Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/119548
Authors: 
Ciccone, Alice
Year of Publication: 
2015
Series/Report no.: 
Memorandum, Department of Economics, University of Oslo 3/2015
Abstract: 
In 2007, the Norwegian government reformed the vehicle registration tax in order to reduce the carbon intensity of the new car fleet by incentivizing the purchase of more fuel efficient cars. This paper identifies the impact of the new tax structure on three main dimensions: (i) the average CO2 emissions intensity of new registered vehicles, (ii) the relative change in sales between low and high polluting cars and (iii) the market share of diesel cars. A Difference in Difference approach is employed to estimate the short run effects on each outcome variable of interest. The results show that the average CO2 intensity of new vehicles was reduced in the year of the implementation of the reform by about 7.5 g of CO2/km. This reduction is the result of a 12 percentage points drop in the share of highly polluting cars and of an increase of about 20 percentage points in the market share of diesel cars.
Subjects: 
CO2 emissions intensity
New vehicles
Vehicle registration tax
Tax reform
Norway
Diesel
JEL: 
H25
L62
Q51
Q53
Q54
Q58
R48
Document Type: 
Working Paper

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