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.The example shows that the car taxes in Denmark from an economic perspective will have greater effect, if more ... is a minimum a three-year warranty on the car, for which reason any particular maintenance costs have not been included.
|Title||:||A Comparative Analysis of Taxes and CO2 Emissions from Passenger Cars in the Nordic Countries|
|Author||:||Henrik Duer, Camilla Rosenhagen, Nordic Council of Ministers|
|Publisher||:||Nordic Council of Ministers - 2011-05-31|