Reforms in Vehicle Registration Tax Can Reduce CO2-emissions

The Norwegian Parliaments target to reduce new passenger vehicles average CO2-emission to 85 g/km (type-approval value) in 2020, can be achieved by reforms in the vehicle registration tax.

The CO2-target for new cars in Norway is 85 g/km in 2020.

In three out of four scenarios, described in this report from Institute of Transport Economics, the target is reached directly. The fourth requires further actions.

Achieving the target will result in a 35 percent reduction of the average emission level of new vehicles in 2012. This is due to the increased demand for vehicles with lower CO2-emissions and the increase in market share of Electric and Plug-in Hybrid vehicles induced by the tax reform.

A gradual introduction of the reform will reduce the drawbacks and cost for consumers and dealers because the availability of vehicles with low emissions increases over time.

Report:
85 g CO2/km in 2020 – Is that achievable? Report 1264/2013
Authors: Erik Figenbaum, Gunnar S. Eskeland, Jonathan Leonardsen, Rolf Hagman.
Link to report (in Norwegian).

Contact: Erik Figenbaum efi@toi.no TØI, Norway