[News] Rogaland: carbon and electric fuels
Norwegian motorists face a very high price of Carbon
As compared to the price of emission allowances in the European cap-and-trade system, the price paid by Norwegian motorists is 40 to 50 times higher.
The price of carbon characterizing the trade-off between conventional and battery electric cars in Norway exceeds € 1370 per ton of CO2. As compared to the price of emission allowances in the European cap-and-trade system, the price paid by Norwegian motorists is 40 to 50 times higher.
The rapid market uptake of battery (BEV) and plug-in hybrid (PHEV) electric vehicles in Norway is unparalleled. Their sales have grown almost continuously since 2010, at the expense of gasoline and diesel cars. In 2020, the BEV and PHEV market shares were 52.3 and 20.4 percent, respectively
In a recent paper from TOI.no (Institute of Transport Economics), The Norwegian Vehicle Electrification Policy and Its Implicit Price of Carbon, the fiscal policy instruments behind this development are examined. In essence, the Norwegian policy consists in taxing internal combustion engine vehicles rather than subsidizing electric ones.
There are 14 different fiscal incentives in place bearing on vehicles, fuel or road use.
Read the article describing them (English)