A Comparative Analysis of Taxes and CO2 Emissions from Passenger Cars in the Nordic Countries

Download or read book A Comparative Analysis of Taxes and CO2 Emissions from Passenger Cars in the Nordic Countries written by Henrik Duer and published by Nordic Council of Ministers. This book was released on 2011-05-31 with total page 95 pages. Available in PDF, EPUB and Kindle. Book excerpt: The report discusses how economic instruments can be used to reduce CO2 emissions from passenger cars in the Nordic countries. The analysis indicate that: the registration tax and the annual circulation tax can contribute to a reduction in the average CO2 emission from new cars; company car schemes in the Nordic countries provide incentives for larger cars and increased driving because of subsidies, and this has long term effect as a large share of new cars are registered as company cars but are used as private cars most of their lives; CO2 differentiated taxes can provide incentives to consumers to purchase CO2 efficient cars; targeted broader packages which besides providing tax incentives also offer advantages to more environmentally friendly cars can be more effective than general tax increases; transparency of targets and instruments is crucial for a large diffusion of CO2 efficient cars.