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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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Preface

Road transport contributes about one-fifth of the EU’s total emissions of carbon dioxide (CO2), the main greenhouse gas. While emissions have been falling at the European level they are still higher than they were in 1990. It is therefore of interest to look at what influence the CO2 emissions from transport and how different economic instruments impacts on CO2 emissions from the transport sector.

English

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