Did Norway reduce Electric Car Incentives (Policy) because they were so costly?

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I wonder whether there is an official statement that some electric car incentives in Norway were stopped, because they were too costly. I came across this document, that states at the very bottom (I had it automatically translated, so maybe it does not) that there might be some loss in tax income. https://www.venstre.no/assets/BilavgiftsgjennomgangENIGHET_0605_2015.pdf

Would be delighted for any suggestions!

canIchangethis

Posted 2019-08-05T13:55:39.270

Reputation: 71

It was the main reason in The Netherlands - but the answer for Norway may differ. – Sjoerd – 2019-08-06T18:47:55.817

@sjoerd thank you! This is interesting, could you provide any reference please? – canIchangethis – 2019-08-06T20:58:30.310

Seems I was confusing hybrid for electric. I'm afraid that I'm limited to Dutch news articles, e.g. https://www.nrc.nl/nieuws/2019/06/26/subsidie-elektrische-autos-kost-schatkist-nog-meer-a3965208 . The article mentions that the government limited the fiscal advantage for hybrid cars after a report in 2013. Nevertheless, for full electric cars it's still in place: the article states that the subsidy in 2018 still amounted to 2000 euro per ton CO2 avoided (700 million euro for 25,000 cars - that's nearly 30k per car!). So it's gone for hybrid cars and somewhat limited for electric cars.

– Sjoerd – 2019-08-06T23:02:03.433

Answers

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This 2018 report by Ecofys und adelphi suggests that the original objective of the policy was to reach a certain market penetration and resulting network effects to kickstart electric vehicles.

[A] consensus was reached to uphold the financial incentives until at least 2018, or until a total EV car stock of 50,000 vehicles is reached. […] The fiscal incentives were intended to be upheld until 2017 or until the benchmark of 50,000 was reached (Zeniewski, 2017) but have been prolonged. Some argue that the EV market in Norway is now mature enough to gradually phase-out incentives, but the Norwegian EV association and environmental organisations argue that the level of support will need to increase to ensure a breakthrough of e-mobility beyond early adopters and second or third cars.

The reason for a phaseout would hence be that the agreed objective of the policy has been achieved.

That said, to my knowledge the phaseout has yet to happen, see e.g. this article from January 2021.

sba222

Posted 2019-08-05T13:55:39.270

Reputation: 609