The Significance of Green Taxes in Transport Electrification in Norway
The Significance of Green Taxes in Transport Electrification in Norway

Summary/Abstract: Aim: Norway’s rapid road transport electrification offers a valuable case for understanding how green taxation can accelerate decarbonisation. This article’s objective was to examine how the electrification of transport can be accelerated via green taxation, analysing Norwegian policies implemented between 1991 and 2025, and to understand the socio-economic significance of the policies. Methodology: The paper is largely based on the review of government reports, scientific literature and institutional websites on climate change policy, energy policy and transport policy in Norway. Results: The study revealed that high carbon prices, combined with targeted fiscal incentives and infrastructure expansion, have transformed new car markets and reduced transport emissions, however this approach also entailed significant fiscal costs. Despite progress, challenges such as oil and gas revenue dependence, domestic political dynamics, and distributional and regional equity issues persist. Implications and recommendations: The article advocates an adaptive policy framework to address strategic policy gaps and to ensure an environmentally, socially, and financially sustainable transition, featuring transparent revenue recycling, investment in grid and charging capacity, and complementary measures to protect vulnerable households. Originality/value: To contribute to the existing literature on green taxation for transport electrification and to support future policy development, this paper assesses the role of green taxation in accelerating EV adoption. It outlines the Norwegian approach to transport electrification, evaluates the significance of green taxes for EV adoption, and concludes with recommendations for an adaptive and balanced policy framework to ensure an environmentally, socially, and financially sustainable transition.

• Details
• Contents