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The Norwegian support and subsidy of electric cars. Should it be adopted by other countries?

Author

Listed:
  • Anders Skonhoft

    () (Department of Economics, Norwegian University of Science and Technology)

  • Bjart Holtsmark

    () (Statistics Norway)

Abstract

As a result of generous policies to increase the use of electric vehicles (EVs), the sales of EVs in Norway are rapidly increasing. This in sharp contrast to most other rich countries without such generous policies. Due to the subsidies, driving an EV implies very low costs to the owner on the margin, probably leading to more driving at the expense of public transport and cycling. Moreover, because most EVs’ driving range is low, the policy gives households incentives to purchase a second car, again stimulating the use of private cars instead of public transport and cycling. These effects are analysed in light of possible greenhouse gas (GHG) emission benefits as well as other possible benefits of utilizing EVs versus conventional cars. We discuss whether the EV policy can be justified, as well as whether this policy should be implemented by other countries.

Suggested Citation

  • Anders Skonhoft & Bjart Holtsmark, 2014. "The Norwegian support and subsidy of electric cars. Should it be adopted by other countries?," Working Paper Series 15814, Department of Economics, Norwegian University of Science and Technology.
  • Handle: RePEc:nst:samfok:15814
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    File URL: http://www.svt.ntnu.no/iso/WP/2014/Skonhoft_2014.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Geir H. M. Bjertnaes, 2017. "The Efficient Combination of Taxes on Fuel and Vehicles," CESifo Working Paper Series 6789, CESifo Group Munich.
    2. repec:gam:jsusta:v:10:y:2018:i:4:p:1230-:d:141613 is not listed on IDEAS
    3. repec:taf:transr:v:37:y:2017:i:3:p:252-275 is not listed on IDEAS
    4. González Palencia, Juan C. & Araki, Mikiya & Shiga, Seiichi, 2016. "Energy, environmental and economic impact of mini-sized and zero-emission vehicle diffusion on a light-duty vehicle fleet," Applied Energy, Elsevier, vol. 181(C), pages 96-109.
    5. repec:eee:transa:v:106:y:2017:i:c:p:320-332 is not listed on IDEAS
    6. Geir H. M. Bjertnæs, 2017. "The efficient combination of taxes on fuel and vehicles," Discussion Papers 867, Statistics Norway, Research Department.
    7. repec:gam:jeners:v:11:y:2018:i:3:p:604-:d:135449 is not listed on IDEAS
    8. Bahamonde-Birke, Francisco J. & Hanappi, Tibor, 2016. "The potential of electromobility in Austria: Evidence from hybrid choice models under the presence of unreported information," Transportation Research Part A: Policy and Practice, Elsevier, vol. 83(C), pages 30-41.
    9. Vassileva, Iana & Campillo, Javier, 2017. "Adoption barriers for electric vehicles: Experiences from early adopters in Sweden," Energy, Elsevier, vol. 120(C), pages 632-641.
    10. Stef Proost & Mads Greaker & Cathrine Hagem, 2019. "Vehicle-to-Grid. Impacts on the electricity market and consumer cost of electric vehicles," Discussion Papers 903, Statistics Norway, Research Department.

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