How Much Is Norway Paying To Promote Electric Cars?

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GRA

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This could go here or in the Business/Economy and Politics section. From Green Car Reports:

"With electric cars taking up 3 percent of the market for new car sales in a country of only five million people, Norway is one of the most electric car-friendly countries on the planet.

"Geographically small enough to minimize range concerns and with huge financial incentives for going electric, that perhaps isn't surprising.

"But how much is Norway's pro-electric car stance actually costing the country--and can any of the country's techniques really be used elsewhere?

"Probably not, concludes Reuters. That's not to say that the market for electric cars won't grow elsewhere, but it might have to do so more organically than the heavily incentivized methods used by Norway.

$8,200 in savings per year

"The country's various subsidies for electric vehicles amount to as much as $8,200 per car--every single year."

Full article here:

http://www.greencarreports.com/news/1082915_how-much-is-norway-paying-to-promote-electric-cars" onclick="window.open(this.href);return false;
 
From what I understand, they are "paying" to promote EVs by not imposing import tariffs on EVs, by not taking in the ~100% tax imposed on gasoline, and by installing an extensive charging infrastructure (though I haven't heard much of a cross-country DCFC network yet...). Parking is also free, I believe, in most parts of Oslo and I thought I read something about EVs being able to use traffic lanes restricted for buses. Added up, I suppose that is a loss in a lot of "missed" revenue, but it's not like Norway is pumping out thousands of dollars directly to EV drivers (ala the US federal tax credit).

Considering the country isn't exactly hurting for revenue (billions in oil revenue gets socked away every year) and benefits from abundant hydro power (in my mom's hometown, they melt the snow off the city streets using surplus energy), it's kind of surprising that they aren't promoting these cars even MORE. A hypothetical 40kWh LEAF would probably still end up costing much less than most any other ICE in the country. Speaking of which, I wonder if Tesla has landed in Norway yet...
 
TLeaf said:
Added up, I suppose that is a loss in a lot of "missed" revenue, but it's not like Norway is pumping out thousands of dollars directly to EV drivers (ala the US federal tax credit).
In the US, the tax credit is limited by tax liability, so I fail to see the distinction. In fact, the tax break in the US is significantly smaller than what is being offered in Norway.

In addition, Norway has apparently spent a large amount of money on infrastructure while the US has spent little.
 
The subsidies aren't "real" money like in the US. At least not the important one which is no import/registration tax & VAT. Example: I'm getting a Tesla Model S P85 to replace our other car. With full taxes I could not afford it so no taxes missed there. And I would never spend the same amount of money on an ICE car either, I'd just keep the one we have for another 5 year and replace it with a much cheaper car than the S.

Free road tools doesn't cost the state anything either. The toll booths are there to pay for roads so they stay up until the road is paid for. No income from EVs just means that ICE drivers have to may more per time or for a longer time.

And electricity is also taxes, however much less than gasoline.
 
redLEAF said:
Just to revisit this old thread ... how about the fact that they now have about 50,000 BEV's and the government reports a 2 billion kroner ($267.79 million) tax shortfall?

No plans yet to cut it yet ... but can't go long term like this


http://autoweek.com/article/green-c...er&utm_content=body&utm_campaign=awdailydrive

Scaled for USA, that would be a budget deficit of around $13B per year - which would be quite a improvement over current deficit ....

And a sole reason for that deficit is that due to lower oil prices, relevant state revenue declined. It has nothing to do with EV marketshare.
 
Yes, they have a lot of Teslas in Norway. And a couple hundred million budget deficit is nothing compared to the nearly $1 trillion savings account they have from all the oil money.
 
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