Abstract:
This study finds that the welfare gain, excluding environmental effects, generated by increasing the Norwegian tax rate on purchase of electric cars from 8 to 37 percent amounts to approximately 5500- 6500 NOK (or 680-820 euro) per ton increase in GHG emissions in the long run. Substantial tax exemptions implies that reallocation from electric cars towards petrol and diesel powered cars generates a tax revenue gain of more than 40 billion NOK, which amounts to almost 10 percent of government consumption in 2007.
