Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/250139 
Year of Publication: 
2021
Series/Report no.: 
Discussion Papers No. 972
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
Transportation is one of the main contributors to greenhouse gas emissions. Climate regulations on transportation are often a mix of sector-specific regulations and economy-wide measures (such as emission pricing). In this paper we analyse the effects on economic welfare, abatement costs and emissions of such interacting and partly overlapping climate regulations for private transportation. Our focus is on Norway, a nation where high taxation of conventional fossil-fuelled cars has paved the floor for another pillar of climate policies: promotion of electric vehicles (EVs) in private transport. Our contribution to the literature is two-fold. First, we analyse the costs and impacts of the partly overlapping climate regulations in transportation - the cap on domestic non-ETS emissions and the goal of all new cars for private households being EVs - focussing on the outcome in 2030 in Norway. Second, we respond to an important gap in the literature through a methodological development in economy-wide computable general equilibrium (CGE) approaches for climate policy by introducing EV technologies as an explicit transport equipment choice for private households. We find that, for the case of Norway, combining a specific EV target with policy to cap emissions through a uniform carbon price triples the welfare costs.
Subjects: 
Climate policy
carbon pricing
green transport policies
overlapping regulations
modelling electric vehicles
CGE-model
JEL: 
C68
H23
Q54
Q58
Document Type: 
Working Paper

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