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.
Published on June 18, 2021
In series:OECD Environment Working Papersview more titles