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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.

English

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Introduction

The Nordic Council of Ministers group for Environment and Economy completed in 2008 the project Traffic Charges and climate impact, which included a survey of taxation related to goods and passenger vehicles and a statement of a number of key characteristics of the transport and vehicle fleet in the Nordic countries. The survey showed that there were big differences across the Nordic countries, both in the taxation of motor vehicles sector and in the composition and use of the fleet and consequently on CO2 emissions.

English

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