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Tax system changes to encourage environmentally friendly transport

Authors: Tanja Loftsgarden, Jørgen Aarhaug, Jan U Hanssen
Report nr: 1129/2011
ISBN (digital version): 978-82-480-1192-7
Language: Norwegian
Attachments Hele rapporten
Sammendrag

The current tax system in Norway favours the use of cars rather than more environmentally friendly means of transport, such as public transport, walking and cycling. This report describes measures that can be applied in order to change this situation. Various policy measures are assessed in terms of their potential to reduce car use, of their impact on tax revenues, and of their feasibility. The most effective measure seems to be an increase of car drivers’ costs of parking. At the same time, employers’ mileage allowance can favour more environmentally means of transport, by increasing the mileage rate for use of public transport, walking and bicycle, while reducing the rate for car use. Because some of these measures require legislative changes, they could be difficult to implement.

      

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