CO2 emissions and economic incentives

Recent developments in CO2 emissions from passenger cars in the Nordic countries and potential economic incentives to regulate them

image of CO2 emissions and economic incentives

The CO₂ emissions from passenger cars is declining. Some changes are due to ever improved technology provided by car manufacturers and others induced by political regulation. The report investigates the recent changes in CO₂ intensity in the car fleets in the Nordic countries. The trends in the car sales are presented and the impacts on overall CO₂ intensity are outlined. All Nordic countries have in the past ten years changed the national regulation of passenger cars through different economic incentives and various schemes making low emissions vehicles more favourable. The report describes these changes and complement with an overview of international empirical findings concerning the main tax instruments (purchase-, annual-, fuel tax and road user charges). The potential impact of these taxes are reviewed and recommendations for future uses of the various instruments are provided.



Current situation

This chapter describes current situation and the development in passenger car CO2 emissions and car taxation in recent years. The aim is twofold. First to see if we can find some evidence for some correlation between the car taxation and the CO2 emissions in Nordic the countries. Secondly, in order to identify potentials for possible reductions in CO2 emissions with eventually identified relevant economic measures.


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