The Significance of Green Taxes in Transport Electrification in Norway

Authors

DOI:

https://doi.org/10.15611/pn.2026.1.05

Keywords:

green taxation, electric vehicles, transport sector electrification, Norway, Energy Transition, climate mitigation policy, economic development

Abstract

Aim: Norway’s rapid road transport electrification offers a valuable case for understanding how green taxation can accelerate decarbonisation. This article’s objective was to examine how the electrification of transport can be accelerated via green taxation, analysing Norwegian policies implemented between 1991 and 2025, and to understand the socio-economic significance of the policies.

Methodology: The paper is largely based on the review of government reports, scientific literature and institutional websites on climate change policy, energy policy and transport policy in Norway.

Results: The study revealed that high carbon prices, combined with targeted fiscal incentives and infrastructure expansion, have transformed new car markets and reduced transport emissions, however this approach also entailed significant fiscal costs. Despite progress, challenges such as oil and gas revenue dependence, domestic political dynamics, and distributional and regional equity issues persist.

Implications and recommendations: The article advocates an adaptive policy framework to address strategic policy gaps and to ensure an environmentally, socially, and financially sustainable transition, featuring transparent revenue recycling, investment in grid and charging capacity, and complementary measures to protect vulnerable households.

Originality/value: To contribute to the existing literature on green taxation for transport electrification and to support future policy development, this paper assesses the role of green taxation in accelerating EV adoption. It outlines the Norwegian approach to transport electrification, evaluates the significance of green taxes for EV adoption, and concludes with recommendations for an adaptive and balanced policy framework to ensure an environmentally, socially, and financially sustainable transition.

Downloads

Download data is not yet available.

References

Barkenbus, J. (2020). Prospects for Electric Vehicles. Sustainability, 12(14), 5813. https://doi.org/10.3390/su12145813

Bjerkan, K. Y., Bjørge, N., & Babri, S. (2021). Transforming Socio-Technical Configurations through Creative Destruction: Local Policy, Electric Vehicle Diffusion, and City Governance in Norway. Energy Research & Social Science, 82, 102294. https://doi.org/10.1016/j.erss.2021.102294

Boasson, E., & Jevnaker, T. (2019). Energy Governance in Norway. Too Much of a Good Thing? In M. Knodt & J. Kemmerzell (Eds.), Handbook of Energy Governance in Europe (pp. 896-920). Springer.

Bruvoll, A., & Larsen, B. M. (2002). Greenhouse Gas Emissions in Norway: Do Carbon Taxes Work? Discussion Papers, (337). https://hdl.handle.net/10419/192319

Campbell, D., Lindhjem, H., Grimsrud, K., & Sandorf, E. D. (2023). Intergenerational Equity of Climate Change Mitigation. SSRN. https://doi.org/10.2139/ssrn.4648094

Cincotta, C., & Thomassen, Ø. (2025). Evaluating Norway’s Electric Vehicle Incentives. Energy Economics, 146, 108490. https://doi.org/10.1016/j.eneco.2025.108490

Climate Action Tracker. (2022). Norway. Retrieved March 25, 2025, from https://climateactiontracker.org/countries/norway/

Depren, Ö., Kartal, M., Ayhan, F., & Depren, S. (2023). Heterogeneous Impact of Environmental Taxes on Environmental Quality: Tax Domain-Based Evidence from the Nordic Countries by Nonparametric Quantile Approaches. Journal of Environmental Management, 329, 117031. https://doi.org/10.1016/j.jenvman.2022.117031

Dugstad, A., Grimsrud, K., & Lindhjem, H. (2024). Carbon Pricing Acceptance – The Role of Revenue Recycling among Households and Companies in Norway. Climate Policy, 24(10), 1365-1380. https://doi.org/10.1080/14693062.2024.2401853

Enova. (2024). About Enova. Retrieved December 27, 2024, from https://www.enova.no/about-enova/

Eriksson, F. A., Karlsson, A., Zetterberg, L., Bragadóttir, H., Von Bahr, J., Rootzén, J., Möllersten, K., & Kloo, H. (2023). Use of Economic Instruments in Nordic Environmental Policy 2018-2021. Nordic Council of Ministers. http://dx.doi.org/10.6027/temanord2023-520

European Alternative Fuels Observatory [EAFO]. (2025a). European Union (EU27). Retrieved March 27, 2025, from https://alternative-fuels-observatory.ec.europa.eu/transport-mode/road/european-union-eu27

European Alternative Fuels Observatory [EAFO]. (2025b). Norway. Retrieved December 21, 2025, from https://alternative-fuels-observatory.ec.europa.eu/transport-mode/road/norway

European Environment Agency. (2025). Greenhouse Gas Emissions from Transport in Europe. Retrieved December 18, 2025, from https://www.eea.europa.eu/en/analysis/indicators/greenhouse-gas-emissions-from-transport/greenhouse-gas-emissions-from-transport?utm

FAOLEX Database. (2023). Update of Norway’s Nationally Determined Contribution. Retrieved January 10, 2025, from https://www.fao.org/faolex/results/details/en/c/LEX-FAOC193922/

Figenbaum, E. (2017). Perspectives on Norway’s Supercharged Electric Vehicle Policy. Environmental Innovation and Societal Transitions, 25, 14-34. https://doi.org/10.1016/j.eist.2016.11.002

Fraunhofer ISI. (2023). Elektroauto versus Verbrenner – Kostenanalyse zeigt klaren Vorteil für E-Fahrzeuge. Retrieved March 28, 2025, from https://www.isi.fraunhofer.de/de/presse/2023/presseinfo-04-elektroauto-versus-Verbrenner-Kostenanalyse.html

Government of Norway. (2025). Norway is Electric. Retrieved March 27, 2025, from https://www.regjeringen.no/en/topics/transport-and-communications/veg/faktaartikler-vei-og-ts/norway-is-electric/id2677481/

Holtsmark, B., & Skonhoft, A. (2014). The Norwegian Support and Subsidy Policy of Electric Cars. Should It Be Adopted by Other Countries? Environmental Science & Policy, 42, 160-168. https://doi.org/10.1016/j.envsci.2014.06.006

Intergovernmental Panel on Climate Change [IPCC]. (2021). Climate Change 2021: The Physical Science Basis. Retrieved March 25, 2025, from https://www.ipcc.ch/report/ar6/wg1/downloads/report/IPCC_AR6_WGI_FullReport.pdf

International Energy Agency [IEA]. (2021). Global EV Outlook 2021. Retrieved December 5, 2024, from https://www.iea.org/reports/global-ev-outlook-2021

International Energy Agency [IEA]. (2022). Norway 2022. Energy Policy Review. Retrieved October 26, 2024, from https://iea.blob.core.windows.net/assets/de28c6a6-8240-41d9-9082-a5dd65d9f3eb/NORWAY2022.pdf

International Energy Agency [IEA]. (2023a). Norway’s Electric Vehicle Incentives.

International Energy Agency [IEA]. (2023b). Norway. Retrieved January 21, 2024, from https://www.iea.org/countries/norway

Johansen, U., Perez-Valdes, G., & Werner, A. (2018). Regional Aspects of a Climate and Energy Tax Reform in Norway—Exploring Double and Multiple Dividends. Sustainability, 10(11), 4175. https://doi.org/10.3390/su10114175

Kasa, S. (2000). Policy Networks as Barriers to Green Tax Reform: The Case of CO2‐Taxes in Norway. Environmental Politics, 9(4), 104-122. https://doi.org/10.1080/09644010008414553

Langdal, E. (2023, October 25). Husholdninger betaler mest for CO₂-utslipp. Statistics Norway. Retrieved December 5, 2024, from https://www.ssb.no/natur-og-miljo/miljoregnskap/artikler/husholdninger-betaler-mest-for-co2-utslipp

Lovdata. (n.d.). Forskrift om tekniske krav og godkjenning av kjøretøy, deler og utstyr (kjøretøyforskriften). Kap. 2. Definisjoner. Retrieved December 18, 2025, from https://lovdata.no/dokument/SF/forskrift/1994-10-04-918/KAPITTEL_2

Natome, D., & Feiring, E. (2021). Norad Report 10/2021. Green Tax for Development. The Role of Aid Agencies in Mitigating Climate Change through Environmental Taxes. Norad. Retrieved November 30, 2024, from https://www.norad.no/contentassets/474d71e3b9b149e2be937785ee83e957/green-tax-for-development-the-role-of-aid-agencies-in-mitigating-climate-change-through-environmental-taxes.pdf

Norskpetroleum. (2024). The Government’s Revenues. Retrieved January 21, 2025, from https://www.norskpetroleum.no/en/economy/governments-revenues/

Norskpetroleum. (2025). Exports of Oil and Gas. Retrieved March 29, 2025, from https://www.norskpetroleum.no/en/production-and-exports/exports-of-oil-and-gas/

Norwegian Electric Vehicle Association. (2022). Norwegian EV Policy. Retrieved March 26, 2025, from https://elbil.no/english/norwegian-ev-policy/

Norwegian Electric Vehicle Association. (2023). The Norwegian EV Association's TEDx Talk Sent with Push Notification to 38 Millions: If It Can Be Done in Norway, It Can Be Done Anywhere! Retrieved March 27, 2025, from https://elbil.no/if-it-can-be-done-in-norway-it-can-be-done-anywhere/

Norwegian Environment Agency. (2025). Greenhouse Gas Emissions 1990-2023. National Inventory Document. Retrieved March 27, 2025, from https://unfccc.int/sites/default/files/resource/Norway%20NID%202025.pdf

Norwegian Ministry of Climate and Environment. (2021). Meld. St. 13 (2020-2021) Report to the Storting (white paper). Norway’s Climate Action Plan for 2021-2030. Retrieved November 1, 2024, from https://www.regjeringen.no/contentassets/a78ecf5ad2344fa5ae4a394412ef8975/en-gb/pdfs/stm202020210013000engpdfs.pdf

Norwegian Ministry of Climate and Environment. (2023). Norway’s Eighth National Communication. Under the Framework Convention on Climate Change. Retrieved January 10, 2025, from https://www.regjeringen.no/contentassets/a69c7662e3ed4b1fa2f946f8e966343a/en-gb/pdfs/t-1582-e-norways-eighth-national-communication.pdf

Norwegian Ministry of Energy. (2016). The History of Norwegian Hydropower in 5 Minutes. Retrieved December 3, 2024, from https://www.regjeringen.no/en/topics/energy/renewable-energy/the-hisory-of-norwegian-hydropower-in-5-minutes/id2346106/

Norwegian Ministry of Finance. (2024). Meld. St. (2023-2024) Report to the Storting (white paper). Long-Term Perspectives on the Norwegian Economy 2024. Retrieved January 6, 2025, from https://www.regjeringen.no/contentassets/7400c9d08a5543b8912fbf700f3344fd/en-gb/pdfs/stm202320240031000engpdfs.pdf

Norwegian Ministry of Transport. (2017). Meld. St. 33 (2016-2017) Report to the Storting (white paper). National Transport Plan 2018-2019. Retrieved January 6, 2025, from https://www.regjeringen.no/contentassets/7c52fd2938ca42209e4286fe86bb28bd/en-gb/pdfs/stm201620170033000engpdfs.pdf

Norwegian Ministry of Transport. (2024). Meld. St. 14 (2023-2024) Report to the Storting (white paper). National Transport Plan 2025-2036. Retrieved January 6, 2025, from https://www.regjeringen.no/contentassets/aaee20cf5a9e468ea97fd51638c42407/en-gb/pdfs/stm202320240014000engpdfs.pdf

Organisation for Economic Co-operation and Development [OECD]. (2022a). Norway’s Evolving Incentives for Zero-Emission Vehicles. Retrieved December 9, 2024, from https://www.oecd.org/en/publications/ipac-policies-in-practice_22632907-en/norway-s-evolving-incentives-for-zero-emission-vehicles_22d2485b-en.html

Organisation for Economic Co-operation and Development [OECD]. (2022b). OECD Environmental Performance Reviews: Norway 2022. Retrieved January 23, 2025, from https://doi.org/10.1787/59e71c13-en

Organisation for Economic Co-operation and Development [OECD]. (2024a). OECD Economic Surveys: Norway 2024. Retrieved November 21, 2024, from https://www.oecd.org/en/publications/oecd-economic-surveys-norway-2024_cb13475f-en.html

Organisation for Economic Co-operation and Development [OECD]. (2024b). Pricing Greenhouse Gas Emissions 2024. Gearing Up to Bring Emissions Down. Retrieved January 10, 2025, from https://www.oecd.org/en/publications/pricing-greenhouse-gas-emissions-2024_b44c74e6-en/full-report.html

Ptak, M. (2014). Norwegian Tax System from the Point of View of Climate Change Policy. Equilibrium. Quarterly Journal of Economics and Economic Policy, 9(1), 71-92.

Schulz, F., & Rode, J. (2022). Public Charging Infrastructure and Electric Vehicles in Norway. Energy Policy, 160, 112660. https://doi.org/10.1016/j.enpol.2021.112660

Statista. (2025). Transport Greenhouse Gas Emissions in Norway 1990-2023. Retrieved December 18, 2025, from https://www.statista.com/statistics/672540/annual-greenhouse-gas-emissions-of-the-transport-sector-in-norway/

World Bank. (2022). State and Trends of Carbon Pricing 2022. https://doi.org/10.1596/978-1-4648-1895-0

Yang, A., Liu, C., Yang, D., & Lu, C. (2023). Electric Vehicle Adoption in a Mature Market: A Case Study of Norway. Journal of Transport Geography, 106, 103489. https://doi.org/10.1016/j.jtrangeo.2022.103489

Downloads

Published

2026-03-31

Issue

Section

Articles

Categories

Received 2025-10-17
Accepted 2026-01-15
Published 2026-03-31