Norwegian emissions of CO 2 1987–1994

Several countries have introduced taxes on fossil fuels with the aim of reducing atmospheric emissions, partly because of local environmental goals (SO 2 , NO x ) and partly to participate in a global effort to reduce emissions of greenhouse gases. Many macroeconomic studies, based on both global and national models, have been made of how emissions can be reduced with the help of taxes and the consequent reduction in GDP following the introduction of such taxes. Norway has had a CO 2 tax for five years, thereby providing a unique opportunity to evaluate the effects of this tax on emissions. The paper provides a counterfactual analysis of energy consumption and emissions if no CO 2 taxes had been introduced, compared with the actual situation in which such taxes exist. The effect of a CO 2 tax on oil consumption, and thus CO 2 emissions is studied on the basis of partial economic models for various sectors of the Norwegian economy. The study indicates that the CO 2 tax has had an impact on CO 2 emissions in Norway. Copyright Kluwer Academic Publishers 1997