Carbon Tax: A Norwegian Case Study Since 1991

Norway's carbon emissions have increased 15% since imposing a carbon tax in 1991, unlike neighbor's Sweden and Denmark where emissions decreased with their carbon taxes. Unlike the oil industry which became carbon-lean, Norway's drivers didn't change

"In 1991, Norway became one of the first countries in the world to impose a stiff tax on harmful greenhouse gas emissions. Since then, the country's emissions should have dropped. Instead, they have risen by 15%."

However, considering that economic growth has grown 70% while GHG emissions rose only 15% since 1990, the carbon tax has proven effective.

As a result of carbon sequestration in the North Sea, Norway's oil industry, measured in CO2 emissions per ton of oil and gas extracted, is 39% the industry average.

The real failure has been in transportation. "Norwegians are used to paying high prices at the pump: a gallon of gasoline costs around $9 to $10, and about 6% of the price comes from the carbon tax. Yet since two-thirds of Norwegians live in the countryside, they pay up and keep driving."

Full Story: An Exhausting War on Emissions

Comments

Prepare for the AICP Exam

Join the thousands of students who have utilized the Planetizen AICP* Exam Preparation Class to prepare for the American Planning Association's AICP* exam.
Starting at $199
Planetizen Courses image ad

Planetizen Courses

Advance your career with subscription-based online courses tailored to the urban planning professional.
Starting at $14.95 a month
Book cover of the Guide to Graduate Planning Programs 2012

Thinking about Grad School?

You need the essential resource for prospective planning students
Starting at $24.95
Book cover of Essential Readings in Urban Planning

Essential Readings in Urban Planning

Planning on taking the AICP* Exam? Register for Planetizen's AICP * Exam Preparation Course to save $50.
$369 includes free shipping!