41: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Energy / Energy: Demand and Supply; Prices;
H23: Public Economics / Taxation, Subsidies, and Revenue / Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies;
L62: Industrial Organization / Industry Studies: Manufacturing / Automobiles; Other Transportation Equipment; Related Parts and Equipment;
Q54: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Climate; Natural Disasters and Their Management; Global Warming;
Q51: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Valuation of Environmental Effects
- Click to access:
-
Click to download PDF - 1.99MBPDF