Learning From the Norwegian Electric Vehicle Success: An Overview

Abstract

Norway is at the forefront of the transition from fossil fuels to an electrified transport sector. In the first half of 2022, more than four out of five new passenger cars sold were fully electric and the share of electric vehicles (EVs) in the total car fleet was almost one out of five. There are several reasons for this successful development. Norway’s electricity supply sector is almost entirely made up of renewable energy in the form of hydropower, with the recent addition of wind power. As a result, Norwegian politicians and regulators had to consider other sectors than electric power to reduce domestic carbon emissions. In the early stages, Norway introduced several measures to reduce carbon emissions in the transport sector, which contributed to about one-third of domestic carbon emissions. Incentives were introduced in the form of benefits, like free parking and ferry rides, access to prioritized bus and taxi lanes, and free public charging. However, the most important factor for the transition to EVs was the exceptionally high taxes for conventional cars fueled by gasoline or diesel, from which EVs are exempt. For many drivers in Norway, these taxes alone have made EVs more favorable than their fossil fuel counterparts.