Biofuel mandate versus favourable taxation of electric cars: The case of Norway


This study investigates whether biofuel policies or favourable taxation of electric cars should be employed to satisfy a green house gas emission target connected to private transport within the Norwegian economy. The study shows that implementation of biofuel generates a welfare gain in the presence of the current favourable taxation of electric cars in Norway. Implementation of biofuels, however, generates a welfare loss when the tax rate on purchase of electric cars is increased to the average tax rate on purchase of diesel powered cars.

Published June 20, 2017 10:26 AM - Last modified July 26, 2017 1:48 PM