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Norwegian

Environmental effects of a vehicle tax reform: Empirical evidence from Norway

Link to article:

[DOI] [PDF]

Authors:

Ciccone, Alice

Year:

2018

Reference:

Transport Policy

Vol 69, 141-157

Summary

In 2007, the Norwegian government reformed the vehicle registration tax in order to reduce the carbon intensity of the new car fleet by incentivizing the purchase of more fuel efficient cars. This paper identifies the impact of the new tax structure on three main dimensions: (i) the average emissions intensity of new registered vehicles, (ii) the relative change in sales between low and high -intensive cars and (iii) the market share of diesel cars. The results show that the average intensity of new vehicles was reduced by about 7.5 g of /km in the year of the implementation of the reform. This reduction is the result of a 12 percentage points drop in the share of high -intensive vehicles and of an increase of about 20 percentage points in the market share of diesel cars.

JEL:

H25, L62, Q51, Q53, Q54, R48

Keywords:

CO2 emissions intensityNew vehiclesVehicle registration taxTax reformNorwayDiesel

Project:

Oppdragsgiver: Norges forskningsråd
Oppdragsgivers prosjektnr.: 209698
Frisch prosjekt: 3100 - Oslo Center for Research on Environmentally friendly Energy (CREE)