FINANCIAL INCENTIVES FOR ELECTRIC VEHICLES ADOPTION: EXPERIENCES AND EVIDENCES FROM EUROPEAN COUNTRIES

Solving environmental problems caused by road transport, in particular problems of global warming and climate change is one of the biggest challenges today. Given that vehicles are significant sources of CO2 emissions, many European countries have decided to speed up the transition from fossil fuel-powered vehicles to electric vehicles and thus contribute to the solution of these problems. Their experiences in this field can be very useful for other countries. For this reason, different financial incentives which are applied in European countries, as well as the effects of their implementation and therefore the ability to accelerate adoption of electric and other zero and low emissions vehicles are researched in this paper. Particular attention is given to financial incentives and their role in vehicle electrification policy in Norway, since it is the country with the most experience in this field in Europe as well as the country with large market share of electric vehicles. At the end of the paper, special attention is paid to financial incentives that favor these innovative technological solutions in the Republic of Serbia, as well as to reasons that explain the existing difference in the level of electrification of vehicles in the Republic of Serbia compared to other European countries.