Subsidy schemes for reduced car use

The Climate agency in the City of Oslo engaged TØI to provide a knowledge base and evaluation of subsidy schemes for reduced car use. The task has had a four-fold objective: to provide a state-of-the-art and present experiences with established subsidy schemes; to provide a knowledge-based evalutation of how to organize such schemes – under which concerns; to consider the effectiveness of a subsidy scheme where the car is substituted, and the appropriateness of subsidies aiming at reduced car use. The evaluation is based on three sources: a literature and policy review; a focus group and a small survey to the politicians and administration in Oslo’s 15 urban districts. Subsidy as a policy measure has a strong appeal, however, with less certain goal achievement. That goes particularly for subsidies oriented towards unwanted behaviour, such as car use. Subsidies oriented towards the alternatives to car use could easily be embedded in complex mobility packages. Innovative subsidy schemes could lean to new terms and mechanisms like ecobonus, climate rewards and carbon fees and dividends.