 Greening the vehicle fleet: Norway's CO2-Differentiated registration taxShiyu Yan and Gunnar Eskeland Journal of Environmental Economics and Management, 2018, vol. 91, issue C, 247-262 Abstract: In 2007, Norway established its vehicle registration tax linked to vehicle CO2 intensities. In 2009, the tax was modified to a feebate structure but maintained its link to CO2 intensities. Using a panel dataset to exploit the quasi-experimental tax reforms, we estimate that a 1000-NOK (125-USD) tax increment reduces new vehicle sales by 1.06–1.58%. This result yields an elasticity of average CO2 intensity to CO2 price (implied by the tax) of −0.06. With a pass-through of the tax to car prices of 88%, the resulting elasticity of average CO2 intensity to average car price is −0.53. Thus, the tax significantly shifts consumers toward lower-emission vehicles. Our counterfactual simulations suggest that high-emission vehicle segments lose market shares and become less CO2 intensive, while low-emission vehicle segments gain market shares. Keywords: CO2 intensity; Low-emission vehicle; Vehicle registration tax; Fuel cost; Green tax reform; Greenhouse gas emission reduction (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:91:y:2018:i:c:p:247-262 DOI: 10.1016/j.jeem.2018.08.018 Access Statistics for this article Journal of Environmental Economics and Management is currently edited by M.A. Cole, A. Lange, D.J. Phaneuf, D. Popp, M.J. Roberts, M.D. Smith, C. Timmins, Q. Weninger and A.J. Yates More articles in Journal of Environmental Economics and Management from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.